The resort and the Beach Fale's are in large two different products. Two Different clientele placements and two seperate margins space.

We need more rooms, not less. We need variants, not less choice. Marketing to seperate clients is contiguous to like products. Beach Fale is an illuminating quad. Resorts are concerning crowds that have all sorts of needs and wants. Beach Fale's tend to have less. Pay as you go services can and should be a trait of all Beach Fale's.

Cheers

SAVAII VILLAGE RESORTS, LTD.
Q & A FROM THE CEO – JESSE H. JAMES
JULY 19, 2008

Q. What is the value of the lease that was executed between Savaii Village Resorts (SVR) and the Village of Sasina? One newspaper reported the value of the lease as $120,000 USD.

A. That statement is incorrect. SVR made an initial advance payment of $120,000; however, the annual lease amount increases over the entire 120-year period of the lease. The actual value of the lease over that period is in multiple millions of USD. SVR also unilaterally provided the Village with a special bonus payment of $25,000 to express its thanks for the cooperation and assistance that the Village provided.

Q. It has been reported that the total project cost is estimated at $400-million to $500-million USD. Isn’t this project “too big” for the island of Savaii, especially considering the lack of infrastructure?

A. Yes, the project will eventually reach upwards of $450-million USD; however, this will occur over a substantial period of time. Initially, we will begin with a hotel, golf course and cultural center. This will be followed by timeshare units, additional hotels and a recreational marina over a period of years. It would be financial suicide to attempt to build a huge resort at the outset without the tourism traffic to support it. Infrastructure will be developed and improved as additional phases of the project are launched.

Q. What types of additional energy resources and infrastructure is SVR planning on?

A. We believe that Samoa, as well as other island countries in the Pacific, cannot continue to rely on fossil fuel as a source of power. It is only a matter of time before fuel prices will be completely unaffordable or fuel will not be available at all. SVR will work with the EPC of Samoa, its co-developer partners and outside agencies to develop renewable and sustainable energy resources. Wind, solar, ocean current and OTEC are at the top of the list for future alternatives for energy. We also will work with the government to expand the airport at Asau and to develop a world-class marina at Asau Harbor.

Q. Why can’t the Village of Sasina share in the profits of the resort developments?

A. They will. SVR unilaterally offered a 2% profit sharing arrangement in addition to the amount of the lease. This could amount to a substantial sum over the long term.

Q. How will the Village be able to afford to buy back the land at the end of the lease?

A. The Village will always own the land and will never have to “but it back.” At the end of the lease period they will have the options to buy the buildings on the land, allow the lessor to sell the buildings to another tenant or allow the lessor to remove the buildings entirely. In 98% of these situations, negotiations result in the buildings remaining with the same or new tenants. It will be up to the village to decide whether or not to allow for a new lease at the end of the lease period or to terminate it.

Q. Won’t the golf course, hotels and other structures result in a negative impact on the environment in Savaii?

A. SVR is totally committed to preserving the culture, tradition and environment in Savaii and in Samoa. We have engaged one of the finest land planning companies in the world, Belt – Collins of Hawaii, to assist us with environmental impact studies and civil engineering studies that will assure the protection of the environment. If you travel around Savaii you will find areas where trees have been indiscriminately cut and removed by people living there without any consideration being given to the negative impact on the environment. We will not allow that to happen on our leased land. Additionally, all of our structure are less than 4 stories tall and are setback 500 feet from the shoreline. We don’t want to see another Waikiki in Samoa!

Q. The labor resources in Savaii are somewhat limited. Won’t the villagers end up with all of the low paying service jobs with the better paying jobs going to outsiders?

A. We made a commitment in our lease to provide labor from the Village of Sasina first. We will also draw on labor from other villages in Savaii. It is our hope that as the developments enter their construction phases that there will be a repatriation of Samoans from American Samoa, New Zealand, Hawaii and elsewhere to benefit from the new economy. In cases where skilled labor is not available in Samoa, we will seek that labor from elsewhere; however, this is an enormous opportunity for the people in Samoa to be trained by outside resources in order that they can provide the skilled labor themselves in the future.

Q. When will the actual construction begin?

A. The land planning, architectural and preconstruction planning will take anywhere from 12 to 14 months to complete. Construction will begin at that time. The first phase of construction will take anywhere from 3 to 3-1/2 years to complete.

Q. Won’t the smaller hotels in Samoa lose a lot of market share to the new developments?

A. Actually, the reverse is true. Whenever new mega developments occur there is a tremendous amount of spill-off business for smaller boutique hotels in the area. The key is in driving new tourism markets to Samoa in order that they can enjoy the Samoan vacation experience. There will always be those tourists who will be looking for something different or a lower price range for future trips to Samoa. Over the long run, hotel prices everywhere will increase and everyone will benefit from the new development projects. We have experienced this phenomenon in Hawaii for decades now.

Respectfully submitted,

Jesse H. James, CEO
Savaii Village Resorts, Ltd.

