Dennis eyes $500k cap for large hotels

KINNESHA GEORGE-HARRY

THA Chief Secretary and Secretary of Tourism, Culture and Transportation, Ancil Dennis, is considering a new proposal from the Tobago Hotel and Tourism Association (THTA) for the restructuring of the payment scheme for the $50 million upgrade grant.

On Monday, Dennis met officials of the association after the assembly’s proposal for the distribution of the government grant was rejected by the THTA. The Tobago Tourism Agency, under the direction of the assembly, had proposed a disbursement of $22 million to small properties (two to seven rooms), $24 million to medium-sized properties (eight-74 rooms) and $4 million to large properties (75 rooms and above).

Having expressed disappointment over the proposed distribution of the grant, the association said it was pleased with the prompt response from the Chief Secretary. After hearing the association’s concerns, the tourism agency amended the categorisation of properties. Small properties remain two to seven rooms; medium-sized properties have been changed to eight to 50 rooms; large properties will now be classified as those over 51 rooms.

Dennis told Newsday, initially the THTA had proposed that the largest grant be capped upwards of $1.7 million for the large hotels. He said the THTA also suggested $35,000 per room. “I made it abundantly clear that I would not be going in that direction.

“At (Monday’s) meeting, they submitted another proposal with the maximum cap at $1 million for the larger hotels. I am in the process of considering that and by (Wednesday) I would meet with them to let them know my position.”

Dennis said he still finds the $1 million cap too high.

“I am analysing the information; I am doing the research to determine an appropriate cap for those grants. By (Wednesday) I should come to a decision and I would meet with them and give them that information.” Dennis said the intent of the grant programme must be understood.

“It is to assist, as far as possible, all properties on the island – not just a few, not only those registered or those that are members of that specific organisation.

“The aim is to ensure that we make the destination more attractive, that we improve the quality of the accommodation sector, taking into consideration safety and other issues.

Dennis said he does not believe the large hotels are derelict, and $500,000 would be adequate for upgrades.

“You would have to consider that some of these large hotels have been in existence for some time, and obviously there are challenges, but I do not think that any hotel should be in such a state of disrepair where those significant renovations and upgrades might be required.

“We have to remember that this is a grant – it is not something that they have to pay back. So, this is an investment by the Government. In addition to that, hotels would have access to other forms of funding.”

He said he intends to meet other property owners as there are some on the northern side of the island which may not be represented by the THTA.

The hoteliers, he said, are not the only contributors to the tourism sector.

“We have a number of businesses operating in that sector and all of them are important – from the tour guides to the reef boat operators.”

From an early assessment, Dennis does not anticipate the $50 million grant would be fully utilised.

“I don’t expect that every property would access the funds, for whatever reason. Maybe some may not meet the criteria. What if there are only 50 hotels coming forward, does that mean that each hotel should get $1 million to ensure that we utilise all the money?”

The hotel association said in a release on Tuesday, the Chief Secretary was urged to revisit the tourism agency’s original proposal, as their property count included registered and unregistered business, “which obviously generated an inaccurate matrix for disbursement of taxpayers’ money.

“The Chief Secretary was in agreement that only registered businesses should be allowed to apply for Government funding and promised to re-examine the figures now that additional data had been presented.

“We are grateful for this intervention by the Chief Secretary. We look forward to continued consultation and discussion with the THA in anticipation of a fair and equitable grant distribution process.”