Cape Vantage Hotel Gibraltar
Market Profile
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Gibraltar’s status as a tax haven has attracted many international companies that benefit from operating in a regulated jurisdiction. The Government of Gibraltar has ambitious plans to develop Gibraltar as a premier location for the establishment of e-commerce business. The Gibraltarian economy has witnessed healthy growth and this trend is predicted to continue with the Government’s initiatives to maximise the attraction of Gibraltar as a business and tourist location.
All arrivals – including those remaining in Gibraltar after arriving for the purposes of a holiday, family visiting or business – staying in hotels has increased from 2002 to 2004 and whilst there was a decline between 2004 and 2005, 2006 witnessed a return to growth. The number of room nights sold has also seen a healthy increase from 2002 to 2004 but a decline in 2005 and 2006. This decline in room nights sold in 2005 and 2006 is due to the addition of bed nights offered without the corresponding increase in demand. Further growth is expected for 2007 and 2008, with the Government actively encouraging more tourists and visitors to Gibraltar.
Tourist arrivals – including people remaining in Gibraltar after arriving for the purpose of a holiday – increased from 2002 to 2004 with an 8.8% increase witnessed between 2003 and 2004 but this trend has not been maintained and arrivals have declined from 2004 to 2006. The number of room nights sold has shown a strong increase of 11.1% from 2003 to 2004 but has rectified itself between 2004 and 2006. Cape Vantage will be a destination and will generate its own new demand. It will also attract those who seek a higher end offer, which currently is not available in Gibraltar and results in leakage across the border to Spain.
Since the land frontier was opened in 1982 Gibraltar has witnessed a major increase in visitor arrivals by land, sea and air with a 5% increase between 2005 and 2006.
Positive growth potential in tourist arrivals and bed nights is anticipated for Gibraltar with a Government backed marketing campaign and its position as a tax haven.
The emergence of the Cape Vantage development will transform the skyline and the perception of Gibraltar and bring a 21st century attraction to the historic territory. Being within an hour’s drive from the Costa de la Luz, Gibraltar will no doubt draw visitors from this stretch of coast. Gibraltar, given its close proximity to some of the world’s finest golf courses can be included as part of the golfer’s itinerary. Combined with tax-free shopping, relaxation and business activities the hotel at Cape Vantage will be a truly unique destination.
Costa de la Luz is a well-known destination for Spanish tourists and is becoming increasingly popular amongst international visitors. The destination offers a broad variety of tourism facilities including hotels, restaurants, bars and golf. The coast of Cádiz, Costa de la Luz, is an important tourist destination in Spain, attracting more than 1.9 million visitors and generating 5.9 million bed nights in 2006. The number of tourist arrivals and bed nights occupied increased by 7.61% and 4.78% respectively from 2006 to 2007. The number of bed nights has increased continuously and reached 6.2 million on the Coast. A positive trend in domestic demand has been observed since 2002, with tourists and bed nights growing by 80% and 61% respectively. After a consolidation in 2005, international demand has grown between 2005 and 2007 with the number of tourists by 33% and the number of bed nights by 2%.
The predominant segment in Cádiz and Costa de la Luz is the leisure, characterised by high seasonality concentrated between June and September. Golf tourism contributes to de-seasonalising the tourist demand and the Province of Cádiz has more than 21 golf courses, representing 7% of the total number of courses in Spain. The golf segment is characterised by quality tourism with higher spending per person.
With the wide selection of golf courses only an hour’s drive away, this will be an added attraction for the visitors to the Cape Vantage development, and in particular the Meeting Industry groups.