New Int’l hotels in Guyana will not increase cost-of-living – Jagdeo

Aug 31, 2024 News

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…says more hotels will create more jobs and opportunities for locals

Kaieteur News – Vice President (VP) Bharrat Jagdeo has dismissed concerns that the surge in hotel construction across Georgetown and surrounding areas, will further drive up the cost of living. Instead, he argued that the expansion of hotel capacity could stabilize or even lower accommodation costs, benefiting both locals and returning nationals.

Guyana’s rapidly expanding oil and gas sector has attracted significant international attention, leading to increased demand for high-quality hospitality services. In addition to the seven new hotels that are expected to be open next year, Hilton on Wednesday announced its debut in Guyana with the signing of a dual-brand project planned for the capital, Georgetown. The upcoming Hilton Georgetown and DoubleTree Suites by Hilton Georgetown owned by an affiliate of Assets Group and managed by Hilton will mark the company’s first entry into the country, bringing a combined total of 411 rooms to the city.

At his press conference on Thursday, Jagdeo was asked whether the influx of tourists, drawn by the growing number of hotels, might lead to higher prices for goods and services, potentially adding more difficulties for Guyanese that have been complaining about the high cost-of-living.

The Vice President responded by pointing out that increased hotel availability would enhance competition, making it easier for people to find reasonably priced accommodations.

“So the way I see it is that if you have greater supply, you have greater supply. So a lot of our tourist are Guyanese who come back home. So far the bulk of the people who come into our country are Guyanese who return home,” Jagdeo said.

Jagdeo said that returning Guyanese nationals face high accommodation costs due to limited availability. As such, he believes that more hotels would mitigate this issue and make Guyana more competitive.

He also said he believes more hotels would have positive effects on tourism, employment, and the local economy. He noted that the seven new hotels alone would create approximately 300 jobs for Guyanese and significantly boost the tourism industry by providing more affordable options for visitors.

“So about 300 Guyanese can find jobs in these hotels that are built, so it can have a positive effect on employment creation. If you have more tourists here too, they would consume more local stuff so we are pushing people to provide the local [cuisine],” he continued.

Furthermore, Jagdeo said that increased tourist activity would drive demand for local products, benefiting farmers and other suppliers. He cited examples like the Guyana Marriott and Hard Rock Café, which have already started incorporating local foods into their offerings. Jagdeo added, “So it means more demand for our farmers and anything else to supply fresh fruit, vegetables, and a whole range of supply, so I can only see it in a positive sense.”

Looking ahead, Jagdeo envisions Guyana as a future host for major international events, supported by the new hotels and stadiums. “I can see it in a more positive sense and we will be able to host more international events like cricket; we are building a couple of stadiums, we can run a whole tournament in the future if we have two stadiums… so I see these things entirely in the positive sense,” the Vice President said.

It should be noted that while the Government of Guyana (GoG) has been pushing for more hotels to be constructed to support the expanding economy, the government had moved to sell the Guyana Marriott Hotel.

Since June 2023, state-entity the National Industrial and Commercial Investments Limited (NICIL) was in talks with American businessman Ramy El-Batrawi, who had bid US$90 million for the Kingston, Georgetown property.  However, before the deal was finalised the businessman passed away bringing end to those negotiations.

Moreover, the Vice President had revealed that despite the criticism the hotel faced when the construction was announced – the hotel has emerged as a profitable venture, but justified the sale of the hotel by stating that it was a business decision. Jagdeo said that while the hotel is making a profit, it is of no supreme benefit to the Government owning it anymore, adding that within a few years, several hotels are expected to come on stream and in order to avoid competition, this is the best time to maximise the profit and sell the hotel.

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• Bharrat Jagdeo, cost-of-living, Guyana, increase, Vice President

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