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'Put hotel construction on hold'
Janet Silvera, Hospitality Jamaica Coordinator
One of the island's former tourism ministers, Ambassador Frank Pringle, feels that the construction of any further hotel rooms here are to be deferred temporarily until the global economy returns to normal.
"At this time, when none of the hotels are viable because of the current international economy, all new buildings should be deferred so the present investors are not competing against new ones," he told Hospitality Jamaica.
Quick to point out that the last thing he wanted was to stop investment, Pringle noted that the country needs an occupancy level of at least 70 per cent across the board to be viable, and at the moment it is half that figure.
BREATHING SPACE
"New rooms will make the situation worst," he is convinced, adding that current projects that are already close to completion, such as the 700-room Secrets Resort in Montego Freeport and the 300-room Palmyra Resort and Spa were not on his radar.
Not anticipating a turn in the economy within the next two to three years, the former tourism minister is stressing the need to give existing operators breathing space.
The country currently boasts some 28,000 rooms and by March 2010 when the two new resorts are completed it should near its 30,000 mark, however, Minister of Tourism Edmund Bartlett has thrown cold water on the idea.
"In a free market system, you cannot dictate to an investor when he or she should invest, that is a function of the market," states Bartlett, adding that people who are farsighted will build today even under global economic conditions in order to reap their benefits in the future.
"The rate is what dictates the pace and rate of development of our sector," he argued.
He, however, agreed that the country's occupancy levels need to be at an average 65 per cent to become profitable, and this would require reaching stopover arrivals of 2.5 million annually.
Currently, he is projecting to end the year at 1.8 million land-based visitors.
He is of the thinking that additional investment, no matter what time of the year, can also bring additional marketing capacity, which will drive growth and create jobs.
Projects in the pipeline that have not yet started, include the massive Harmony Cove in Trelawny which is expected to construct some 2,000 rooms in its first phase, Celebration Jamaica, in Rose Hall, Montego Bay, another 2,000 rooms and expansion to Bahia Principe, St Ann, which Hospitality Jamaica understands, has been quietly been going on.
It is not clear what the status of Couples Trelawny is or Harmony Cove.
welcoming investors
President of the Jamaica Hotel and Tourist (JHTA), Wayne Cummings, agrees with Bartlett, stating his organisation could not support such a call.
"Anyone who is prepared to spend money in Jamaica at this time should be welcomed," he noted, adding that Jamaica is open for investments.
However, any large developments, particularly, those being facilitated by the government should be coming at the luxury level, he cautioned, stating that at that level, two roles would be played.
The positive diversification of the product being one, while ensuring they (large developments) are not in direct competition with the small, but important, hotel sector.
[email protected]
Janet Silvera, Hospitality Jamaica Coordinator
One of the island's former tourism ministers, Ambassador Frank Pringle, feels that the construction of any further hotel rooms here are to be deferred temporarily until the global economy returns to normal.
"At this time, when none of the hotels are viable because of the current international economy, all new buildings should be deferred so the present investors are not competing against new ones," he told Hospitality Jamaica.
Quick to point out that the last thing he wanted was to stop investment, Pringle noted that the country needs an occupancy level of at least 70 per cent across the board to be viable, and at the moment it is half that figure.
BREATHING SPACE
"New rooms will make the situation worst," he is convinced, adding that current projects that are already close to completion, such as the 700-room Secrets Resort in Montego Freeport and the 300-room Palmyra Resort and Spa were not on his radar.
Not anticipating a turn in the economy within the next two to three years, the former tourism minister is stressing the need to give existing operators breathing space.
The country currently boasts some 28,000 rooms and by March 2010 when the two new resorts are completed it should near its 30,000 mark, however, Minister of Tourism Edmund Bartlett has thrown cold water on the idea.
"In a free market system, you cannot dictate to an investor when he or she should invest, that is a function of the market," states Bartlett, adding that people who are farsighted will build today even under global economic conditions in order to reap their benefits in the future.
"The rate is what dictates the pace and rate of development of our sector," he argued.
He, however, agreed that the country's occupancy levels need to be at an average 65 per cent to become profitable, and this would require reaching stopover arrivals of 2.5 million annually.
Currently, he is projecting to end the year at 1.8 million land-based visitors.
He is of the thinking that additional investment, no matter what time of the year, can also bring additional marketing capacity, which will drive growth and create jobs.
Projects in the pipeline that have not yet started, include the massive Harmony Cove in Trelawny which is expected to construct some 2,000 rooms in its first phase, Celebration Jamaica, in Rose Hall, Montego Bay, another 2,000 rooms and expansion to Bahia Principe, St Ann, which Hospitality Jamaica understands, has been quietly been going on.
It is not clear what the status of Couples Trelawny is or Harmony Cove.
welcoming investors
President of the Jamaica Hotel and Tourist (JHTA), Wayne Cummings, agrees with Bartlett, stating his organisation could not support such a call.
"Anyone who is prepared to spend money in Jamaica at this time should be welcomed," he noted, adding that Jamaica is open for investments.
However, any large developments, particularly, those being facilitated by the government should be coming at the luxury level, he cautioned, stating that at that level, two roles would be played.
The positive diversification of the product being one, while ensuring they (large developments) are not in direct competition with the small, but important, hotel sector.
[email protected]
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