Invest in Maldives Tourism Sector by Starting a Guesthouse Business

Opportunity Snapshot

  • Country: Maldives Maldives
  • Industry: Tourism, Recreation
  • Stage: Start-up
  • Investment size: $27,000 / min. $10,000
  • ROI: 34% in 5 years
  • Type of investment: Debt, Equity

Investment Opportunity

Penetrate highly successful tourism market of Maldives by investing just $27,000 to start-up a guesthouse business directed to middle income and budget travelers.

Maldives received 1 million tourists in 2013 and according to latest surveys tourists stay for 6.5 days on average. Occupancy rate for tourism facilities in the country have shown an increasing trend during the last decade and average at 62% per year.

Most of the tourists rank Maldives as an expensive holiday destination and that is changing fast due to increasing number of guesthouses in inhabited islands that cater to budget travelers and holiday makers. In 1998 only 24 guesthouses with 400 beds were established and that figure rose to 75% with more than 1000 beds by 2012. On average that is 34% increase over five years.

We have a land of 5000sq ft and have already invested $41,000 to construct a guesthouse building. We require $18,158 for the interior works of The guesthouse and an additional $9,348 of 6 months working capital (total $27,506USD) to get started to run the guesthouse business in Maldives.

The bed capacity of The guesthouse is 8. The house has 4 rooms with attached toilet including dining room, kitchen, living room and plenty of open spaces. It is being built in a land of 5000sq ft. The guesthouse will be promoted as a destination for tourists wanting to experience real Maldivian culture and island lifestyles. The guesthouse and its packages will be targeted to middle income and budget travelers through social media website, promotional packages for tour operators and travel agencies.

Staying at The guesthouse is to be charged $100 per day, inclusive of food (all meals). In addition Island hopping which is to travel to from one island to the other is provided as separate services for tourists who requests it. Third product that will be available on request is fishing or diving.

The position of Maldives as one of the leading tourist destination in the world and change in demand and market conditions makes establishing Guesthouse business in the country an attractive investment opportunity that could generate a good return on investment.

Opportunity for the investor

We would be happy to give the investor a share of the business depending on the investment. Estimated duration for completion of the phase 1 of the project, upon receipt of the funds is 8 months. Is it estimated that the cost of investment will be covered within 3 years maximum.

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