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Tuesday, April 1, 2025

THTA says unknown hotels on list for THA relief grant

by

Renuka SIngh
1773 days ago
20200525
THA Chief Secretary Ancil Dennis.

THA Chief Secretary Ancil Dennis.

THA

The list of To­ba­go ho­tels set to re­ceive por­tions of the Gov­ern­ment's $50 mil­lion bailout fea­tures busi­ness­es with­out a prop­er room count and no on­line pres­ence, says the To­ba­go Ho­tel and Tourism As­so­ci­a­tion (TH­TA). In fact, the body says they have nev­er heard of some of the busi­ness­es set to re­ceive State mon­ey.

In a me­dia re­lease yes­ter­day, the TH­TA ques­tioned whom the ad­di­tion­al and un­known busi­ness­es be­longed to, adding of the list of 449 busi­ness­es many are un­known to the ho­tel in­dus­try.

The group al­so ac­cused the To­ba­go Tourism Agency Lim­it­ed (TTAL) of list­ing un­reg­is­tered busi­ness­es to col­lect State mon­ey.

"It is par­tic­u­lar­ly puz­zling to us how TTAL and the THA came up with a com­bined fig­ure of 449 small and medi­um-sized prop­er­ties when hav­ing seen the list from TTAL, 116 list­ed have no room count and 154 list­ed have no on­line con­tent, many are un­known to us. We can on­ly as­sume that the THA in­tends to dis­burse funds to pre­vi­ous­ly un­reg­is­tered busi­ness­es/sole pro­pri­etors that have been op­er­at­ing out­side of the le­gal frame­work, " the TH­TA said.

The THA and the TTAL are re­spon­si­ble for the dis­burse­ment of some $50 mil­lion made avail­able by the Gov­ern­ment to as­sist ho­tels with up­grades dur­ing the slow pe­ri­od as­so­ci­at­ed with COVID-19 trav­el re­stric­tions.

"We re­ject the pro­posed grant dis­tri­b­u­tion out­right and are ap­peal­ing to the THA to re­vise their strat­e­gy im­me­di­ate­ly in or­der to bring some much-need­ed re­lief to this crit­i­cal in­dus­try," the body said.

"We pro­pose that the THA aban­don this method of grant dis­tri­b­u­tion."

The TH­TA in­stead asked that the grant be placed un­der the con­trol of the Busi­ness De­vel­op­ment Unit of the Di­vi­sion of Com­mu­ni­ty De­vel­op­ment, En­ter­prise De­vel­op­ment and Labour. It said the grants and/or loans can then be made avail­able to qual­i­fy­ing ap­pli­cants from the ac­com­mo­da­tion sec­tor at low in­ter­est rates for 10 years with a mora­to­ri­um on re­pay­ment for two years.

The group al­so said the process of ap­ply­ing for the grants was "oner­ous", which made it dif­fi­cult for small and medi­um-sized ho­tels to ap­ply.

"This could be the end for many small and medi­um-sized busi­ness­es, most of whom were al­ready suf­fer­ing be­fore the pan­dem­ic hit Trinidad and To­ba­go, " the re­lease said.

Ac­cord­ing to the hote­liers, there are over 5,000 peo­ple work­ing in the To­ba­go tourism in­dus­try, which is the largest em­ploy­er af­ter the THA.

"The large ac­com­mo­da­tion sec­tor em­ploys over 1,000 peo­ple, yet this sec­tor has in­ex­plic­a­bly been award­ed the small­est pro­por­tion of the re­lief grant," the group said.

"The large ho­tels alone pay in ex­cess of $33 mil­lion in tax­es an­nu­al­ly. It is the large and medi­um-sized prop­er­ties that guar­an­tee air­lift, as for­eign tour op­er­a­tors will gen­er­al­ly not con­tract with small ac­com­mo­da­tion providers.

"Ne­glect­ing the large ho­tels will on­ly de­lay, or worse yet pre­vent, the re­vival of an al­ready frag­ile in­dus­try, most of whose em­ploy­ees have yet to re­ceive any salary or rent re­lief grants."

The group said while they ap­pre­ci­ate the Gov­ern­ment ho­n­our­ing its com­mit­ment to aid the re­cov­ery of the ac­com­mo­da­tion sec­tor, "we con­sid­er the pro­posed method to be fun­da­men­tal­ly flawed."

It said de­spite sub­mit­ting rec­om­men­da­tions for an eq­ui­table ac­com­mo­da­tion re­lief grant, as re­quest­ed by the THA, "it ap­pears our sug­ges­tions were com­plete­ly ig­nored".

"No con­sid­er­a­tion what­so­ev­er has been giv­en to al­lo­cat­ing funds to ac­com­mo­da­tion providers on a per room ba­sis," the body said.

"TTAL, un­der the di­rec­tion of the THA, has pro­posed a dis­burse­ment of TTD $22M to small prop­er­ties (2-7 rooms), $24M to medi­um-sized prop­er­ties (8-74 rooms) and $4M to large prop­er­ties (75 rooms and above).

"The To­ba­go Tourism in­dus­try has been dec­i­mat­ed by the coro­n­avirus pan­dem­ic. We ac­knowl­edge that it is not the Gov­ern­ment’s re­spon­si­bil­i­ty or in­ten­tion to fund the com­plete up­grade of tourism fa­cil­i­ties to in­ter­na­tion­al stan­dards. How­ev­er, what­ev­er Gov­ern­ment fund­ing is pro­vid­ed must place the tourism in­dus­try on the path to sus­tain­abil­i­ty, com­pet­i­tive­ness and in­creased con­tri­bu­tion to GDP."

The body said it had ex­pressed its con­cerns and giv­en an al­ter­na­tive pro­pos­al to THA Chief Sec­re­tary An­cil Den­nis in the hope he could bring res­o­lu­tion.

Con­tact­ed yes­ter­day, Den­nis said he would re­lease a state­ment on the mat­ter on Mon­day.

COVID-19


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