Marriott racks up $60M loss in three months

The nose-dive in investor confidence since May, the tail-spin of the overall economy since May all contribute to less traveling and less utilization of these facilities.

 

The PPP knows how to build things, the PNC is great at breaking things.

The state-owned hotel’s biggest expense is its electricity consumption. Its monthly bill to Guyana Power and Light (GPL) is in excess of $25M. This has been a major factor why construction of a critical component of the hotel- the adjoining entertainment complex- has not started. Marriott’s electricity tab would contrast starkly with that of its nearby competitor, the Pegasus Hotel, whose electricity consumption averages $15M monthly.

Are you saying that investors are using a lot more energy because of lack of confidence?

Racist in action.  It was pointed out to you that G/town hotels were empty most of the time, and there was no need for an additional hotel.

 

Now the racist that you are choses to find another reason.

       
       

Correct, baseman. I expected this would happen. A lot more businesses will lose profits like domino effects. Guyana is slowly going back into the sink hole.

The Proposed Kingston Marriott Hotel and Tourism

 

Tarron Khemraj

December 27, 2012

 

The proposed US$51 million Marriott Hotel in Georgetown is one of the primary anchors of the economic policy stance of the PPP government. The Marriott, the airport terminal demolition and reconstruction (US$160 million), the One Laptop per Family Project (US$15 million), and Amaila hydroelectric plant (US$860 million) are all projects brought forward from the Jagdeo administration.  The necessity, economic logic and optimal sequencing of all these projects can be questioned. In this column, I will examine the proposed investment in the Marriott Hotel, which is expected to be part financed by the government (US$13 million).

One of the first things to note is the equity investment by the Guyana government represents a subsidy to the hotel with the use of monies from the people of Guyana. Whether that person is a PPP supporter, PNC supporter, AFC supporter or an independent does not matter since he or she will be responsible for paying taxes to help finance the debt all these projects will take on.

In that case the government of the day ought to be extremely careful that it is implementing the best sequencing of projects. While it is true a Marriott 5-star hotel can be nice for the capital city, the economic benefits are less clear. When the government takes on foreign currency debt, it must make sure it is investing in the tradable sectors that will generate enough foreign exchange for the economy.

Crowding Out of Other Hotel Investments I want to make it clear that the Development Watch column is not against the Marriott coming to Guyana. If the Marriott wants to invest in Guyana then it ought to be financed by private investors. It is not right for the government to subsidise a foreign hotel that will be directly placed into competition with several existing Guyanese hotels that are in the three to four star range. These existing hotel investors would have financed their projects with owner’s equity and bank financing. Some of the investors performed a patriotic duty by responding to President Jagdeo’s call for hotel investments just before Cricket World Cup.

Some estimates have it that the hotel occupancy rate in Georgetown is just around 50 per cent. The government and NICIL are yet to give us a convincing argument that this hotel will bring in mass tourists to yield the projected 11 per cent return. What is there in Georgetown that will cause thousands of tourists to come?

Has the government maintained the art scene? Has the museum been updated? Is Georgetown the garden city of the Caribbean or the garbage city? Are the building codes maintained so UNESCO may declare Georgetown a world heritage site as is Paramaribo? Is there legacy industry tourism like taking foreigners to old sugar factories?

Are they going to come to the Marriott in Kingston, Georgetown to gamble? Is that the tourism vision of the government? In which hotels overseas Guyanese visitors stay and do they care for 5-star hotels? Or do they prefer to stay with families?

Without these forms of city attractions, it is very likely that existing hotels will face competition from the government-subsidised hotel. This is a classic example of government investment jeopardising or crowding out genuine private investments. Even the government accepts this when it accused the AFC of protecting the interest of Pegasus and Mr Badal.

