New Models for Resort Development

This post was written for The Ground Floor by Robert Krueger, communications associate at the Urban Land Institute.

SAN FRANCISCO -- What will resort development look like in a post-recession economy?  As investors experience the worse market collapse in a generation, the best and most talented professionals in the resort development industry have taken advantage of the current economic climate by researching and reinventing themselves so that they are better prepared for when people start buying again. During a session at the Urban Land Institute’s 2009 Fall Meeting in San Francisco, a few of these developers spoke about what innovative solutions are paying off and the industry transformation that they are experiencing.

The consensus of the panel appeared to be: The future of the resort will emphasize social and environmental responsibility. According to one panelist, Brian De Lowe of Viceroy Hotel Group of Los Angeles, California, the "resort development model of the past is dead." Lowe said that there needs to be a revised model for the industry that makes projects more adaptable to the market. There needs to be a diverse combination of brands instead of the "traditional resort." The old method of stamping out traditional-style resorts will not work in the future. He presented a "Triple Bottom-Line Thinking," which weaves the need to make profit with a wider balance of social and environmental responsibilities for the local community. While sustainable development is not a new concept, Lowe emphasized how this approach is attractive local governments. Particularly in tough economic times, partnering with government can help relieve some of the costs.

"Governments like being involved with such developments," Lowe said.  "They feel that they are helping to protecting the area's human heritage and natural landscape . . . such measures are attractive to buyers since it adds to an authentic experience that is unique."

Rebecca Zimmerman, president of Design Workshop, later spoke of what it means to be simple, in regards to amenities. She highlighted the need to create experiences and going back to nature." Social connection is truly important," she said. "Now, people need people, and people find social nourishment by engaging with others."

She emphasized that when people begin buying again, what they will look for is places that show social and environmental awareness. In addition, Zimmerman stated that simple, natural amenities are critical to attracting knowledge-based workers.

She pointed out the fact that 82 percent of the U.S. population walk outdoors for either fun or exercise and that such numbers show the growing trend of the future: a desire for simple amenities that do not cost $50 million each.

"It is about being simple and bringing people back to the places that are already built," Zimmerman added. "More is no longer better. The key is simple…but connected. What are needed are such things as easy acquisition to airports with daily flights to major cities. Economic growth is a combination of amenities, telecommunications, and availability to air travel. This brings a whole new obligation to sustainable development."

Comments

[Benjamin A. Loomis]

I couldn't agree more. As President of a new resort development firm, our entire company concept is based on serving the customer values of environmental and social responsibility, and that getting close to nature is actually a luxurious customer benefit. Our company blog has lots of posts on this subject: www.islapaleque.com/blog.

Design Workshop is working on the site plan for what we think is a perfect example; our new resort project, The Resort at Isla Palenque. Detailed site plans will be available early next year, but you can get an pretty good idea of what we're planning here: www.IslaPalenque.com.

Thanks again for the great piece.
Ben Loomis, President
Amble Resorts

[Daniel Cranney]

This is a compelling article that articulates the current trend in tourism. Something caused a shift in the marketplace for vacationers to prefer "experience-rich" locations over traditional sexy beach destinations. Sometimes less is more--great sentiment!

Our project (in Panama) has had to pursue a strategy that focuses on natural amenities like hiking and learning about tropical gardens; as well, we started a low-cost surf lodge accommodation. A few years ago, mixing high end Villas with a surf lodge would have been strange, things have changed. The trend is that travelers prefer culture, socializing, community, activity and volunteer opportunities over those traditional luxury amenities of the past.

Daniel Cranney
Vice President
Red Frog Beach
Bocas Del Toro Panama
www.redfrogbeach.com