Considerations for investing in tourism accommodation

Provided by Business Partners Ltd, South Africa's leading investor in SMEs
With 2010 around the corner, accommodating all the tourists expected seems like an enormous feat! However, this poses itself as a great opportunity for the entrepreneur to go into providing tourists with accommodation. If you this idea has crossed your mind here are some other aspects you should consider when investing in Tourist Accommodation?

This industry generally has to be based on long term investments of over four years and often the first two years will be running at a loss
You must be able to fund the shortfalls especially during off peak seasons
Do you have an existing network to build a client base from?
Identify a niche and build your offering around that niche. Create a differential advantage that is of value to your target market
Be visible and accessible to main arterials and attractions that are relevant to your target market
Have a well connected website
Link up with complimentary services so that your business can form part of a holistic experiential package
Customers would like to know that standards they can expect form an establishment so it is good to have a star grading
You must be totally accepting of the fact that this type of business takes up a substantial portion of your life
You need to be friendly, courteous, pay attention to detail, delight in serving your customers
You need to be interested in people and their diverse cultures.

Everyone goes into business to make a profit. That is your most important objective. Obviously many other goals are part of that parcel but you cannot achieve much if you’re not making money.