f Paria - Ins and Outs of Trinidad & Tobago 2013
f Paria - Ins and Outs of Trinidad & Tobago 2013
f Paria - Ins and Outs of Trinidad & Tobago 2013
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Property<br />
Peter Sheppard<br />
The limited foreign exchange that was<br />
up for grabs, went to other isl<strong>and</strong>s such as<br />
close neighbours, Grenada <strong>and</strong> Barbados<br />
<strong>and</strong> even as far as devastated Montserrat,<br />
where visitors continue to invest in holiday<br />
homes at reasonable prices. By attracting<br />
foreign investment, Barbados especially<br />
was able to keep its quality st<strong>and</strong>ards high,<br />
<strong>and</strong> as a result its room rates. Although<br />
arrivals have edged down, revenue has not<br />
fallen proportionally.<br />
<strong>Tobago</strong> is in need <strong>of</strong> significant<br />
reinvestment to encourage not only new<br />
resort development but to upgrade existing<br />
hotels, guesthouses <strong>and</strong> even villas. The<br />
dem<strong>and</strong>s <strong>of</strong> the travel industry indicate<br />
that to combat the downward trend in<br />
tourism there must be an increase in<br />
quality products on <strong>of</strong>fer so that the high<br />
end <strong>of</strong> the market can still be serviced,<br />
since these travelers are less susceptible<br />
to the cash <strong>and</strong> credit crisis. From this<br />
perspective, it is clear that the problems<br />
experienced by the <strong>Tobago</strong> real estate<br />
market since 2007, have resulted in a whole<br />
raft <strong>of</strong> new opportunities for investment.<br />
If you are a major investor with an<br />
interest in hotels/resorts there are a<br />
number <strong>of</strong> estates on the isl<strong>and</strong> that have<br />
been earmarked for development <strong>and</strong><br />
where government facilitation <strong>and</strong> fiscal<br />
incentives would be a given. If your budget<br />
is smaller, it is likely that an existing hotel<br />
might be available for purchase <strong>and</strong><br />
upgrade, <strong>and</strong> certainly if your interest is<br />
more the private holiday home, there is a<br />
range <strong>of</strong> properties in different locations<br />
that you can consider.<br />
This question <strong>of</strong> location does highlight<br />
one aspect <strong>of</strong> the new licence regulations<br />
that have just been put in place.<br />
Supported by detailed boundary maps<br />
covering mainly the southwest <strong>of</strong> the<br />
isl<strong>and</strong>, foreign investment in the future<br />
will be directed to designated areas that<br />
are distinct from local residential areas.<br />
The intention <strong>of</strong> this ruling is to protect as<br />
much as possible, the local sector <strong>of</strong> the<br />
market from the more speculative aspects<br />
<strong>of</strong> the tourism-driven investment market.<br />
This will <strong>of</strong> course, create two distinct<br />
market sectors, <strong>and</strong> lovers <strong>of</strong> free-market<br />
forces may question the validity <strong>of</strong> this<br />
move, <strong>and</strong> its fairness to those who own<br />
property outside <strong>of</strong> the designated areas.<br />
Despite this, it is agreed that the<br />
important thing is to free up the market<br />
<strong>and</strong> then deal with any anomalies in due<br />
course. Market conditions are constantly<br />
changing <strong>and</strong> it is incumbent on any<br />
democratic administration to monitor<br />
changes <strong>and</strong> react to them as required<br />
in the light <strong>of</strong> their vision for long-term,<br />
sustainable growth.<br />
It is worth repeating that small private<br />
investors have, over the past decade <strong>and</strong><br />
a half, contributed to a major blossoming<br />
<strong>of</strong> the villa market in <strong>Tobago</strong>, building a full<br />
range <strong>of</strong> properties for short-term holiday<br />
rental that spans the budget family holiday<br />
up to the no-budget, high-end holiday.<br />
This villa sector is particularly valuable to<br />
<strong>Tobago</strong> as a holiday destination because it<br />
provides a degree <strong>of</strong> luxury that is not yet<br />
<strong>of</strong>fered by the bulk <strong>of</strong> the accommodation<br />
sector.<br />
With full implementation <strong>of</strong> the l<strong>and</strong><br />
licence confirmed in October 2009, a<br />
strong signal was sent that <strong>Tobago</strong> once<br />
again welcomes investors as well as<br />
visitors, <strong>and</strong> the investment climate is<br />
once again conducive to the completion<br />
<strong>of</strong> the many important residential <strong>and</strong><br />
tourism projects that have been on hold<br />
since 2007.<br />
One <strong>of</strong> the first projects to remobilise,<br />
will be a four-star, seventy-nine-apartment<br />
beachfront hotel catering directly to a<br />
major holiday company <strong>and</strong> its clients’<br />
needs. Then during 2010, construction<br />
will begin on the isl<strong>and</strong>’s first six-star<br />
spa resort that will boast many “wow<br />
features” including an ambitious organic,<br />
agro-tourism project, <strong>and</strong> full green status<br />
in line with the highest LEED-certified<br />
<strong>and</strong> Virgin’s Hip Hotel st<strong>and</strong>ards. These<br />
investments will surely place <strong>Tobago</strong> right<br />
in the center <strong>of</strong> the Caribbean treasure<br />
map.<br />
170<br />
The <strong>Ins</strong> & <strong>Outs</strong> <strong>of</strong> <strong>Trinidad</strong> <strong>and</strong> <strong>Tobago</strong>