Global mass tourism has been a strong influencing factor in the expansion of foreign real estate investment around the world. Emerging markets with growing mass tourism appeal have gained investor interest for strong rental yields, bargain property prices, fast capital growth potential and high demand enabling good exit strategies. Continued success with economic growth in these markets largely depends upon the lasting appeal of the tourism sector.
Locations with the greatest potential for continued mass tourism and real estate investment growth are those offering year round sunshine, attractive beaches and golfing options. Areas of fast growing interest tend to be in locations within a short or mid haul flights of the tourism sector client base. Currency exchange rates can also have an effect on the popularity of specific locations, as fluctuating rates offer either benefits or disadvantages to certain areas, increasing or decreasing the seasonal attraction.
As tourism interest increases in emerging market locations, property prices tend to rise dramatically over a relatively short period of time. The surge in investment demand enables impressive returns to those buyers entering the market at the earliest stage of expansion. This is also considered to be one of the riskier alternatives, as the success of the tourism sector is yet to be established.
Although the lower cost of property prices in emerging markets can lead to a surge in demand for investment opportunities, the risks of investing tends to decrease as tourism interest strengthens. The continued development of local tourism is a factor closely tied to the ‘make or break’ situation of the buy-to-let market. best attraction Sentosa singapore
The global expansion of mass tourism, assisted by faster traveling times, convenient flight connections, low cost airlines and the internet, has created a potential for strong economic growth in regions of high demand. Government integration to boost the domestic economy through foreign investment and tourism, has lead many nations to develop and improve the infrastructure required for continued expansion and demand.
Areas of limited natural resources benefit significantly from the introduction of mass tourism. Providing additional revenue and sustainable economic growth to the region, the development of the tourism sector creates employment opportunities in the domestic market. Expanding tourism can also provide much needed awareness for the growth and development of local real estate to foreign investors. Benefits to investors can often include taxation advantages, enticing additional potential buyers to consider the market.
Self-catering accommodation has been steadily gaining appeal over recent years amongst holiday makers, visiting for an average length of time between one and three weeks. The abundance of advertising opportunities available on the internet has eased the accessibility, along with communication issues relating to overseas properties in the letting market.
The progression of self catering accommodation has been beneficial to real estate investors in overseas markets, whether through self administration, or contracting the services of professional management companies.