The PPP politicians made this point in Parliament. Hence, they know they are using the monies of the people – regardless of political leanings – to suppress existing hotels because they view their owners as being unfriendly to the government. This is classic oligarchic behaviour. If several hotels should fail because they cannot compete with the city Marriott then the development role the government envisaged would not be fulfilled. Jobs will be lost and resources wasted in other areas as some are created by the Marriott. Isn’t the task of the government to make sure that the rising tide lifts all boats?

Even more perplexing is that several ‘representatives’ of the private sector have not taken into consideration this downside risk. This could send the wrong signals to future investors, both foreign and local.

On the one hand, future investors will see the government as being willing to use taxpayers’ monies to establish businesses to compete with their self-financed projects. On the other hand, future investors will likely view the existing private sector ‘representatives’ as mainly protecting the oligarchic extractions of those connected to the PPP government.

Catalytic Role of Government Caribbean governments have financed hotels in the past. When these governments were building hotels they were thinking in terms of the catalytic effects their investments would have on nascent tourism industries.

Also when the Barbadian government invested in hotels they were doing so in an area that is geographically compact. Tourists could move easily from one beach location to hotel. In Guyana tourists entering via the international airport at Timehri must incur time and money to get to the real jungle attractions the country has to offer.

Therefore, I would argue that the Ramotar administration should also be thinking of igniting similar catalytic effects. What would be some examples? What this column proposes may be risky, but that is the nature of the task when government intervenes to set the stage for future developments while not jeopardising the success of existing sectors.

The government needs to think in terms of the opportunity cost – the next best economic activity on which the said money can be used – of tearing down a perfectly okay airport terminal and building a new one for US$160 million. It needs to think about the opportunity cost of investing US$13 million in the Georgetown Marriott and US$160 million in a new terminal at CBJ Timehri. What is the next best investment that could be made with these funds? That is, investments that will grow and nurture a new or nascent production sector, while not impacting negatively on existing businesses; investments moreover that will stimulate the demand for locally grown produce and crafts by engendering new and sustaining the old.

I would suggest that creating a system whereby beach tourists visiting the Caribbean can easily, quickly and directly fly into the Essequibo Coast to get a taste of something different. Here the task should be to combine blue water beach tourism with green jungle tourism in one package. Flying tourists into that area will help to stimulate several Indigenous village economies. If the government is going to be daring then do so to ignite the catalytic effects; but do not bring unnecessary competition to your existing local investors. Why not establish a medium scale airport that can accommodate Boeing 737s and Airbus A320s into Essequibo? This airport can be connected to popular Caribbean tourist destinations while doing the same at home with CBJ Timehri, Ogle and eventually Skeldon. This will certainly require hotels to be built in the area. However, eco-tourists will not fancy modern architecture buildings like the proposed Kingston Marriott. Hotel investors will have to think about blending eco-tourism themes into resorts as they do in Costa Rica.

Once they get hooked on the Indigenous villages, rivers, lakes, wild life and jungles of the Essequibo they might travel to Georgetown once the politicians get their acts together and restore the city to its glory as the garden city. Then the PPP elites can fulfil that long held fantasy to build their five star city hotel. At that point no one would be able to criticize the government for bad timing and poor sequencing.

 

http://www.stabroeknews.com/20...t-hotel-and-tourism/

Not sure that a 5-Star at USD 300/night had tourism in mind.  This was more of a high-class standard accommodation for mostly expat businessman visiting Guyana.

Before the Marriot was built, Some estimates have it that the hotel occupancy rate in Georgetown is just around 50 per cent.

Some people lil blind.

Business people have loads of other places to stay in Guyana, and the presence of Marriott had nothing to do with their decision to visit.

 

Guyana was NOT going to get convention business, as there are no activities which interest Americans who go to those events.  In addition, under the PNC G/town was a garbage dump, something which Granger seems to be trying to resolve (probably one of the few areas where he is having visible success).

 

So of what purpose was the Marriott supposed to serve?

 

Now maybe if YOUR PPP spent that money it wasted on all their FAILED projects, on revamping the police force and the criminal justice system, there would be less crime in Guyana and the nation would have a better global image. 

