Travel industry sees big money in private-island holidays – DW – 08/16/2024

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Private-island sales increasing

Sales of private islands have spiked since the COVID-19 pandemic, says Chris Krolow, founder and CEO of Private Islands Inc., a Canada-based marketplace for private-island sales and rentals. He points to certain hotspot regions such as the Caribbean and Central America, especially places like Belize and the Bahamas.

Krolow, who is known for HGTV’s popular show “Island Hunters,” is a big player in the private island business. His company has around 600 islands for sale. Prices range from around $26,000 (€23,700) for a single lot on Long Caye, Belize, to $160 million for Rangyai Island in Thailand.

With over 25 years of experience buying and selling islands across the world, he warns that buyers need to consider the costs of running an island, which “can include supplies, maintenance, renovations, staffing and transportation to and from the island.”

Travel companies on the lookout for islands

Individuals aren’t the only ones buying islands. More big-pocketed companies are behind some of these purchases, too, says Krolow.

Cruise lines, hotel chains and other travel companies are splashing out on private destinations. And they are hitting two birds with one stone: keeping more tourism dollars for themselves and keeping tourists out of overcrowded places.

Being in charge ensures that the companies control the entire experience and can guarantee the quality of a visit, whether it’s a day-trip as part of a cruise or a stand-alone vacation. 

Last year, the international tourism sector brought in $1.5 trillion, according to UN Tourism agencyImage: imago images/kjorgen

Norwegian Cruise Line has two private islands in the Caribbean: Great Stirrup Cay in the Bahamas and Harvest Caye in Belize. The company bought Great Stirrup Cay back in 1977. Guests can relax on the beach and enjoy water sports. Today, it is home to an oceanfront resort. The company’s other island, Harvest Caye, opened in 2016 in partnership with the country’s government.  

Royal Caribbean has run its own island in the Bahamas called CocoCay since the 1980s. Recently the company invested $250 million in the island. The company also runs a private resort on Haiti and is planning another one in Vanuatu in the Pacific Ocean. The company says around 2 million people visit their private destinations each year.

Overall, cruise lines have invested at least $1.5 billion in private beach resorts and islands in the Caribbean since 2019, expanding or improving their offers, news agency Bloomberg recently reported. Today, they oversee at least 15 islands and beaches covering around 5,200 acres (2,104 hectares) in the Bahamas, Belize, the Dominican Republic, Haiti and Mexico.

Exclusive luxury destinations

Family-run Fischer Travel has likewise seen a growth in demand for private-island holidays in the past few years. 

“When it comes to private islands, the trend has always been the same — to come together with the people you want to be with in the most exclusive and luxury setting,” Stacy Fischer-Rosenthal, the president of the company, told DW. “Having said that, the demand is higher and private islands are seeing more and more bookings throughout the year.” 

At the New York City-based membership travel and lifestyle company, clients pay a $150,000 initiation fee and annual dues of $25,000, on top of any travel costs and coordination fees. For these rich clients the sky is the limit and they want what others can’t have or afford.

“For private islands, the Caribbean is very popular, including the British Virgin Islands and the Bahamas,” Fischer said. “The Caribbean is also easy to get to, particularly from New York and for those with private planes, making it easy to do an island buyout for just a long weekend.”

UN Tourism agency expects global travel to recover completely these year and surpass pre-COVID levels by 2%Image: Stefan Sauer/dpa/picture alliance

Running an island is a lot of work

Owning an island is not all tropical glamour though. Many private islands are not in the Caribbean or other sun-soaked places. northern Scotland offers a number of them as does Norway. 

By its very nature, an island is separate from the mainland and many services like infrastructure for water, waste removal or electricity, not to mention getting food, packages or emergency medical care. Being self-sufficient may have its benefits, but splendid isolation is expensive and sometimes complicated.

Additionally, nearly all the islands in the world are claimed by one country or another. A number of these countries restrict foreign buyers from owning property. Still others don’t allow the outright purchase of land at all.

National laws and local regulations are enforced even if the mainland seems far away. This can impact building permits, nature protection, labor rules and many other issues. Individuals or companies should do their homework before considering an island paradise.

Whether these private getaways will really relieve hard-hit tourist destinations like Barcelona or Venice or just add more visitors to the mix remains to be seen as global tourism rebounds with a vengeance.

Edited by: Uwe Hessler

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Publish date : 2024-08-16 01:27:00

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