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CHTA warns, some Caribbean Hotels could collapse due to monies owed

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#MIAMI (May 13, 2020) – Citing the unprecedented pressures facing Caribbean hotels and resorts because of the coronavirus pandemic, the head of the Caribbean Hotel and Tourism Association (CHTA) called on those international tour operators which have delayed paying hotels for services delivered to the operators’ clients as early as January to expedite reimbursements.

Exuma Swimming Pig, The Bahamas

Frank Comito, CEO and Director General of CHTA, in a letter to major trade organizations representing the bulk of tour operators that do business with the Caribbean, asserted that 69 percent of hotels report that they have not been receiving timely reimbursements from tour operators for services provided during the first quarter of 2020. The average amount owed to hotels by tour operators is US$219,000 per hotel, “with a number of hotels reporting outstanding amounts in excess of $1 million and one hotel being out-of-pocket $15 million,” Comito reported.


Frank Comito, CEO and Director General of CHTA

Noting the global crisis was threatening the survival of many Caribbean properties, particularly the small- and mid-sized independent properties, which are a staple element of tour operators’ business, Comito wrote: “We have become alarmed in recent weeks to learn of the extent to which some of your member tour operators are withholding reimbursements to hotels for services which were rendered as early as January and into February and March.”

Acknowledging hotels had been advised to expect reimbursement to take an average of 60 additional days, and as long as 120 days, from certain tour operators who cited staff shortages, high demand, and reduced cash flow as primary reasons for delays, Comito pointed out that “these payments were made to the tour operator by consumers, often many months in advance and were to be held in trust for payment to hotels shortly after the delivery of the services.” 

Comito requested the international tour operator associations help CHTA by “reaching out to your member operators who work with the Caribbean urging them to make every effort to expedite their obligation to reimburse Caribbean hotels for services which have been rendered.”

Turks and Caicos Islands

The CHTA chief said he understood the dilemma facing all in the travel industry, but he stressed “the reimbursement of funds which were collected from the consumer far in advance and are obligated should take priority.” 
Inferring the survival of Caribbean hotels was threatened, Comito warned that the consequences of contributing to the demise of some Caribbean hotels “will also be long-term for your members and the reputation of the sector, having already impacted the ability of many Caribbean hotels to meet their own financial obligations to employees, vendors and Government for taxes owed related to past activity.”

Barbados

Stressing the interdependence of Caribbean hotels and tour operators, Comito reminded the recipients of CHTA’s letter that the association had been a longstanding resource for many tour operators working to develop their Caribbean portfolio: “Through our B2B marketing efforts, advocacy work, and reach to our 33 member destinations and hundreds of properties, we’ve helped to create an environment which has supported the growth of your members’ business into the region.”

Looking to future cooperation, Comito asked the associations to rein in some tour operators which are considering “one-sided attempts to revise future contracts as they seek new rate and payment terms, already asking for deep discounts which are difficult to provide in an extremely high-cost/low-revenue operating environment.”

The business relationships developed by tour operators with Caribbean hoteliers over many years had been key to their mutual success, and Comito voiced the hope to maintain and build upon those relationships as the world emerges from this crisis. “This will require give and take by all parties,” he stated.

St Lucia

CHTA confirms that correspondence has been transmitted to major trade associations representing tour operators in Canada, Europe, the United Kingdom and the United States.

Press Release, May 3, 2020

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CARICOM speaks out on Climate Change, looking to May meeting to amplify call for Climate Funding

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March 3, 2024

 

The Caribbean Community (CARICOM) remains on the frontlines of global climate crisis, an issue the Region has been aggressively advocating on for the past thirty years. Despite the many commitments and promises of international partners, the window of opportunity to limit global warming to 1.5 degrees Celsius above pre-industrial levels is rapidly closing.

Heads of Government are concerned that while COP 28 was widely regarded as a historic event, with the completion of the first global stocktake (GST), on progress in achievement of the Paris Agreement goals, the outcomes of GST show that emissions of greenhouse gases continue to rise and the nationally determined contributions (NDCs) of Parties will not keep global temperatures below the 1.5 degree goal enshrined in the Paris Agreement.

