The Long Beach, belonging to hotel group of Sun Resorts Ltd, which will resume their operation at the end of the year, will be the first hotel to sell hotel rooms in the Hotel Invest Scheme (IHS).
Globally, 90 of the 255 rooms of the Long Beach, which was built on the site of the Coco Beach Hotel Belle Mare, will be sold to Mauritian and foreigners. The hotel required an investment of Rs 2.5 billion.
In December of last year, seven hotels construction projects under the IHS were being considered by the BOI. Two of them were approved, those of Sun Resorts Ltd and Ramloll Bhooshan Property Ltd. Mr Nicolas de Chalain, the Managing Director of Sun Resorts has on that occasion declared that there were many applications. This was also in the context of democratization of the economy. They offer the opportunity to Mauritian to have a property on the beach. The cost of the room depend on the promoter and on most of the cost of construction.
The purchaser may stay free in his hotel room for a maximum of 45 days per year. The rest of the year, the room will be rented to other guests.
The buyer will have the opportunity to sell the house, but under certain conditions, however. Nicolas de Chalain has also stressed out on the fact that the IHS would certainly help the cash flow. It is also an investment for the client, especially the Mauritian. There would be a lifestyle and a service. There would be a return on investment.
Announced in the Budget speech of 2009, the IHS program provides alternative financing mechanism for developers of hotels. This scheme allows them to sell hotel rooms, villas, suites or any other complex in a hotel to individual purchasers to accelerate the construction of new hotels. On the other hand, Mr Bhooshan Ramloll the Director of Bhooshan Company has explained that they the sale of hotel rooms has great potential. They were going to diversify their activities in the construction of a hotel in the context of HIS. The hotel Ramloll Bhooshan Property Ltd, which includes approximately 200 rooms, will be built at Grand Gaube. The investment in this project would be some Rs 2 billion. Besides being a tool for financing, the IHS also aims to broaden the scope of opportunities in the tourism industry.
It is therefore considered as an essential element of the BOI’s investment strategy where it allows a wider range of the Mauritian population to participate as investors, contractors and developers in the tourism sector.