TOURISM is when a person leaves a place of his/her origin to visit another place in the same country or another country in order to satisfy a need. Such needs include religious, leisure, sport, educational and cultural.
Tourists require accommodation and food when they reach their destination. Some tourists may stay for prolonged period while other make short stays. Either case, this raises the demand for accommodation.
Investors can choose to be engaged in real estate business in order to satisfy the growing need of accommodation. Usually tourists prefer exclusive places where they can stay where they can concentrate on their purpose of visit.
Tourists who visit on educational missions will require choose to stay at a place where there is constant power, internet and mobile network. They cannot be expected to buy properties during their studies but would prefer to rent up market flats near or adjacent to their educational institution so that they don’t waste time between studies and going home. This brings a boom to the accommodation in central businesses district (CBD). There is no doubt that investors in metro real estate will reap profits since students will always be available as tenants.
Tourists who visit for work purpose will require places that give them a working environment. Such places might be in central business district or be in or near industrial parks outside the CBD. Features that such visitor will look for include availability of conference facilities, internet and mobile network. This increases the value of real estate outside the central business district.
Another class of tourists is those who visit a place for leisure, religion, sport and culture. That group of people usually prefer place that satisfy their needs. Religious and heritage sites, sport facilities and wildlife parks may not necessarily need to be found in central business districts or even in towns. They are usually found in places that offer them vast tracks of land, near landscapes like hills, rivers, lakes, forests and historical structures that are preserved in order to keep their environment.
This will call for real estate investors to build structure that caters for such class of tourists or to renovate or expand existing buildings in order to upgrade the standards of structures. The face lifting and construction of properties at and near tourist sites contributes greatly to giving value to real estate.
In essence, real estate business benefits immensely from tourism.