There is nothing to fear from the big resorts. There will always be a market for the beach fale because it caters to the budget travellers (ie: Backpackers). The richer people go for the resorts. There will always be a budget traveller market in this part of the world because young NZders and Australians (and Europeans) do backpacking as if its a cultural ritual before they find their wives and settle down with them.

This is a good project and I clearly understand the benefits. We need more rooms, not less.
World Class projects are far and in between in Samoa. Open the doors to the tourist Samoa.

With Regards,

All the Best

Son of Samoa

Manase, you are the best of all. I don't see any reason why we have to raise any concerns about the Sasina's resort will steal or bring any higher competition against us. Tourists are away from their homelands because they like to experience a new lifestyle. Looking around at our beautiful village, we have all the tools that any tourists from anywhere of the world will enjoy it. Looking at the blue clear ocean and the green mountains, the beautiful faleoo all across the beach surrounding by the colourful flowers all year round, I believe that is what the real kind of scenery that the tourists will love to see while in Samoa, especially your real Manase open hearts to welcome any stranger in our eleele-mumu.

Leota Lu states the right attitude, as another businessman, to the proposed SVR in Sasina. Competition is what determines a tough businessman. Bring it on, and indeed, bring it sooner. The argument about the threat of these developments on our culture is out of date. Our culture has already been affected by many other winds of changes. We need to be honest that hybridity of culture is the only way for us to survive in the present with reference to the global world of changes. We need these developments for our small country to survive economically. These are the signs of the times and we got to read them with hope and courage. Lets give a great faamanuia to Sasina village for their vision.
Mosese
UK

Check in with your cousins in Hawaii. Corporate tourism is a fatal disease, economically, environmentally, socially and culturally. If you really want to destroy Fa'a Samoa, this is the way to go.
Aloha e,
m

Have been back to Samoa many times including April this year. We stayed at Vacations and thoroughly enjoyed ourselves. Have also stayed at Tanu Beach Fales in previous trips. As mentioned by numerous postings. People will have options, to stay at Beach Fales or Luxury Accomodation. If anything the Sasina project will be competing with Aggie Greys & Sinalei Resort. People will flock to Sasina to escape Upolu which will benefit Savai'i in general. More foot traffic to Savai'i will mean more sightseeing. My major concerns are the environment & financial security for the village of Sasina.

All the best Sasina!

The back packers will always stay at the beach fales...there are plenty of poor palagi that cannot afford to stay at resorts but still want to travel. Even the rich may still want to stay at the fales after paying the high price of flying to Samoa.

No doubt this Sasina project will benefit a lot of the people of Savaii. I'm just not sure if this is what Savaii needs, by that i mean, i would rather see 10 or more Sinalei/Le Lagoto style resorts than a big one that is the Sasina project. Reason being is that such a big resort takes away the "get away" status that Savaii currently enjoys. There are heaps of tourists in Savaii but will they still come once there's a massive resort on that island - more cars, buses, more commercialization - aren't most of the current tourists who come here looking for peace and quiet and untouched beauty?
Anyway - Good luck to Sasina and their project and let's all hope that none of our concerns become a reality.

Each business has its own demand and market. Five stars in Savaii is for the 5 stars tourist who has a five star check book. For the rest of us who visited Samoa every year, sleeping in the Samoan fale on the beach is an experience not to forget.

Its all about good customer service..no sense having a big luxury hotel but no one will go dea if dey don't have good service...so just keep ur head up and make sure to always smile and treat the people the way u all want to be treated

There are rich people, middle class and low class, thats how resorts, hotels and accomodation are form, so I don't think it will ruin the little people, the only thing I can see to it, will bring a lot of jobs for the people of Savaii and brings a lot of Americans to see our little country I hope. If it meant to bring the greens to the country, so be it

I've been living abroad for a while and was at home last year in July when first informed of this new resort. My village is very excited. There is potential to earn a basic living which is otherwise simply non-existent. Now most won't have to leave home (like me) as there is opportunity being built in our own back yard. It was recognised that there was a piece of land available for lease so why just let it sit there? I'm sure any other village would have done the same.. Millions vs Nothing? O le olaga e alu alu i luma. We must all remember that to achieve success we must take risks.
My great grandfather along with others fought for this land to belong to the people of Sasina. From poverty to prosperity Sasina.

Samoa is not and island unto itself. The world has an interest to see our people.
Since we are not cannibals and do not have the desire to bite anyone, why not invite them in, sit them down, and allow them to mingle(of course for a price) Why Not?

Tourism represents over 18% of GDP in Samoa. We can ascertain from that figure that we have oportunities abound in this Industry. The key is to balance things out and create environments of entertainment and not meander in function. We should learn from the 50 Years of experience Hawaii has had or other island nations.
The painful reminder that it can be done better. As for Mr. Jesse James CEO. Hold him to his contract, keep the fire to his word on contract and happy business should be had by all

These projects are full scale in size compared to other properties in the South Pac, but if the financing is doable, I think all can be very happy with the end result.

Good Luck Samoa---