The head of the legendary Samoan hotel, Aggie Grey's, La'auli Alan Grey, has been identified as the hotelier behind plans to build a 140-room hotel with government support.
The Minister of Finance, Misa Telefoni, announced the new venture in the budget speech without naming the entrepreneur involved.
Incentives have failed to attract overseas investors to build four or five star hotel resorts.
Misa said the lack of facilities had restrained a growth in tourist numbers for some time.
He said Mr Grey might borrow some funds from the National Provident Fund, but that the majority of the capital would be his own.
The government is already supporting the venture by way of approving the decision by Samoa Airport Authority to invest 50 acres of its land near Faleolo International Airport as equity.