APPROACH
The Geotourism Investment Fund, in partnership with the Global Sustainable Tourism Alliance (GSTA), has developed an end-to-end solution for the development of small-scale lodging facilities that is economically, socially, and environmentally sustainable and highly marketable. The core components include:
• Market-driven Project and Site Selection – The fund will only pursue projects we believe have significant market potential. Assessments are based on extensive market research, conducted through the GSTA and other projects.
• Conceptualization Support – From initial market research through financial feasibility analysis.
• High levels of Local Ownership – Local ownership ensures that communities have a significant stake in a successful outcome. The fund seeks to initially provide local communities (or individual entrepreneurs) with a significant percentage of total project equity, based upon the value of land provided for the development and sweat equity contributions.
• Philanthropic Investment – This local ownership stake will rise over time (with the eventual goal of 100%) as communities build the capacity to successfully maintain, manage and market the properties.
• Design Support – Through technical assistance provided through the GSTA or other projects, the fund will supply the expertise required to create market-driven design concepts—from landscape planning to architecture and interior design.
• Construction Support – The fund will provide construction supervision and support, including tendering, purchasing, scheduling, and monitoring of progress.
• Training and Capacity Building – GSTA-sponsored training programs (or other donor projects where applicable) will provide local communities with the skills required to successfully manage and operate properties. Over the short term (1-3 years, depending on skill levels) the fund will closely oversee property management, while local managers are trained. Management will continue past this period, but more responsibility will transfer to local staff as capacity increases.
• Marketing Support – Solimar, a managing partner of the GSTA, will directly market each property beginning with pre-opening stages through after operations have commenced. Solimar also owns and operates a tour company (www.solimartravel.com) specializing in community-based, sustainable travel and that will be utilized to market properties.
• Branding Support and Reservations System – The fund is currently in the process of establishing an independent hotel management company and global brand and reservations system for these properties. In parallel with the investments, the management company will either operate the properties or provide them with a sales and marketing vehicle. The concept of the management company is to centralize marketing, sales, purchasing (to a degree), and the brand, as well as provide a network of technical skills, training, and expertise available to all properties. This will ensure economies of scale, brand recognition, and client retention between properties as well as facilitate knowledge and skills sharing among the network of property managers.
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