10 January 2009

How Sonu started from Maldives and expanded into the world


Hoteliers around the globe may be suffering cold sweats as the economic meltdown hits occupancy rates hard, but Six Senses Resorts & Spas CEO Sonu Shivdasani tells Arabian Business he is confident his luxury chain will emerge stronger in 2009. Following are edited extracts from the story on www.arabianbusiness.com/

Even staring down the barrel of the most severe global economic downturn in living memory, Sonu Shivdasani is so relaxed that you could be forgiven for thinking he has just spent a week at one of his own resorts.

"I would be much more concerned if I were selling luxury handbags," smiles the founder and CEO of Six Senses Resorts & Spas, leaning back in his seat. "They just sit in your cupboard and you can do without them for a few years.
The same cannot be said of holidays - if anything, Shivdasani believes the need to travel has never been greater. It's a bold statement considering the financial meltdown is expected to hit hotels and airlines hard in 2009. But the Oxford-educated Englishman - who oversees 14 island and hideaway retreats at various locations including the Middle East (and the Maldives) - insists the outlook is brighter than some are forecasting.

Before the financial crisis, he argues, long-haul and short-haul holidays were the top two priorities for people looking to spend their disposable incomes, followed by luxury goods. Since the downturn, Shivdasani insists that while holidays are still on the agenda, luxury goods have dropped off the radar.

"People feel [holidays are] a return on life," Shivdasani says. "If they have the money in the bank they say, ‘this is the time we need to bond together as a family because it's so gloomy and cold in England or France,'for example.

"You put on the TV and see the economic crisis and job market going up and down with redundancies being announced and it's cold outside, so people feel they need to get away from it all," he adds.

Adding further weight to his argument, Shivdasani recalls a recent conversation he had with Matthew Upchurch, chairman of US travel agent association Virtuoso. The American organisation launched the ‘Return on Life' campaign last year, encouraging people to spend more time travelling with their families and friends.

"In the current crisis, Matthew is saying, ‘if you cancel a holiday this year you have lost that time and it's gone from your life,'" Shivdasani explains. "If you don't upgrade from the old BMW 7 Series to the next one you can always do it in two years time; this won't really affect your lifestyle, but the time for having a holiday is gone forever."

Shivdasani's conviction comes from overcoming several hurdles since launching the luxury resorts and spas operator in 1991. The first test came early on when Shivdasani and his wife Eva tried to buy Kunfunadhoo Island, a remote archipelago in the Maldives, from the government. Despite initial reservations, the authorities eventually agreed to the sale after Shivdasani unveiled his plans to develop the island into a luxury resort.

Getting a bank on board to finance the deal also proved tricky. But Shivdasani put his university debating skills to good use and persuaded a Thai bank to part with its cash. Having bought the island, Shivdasani and his wife turned their attention to establishing good transport links from the mainland. With strong crosswinds often sweeping over the island, reaching Kunfunadhoo by sea was exceptionally difficult for holidaymakers. Seaplanes were eventually introduced to provide safer and more convenient passage to the island.

Challenging the Maldivian hoteliers' apathetic attitude to hospitality was another issue that needed addressing. Indeed, most operators gave little thought to standards and services, with high occupancy rates their only concern. But Shivdasani had other ideas. He was determined to develop a resort that put its guests' needs first.

After drafting in local contractors to develop the island, dubbed Soneva Fushi by Shivdasani and his wife, the resort was finally opened to the public in 1995. The peaceful retreat with 65 villas surrounded by white sand and tropical palms proved an instant hit, according to Shivdasani.

Private swimming pools, an open-air cinema, star-gazing observatory and top-class facilities including a gym and spa, also boosted the resort's appeal.

Following Soneva Fushi's success, Shivdasani wasted little time launching his second Six Senses resort. The Vietnamese retreat was established in 1997, paving the way for more openings in the subsequent years. Today, Shivdasani and his wife oversee 14 Six Senses resorts and spas in various locations, including Thailand, Spain, Jordan, Oman and Fiji. The couple plans to launch several more, particularly in the Middle East where the company has a modest presence.

8 comments:

  1. Anonymous10/1/09 22:29

    His perspective is purely based on high end tourism; millionaires who need time to relax wont sacrifice the holiday despite the economic blackout and they can afford it. But the travelers who pay their holiday with savings collected in the same year may have alternative priorities than long haul holidays.

    Some big companies are downsizing the operation; cutting jobs and even closing down some factories. Obvious this will be a concern to many people and at that time travelers will be thinking twice before booking a holiday. So, 5 star resorts and 4 star resorts will be largely affected, depending on the depth of crisis.

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  2. Anonymous11/1/09 00:58

    agreed with ahmed shareef

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  3. Anonymous11/1/09 02:26

    Sonu has destroyed one of the most important Crescent Tern and other sea birds habitat in the Maldives, by having sun set watching on the sand bank of Nelivaru "in the name of eco tourism". Nelivaru is sand bank next to Sonuvaafaushi. Sonu is using abusing the word environment of his business. Today sea birds habitants are destroyed by tourism industry many by tourist visiting these sand banks.

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  4. Anonymous11/1/09 11:07

    Anonymous 02.26 has a point but he seems a bit too harsh on Sonu. Environemnetal concerens isn't an end by itself. No one is 100% geen. We should appreciate Sonu and Sonevafushi's environmental work, but at the same time criticise (professionally and fairly) when even they go out of bounds.

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  5. Anonymous12/1/09 09:54

    konfadha sonu eththa?kobaahey himeyn ingilaabu..

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  6. Anonymous12/1/09 17:31

    he made all his money from Maldives,. people like Sonu will destroy our economy and our enviorment too in the name of protecting the enviorment,,,

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  7. Anonymous12/1/09 17:34

    he made all his money and infact his very first resort or tourism was sonevafushi,people like him will destroy our economy and the enviorment. all their money goes to overseas... what the f... we must wake up now

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  8. Anonymous25/1/09 19:47

    stating the fact that sonu bought an island from the government of the MAldives gives out a wrong impression.first of all we have no islands for sale. seconly all islands are leased from the government. as the lease period expires, mr sonu has got to extend the lease period just like all other resort operators.

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