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Mr. Farid Bensouda, Managing Director of the Coconut Residence



The Coconut Residence

Interview with:

Mr. Farid Bensouda
Managing Director

November 8th, 2000
You set up The Coconut Residence two years ago with your sisters and nephew. Can you enlighten us on the reason that motivated your starting of this business in The Gambia?

I had an idea to invest in the Caribbean's or South of Spain through the connections I have there. The Gambia was at the back of my mind however.

I was born in Gambia, I left when I was six years old, then I grew up between North Africa and Senegal, stayed in Germany for 27 years. The idea of coming back was at the back of my mind, but opening this resort in The Gambia was also part of my plans. It was very discouraging at the beginning, in terms of available infrastructure; the political climate was not that conducive too at the time, however I took up the challenge despite difficulties to start. Four years ago I decided to start here. The location is perfect; the winter period in The Gambia is perfect and healthy. I decided to give the business a try. We put over Six Million Dollars in the Coconut Residence, at that time we really needed the guts to do it but I had a good feeling about it, I knew it would grow. Our first target was African businessmen who love this type of luxury, they are searching for it. In my mind, this hotel was not made for the tourists but rather for the African and European Businessmen.

How is your occupancy shared between businessmen and tourists?

We have been working the whole year through since 1995, 70% of our clients are businessmen and 30% tourists. In the winter 50% Businessmen and 50% tourists, this is really a healthy calculation for us. For the level we operate here as compared to Europe and the Caribbean's we are cheap. It is a very healthy calculation, the labour is cheap, and the land is cheap. That's why we have an attractive offer to give. Although we have a few disadvantages such as the cost of electricity and its poor supply which can spoil your calculation plans. We are motivated and have achieved something nice, the result is quite satisfying for our guests and us and I am currently planning to go further.

In order to get a more precise idea of the size of your business, can you tell us what is your annual turnover and what are your expectations for this year ?

We have a very good and healthy turnover. In the Caribbean's, if we had the same operation running I would be left with very little. So, it is a very healthy calculation, I will say. Taxes are reasonable, very fair, sales tax is quite acceptable, colleagues in the Caribbean's pay 10 times than I do, or 10 to 20 times more in the south of Spain, so I will say taxes are reasonable, but I am sure that in 3 years time they will not be so attractive because the Government will see our business as a source of money.

You were mentioning the cost of investing in the tourism in The Gambia as compared to the Caribbean's or Europe. What are the main disadvantages of those places?

First of all the land, properties are expensive in the Caribbean's. Over there, the prices are 20 times higher. I bought all the land I have here. But in 2 to 3 years, this area will not be mixed up anymore, it will become nicely developed and as a consequence land prices will go up. The area is developing dramatically and soon it will get crowded. This area where the Coconut Residence is located is going to be the future. My next objective is to create a resort on the coast, not far from here on the cliffs where the view is the most amazing. And you are only fifteen minutes from the airport, and at the same time, you are totally secured, completely alone. That is a combination, which is impossible to find nowadays.

Do you have any timeframe for this project?

I am just opening this season, but soon I will start planning for it. Acquiring the land from the TDA, which is under the ministry of tourism, really takes a long time, it is a long process and I usually do not like to waste time. The reason I built the Coconut residence on this ground is that five years ago I was already negotiating for a plot in the Tourism Development Area near the sea-side area which has quite a nice view, but the waiting and the telephone calls from Europe, the various up and down travels cost time and money. So, I acquired this present place and it is easier for me now to do what I have to do.
Don't you have any plan to extend the Coconut Residence on its present location?

I would love to expand because our guests waiting list is getting bigger and bigger and we are having problems especially in the months December, January and February. Unfortunately, our space is very limited, there could be possibilities of extension, but the beauty of the whole garden will be gone. So we have to expand somewhere else.

There was workshop organised last week by the Government on the revitalization program of the tourism sector. What are your feelings about the outcome of that workshop?

I could not attend the workshop due to my tight work schedule. I work 18 hours a day; I would have loved to go. But I am missing three expatriate staff; the reason they are not here is due to the expatriate quota fee of 30,000 Dalasis per person before the person starts working as an expatriate. This is a huge amount and I am totally against it. For me this is unfair because three qualified expatriates and at the same time the 150 employees working here can learn from them, and the Government prevents us from doing this.

Did you however get any feed back from this workshop?

Yes I got, from Stephen Wilde owner of Gambia Experience. Like he said during the workshop, the present players in the tourism sector are not well taken care of, they are too much looking for new foreign investors. Basically, it is very difficult for those who are already here to re-invest and expand.

However, from what I understood, they are going to go ahead to promote the sector with existing local and foreign investors. I think the new Secretary of State is doing well especially as he is new to this line of business, after coming from a different department. I am totally behind him in his efforts to improve things in the tourism sector. I am confident he will be able to achieve something.

In which way do you support the Department of State for Tourism?

Part of my plan his to participate actively in the coming Berlin Fair on March 2001. I have connections in Europe, in this tourism business. Their contacts will be useful to sell the Gambia as a potential and attractive destination. At the Berlin Fair, I will like to give The Gambia a different Face and a new image about tourism in the country. During the 5 - 6 days of the fair I will be able to show that The Gambia has a lot to offer. I plan to sell The Gambia during this fair as a very wonderful tourist destination

Which kinds of results do you expect from the Berlin fair?

I know it is possible to present the country beautifully and to attract tourists. You have very ambitious tour operators looking for new destinations to take their clients to and if we have a good package then I hope to gain something from it. I think the Berlin Fair is going to be one of my greatest current challenges.

Concretely, which message do you intend to give out in order to sell The Gambia?

The Gambia has a unique location of 5 to 6 hours flying from Europe, which is optimal. It is a good attraction for the people to come down, because nowadays tourists don't like flying long hours for holiday trips. The Gambia has a very good climate, Between mid December and April the weather is very comfortable, the good weather is 100% guaranteed. This coast is absolutely free of natural disasters, the country has no record of natural disaster. On top of that, other destinations are suffering from congestion, they are getting packed. All these are factors contributing to The Gambia being a healthy and wonderful destination.

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© World INvestment NEws, 2001.
This is the electronic edition of the special country report on Gambia published in Forbes Global Magazine.

May, 14th 2001 Issue.
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