Heads of Government also expressed concern to be heading to COP 29 where a New Finance Goal will be articulated to replace the 100bn goal, which has not yet been met, even as developing countries require trillions to deal with the escalating impacts of climate change. Developed country parties have not provided enough finance at scale, technology and capacity building support required to help developing countries tackle their pressing needs to build their resilience, especially in adapting to the adverse and increasingly catastrophic impacts of climate change. The clear absence of definitive timelines for action and quantitative commitments for scaling up of investments, and particularly adaptation finance emerging out of COP 28, cause great concern to our Region.

The Conference noted that Small Island Developing States (SIDS), recognized as the most vulnerable group of countries and a special case for sustainable development, have been facing strong push back against the recognition of their special circumstances especially in the context of climate finance. There is limited international support for special allocations for SIDS within financing arrangements and available climate finance from international and private sources is limited, expensive and too onerous to access.

In light of the preceding, Heads of Government called for CARICOM to take a strategic, unified and coordinated approach to ensure that the Region remains influential in the climate and development arena through engagements with key partners and advocacy groups.

They called for renewed focus by the Region to advocate for inclusion of forests, nature-based solutions and blue carbon into market mechanisms with the aim of articulating clear regional positions and strategies.

Heads of Government reiterated the call for improved readiness programmes, simplified approval procedures, a change to the criteria for determining access to low-cost finance, and for the adoption of programmatic approaches to address the bottlenecks in accessing finance.

The Region reiterates its support for the Bridgetown Initiative’s call to expand capital adequacy of international financial institutions.

Heads recognized that the Fourth International Conference on Small Island Developing States, scheduled to be held in Antigua and Barbuda, 27 – 30 May 2024, will be an inflection point for many of these discussions to be articulated. As such, the Region remains committed to participating in the Conference at the highest level.

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South Caicos Development Plans shared with Washington-Misick led Administration

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On Monday, 12 February 2024, the Premier led a delegation to tour the island of South Caicos to view the ongoing public and private sector projects, involving the remodelling and rebranding of the airport terminals, historical districts, and the East Bay Hotel.

The tour of the various developments reinforced the Government’s commitment to collaborating with stakeholders to boost the island’s activity and economy.

Photos courtesy of the TCI Office of the Premier

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Ministry of Tourism continues to get rid of dilapidated structures

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By LINDSAY THOMPSON

Bahamas Information Services

NASSAU, The Bahamas – The Ministry of Tourism, Investments and Aviation is continuing to rid areas of derelict and dilapidated structures posing safety problems, and a threat to the overall tourism product.

In this vein the recent structure to be demolished was the Gaming Board building owned by the Hotel Corporation.  Located adjacent to Goodman’s Bay Beach on West Bay Street, it was formerly the Sir Harry Oakes property; the northern portion once housed Bahamas Information Services for several years.

 


On hand to witness the demolition were Deputy Prime Minister and Minister of Tourism, Investments and Aviation the Hon. Chester Cooper, and Senator Randy Rolle, Global Consultant, MOTIA.

The demolition started on Monday, February 5, 2024 by Virgo Construction headed by the contractor Terry Delancy.  

DPM Cooper explained that the government felt the Gaming Board building should no longer sit there in a derelict manner, and continue to be an eyesore and pose safety concerns.

“Goodman’s Bay will be enhanced as a result of getting rid of this building. It will be more aesthetically pleasing for residents who traverse this area. Women who walk in the mornings in particular through these areas will be pleased to see that this has become a green space, rather than a derelict structure,” he said.

DPM Cooper also noted that his ministry consulted broadly with the Antiquities, Monuments & Museums Corporation (AMMC), and other historians before proceeding with demolition.

“We are sure not to take any actions as it relates to buildings, without consultation. So they were very comfortable with the process and we continue to work closely with them on all of the buildings that we have demolished in the downtown area,” he said.

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