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CHTA warns, some Caribbean Hotels could collapse due to monies owed
#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.
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.”
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.”
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.
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
Nelson Mandela showed us the extraordinary difference one person can make in building a better world.
And as the theme of this year’s Nelson Mandela International Day reminds us – combatting poverty and inequality is in our hands.
Our world is unequal and divided.
Hunger and poverty are rife.
The richest one per cent are responsible for the same quantity of planet-wrecking greenhouse gases as two-thirds of humanity.
These are not natural facts. They are the result of humanity’s choices. And we can decide to do things differently.
We can choose to eradicate poverty.
We can choose to end inequality.
We can choose to transform the international economic and financial system in the name of equity.
We can choose to fight racism, respect human rights, combat climate change, and create a world that works for all humanity.
Every one of us can contribute – through actions large and small.
I join the Nelson Mandela Foundation in urging everyone to perform 67 minutes of public service on Nelson Mandela International Day – one minute for each year he fought for justice.
Together, let’s honour Madiba’s legacy and turn our hands towards building a better world for all.
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AfriCaribbean Trade and Investment Forum (ACTIF2024) set to strengthen Africa-CARICOM linkages
Speakers at ACTIF will include global superstars Viola Davis, Serena Williams, Didier Drogba and African and CARICOM Heads of States
Nassau, Bridgetown, Georgetown, May 28, 2024 – Excitement mounts as The Bahamas prepares to host the Afreximbank Annual Meetings (AAM) and the AfriCaribbean Trade and Investment Forum (ACTIF) from 12 – 14 June 2024 in The Bahamas. Themed “Owning Our Destiny: Economic Prosperity on the Platform of Global Africa,” ACTIF2024 is set to forge significant pathways for economic prosperity between Africa and the Caribbean.
Other distinguished speakers will include Heads of State from seven CARICOM countries, former Prime Ministers, Ministers of Trade,
Economic Development and Finance, Dr. Roger W Ferguson, Former Vice Chair of the Federal Reserve, USA, Prof. Andreas Klasen, Professor of International Business and Director of the Institute for Trade and Innovation at Offenburg, and many more.
Professor Benedict Oramah, President and Chairman of the Board of Directors, Afreximbank, said: “We are witnessing shifts in the global economic landscape and the trade strategies of major economies, making it imperative for African and Caribbean nations to unite for mutual prosperity. The Afreximbank Annual Meetings and AfriCaribbean Trade and Investment Forum in The Bahamas will serve as a strategic platform to enhance our economic bonds. These events indicate a vibrant assertion of our shared destiny. We are poised to harness the dynamic economic growth within our regions, enhancing our collective resilience and prosperity.”
The event promises to be a pivotal platform for high-level discussions on economic development and regional integration.
Building on the successes of the inaugural AfriCaribbean Trade and Investment Forum held in Barbados in 2022 and the gathering last year in Guyana, this year’s Forum in The Bahamas will further elevate and expand upon the discussions and initiatives previously set in motion. ACTIF2023, which focused on strengthening economic bonds and creating new investment opportunities, sets a precedent for meaningful collaboration between Africa and the CARICOM nations.
Afreximbank invites industry leaders, trade organisations and other stakeholders in the CARICOM region to participate and attend.
Registration is now open at https://2024.afreximbankevents.com.
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