Friday, February 22, 2008Tortola Chic!

Keith DawsonTortola Goes Luxury

“The fact is that the BVI has not had a single major new development in almost 20 years. In that same time, our competitors around the region have built dozens of world-class resorts. If we fail to act, the tourism industry of the BVI will eventually be overwhelmed by its inability to compete.”

This statement underscores the state of the BVI’s tourism industry with respect to resort development. While the BVI remained on a resort development hiatus, its global and regional competitors built new resorts with more amenities and enhanced their service to five star levels; some even ranking as the top hotels in the world in 2007. Although many of the existing resorts of the BVI underwent renovations and expansion over this period, it has proven inadequate to keep the BVI in step with the changing global tourism landscape. Faced with the choice of either allowing the Territory to become obsolete in the luxury resort market or embarking on a course of action to return the Territory to prominence as a formidable competitor in that market, the BVI chose the latter and the competition is on.

Over the past 4 years, the Government actively sought out potential tourism investors to develop resort properties in the Territory in keeping with task No. 4 of the Government’s 2003-2007 Legislative Agenda to “Encourage further resort and hotel development in the Territory including the provision of a golf course”. The Government had to overcome the perception that the BVI was not investment-friendly in the area of resort development. These efforts resulted in attracting a number of investors with resort development proposals, with its policy being to only consider developments that are compatible with the tourism profile of the BVI, as a destination with resort developments that are high-end, low-rise, low density and environmentally sustainable.

To date, the development concepts of 5 major resort projects have been approved, namely Scrub Island, Beef Island, Smuggler’s Cove, Nail Bay and Lambert Beach. It is believed that these projects can bring significant sustainable value to the economy that far outweighs the associated costs. Under a provision of the Planning Act 2004, the BVI Government has entered into Development Agreements with these major investors to guide the process of development, outlining broad responsibilities and obligations from each party. The development agreement allows Government to establish relationships with investors that it feels are the “right mix” for the BVI. The same Act provides for the Premier to handle all tourism development projects exceeding an investment of $10 million.

The Government agreed to expedite processing of permits and applications associated with the development and grant concessions, which would enable the projects to move forward more easily. The developers agreed to complete construction within a specified time frame, conduct environmental impact assessments, make provisions for public access, and give priority to BVI companies and employees during both the construction and operational phases. Introducing amenities such as an 18-hole golf course and adding to the selection of spas, conference facilities and marinas will ensure that the BVI remains competitive in the island destination market for many years to come. This investment initiative addresses the need for resort properties at varying levels.

The first to come on stream will be Mainsail Resort and Spa on Scrub Island. As a visitor to the island you will find a boutique five star hotel, spa, marina and luxury residences. The approximately $100 million investment boasts 110 guest rooms, a 59-slip marina and other amenities: spa, restaurants, fitness centre, astronomy observatory, retail stores, dive shop and fishing charters. The project is scheduled to open in fall of 2008.

For a larger 200-unit luxury 5-star residential resort there is the proposed Quorum Island Resort (BVI) Ltd. on Beef Island that connects to Tortola by a bridge. Proposed are marina facilities, an 18-hole golf course designed by Jack Nicklaus and amenities like a conference facility, luxury spa, restaurants, swimming pools, water sports and shopping centre. The investment is approximately $80 million. The golf course, marina and hotel are scheduled to be completed within 6 years, while villa development is to be done over a 20-year span. Construction is scheduled to commence in early, 2008. For the tourist with a desire for a more intimate vacation experience the Villa Paradiso at Smuggler’s Cove, Tortola is proposed for this area. The upscale, luxury resort comprises of 22 villas and 15 luxury hotel suites. The amenities include a restaurant, swimming pool, gym, tennis court and a spa. It will take six years to complete the $40 million project.

Also found on Tortola is the proposed Lambert Beach Resort. The existing hotel is being developed and expanded into a low-density five star luxury hotel comprising 210 rooms. When construction is completed in six years it will boast restaurants, conference centre, swimming pools, spa and tennis. A maximum of 224 luxury condo units will be constructed and approximately 20 lots made available for luxury villa construction development. To date this is the most expensive project at $200 million. Over on Virgin Gorda, Nail Bay will be a four or five star resort consisting of approximately 100 hotel units, plus additional hotel spa suites, hotel villas, townhouses and residential villas. The hotel will boast a spa, restaurants, bars, swimming pools, gift shops and boutiques. The six-year project will total $50 million.

