When the other hotels are cab horses

Nov 24, 2011 Editorial

There is an old adage that there are often more questions than answers. This is certainly true when one considers the proposed construction of the Marriott hotel on the Atlantic shore.
This hotel is to be constructed on a plot of land that once accommodated the Luckhoo Swimming Pool, a facility that was open to the public. The City Council claimed that it owned that plot of land and that it should have been involved in any discussion about its use.
The government first made known its intention to see a hotel constructed on the plot of land. A few years ago, the government announced that a team involving some relatives of the Jagan household and coming out of Canada were going to establish a hotel. This never materialized.
Then sale of Pegasus was announced and with its four per cent interest, the government anticipated that it would be given the first option. Robert Badal, the man who holds the majority shares in Guyana Stockfeeds and in the local Popeye food outlet, completed the sale.
It is no secret that the government was not happy and we believe that it is out of this sale that the Marriott has evolved. The Marriott is one of the leading hotels in the world. Its service is world rated and anywhere there is such a hotel it holds pride of place in attracting the top clientele.
In Guyana such a hotel would place the country among the destinations with world class accommodation and the government is keen to construct one. The first question may have been answered. There is the view that the hotel industry is not enjoying its best period.
In the run up to Cricket World Cup, the government made a pitch to investors to build hotels and so help Guyana be in a position to accommodate the hordes of people who were expected. There were many constructions and to supplement them, people converted their homes to bed and breakfast facilities.
The anticipated hordes did not come. The expenditure on the homes did not yield the returns. Those hotels that were constructed remained almost empty and proved a drain on the pockets of the investor. Quite a few have been sold.
Princess Hotel which started as Buddy’s International, with its 250 rooms, was the first to go. Many others later changed hands. It is in this climate that the government is building the Marriott. Why?
The government says that with its economic development Guyana is about to become a major destination. The Marriott would enjoy a boon.
However the cost of construction is also a source of questions. Princess Hotel, the largest in the country was constructed for US$13 million. The government says that the Marriott would cost US$51 million—four times as much. Whys so much?
The Head of the presidential Secretariat says that the expenditure is justified. He says that with the hotel touted to be the best there is, the cost must be understood. He said that it is a case of a racehorse (the Marriott) against what he called a quarter horse (a cab horse). He adds that if the money is not spent now then the nation may regret the absence of the expenditure.
He said that the service to be offered by the Marriott justifies the expenditure. No construction cost hinges on the performance of an institution. Construction is rooted in sand and stone and steel and glass and labour and internal décor. The cost of the material is not much greater than when Princess Hotel was constructed. The labour cost has also not increased by much.
Why then must the hotel cost four times as much? Something does not jell. One cannot see the government spending so much more money on the décor and the fittings. The additional expenditure surely would not furnish the landscape and the other things that would fashion the compound.
Something is amiss. The government has not said much; we do not know who the local partners are and we surely do not expect to hear much more of the project.
Conditions like these do nothing to ally the reports of corruption, nepotism and cronyism.

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When the other hotels are cab horses

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