Increase in popularity of the Caribbean could see property rentals increase
Investor interest in Caribbean property is hotting up as it has been revealed that the region has been voted the top holiday destination this summer by British Airways customers.
Beating sunny contenders such as South Africa and perennially popular Florida, the Caribbean emerged as the clear winner with British holiday makers. It could be good news for property owners who want a rental income.
‘The thought of relaxing on a stunning beach, in the warm and friendly Caribbean is a real draw as the summer weather continues to be a bit of a let down back home,’ said Claire Bentley, managing director of British Airways Holidays.
As one of the main economic drivers, touristic appeal remains a high priority for many Caribbean nations. The region as a whole saw a positive 3.3% increase in visitor arrivals at 23.8 million in 2011 compared to 2010 according to the Caribbean Tourism Organisation.
Indeed accessibility continues to be paramount to the tourism success of many islands and those, such as the spice island of Grenada, with direct flights to international destinations including the UK, USA and Canada stand a better chance of not only maintaining but increasing visitor levels in the future.
Ray Withers, chief executive of Property Frontiers which is marketing newly released hotel suites at Bacolet Bay Beach Resort on the island of Grenada, said that the figures are very encouraging.
‘Despite the global economic downturn, Caribbean tourism levels continue to rise. Grenada alone welcomed 116,398 overnight guests and some 309,000 cruise ship day visitors in 2011 and with the World Travel and Tourism Council predicting the island to be the fastest growing market in the Caribbean between 2011 and 2021, we believe that Grenada is the best place to invest in the region,’ he explained.
‘In terms of property investment opportunities, the vastly undersupplied luxury hotel sector remains one of the most attractive options. Hotel occupancy levels across the Caribbean rose to 61.8% in 2011 and RevPAR reached US$103.57, the highest levels reported since 2008 according to STR Global data. However hotel room supply in the region remains limited with only three new properties opening in 2011, increasing room supply by a mere 0.9% whilst demand in the region rose 3.5%,’ he added.
The Cinnamon Suites at Bacolet Bay Beach Resort are on a secluded 300 meter long white sandy beach on the southern shores of the tropical island, some 15 minutes from the international airport and have sea views.
They are available 30% below independent valuations from $248,500, with a three year rental guarantee from 7.2% per annum with one month personal usage. Completion and the opening of Phase One is due in the second half of 2013 and the project will include waterfront restaurant, bars, swimming pool, spa, gymnasium, pontoon and walkways, tennis courts and a panoramic reception area.