But it appears that there is little point in turning to the highly publicized oligarchs for financial help. They see a much slower return in hotels than from other sectors, says Prokhorenko. Elsewhere in Russia, it looks as if investment is coming from a variety of sources. Rezidor Hotels Group has announced its second project in Rostov-on-Don and its partner this time appears to be a Moscow-based Mercedes-Benz dealer.

Tarmo Sumberg was for many years an operating hotelier in Tallinn, Estonia, before he went into development. Now he is one of the three Estonian entrepreneurs heading Legend Hotels and Resorts, Tallinn. Sumberg says he sees an opportunity for destination spa hotels throughout the Baltics and in Poland. His company is already working on destination spas in Palanga and Sopot. Legend Hotels already has the Hotel Telegraaf, a conversion of Tallinn’s former telecom building finished in 1878 (it is now an 86-room hotel). It also owns the Georg Ots hotel on Saaremaa Island, Estonia. Sumberg personally owns the 23-room Three Sisters in Tallinn. His partners in Legend Hotels and Resorts are a banker and a furniture designer.

It still appears the Arabian Gulf is seeing development that goes on forever—and if they do ever run out of desert or any other land, they merely plan yet more man-made islands. The emirate of Ras Al Khaimah has just announced an additional 20 5-star hotels to add a further 3,700 keys to its supply over the next five years. According to the Economist Intelligence Unit, however, it is the sultanate of Oman that offers the most positive growth potential for the next few years. The World Travel & Tourism Council forecasts that the sultanate’s tourism-generated revenue this year looks likely to be up 15.7% over 2007, to US$4.3 billion, and dramatic growth should be helped by such events as the Asian Beach Games in 2010. One of the newest announcements is the Yenkit Tourism Development, partly funded by the Majid Al Futtaim Group from Dubai. This will see four resorts being developed 15 miles (24 km) southeast of the capital of Muscat.

Oman also has considerable heavy business coming up. Raysut, in Dhofar Province over 700 miles (1,127 km) south of Muscat, is being expanded significantly as a commercial port. This is partly as a precaution in case Iran should make the Strait of Hormuz impassable, in which case Raysut would become the lifeline of the entire Gulf area. A massive freeport is being established and this will bring yet more business to Salalah, a beach town that already sees a steady flow of sun-seeking tourists, mostly Swedish.

Among the additional developments already announced in Dhofar is one led by the Sawiris family’s Orascom Projects & Tourism Development and Orascom Hotel Holdings, Cairo. Led by Samih Sawiris, the company is working on a project at Taqah, 100 miles (91 km) east of Salalah, which will include five resorts, plus a sizeable marina, 550 villas and 600 residential apartments.

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