October 2012
Vladi Private Islands founder Farhad Vladi gives his expert views and advice on the most important new trends that are changing global island market forever.
In recent years the governments, Nature Trusts and Nature Conservancy Groups of many different countries have all come forward to buy islands. Indeed, not long ago, a prime island in Nova Scotia was sold for a substantial price to the Nature Trust. A very big change was afoot, however. Unlike previous occasions, where public money was used to secure the deal, the purchase of this particular island was financed by a very prominent local businessman, who donated private money to secure the protection the future enjoyment of this island for the people of Nova Scotia.
It is becoming more and more common to see the government of various countries purchasing islands. From France to Scotland and England to New Zealand and beyond, the governments of these countries can be seen making use of the recession to purchase islands for low prices. It is popular move for politicians, who are keen to promote the purchase of islands from private hands into public hands.
What the future will look like:
This conservation trend is almost certain to continue and will be visible almost everywhere except for those islands that already have substantial developments upon them. The British Virgin Islands, for example, has issued a policy according to which the government makes use of their right of first refusal regarding any undeveloped islands which appear on the market. This is very much the trend. Who will be the island owners of the future? In my opinion; it will be conservation-minded public or private island owners, and developers of hotels and resorts.
The other trend in the private island market is that people do not want to own, but more enjoy. This new direction has given a considerable boost to the island holidays and island travel market and has made a difference regarding development too. More and more island are developed for short term holidays – whether a resort or privately owned. Many island lovers are asking themselves the following question: why buy and have the burden of responsibility when I can enjoy the exclusivity of an island holiday instead? This way, the traveler even has the right to complain! In the island market there is no such thing as black and white. There are many shades in between. That said, the trend appears to be obvious – the Seychelles D’Arros Island is a textbook example of how private islands are transferring from the private to the public, and is now run by a nature conservancy group. Vladi Private Islands sold it to the emperor family of Iran, who very much enjoyed it, it went to Ms. Bettencourt, who also obviously enjoyed it, and now it is a nature reserve. Great Dog Island in the British Virgin Islands has taken exactly the same path.
We, as supporters of private island ownership can assist the island owners with advice about what to do and how to be prepared.
These are our recommendations:
Find out whether your island has potential as a resort or a home which can be rented out to island holiday tourists. If neither of this is likely, consider selling now to a nature conservancy group or a government, as long as governments and trusts are paying market value! In this particular case I would also strongly recommend getting a building permit for the island first of all. After all, an island with a permit can be appraised for a higher value.
This trend is unlikely to change, as it is already very much in place, is attracting attention and is even supported by several prominent business people.
The private islands owners should investigate the highest and best use of their island, look at the trend and reconsider what is the best for the future. A sale to trusts and governments could be the best avenue. Vladi Private Islands can be of assistance to share our experience – we have already been involved in more than 25 sales to governments, nature trusts and nature conservancy groups.