MENU

Dominica
Dominica Citizenship
Blog

Why It’s Profitable to Invest in Resort Properties

27 January 2025 | Tags:

Investing in resort properties has become one of the most popular strategies for capital diversification and generating stable income. This market segment offers unique advantages that make it attractive to private investors, developers, and institutional players. Let’s explore the key reasons why resort properties are a profitable investment.

1. The Growing Wellness Market.

The COVID-19 pandemic significantly changed people’s attitudes toward their health, shifting the focus to disease prevention and the pursuit of a fulfilling life. Modern consumers are increasingly seeking knowledge, tools, and services that help improve their physical and emotional well-being.

Fitness Equipment.

Fitness Equipment.

According to the Global Wellness Institute, the global wellness economy continues to show impressive growth, expanding at a rate of 5.9% annually. By 2024, its volume reached $6.3 trillion, 26% higher than pre-pandemic levels and significantly surpassing the 2020 figure of $4.6 trillion. By 2028, this market is projected to grow to a record $9 trillion. The spa sector, in particular, has seen a 29.3% growth from 2022 to 2023, reflecting strong demand for services related to recovery and health care.

The main drivers of growth are three segments: wellness real estate, including resorts and medical facilities (growing at 17.4% annually), wellness tourism (16.6%), and thermal/mineral springs (14.3%). Interest in these areas continues to rise, offering excellent opportunities for investors.

Today, the wellness industry is four times the size of the pharmaceutical market ($1.6 trillion) and 60% larger than global healthcare spending ($10.6 trillion). The spa and wellness sector also outpaces key industries such as IT, tourism, and the green economy, underscoring its strategic importance and growth prospects.

2. Changing Consumer Preferences.

Modern travellers are showing a shift in preferences, opting for holidays that combine comfort with opportunities for health restoration and overall well-being improvement. This trend is particularly noticeable among mid- and premium-segment tourists who are willing to pay more for high-quality services that incorporate wellness elements.

Massage Therapy.

Massage Therapy.

The most popular programmes focus on deep health restoration and longevity. In-demand services include natural and non-medication methods, such as thermal and mineral baths, signature spa programmes, detox treatments, yoga sessions, and innovative approaches like vibration therapy, light therapy, cryotherapy, and intravenous infusions. More than two-thirds of travellers are eager to integrate new practices into their daily lives, including detox programmes, yoga, and monitoring coffee intake.

Resorts and spas that integrate such wellness methods continue to see steady demand and strengthen their market positions. With 58% of travellers willing to invest in holidays to extend their lives, the wellness trend is gaining momentum, opening up long-term prospects for the industry.

3. Resilience of Resort Properties to Economic Fluctuations.

Resorts and spas belong to the premium tourism segment, which is highly resilient to economic fluctuations. Even during economic downturns, the demand for luxury resorts and high-quality wellness services remains stable. People continue to invest in their health and well-being, recognising the importance of maintaining both physical and mental health, making this sector less vulnerable to market disruptions.

According to a report by Bain & Company, despite macroeconomic challenges, the luxury market reached a record €1.5 trillion in 2023, 8-10% higher than the previous year. This confirms the exceptional resilience of the segment, including luxury tourism and resort properites. The recovery in demand for services such as travel and wellness has become a key driver of growth, making resort properties attractive to investors even in times of economic uncertainty.

4. Integration with Ecotourism Trends.

Volcano of Morne Micotrin in Dominica.

Volcano of Morne Micotrin in Dominica.

Resorts and spas are often built in scenic natural locations and incorporate elements of eco-friendly design. This makes them attractive to tourists seeking unique experiences, harmony with nature, and environmental responsibility. Investors focused on sustainable development have the opportunity to participate in projects that combine profitability with a positive environmental impact.

Ecotourism is showing impressive growth: in 2024, the global ecotourism market was valued at approximately $248.17 billion, and it is projected to reach $945.34 billion by 2034, with a compound annual growth rate (CAGR) of 14.31%. This highlights the significant economic potential of projects focused on sustainable development.

