
The previous article updated readers on my attempts to obtain the Sandals Memorandum of Understanding for the proposed high-end, large-scale resort development in Tobago. That proposed development is said to be a significant part of our country’s diversification efforts so it requires our sober attention if we are to understand what is at stake.
The model for this project is one in which the State either pays for or guarantees the financing of the new resort. The State would pay for the cost of design, financing, construction, fitting and furnishing of the new resort, all to the standards set by Sandals. The completed resort will then be operated by Sandals under a management agreement. T&T is unique in the Caribbean in that our largest hotels were funded by Public Money with the operators working via Management Agreements.
That is the model which has been used thus far in our State-owned hotels. That fact has been cited several times by the PM, quite likely to offer a degree of comfort to those who are unsure about this project. After all, we have done this model before, so what could be the harm if we go along the same road once more?
That approach to a major investment of this type does not offer me any comfort at all. Since September 2016 I have been pursuing a detailed research program into the State-owned hotels, with my colleagues from Disclosure Today and we have been solidly resisted. In my view, we do not have enough information about the existing State-owned hotels – Trinidad Hilton (1962); Magdalena Grand (originally Tobago Hilton, opened in 2000) and Hyatt Regency (2008) – to be confident about this approach. Continue reading “Property Matters – Sandals MoU? Part two” →