These major projects mean a few things for the territory. They will provide stimulation of the economy both during the construction and the operational phases. Employment and business opportunities for locals during these phases are an initial benefit while on the broader spectrum the investments renew investor confidence in the BVI. Overall they will upgrade the quality of accommodations in the Territory and thereby: provide service and amenities at the 5 star levels and increase room capacity in the BVI; increase visitor arrivals particularly among up-market guests; and increase bargaining power and influence with airlines, wholesalers, travel agents and other industry interests.

With the new hotels and the plethora of amenities, the Territory will have an enhanced capability for handling medium to large conferences and for the first time the BVI will take a serious stake hold in new markets like golf and secure increased penetration in fledgling and established markets including health/sport, mega yachting.

Yet, at the very basic the projects will increase government revenue via hotel taxes and other fees including stamp duty. The advertising budget of these new properties will give the Tourist Board additional reach in attracting visitors and will enhance tourism marketing leverage.

Catering to an international clientele of increasingly sophisticated travellers, the residents of the BVI will benefit from enhanced utility and customer service including a wider variety of choice. The Government has made plans to ensure that BVIslanders are able to participate in the vast economic opportunities that these developments will present.

Government has already established a Small Business Bureau in the Department of Trade and Consumer Affairs. Those locals who take advantage of the training and programmes offered by this department would likely be able to offer various services to the resort developers. BVIslanders would then be able to access the Small Business Guarantee Fund set up by Government to start new businesses or strengthen existing ones. The recently launched BVI Technical Vocational Institute and the Technical/Vocational Programme at HLSCC should enable young BVIslanders to take advantage of employment and entrepreneurial opportunities at these resorts and free tuition at HLSCC and recently negotiated reduced tuition fees in the UK provide excellent opportunities for BVIslanders to empower themselves educationally.

The number of management and finance related programmes that the HL Stoutt Community College is collaborating on with mainland universities in the United States and the United Kingdom will certainly supply a pool of knowledgeable and skilled individuals to take up appropriate positions in resort management or to offer financial and other business services. The investment in Prospect Reef as the proposed site for a hospitality training facility will undoubtedly provide training at all levels of the industry while on the opposite side of Tortola the Culinary Arts Programme at the Community College provides a strong base of home grown and regional talent to service this very important aspect of resort operations.

The BVI Tourist Board initiated the Tourism Industry Service Standards or TISS Program three years ago. That organization continues to lead the industry including Government agencies with high levels of visitor contact, in enhancing the quality and level of service rendered to our visitors. Government is also ensuring that local property owners maintain and enhance their stake in the tourism industry by amendments made to the Hotel Aid Ordinance. This gives concessions to a wider variety of small properties and supports the main umbrella group of locally owned properties, BVITAP (BVI Tourist Accommodation Properties). The ultimate goal of government’s approval of these developments is to improve the standard of living for all residents and to ensure a more secure future for our youth.

These tourism investments will help fund the Government’s extensive infrastructural development plan throughout the Territory including roads, schools, hospitals and sports facilities, to name a few. The entry of these new developments on the BVI’s economic landscape along with developments in the Financial Services sector and the recent elevation of our Shipping Registry to Category One status will pave the way for the Territory to become a five star destination. That is, a destination that provides visitors and locals alike with a high quality of service throughout the public and private sectors and one that has a world-class physical tourism product. Vice President of Mainsail Development Ltd. (the Developers of Scrub Island) Mr. James Talton said, “Being the first of the major luxury developments, we hope to lead the charge towards the BVI becoming a five star destination.”

It is paramount then for the Government to manage the process, ensuring that the Territory’s environmental integrity is maintained, excellence in service is promoted and practiced Territory-wide, BVIslanders continue to get first preference for employment and business opportunities and all concerning these developments, is done to the sustainable benefit of the Territory for generations to come. It is only in this way that the vision of becoming a five star destination can be achieved.

Oyster Publications Inc, PO box 3369, Road Town Tortola, British Virgin Islands, VG1110