60 | Q&A SPECIAL
OPP INTERVIEW
www.opp.org.uk | DECEMBER 2011 Poolside | relaxation on off er at the Buccament Bay Resort
highest standard, situated in some of the most desirable locations in the Caribbean, with the support of an experienced team of hoteliers, a strong marketing team and a travel business to ensure high levels of occupancy and returns.
Q. Banks are having a serious impact on the world’s property developers; is Harlequin affected by the same conditions and do you think the confi dence will return to this sector soon? A. We do not currently carry any bank debts; however, we aren’t immune to the current economic climate, of course, so it still creates challenges for us. For example, it’s taken far longer than we had anticipated to assist our purchasers in fi nding suitable mortgage funding. The fact is that the banks have had a big negative impact on many developers around the world: some have stopped working indefi nitely and many more have gone bust. Harlequin has weathered the last few years well, and in fact has continued to grow steadily in strength; as a result, whilst many have stopped, we’ve continued to work on our developments. The reason for our success is the structure of our business model. I have recently read that the UK is heading for a double-dip recession, but, compared to the last 12 months, I do believe that fi nance is becoming available again and we’ve survived the worst of the storm.
Q. How will the serious fi nancial concerns about some countries’ economies affect the UK-based clients’ attitude to buying Harlequin properties? A. As I stated before, we are fortunate enough to work in a place where
land has historically held a premium and, despite fi ve recessions during my lifetime, Caribbean land values have been largely unaffected. Our product is ultimately a luxury resort or hotel experience, and it’s this end of the travel industry that shows the most stamina in diffi cult economic times. The main driving factors for the economy in the Caribbean are tourism and agriculture. Governments there, like Governments around the world, are working diligently to protect their economies. When you compare the Caribbean economies to the US economy or some of the EU economies, there are relatively no serious fi nancial concerns. The reason I invested in the Caribbean in the fi rst place was because it is, in my opinion, one of the safest places for this kind of investment in the world. I believe the product we offer and where we offer it is the driving factor for our success.
Q. Harlequin has always depended
heavily for sales from UK-based selling agents, selling to UK clients latterly through using pension funds to part-fund the purchase. Will this be the main selling strategy during the next 6-12 months? A. I’ve spoken about the economic climate quite a bit already, but it’s unavoidable! The crash has left many people with negative views on banks and shares, and a desire for alternative investment for pension portfolios. As a result, we’ve experienced a dramatic increase in the number of sophisticated investors in recent times, and I am sure that SIPP business will continue to be a key part of our sales strategy moving forwards, but we must always plan for the future and take nothing for granted.
Lastly, here are a few words from Dave Ames about the delivery dates of resorts: I purchased much of the land for our developments long before the credit crunch. Initially it was our plan to develop smaller properties, but as the brand grew, so did our plans for our developments. We are now associated with many wonderful, high- profi le brands and this has helped to add tremendous value to both our resorts and the holiday experience there. It was imperative that we be reactive to the travel industry and mindful of opportunities to create unique and memorable holidays for our guests. Harlequin Hotels & Resorts’ aim and brand vision is to ‘redefi ne luxury in the Caribbean’, to build hotels and resorts capable and able to command the attention of the travel industry and compete on the world stage – it is a
small world these days, after all. This is not something that can be achieved overnight, but we are now working with all the major UK tour operators and travel agents and growing our reputation and brand in the United States. With the diffi cult fi nancial climate of the past few years, we’ve had to tighten our belts like everyone else and be proactive in adapting to market changes. This has contributed to delays on our developments, just as it has other developers around the world. Despite the challenges that the industry and indeed the world has faced, we
“SIPPs will continue to be a key part of our sales strategy moving forwards”
have steadily moved forward and, as you will appreciate, there is much work to be done before the fi rst stone can be laid. 2012 will be a year of signifi cant development and growth for Harlequin as we progress with the developments that have been delayed over recent years.
I understand the concerns of some of our investors, but with all the facilities we will open, we’ve created capital growth and put ourselves in the position to command better holiday rates. So, although we could be criticised for the late delivery of our developments, I feel that the delays will be far outweighed by the benefi ts and well worth the wait for the long term investor. In the end, I will deliver the investment to them from a position of mutually benefi cial strength.
Dave Ames meets the ministers | Dave Ames and Barbados Government ministers oversee the development of H Barba- dos – one of the destinations for the new Harlequin boutique hotel brand. (From left to right) Dave Ames; Ms. S. Carrington, Permanent Secretary of Tourism, Barbados; Hon. Minister Richard Sealy, Minister for Tourism, Barbados; Ms. Jacqueline Pollard, Senior Tourism Development Offi cer, Barbados; Mr. Hugh Foster, Public Relations, Ministry of Tourism, Barbados.
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