KwaZulu-Natal Correspondent

DURBAN — Fairmont Hotels & Resorts, owner of London’s Savoy Hotel, will enter the local market with a management contract for the planned $250m Zimbali Hotel on the KwaZulu-Natal north coast.

Earlier this year, Kuwaiti-owned IFA Hotels & Resorts unveiled plans to develop a second luxury hotel in the Zimbali development, as well as its intentions for listing on the JSE.

IFA is a wholly owned subsidiary of Kuwaiti-listed International Financial Advisors and has been involved in hotel and tourism resort projects in Europe, the Middle East, the Indian Ocean and Africa.

The group in 2002 entered into a joint venture with Moreland Developments, the property arm of Tongaat-Hulett Group, aimed at expanding Zimbali tourism products.

Trade and industry department statistics show KwaZulu-Natal has experienced $20bn investment in the past three years, reflecting a 9% annualised growth. The expected influx of visitors for the 2010 World Cup Soccer and the pending construction of the international airport at La Mercy on the north coast bode well for further tourism development in the region.

The tourism industry has identified the demand for a luxury branded resort to manage accommodation requirements across the spectrum from holidaymaker to business traveller. The strategic alliance between IFA and Fairmont started at Dubai’s Palm Island and extended into Africa in a joint venture to acquire five Kenyan hotels.

IFA chairman and MD Talal Jassim Al Bahar said yesterday the Fairmont Zimbali created the platform for further opportunities in the South African leisure market.

It was also a signal to investors that IFA intended to maintain standards by partnering with leading names in the industry, he said.

Fairmont already has interests in San Francisco and Monte Carlo and other luxury properties in the US, Canada, Mexico, Bermuda, Barbados and the United Arab Emirates.

The Fairmont Zimbali will include a five-star hotel, golf course, spa and holiday homes. Construction of the hotel and complex is due to begin in July and is scheduled to be completed in early 2008.