For a long time, tourism has been considered the goose that lays golden eggs. Investment in the industry continues to grow even if experts warn that operators could be experiencing the effects of the law of diminishing returns: more capital investment giving lower returns.
The upgrading of the Marriott Hotel to a five-star resort through an investment of €40 million is one way of upgrading the standards of accommodation for tourists. It should help attract better spending visitors of the tourist market that demand high accommodation standards and excellent amenities beyond the hotel walls. The upcoming multi-million investment of db Group in St George’s Bay should also elevate the tourism product.
However, other news coming from the tourism sector is indeed worrying. According to a Deloitte report, an additional 483 hotels could crop up on the island in the coming years with almost half of them being designated as three-star. It seems that policymakers are determined to…