James: 99 per cent of hotels, guesthouses closed

The Tobago Hotel and Tourism Association (THTA) has revealed the majority of hotels and guesthouses on the island have temporarily shut down their operations, owing to the significant losses incurred, thus far, as a result of the coronavirus (covid19) pandemic.

Speaking to Newsday on Friday, the association's president, Chris James, said while he could not give an exact figure as to the number of hotels, guesthouses, bed & breakfasts and villas that have actually temporarily ceased operations "we believe it is about 99 per cent, and more are expected to shut down over the weekend."

James' revelation came two days after Finance Secretary Joel Jack announced that most hotels in Tobago would temporarily shut down at the end of the week as many of them reported occupancy levels of ten per cent and declining.

Jack met with members of the THTA, Tobago Chamber of Commerce and other stakeholders last Monday to devise strategies to tackle the economic fallout from covid19.

Jack mentioned the name of a major Crown Point hotel that would be closing its doors but when Newsday contacted the hotel on Friday afternoon, a representative said it was still in operation.

Tobago recorded its second confirmed case of covid19 on Friday, a health worker at the Scarborough General Hospital.

In a statement, the Division of Health, Wellness and Family Development said the patient, who is unwell, is to be transferred to Trinidad for further treatment.

The THTA, meanwhile, has called on the Government to immediately defer all payments of both tax and utility bills as the country grapples with the effects of covid19.

In a statement on Thursday, James said the request is necessary given the significant challenges confronting the hotel sector.

To compound matters, James said more than 5,000 will lose their jobs as a result of the closures.

James said suppliers and service providers to Tobago's tourism industry will also feel the effect of the sector closures.

"These losses and numbers affected will be calculated later as more data is collected."

He said although properties will be closed, there will still be a need for maintenance and security staff.

"We also ask all landlords to be sympathetic at this time as many industry partners will also have no income."

James said while the association welcomes the initiatives announced by the Government to prevent the spread of covid19, he noted Tobago's tourism sector has been "under financial pressure" for many years, with an average occupancy of around 30 per cent while its competitors in the region have been achieving over 60 per cent.

"In addition to this, the feedback we are now receiving from the sector speaks of delayed payments by tour operators on the grounds... which means that we are in even greater and immediate financial difficulty."

James said, last week members of the association were preoccupied with repatriating many of their guests ahead of the border closure on March 23.

"This was a mammoth task, but largely trouble-free. Guests were understandably unhappy having to cut their holidays short and with the restrictions placed upon bars and restaurants, with one or two exceptions, guests accepted the situation because there was no choice."

He thanked the accommodation sector, destination management companies and the British High Commission for the professional manner in which the situation was handled.