The opportunity is attractive because the government of Madeira desires to limit the total number of beds on the island to 28.000 that will tend to limit the amount of hotel rooms in the immediate vicinity of the proposed hotel, reducing the possibility of nearby competition in the future.
Golf Valley Hotel Resort is poised to take advantage of the growth of the golf and ecological tourism in Madeira and lack of direct competition. The main European countries for incoming tourism, with regular flights to Funchal, have a large concentration of golf and nature enthusiasts. These golfers and environment-conscious individuals, couples and groups are Golf Valleys primary customers. This target market is an exploitable niche that will produce a higher return per room, and Golf Valley will provide this specialized thus differentiated service.
It would be also important to note that there is no health farm facility on the island and there is no hotel / resort group that can match the proposed variety for all kinds of tourists.