Spotlight

Defining the indefinable: Luxury destination resorts

Self-contained is a sparse yet an undisputable description of a destination resort. Its luxury version, however, defies the resort stereotype, being a veritable universe unto itself, discovers Neeti Mehra.

In the heart of an ancient volcano in South Africa lies Sun City, a confluence of bling bling and African culture. It also has four hotels (including Palace of the Lost City enmeshed in a 25 hectare botanical jungle) with a multifaceted water park that defines one of the world's best known destination resorts.

Today, destination resorts occupy their place of pride in hallowed halls of hospitality, accessible by the privileged few, geographically and monetarily. Tracing the linear development of the hospitality hierarchy - from sparse to ostentatious - is enlightening. First came accommodation sans frills; then F&B options, a pool, a banquet hall, and a few additional, yet basic amenities. These defined a hotel. Further addendums were a shopping experience, entertainment and sports facilities, all centred in the hotel. These defined a resort. The nouveau luxe experience was conceived when a resort became a complete destination unto itself, irrespective of its location. This destination resort became an exotic hideaway complete in itself and changed the industry forever.

Defining luxury resorts

The luxury destination resort, situated in exotic hideaways or in urban jungles, inaccessible from prying eyes command patronage from the uber rich. No longer was access an issue. The resort created its own access, be it helipads, private jetties, runways or a ropeway. No longer were bed nights an issue. This is strictly villa or tent land. No longer are in-your-face marketing and advertising necessary. The more exclusive, better was the word-of-mouth publicity in right circles. Attracting the hoi polloi, be it tree houses in Borneo rain forests or sub-zero Alpine slopes, destination resorts had arrived. And how.

In India, though resorts are aplenty, a full-fledged destination resort is a rarity. Most Indian resorts are woven around the grandeur and the history of the destination, unable to thrive as self-contained units. Worldwide, typically, ski resorts, spa resorts, casinos, such as those lining the Vegas Strip, and private island resorts, situated in politically neutral destinations across the world cover this segment.

The types can be distinctly etched out. One is the kind situated in geographically remote locations whose natural characteristics standout, such as a volcano, rainforest or mountains, such as the Aspen Ski Resort that takes advantage of its remote surroundings. Urban and MICE-oriented resorts are also popular. Another type is the Disney Resorts and perhaps the best examples of specialised activity resorts. In the list are also unusually constructed properties built in specialised environment settings such as the Ice Hotel in Quebec, Canada, open barely for four months in a year and built differently each year.

Exclusivity quotient

But just how exclusive are these? A Forbes report listing the most expensive hotels in 2006 included Richard Branson's 74 acre private Necker Island tucked in the British Virgin Isles, that can be hired completely for 28 people for US$ 46,000 per night, at current rates. The accompaniments? Private Michelin star chefs, beach Olympics, tennis tournaments, sailing, snorkelling and kite-surfing. Closer to home, Six Senses Resorts & Spas has been propagating 'intelligent luxury' with its brands, and is looking to enter the Indian marketplace.

Raymond W S Hall, its chief marketing officer, considers Six Senses to be a lifestyle brand, rather than a mere resort or hotel. This is evident, having dropped the 'hotel' tag from its name over five years ago. Hall feels that to build an experience for the guest requires a different strategy and herein comes the destination spas. The company is looking to establish five of them worldwide, apart from the one in Thailand with the Erawan Group.

In India, Ananda in the Himalayas and other luxury resorts such as Aman-i-Khas in Ranthambore, and Amanbagh in Ajabgarh in Rajasthan, Taj Safaris with its properties in Baghvan in Pench, Mahua Kothi at Bandhavgarh and Oberoi with its Vilas properties are setting standards. Still, its merely scratching the surface.

The Indian traveller

What goes into making a luxury destination resort? Namely, the aforementioned and more, that attract a traveller on the strength of its own beauty. The Indian traveller is clearly tempted. Meher Bhandara, general manager (corporate communications) at Travel Corporation (India) that specialises in inbound and outbound tourism, explains, "Spa holidays, stays at luxury resorts, villas and private islands are gaining popularity."

Statistics reveal a lot. In the latest Forbes' worldwide billionaire list, India tops it in Asia edging out Japan with 36 billionaires with a combined wealth of US$ 191 billion. Worldwide, the number of billionaires has grown to a record 946 with a combined wealth of US$ 3.5 trillion. Out of these, high-end luxury travellers are constantly on the search for newer, exclusive getaways in exotic destinations, be it for weddings, honeymoons or just for leisure.

Research agency Technopak, issued an India Luxury Trends report, which threw up interesting findings. It revealed that the new India is creating a new generation of entrepreneurs, achievers and dreamers and the emerging luxury trend reflects emotions, aspirations and lifestyles. It also pointed out that there are about 1.6 million households in India earning over Rs 45 lakh (US$ 1,00,000) or more per year, spending about Rs 4 lakh (US$ 9,000) per year on 'luxury/very premium' goods and services, including tourism, giving a market potential of about Rs 65,000 crore (US$ 14.4 billion). But still, the outbound market is growing more than the inbound or domestic travel to luxury locales in India. This is apparent by the outbound numbers (8.3 billion in 2006) that exceed inbound tourism (4.4 million in 2006) year on year, and the droves of upscale tourism boards such as the Caribbean diving in to lure the Indian, upscale traveller.

The Indian marketplace

The moot question, if any, is why haven't any destination resorts of scalable proportions been built in India? To put timelines into perspective, the first Disneyland opened in 1955 in California. At that time India was still following the socialist Soviet model of development, which unfortunately let us lag miserably in luxury resort development, even though luxury hotels, mainly converted palaces and heritage properties are ubiquitous and in predictable destinations such as Rajasthan, Goa, and Kerela.

Today, India is recognising the importance of super luxury leisure tourism, and even MICE tourism. American hotelier, Sant Singh Chatwal, is planning to invest US$ 1 billion in establishing a hotel chain in India, including luxury hotels, with conference facilities to seat 3,000 pax. So is the French hotel group Accor. But reaching critical mass a la Sun City will take awhile. The market place will not change drastically in the short term. Speculations abound with the Trumps said to be scouting for locations in India. Vijay Mallya, chairman of Kingfisher Airlines, in his personal capacity is developing super-luxury resorts at Lakshadweep.

But worldwide trends of luxury condominiums, popular in Canada and the US, and timeshare concept, still associated with the mid-market segment in India, are yet to capture the luxurist's imagination. How the market will develop is anyone's guess. Out of the 300 hotel projects recently approved by the government, 55 per cent are understood to be luxury hotels, accounting for about US$ 1.6 billion in investment according to industry sources. Hopefully, some of it is directed to create destinations out of accommodation and its luxurious peripherals.