Risks
Economic Cyclicality: The hospitality sector is highly sensitive to economic downturns, impacting leisure travel budgets.
Seasonality: Revenue can be highly seasonal, depending on the location and type of resorts, leading to fluctuations in occupancy and profitability.
Intense Competition: Facing competition from established large chains, independent resorts, and alternative accommodations.
Environmental & Regulatory Risks: Dependence on natural settings makes it vulnerable to natural disasters, climate change impacts, and stringent environmental regulations.
High Capital Expenditure: Expansion and maintenance of resorts require significant capital investment, which can lead to debt.
Pandemic/Health Crises: Events like the COVID-19 pandemic can severely impact travel and tourism, leading to widespread cancellations and operational shutdowns.