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A silver lining in the recessionary clouds
Dennis Morrison, Contributor
Investment activity in the Caribbean tourism sector has virtually ground to a halt since the onset of the current global economic recession.
But in Jamaica, one exciting new resort project by Seawind Key Investment, a company owned by the Spanish group Fuerte Hotels, did get started in 2008. The US$180- million project, which is situated in the Montego Freeport at an ideal beachfront location, will create two 350-room hotels: Secrets St James and Secrets Wild Orchid.
The exclusive all-suite 700-room property, which is scheduled to open in March 2010, will be operated by AM Resorts, a prestigious United States leisure chain, and is expected to generate positive consumer appeal for the destination.
things fall apart
Prior to the financial meltdown and the recession, the Caribbean region was enjoying robust inflows of foreign direct investment in tourism developments, and major new luxury resorts were in the pipeline in the Bahamas, Dominican Republic and Jamaica. Jamaica, which emerged in the 2000s as the leading mobiliser of investment, was poised for increased activity in 2007. But across the region developers have concentrated over the past year on completing existing projects while the majority of new resort developments have been deferred or cancelled.
In the 2003-2008 period, the development of new resorts proceeded at record pace in Jamaica with some 5,500 new rooms being added, of which 2,300 were opened in 2008. Projects involving another 4,000 rooms by Spanish hotel chains were also approved. The developers of these approved projects are yet to proceed to the construction stage and luxury resorts such as Harmony Cove have no doubt been affected by the downturn in the real estate and travel industries.
The hotels being developed by Fuerte Hotels at Montego Freeport are at an advanced stage of construction and will be the first to be run by AM Resorts in Jamaica. They will be operated under the company's Secrets Resorts and Spas luxury resort brand. AM Resorts operates hotels in Mexico and the Dominican Republic under its three unique resort lifestyles: Zoetry Wellness Resorts and Spas, Secrets Resorts and Spas and Dreams Resorts and Spas. It is connected to tour operators with long-standing exposure to Jamaica's tourist industry.
Secrets St James and Secrets Wild Orchid will be the third new resort to be developed in the tourism capital since the mid-2000s and will bring the number of new rooms to more than 2,400, excluding the luxury condominium by Palmyra Resorts & Spa which is nearing completion. This expansion in room capacity in Montego Bay is well timed to complement the development of the modern convention centre now under construction in the Rose Hall area. These investments, together with the modernisation of the Sangster International Airport, convenient air connections, highway development and other infrastructure, have reinvigorated the city's standing as a leading Caribbean resort destination and enhanced its attractiveness in the market for meetings and conventions.
The Seawind Key Investment project has created 1,500 jobs during construction in a period when employment opportunities have been hard to find and will employ 1,000 persons when in operation. Fuerte Hotels, which has developed the project, owns six resort hotels on the southern coast of Spain.
Dennis Morrison, Contributor
Investment activity in the Caribbean tourism sector has virtually ground to a halt since the onset of the current global economic recession.
But in Jamaica, one exciting new resort project by Seawind Key Investment, a company owned by the Spanish group Fuerte Hotels, did get started in 2008. The US$180- million project, which is situated in the Montego Freeport at an ideal beachfront location, will create two 350-room hotels: Secrets St James and Secrets Wild Orchid.
The exclusive all-suite 700-room property, which is scheduled to open in March 2010, will be operated by AM Resorts, a prestigious United States leisure chain, and is expected to generate positive consumer appeal for the destination.
things fall apart
Prior to the financial meltdown and the recession, the Caribbean region was enjoying robust inflows of foreign direct investment in tourism developments, and major new luxury resorts were in the pipeline in the Bahamas, Dominican Republic and Jamaica. Jamaica, which emerged in the 2000s as the leading mobiliser of investment, was poised for increased activity in 2007. But across the region developers have concentrated over the past year on completing existing projects while the majority of new resort developments have been deferred or cancelled.
In the 2003-2008 period, the development of new resorts proceeded at record pace in Jamaica with some 5,500 new rooms being added, of which 2,300 were opened in 2008. Projects involving another 4,000 rooms by Spanish hotel chains were also approved. The developers of these approved projects are yet to proceed to the construction stage and luxury resorts such as Harmony Cove have no doubt been affected by the downturn in the real estate and travel industries.
The hotels being developed by Fuerte Hotels at Montego Freeport are at an advanced stage of construction and will be the first to be run by AM Resorts in Jamaica. They will be operated under the company's Secrets Resorts and Spas luxury resort brand. AM Resorts operates hotels in Mexico and the Dominican Republic under its three unique resort lifestyles: Zoetry Wellness Resorts and Spas, Secrets Resorts and Spas and Dreams Resorts and Spas. It is connected to tour operators with long-standing exposure to Jamaica's tourist industry.
Secrets St James and Secrets Wild Orchid will be the third new resort to be developed in the tourism capital since the mid-2000s and will bring the number of new rooms to more than 2,400, excluding the luxury condominium by Palmyra Resorts & Spa which is nearing completion. This expansion in room capacity in Montego Bay is well timed to complement the development of the modern convention centre now under construction in the Rose Hall area. These investments, together with the modernisation of the Sangster International Airport, convenient air connections, highway development and other infrastructure, have reinvigorated the city's standing as a leading Caribbean resort destination and enhanced its attractiveness in the market for meetings and conventions.
The Seawind Key Investment project has created 1,500 jobs during construction in a period when employment opportunities have been hard to find and will employ 1,000 persons when in operation. Fuerte Hotels, which has developed the project, owns six resort hotels on the southern coast of Spain.
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