Yikes! The World’s Most Expensive Resorts
September 27th, 2005 Posted in GeneralFor a rundown on places neither you nor I will probably be visiting without hitting the lottery, check out this Forbes article, World’s Most Expensive Resorts - 2005.
Besides showing us that some tourists obviously have far more money than they know how to spend, it is also an excellent primer on the resort business in general. One of the most telling passages is this one: “Savvy business ploys, like offering all-inclusive room rates, help to keep their guests on-property during their stay, and paying for incidentals, such as top-shelf liquor or an additional spa treatment, which aren’t always included in the package. ‘It’s called incremental revenue,’ explains [Smith Travel Research's]Garner. ‘Keep the guest on the property, spending money on-site, helping out the resort’s bottom line.’ While some resorts, like Turtle Island, in Fiji, include Champagne and spirits in their inclusive rates, others don’t.”
This comes after we learn that some of these resorts in the Maldives charge $8,000 per night or more. Can you imagine paying that much and then getting charged for ordering a specific brand of vodka? Heck, for $8,000 you can probably buy a whole liquor store in a village in the Maldives.
For eight grand, you can travel around the world for a year. Or stay at a nice all-inclusive in Mexico or the Dominican Republic for a month. Or buy an around-the-world ticket in business class.
Kudos to the writer Sophia Banay for injecting more than a “aren’t these places lovely” perspective with this fine passage:
“The irony attached to many of the world’s most beautiful resorts is that they are in places so remote that for centuries they were known primarily to their indigenous people, pirates and castaways. For non-natives, these were places to escape from, not travel to. And certainly, if any unlucky seaman found marooned in the Maldives in the 18th century was told that in the 21st century people would be willing to pay $10,000 to spend the night there, not to mention thousands more to travel there, he would have thought you had been spending too much time at the grog barrel. “
2 Responses to “Yikes! The World’s Most Expensive Resorts”
By Kuda Moses on Sep 13, 2007
I’d like to point out some inaccuracies in this articule. Coming from the Maldive Islands, I believe that I am in a better position to comment on the Maldives than the author or Sophia Banay.
Firstly, the Maldives does not have villages. It is made of up of tiny islands, hence there’s no room for multiple village on each island. Secondly, being a Muslim country, the Maldives does not have any liquour stores on any of the islands. The resorts holds a special permit which allows them to sell alcohol. And thirdly, it was wrong for you to assume that price of land in the Maldives is cheap just because it is an island nation in South Asia. Recently, a piece of land measuring 13, 000 sq. ft. was sold for over $10 million (yes US Dollars!) on the capital. This is perhaps even more expensive than some parts of the United States or even Europe.
Coming on to the main topic of the blog, you’ve rambled on about how expensive these resorts are, but failed to consider the reasons why the resorts infact charge these higher rates. It could be that you’ve never been to any of these resorts and that you cannot imagine why anyone in their right mind actually pay for it.
The rates of these resorts are somewhat analogous to the different seating classes on a passenger airline. Some people are prepared to pay more for the added comfort. These luxury resorts are the top of their class, and they are exclusive. Yes, you could stay at a 5-star resort in Mexico or Mauritius, but it’s not the Maldives, that’s where exclusivity comes in. Since the wealth is more concentrated now, there are high networth individuals who’d actually pay anything to spend a night in the Maldives. And being businesses the resorts obviously charge stupendous rates.
Kudey
By tim on Sep 13, 2007
Kuda,
I appreciate the detailed response from someone who knows the area well. I don’t, so I didn’t write this article. I was just commenting on someone else’s research. I have seen homes for sale in the Maldives for less than these resorts charge per night, however, so I’m not off base there. Thanks for stopping by!