a very good idea, but in any case you need a development team, an investor, and connections with the ATM BCM!
Bitcoin is decentralized and the government has nothing to do with bitcoin and they may not allow you to install ATM in your city. The big problem is the users if there is no user in your city then installing ATM will not be a good idea. Users are mandatory to use ATM for their transactions. I would like to advise you to invest in bitcoin besides installing an ATM in your city. You will make more money from your investment.
This would be on case to case basis only.If his country or place do have some good significant amount of bitcoin users then its ideal to put some ATM but should really set some reasonable interest on each bitcoin being bought by them because if they would find out its way more expensive than on buying on exchange then this thing wont really be worth of since people will surely neglect.Just only set reasonable price and also adoption and awareness will be there also which would really potentially increase even more bitcoin users on the place.