The Caribbean is a very desirable location and retains the charm and beauty that has historically encouraged so much investment, ensuring a positive outlook for those with long-term vision. Prices, and in particular construction costs, are considered to be at their bottom and, together with the current low borrowing rates, suggest that now may be a good time to build and invest in future profitable capitalization.
Research shows that generally across the region (USVI, BVI) tourism numbers are up for the period 2011-2013, which is encouraging to developers and numbers are forecast to continue growing. Prices, and in particular, construction costs, are at an historic low, together with the current low borrowing rates, suggests that now will be a good time to build.
The property is in a quiet location just 5 minutes drive from Coral Bay, with all its amenities including, bars, restaurants, supermarkets, etc., and approximately 200 yards from the bus stop at Salt Pond Bay. The Lameshure Bay Fish and Wildlife Research Centre is just a few minutes drive to the West.
There are a number of tourism related projects in the region most importantly, a new marina in Coral Bay is planned to begin construction during 2014.
In addition, there is a shortage of accommodation on St John and, in particular of lower cost accommodation, which is why many tourists commute daily from St Thomas by ferry.
Future projects in the region include Sir Richard Branson’s Mosquito Island and David Johnson’s, Oil Nut Bay, in the BVI. Slated to begin construction in 2014, Jimmy Buffet’s Margaritaville, on the East end of St Thomas, which is a partnership with Wyndham Hotels.
According to Government sponsored survey, the USVI lodging market in 2013 to April achieved the highest occupancy since 2009 at 79.4%.
There is considerable potential for various small businesses on Water Island, in particular guest accommodations of varying standards. The existing Guest House and “Eco Campground” are regularly full to capacity and are generally expensive for their standard of accommodation.
The location of Water Island is only ½ mile south of St Thomas, making BBK’s land ideal for development, as it is easily accessible.
With the tender for the new hotel complex being awarded by the local government in April 2014, we expect that as a consequence, a helipad on Water Island will enable a 3-minute hop, from St Thomas International airport.