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Tobago Resort Set To Land Tour Contracts
February 6, 2009Article by Ray Withers
Top tour operators Virgin Holidays and TUI AG – better known as Thomson in the UK – are keen to send their customers to a sparkling new resort on the Caribbean island of Tobago. Virgin Holidays have stated that they are having quality issues with their current top selling hotel and need high standard of accommodation for their customers. With this in mind the potential for Indigo Bay, Tobago, to achieve high occupancy from blue-chip providers is high – and the door is open to investors to buy in to this potential through international real estate experts Property Frontiers.
With other top resorts on the island operating at more than 80% occupancy, purchasing Indigo Bay apartments, destined to become top class Tobago investment property and a three-star plus hotel with a large pool and clubhouse, is an attractive proposition. Tobago is a top eco holiday destination, winning World Travel Awards ‘best eco-destination’ award for the last three years for maintaining the oldest protected rainforest in the Western hemisphere and an incredible natural habitat with hundreds of bird species. Greenback turtles nest on the beaches and colourful tropical fish weave amongst the wrecks and reefs surrounding the island, and parakeets in the preserves, this is a paradise for divers and nature-lovers. Located in the southern Caribbean, outside of the hurricane belt and with consistent daily sunshine, Tobago is a year-round destination for tourists.
Indigo Bay is located overlooking two miles of beach at Little Rockley Bay on the south of the island just four miles from the Crown Point International airport. The 79 apartments are in such high demand for tourists that TUI have issued the developer with a letter of intent for the complex stating room rates of $150 per night. Virgin Holidays are also keen to get the contract.
With this in mind the developers are happily offering Tobago property investors a leaseback agreement of 10% net yields for five years. Plus, to ensure investors don’t miss out on the beauty of this island paradise this contract comes with two weeks personal use per year. With a 65% loan-to-value mortgage, investors can purchase an apartment with just £35,000 plus purchase costs, enabling a cash-flow positive investment with forecasted annualised return on investment of 55%. The resort managers are offering hands-free management with 10% net yields guaranteed for five years.
Remember eco-tourism and unspoilt palm-fringed beaches come at a price – Tobago real estate has a premium. Tobago is not as developed as many of its larger Caribbean cousins like Jamaica, Bermuda and Barbados. The pace of life is slower, but the island has largely missed out on the tourism bonanza elsewhere in the Caribbean. Only recently have visitor numbers start to increase due to the main town of Scarborough becoming a popular stop-off for cruise ships.