eTeck gains undermined by Magdalena, InTech losses

STATE enterprise Evolving TecKnologies and Enterprise Development Company Limited (e TecK) overall performance from its industrial parks and the Hilton Trinidad has been profitable but these gains were completely undermined by the losses at the Tamana InTech Park and the Magdalena Grand Beach Resort in Tobago, reported Joint Select Committee (JSC) on State Enterprises member Adrian Leonce.

He was speaking yesterday at a media conference by the Joint Select Committee (JSC) on State Enterprises at the Parliament building, Port of Spain on the the Ninth Report of the Joint Select Committee on State Enterprises on an inquiry into eTeck operations.

He said Magdalena has been operating at a loss since it opened in 2012. Leonce said eTeck had issued and developed a request for proposal to hire consultants to assist with appointing a steering committee for a long term operator or brand manager for the hotel.

He said the committee recommended that, given the challenges faced by the Magdalena, eTeck should endeavour to complete negotiations with the new hotel management firm for favourable risk sharing. The committee also recommended an analysis of the operating costs to ensure costs were kept under control and possibly lessons could be learned from Hilton Trinidad.

Leonce said eTeck should have proper engagement with Tobago stakeholders on the hotel. JSC Chairman David Small said Magdalena had an unusual cost operating structure which did not compare favourably with Hilton and personnel costs kept growing annually. “Something seems skewed.”

Small said eTeck had engaged a consultant to improve the Magdalena brand and one suggestion was to change the business model from a “huge attempt” at a four-star hotel to one where there was high occupancy and revenue turning over on a steady basis. The committee also advised eTeck to emphasise tenancy at the Tamana InTech Park.