Issues facing Resort developers
Resort developers are faced with issues which are very unique although some are regularly encountered. The hottest issues that face developers and their legal representatives are the physical and governmental hurdles, extreme competition, and antitrust liability. Naturally, a resort project is unique from other real estate developments since it is intended to deliver a “world apart.” Legal issues that relates to the designing and building of such projects are also unique from those faced in more typical real estate developments. The aspects of a holiday site that distinguish it as a get away from the real world make the developer’s job much more complicated. Resort development is risky mainly because, the success of the project relies on large amount of capital to generate and sustain a luxury atmosphere. Another issue is maintaining dedicated personnel to offer the services towards the expectations of the guests. Isolated site of the resort presents the developer with increased demand for competent workers to build and operate the venture. Meeting that increasing demand will greatly depend on the developer, to deliver a work force qualified in hospitality services and any additional community services required to maintain the work force.
Another additional hurdle is the increasing competition for the public’s entertainment funds. This competition is not only coming from the industry itself but also from out-side the industry, from supporters of cruise line packages and even sports grounds. The impact of a resort project on a region and its inhabitants, who may be unimpressed by the promised gain to the economy, may possibly be mitigated by some of the issues in local government. One such issue appears in the institution of local governmental authorities holding power to make decisions throughout regional boundaries.