As Saint Lucia strengthens its reputation as a luxury destination, tourism stakeholders warn that the island is struggling to meet demand for mid-range accommodation.
The issue took center stage at the SLHTA Tourism Enhancement Fund’s final Chef’s Table luncheon, where industry leaders reviewed current trends and investment gaps.
CEO of the Saint Lucia Hospitality and Tourism Association, Noorani Azeez, explained that investors are overwhelmingly choosing high-end developments.
He said, “When you look at the type of room stock investments that are taking place right now, it is very clear that an investor wants the most revenue for their investment, the most returns on their investment, because they have got shareholders to appease at the end of the day.”
Azeez noted that the tourism sector is highly sensitive to external shocks, which makes investors cautious.
He added, “How can we as partners and stakeholders ensure that we facilitate an investment at that lower price point that will be attractive to the airlines and that will drive the type of relationships between rooms and airlift that we want to drive? We have not been able to solve that as yet.”
He confirmed that discussions are ongoing.
“There are some active ideas that we are looking at. There are some active discussions that we are embarking into right now between government and the private sector. But we are yet to agree on a model that will guarantee us all the most return for our investment and allow us to be able to appeal to the airlines,” he said.