f Paria - Ins and Outs of Trinidad & Tobago 2013

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