Luxury resort view

Why investing in resorts makes sense in 2021?

Resorts offer other amenities besides accommodation and dining and are a good investment avenue. 

As businesses are starting to recover from the impact of the COVID-19 pandemic and with consumers choosing to travel again, the resort industry is expected to deliver the very best experience for their customers. 

Most of which exhibit very different leisure tastes and preferences. 

The economic value is maximized when customer expectations and the delivered experience are in alignment. 

Here are a few reasons why investing in the resort industry makes sense on a commercial level, keeping the future trends in mind:

Domestic Travel

The resort industry has been programmed on a growth path through domestic travel – which is an investment-led growth. 

As tourism world-over enhances with focused investment from various governments and local bodies, and the disposable income on leisure and lifestyle elevates – growth trajectory for resorts will achieve an upward curve.

Reasonable Fixed Cost

Almost all resorts are secluded in terms of their location, far away from the bustling urban life. 

From the business expenses point of view, this makes it easier to lower costs related to the rental lease, taxes, and utilities. 

Moreover, if locally hired – which most of the resorts anyways do, staff cost like salaries are relatively lower.

COVID-19 free investment

An investment in resorts is free of any potential impact due to COVID-19. 

Owing to the secluded location of resort properties, it is financially and logistically easier to create a safe and secure bubble within the property. Recently, such measures are at the top of mind for travelers. 

The properties are indeed isolated and less crowded, which makes them less vulnerable to the transmission of the virus.  

Additionally, resorts have contemporary product/service packages like Staycation and Workation. 

With long-distance travel, conventions, trade shows, and other large events unlikely to return to any appreciable extent for a year or more, the hospitality industry is refocusing on local and domestic travel markets. 

“Staycation” and “Workation” packages are being used to lure city dwellers eager for a close-to-home respite from the stress of lockdown. 

Resorts are targeting consumers within a day’s drive, offering a safe, feasible getaway.

Investment in Resorts = ESG investments

Investment in a resort has an Environmental, Social, and Corporate Governance (ESG) impact as well. 

The resort development and environmental preservation go hand in hand. 

Resorts provide an opportunity for achieving optimal results in protecting local flora and fauna, cultural diversity of the place, and natural scenic beauty. 

This works as a unique amalgamation of the local, national, and international economies.  

A resort differs from a hotel in that it attempts to provide for most of its guests’ needs on its premises. 

Investing in a resort business is a very fulfilling venture since resort businesses have a flair for pleasing others. 

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