 

Instead it is universally described as an impoverished, crime ridden backwater riding on a crest of ethnic conflict.  That pretty much was how Guyana was described BEFORE May 11th.

 

Why were foreign investors coming to Guyana.  GOLD.  Now with lower prices they have less interest.  What part of that fact seems incomprehensible to your snake like racist brain?

The Proposed Kingston Marriott Hotel and Tourism

 

Tarron Khemraj

December 27, 2012

 

[One of the first things to note is the equity investment by the Guyana government represents a subsidy to the hotel with the use of monies from the people of Guyana. Whether that person is a PPP supporter, PNC supporter, AFC supporter or an independent does not matter since he or she will be responsible for paying taxes to help finance the debt all these projects will take on.]

 

Them bhai's wanted brand name hotel in Guyana,subsidise by

tax payers money,add another to list of subsidise corps or companys.

 

What investor? Has that white elephant ever had an investor except the Guyanese tax payer? Please inform us which investor put a dollar in that project.

 

In any event, it is doomed to fail since the hospitality industry has always struggled to stay afloat given the volume of tourists

Hotels shutting left, right and centre or complaining of low occupancy rates. Why should this white elephant be any different? That other hotel built with tax-payer's money - Princess - only makes money off the casino. Nobody stays there. Cacique ..... oh well.

Turn that place into a hospital

Turn the place into a Ministry

A hospital is a better idea - right on the Atlantic - perfect! Very therapeutic!

Anything the PNC and the two House Slaves touch becomes FILTH!!!  It is no surprise that Guyana is going into the sink Hole

THen it will be a FILTH Hospital.  Remember anything the PNC and the 2 House Slaves touch becomes FILTH!!!!!!!!!!

OMG they touched you!!! Except you were what you are before they touched you .........

You have been a stinking RAT from Birth. You are nothing but a PNC FILTH!!!!!!!!!

Jungle Girl was made from Raw Sewage.  Is good Al YUh dont have Smellovision, the stench would have been all over!!!!!!!!!!!

Uhmmmmm looks like I touched a nerve there Nehra! Love it. You can't take the truth eh!!!

 

I believe BJ needs his sh!t stirred and your phone is ringing.  

Nerve?/ Nah JUngle Animal, I just love playing with FOOLS.

I understand why you keep playing with yourself now. You should get out more often!

I rather play with myself and let a STINKING PIG like you TRY to play with it!!!!!!!!!!!!!!!!

You know that you only play with pigs .....sorry as you said .....yourself .... so stop trying to feign dignity! How's the mud over there?

 

PS I don't play so you don't stand a chance. Next?

 

Hello Miss Piggy, you dont stand a chance. RAW and FILTH not allowed within 100 Miles

OUCH!

Is it racist to support one political party as against another ??????

When a coolie criticises the PNC, it's called racism.

Who you calling coolie..eh we are East Indian or Indo

Guyanese any way i guh let it pass.

Not concern!!!!

It is racist to call one race, savage, illiterate, violent, having made no contribution to society, and having to be lucky that it can live off another race.

 

This is baseman's description of AfroGuyanese.  I see you must agree with him, otherwise it would have been clear to you what a bigot he is.  And cobra, yuji, and rama are no better.

And yet you and the rest of your Indo KKK called me a racist when I criticized the PPP.

 

It hurts when you can no longer scream "black man time DONE, collie pan tap".

It's ok for a negro to criticise the PPP..even though he has created his own bogus facts.

And yet you and all the rest of your Indo KKK (PPP) screamed that I bathe myself in Indo blood merely because I used to criticize the PPP.  Of course you said NOTHING when I also criticized APNU and the AFC.

You should not be bitter. The illegally installed government is to your liking. 

You shouldn't be bitter.  More than 50% of Guyanese voted against the PPP TWICE!

 

Turns out that being the "coolie party" no longer results in victory.

WHATAXXXX!!!!!!!!!!!!

Stands to reason why you don't get out much ...... What now?