A number of enquiries have been received by the Department of Economic Development from parties wanting to invest in new hotel developments on the Island.
That's according to minister Laurence Skelly, on the day the Mount Murray hotel closes for good (6 Feb).
Mr Skelly says the demise of the Santon complex has brought the Island's visitor accommodation sector into sharp focus.
But he points out it plays an important role in the Island's economy, contributing ?107 million in 2013.
Mr Skelly says tourism continues to perform well on the Island and points out the number of bed spaces at four-star and five-star levels increased by 21% between 2009 and 2014, with 53% of bed spaces in the Isle of Man graded at those levels.
Thirty-seven new accommodation businesses were established in 2014, and so far this year fifteen enquiries have been received from new businesses wishing to register accommodation.
The minister says the new Mannin Hotel is expected to be opened in autumn this year, providing over fifty new bedrooms, and there are high quality developments being planned which will potentially increase accommodation provision further over the short to medium term.
These include Douglas Quayside, the Forge in Santon, the Castletown Golf Links site, Park Crest site in Ramsey and the Grosvenor site in Port Erin.
There is also interest in the upmarket camping sector.