Dominica, known as the “Nature Island of the Caribbean,” is one of the top ecotourism destinations thanks to its untouched nature, rich thermal springs, tropical forests, and UNESCO World Heritage-listed national parks. It is the ideal location for projects that combine luxury with sustainable development.

Junior Suite – Resort Rendering of Anichi Resort & Spa.

Junior Suite – Resort Rendering of Anichi Resort & Spa.

A prime example of this approach is Anichi Resort & Spa. This project embodies principles of eco-friendly design and harmonious interaction with nature. The resort is being built using environmentally friendly materials, and its architecture is integrated into the surrounding landscape to minimize environmental impact. Special attention is also given to energy-efficient technologies, the use of local resources, and supporting biodiversity, making Anichi Resort & Spa a model of responsible resort properties development.

Moreover, Anichi Resort & Spa is part of the prestigious Autograph Collection brand by Marriott International, ensuring its exceptional status on the international stage and access to the global Marriott Bonvoy customer base. This opens up opportunities for a consistently high flow of guests willing to pay for a unique experience that combines luxury and wellness.

The resort will be managed by Highgate, a recognized leader in hospitality management. With years of experience managing premium properties, Highgate will ensure efficient revenue management, prompt market adaptation, and increased long-term property value. Investors in this project can be confident in its profitability and resilience amid economic uncertainty.

The combination of the global Marriott brand, Highgate’s expertise, and environmental responsibility makes Anichi Resort & Spa one of the most attractive assets for long-term investment in resort properties.

5. High Profitability Potential.

Resorts and spas offer opportunities for income diversification through:

  • Accommodation;
  • Wellness treatments;
  • Event organisation (weddings, conferences);
  • Sales of premium services and products.

Event organisation, such as wedding ceremonies and corporate events, generates significant additional income. According to a 2023 report by Research and Markets, the “destination wedding” market grew by $7 billion, from $21 billion in 2022 to $28 billion in 2023. It is expected to reach $78 billion by 2027. In recent years, the trend of eco-friendly weddings in natural locations has become increasingly popular, with couples choosing sustainable venues for their celebrations. These events not only contribute to revenue growth but also highlight the environmental consciousness of resorts, attracting a new generation of clients.

Elegant Table Setting at a Banquet.

Elegant Table Setting at a Banquet.

Corporate events, including training sessions and conferences, play a key role in increasing income. They help smooth out seasonal fluctuations in resort occupancy, ensuring a steady flow of guests during traditionally less busy periods. Moreover, long-term partnerships with corporate clients and partners in the tourism industry provide stable income, enhancing the competitiveness of resort properties.

The luxury tourism market shows steady growth. According to Allied Market Research, it reached $638.2 billion in 2021 and is projected to increase to $1.65 trillion by 2031, with a compound annual growth rate (CAGR) of 8.9%. This growth underscores the high economic potential of resort properties and their appeal as long-term investments. Premium services, including personalised wellness programmes, exclusive spa rituals, and gourmet experiences, are especially sought after, making resorts attractive both to affluent clients and long-term investors.

6. Government Support and Investment Programmes.

Many countries actively support the development of resort properties by offering tax incentives, subsidies, and streamlined administrative procedures. Investments in countries with citizenship by investment (CBI) programmes, such as Dominica, are particularly attractive. These programmes provide private investors with a unique opportunity to own premium properties while obtaining second citizenship. This citizenship offers access to numerous advantages, including easier entry to international markets, favourable tax regimes, and efficient asset management, all of which contribute to an enhanced quality of life.

Dominica, in turn, has been investing heavily in the development of its tourism infrastructure by modernising transport and energy networks and strengthening its international promotion efforts. These measures boost tourist numbers and increase the profitability of resort properties, making investments in this sector even more lucrative and sustainable.

Resort Properties: A Lucrative and Sustainable Investment Opportunity.

Resort properties offer a promising avenue for investment due to the growing demand for wellness services, resilience to economic fluctuations, and high profitability. Investing in this sector not only ensures a stable income but also contributes to the creation of unique products aligned with modern trends in health and sustainability. For investors seeking projects with long-term value, resorts and spas present attractive opportunities and confidence in future growth.