Friday, August 16, 2024 The travel industry is increasingly turning its attention to the lucrative market of private-island holidays. This growing trend allows companies to create exclusive destinations that keep travelers isolated from local populations while maximizing revenue from tourist dollars. Once the exclusive hideaways of James Bond villains or wealthy magnates, private islands have become increasingly accessible and attractive to the tourism industry.
With summer in full swing in the Northern Hemisphere, tourists are flocking to destinations worldwide, but concerns over over tourism have led some popular locations to push back against the influx. Cities like Venice, Lisbon, and Amsterdam have seen rising tensions between visitors and locals, sparking protests and new regulations. Chris Krolow, founder and CEO of Private Islands Inc.
, a Canadian marketplace for private-island sales and rentals, reports a significant increase in private-island sales since the COVID-19 pandemic. Hotspots such as the Caribbean and Central America, particularly Belize and the Bahamas, have seen a surge in demand. Krolow, known for HGTV’s “Island Hunters,” has over 600 islands listed for sale, with prices ranging from $26,000 for a plot in Belize to $160 million for an island in Thailand.
Krolow cautions that owning a private island comes with substantial costs, including maintenance, staffing, and transportation. Despite these challenges, the allure of owning a piece of paradise continues to attract buyers. It’s not just individuals purchasing private islands; major travel companies are also entering the market.
Cruise lines, hotel chains, and other industry players are investing heavily in private destinations. By owning these exclusive spots, they can control the entire guest experience while keeping tourists away from overcrowded areas. Norwegian Cruise Line, for example, owns two private islands in the Caribbean—Great Stirrup Cay in the Bahamas and Harvest Caye in Belize.
These islands offer guests a luxurious and secluded experience, complete with beaches, water sports, and oceanfront resorts. Similarly, Royal Caribbean has invested $250 million in its private island, CocoCay, in the Bahamas and operates additional private resorts in Haiti and Vanuatu. Overall, cruise lines have poured at least $1.
5 billion into developing private beach resorts and islands across the Caribbean since 2019. These investments have expanded their offerings and provided tourists with exclusive experiences away from the crowds. The demand for private-island holidays is also booming among luxury travelers.
Fischer Travel, a family-run, New York-based membership travel company, has seen a significant uptick in interest. According to Stacy Fischer-Rosenthal, the company’s president, private islands are increasingly popular among their affluent clients, who seek the ultimate in exclusivity and luxury. Clients of Fischer Travel, who pay a $150,000 initiation fee and $25,000 in annual dues, often opt for private island buyouts in the Caribbean, particularly in the British Virgin Islands and the Bahamas.
The convenience of flying directly to these locations from New York on private planes makes them ideal for short, lavish getaways. Owning a private island, however, is not without its challenges. Islands require significant investment in infrastructure, including water, waste management, and electricity.
Additionally, local laws and regulations can complicate development and ownership, with many countries imposing restrictions on foreign buyers. Despite these hurdles, the trend of private-island holidays shows no signs of slowing down. As global tourism rebounds, the industry is keen to see whether these exclusive destinations will help alleviate the pressures of over tourism in popular spots or simply add to the growing number of tourists seeking new experiences.
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