GOVERNMENT NOT INTERESTED IN LONGTERM HOTEL MANAGEMENT
Minister of Finance, Hon. Camillo Gonsalves stressed that there has been no change in the Government’s long-standing and well-publicized policy, that it is not interested in managing hotels permanently.
The Finance Minister noted that even before construction of the Holiday Inn Express began, the Government announced that it would eventually seek a private sector partnership or divestment.
Minister Gonsalves said government is committed to accelerating private investment m the sector by initially demonstrating confidence through public-led development.
“We needed to increase room stock with the goal being to establish room stock at various price points to cater to a range of that along the budget spectrum…the government announced that it would embark on the development of two hotels, the Holiday Inn Express and Suites at Diamond and a Marriott Hotel on the Leeward Coast. This strategic intervention is grounded in the government’s thrust to increase the country’s capacity for tourism and the quality of tourism, and to encourage viable investments into Saint Vincent and the Grenadines,” Minister Gonsalves said.
This strategy is part of the government’s broader National Economic and Social Development Plan, which includes the goal of re-engineering economic growth through tourism.
The Finance Minister also clarified that the Holiday Inn Express is not currently for sale.
“It is not currently the right time for such a divestment as the hotel is still in the early days of its operations. The Holiday Inn Express and Suites now in operation for just over six months, is performing well and in keeping with our expectations and IHG predictions at this time, IHG is the parent company of holiday the Holiday Inn brand,” Minister Gonsalves said.
He emphasized that any divestment will occur only after the hotel establishes a strong track record over time to ensure the highest return.
The Minister stated that the hotel, which opened just over six months ago, is performing well and meeting expectations. He lauded its 100% Vincentian staff, and noted its strategic value in securing increased airline traffic to the country.
“All stakeholders, government and staff, are satisfied that the hotel is growing from strength to strength. One key and notable fact about this hotel is that it is managed and staffed by Vincentians, and the workforce is 100% Vincentian,” Minister Gonsalves said.
