$80M Cortours eco-tourist resort folds, assets for sale
By Miranda La Rose
Cortours - the $80 million eco-tourist resort investment with facilities at Wanatobo and Cow Falls on the Corentyne River has folded and its assets are up for sale. Bureaucratic ineptitude, flooding in the area, lack of tax relief and the absence of air and road transportation links to the area have been cited as reasons for the collapse of the tour operations. The facility was opened in 1997 by then Minister of Trade, Tourism and Industry Michael Shree Chan with high hopes for the promotion of eco-tourism. In an interview with Stabroek News on Monday, Cortours Director Motee Singh his bank was foreclosing on the company. Apart from the local investment, Singh said that the company has a number of overseas-based investors who are losing out on the deal because of the collapse of the venture. In the facility's first year, it was voted the best local eco-tourism resort at GuyExpo. Citing several reasons for the operations going under, Singh said that the border dispute with Suriname was one cause for concern as the neighbouring country has been granting permission for Guyanese nationals to use the Corentyne River. This, he said, could pose a threat to tourists as the Surinamese military had stopped and threatened his operations on previous occasions. To ensure good relations, he said that in the past he kept his mouth shut. Singh, who is also a Director of Ganesh Singh and Brothers Logging company, said that if the dispute between Guyana and Suriname continues, the company would have great difficulty using the waterway. He has already stopped transporting logs by this route. He said that closure could have been avoided as both Cow Falls and Wanatobo can be made accessible by land. Contending that government showed no interest in the development of the area, he said that over four years ago he had applied for permission to build an airstrip at Cow Falls. The journey from Crabwood Creek to Wanatobo Falls by boat takes 12 hours. Three years ago, he said, the late Minister Chan had told him to go ahead and build the airstrip and that he would "talk to (Minister of Transport and Hydraulics) Anthony Xavier." He began clearing land at Cow Falls but the project got no further as the border problem escalated with the eviction of the CGX oil rig from Guyana's waters by the Surinamese military in June this year. During that period, he said, Cortours accommodated soldiers of the Guyana Defence Force who informed the Civil Aviation Department (CAD) of the airstrip project. The CAD then notified Cortours that the construction was illegal and instructed the company to stop all works immediately. According to Singh, Minister of Trade, Tourism and Industry Geoffrey Da Silva knows of the problem and he (Singh) was referred to President Bharrat Jagdeo. Prior to the CAD issuing him with the order to cease construction, Singh said that he had applied to the Lands and Surveys Department to obtain a lease for land to build the airstrip four years ago. Just about a month ago, he said, that Department could not locate the file with his application and requested that he reapply once more. In addition to cooperating with the soldiers and accommodating them during the escalation of the recent dispute, Singh said that the company took in vector control officials from the Ministry of Health to spray the area for malarial mosquitoes. The expenses, borne by Cortours, amounted to hundreds of thousands of dollars. Singh said that he has sought an audience with President Jagdeo as there was nothing more that Minister Da Silva could do. He claims that for some five months now, he has requested to meet with the President but to no avail. Singh said that on the last occasion he spoke with Crops and Livestock Minister Satyadeow Sawh about the construction of a road from Orealla to Wanatobo which is about 80 to 100 miles, the minister told him that building a road in the area at this time is not a priority. He said Cortours was asking for machinery only as the company could provide the manpower. He stated that it is now 20 years since his logging company has been behind the government to build a multi-purpose road in the area for tourism and logging. Singh said that his family has been in the logging business for the past 50 years and because of the area's eco-tourism potential, the family business ventured into tourism. Compounding the difficulties is the recent loss of about $30 million owing to floods, Singh noted, and so the company is selling out the tourism facilities. It is currently negotiating with a major logging company to buy out all the facilities. The sale covers buildings, water-sports equipment, as well as six speedboats and engines, camping equipment and general tourism accessories. Referring to what he called government's ineptitude, he said, the administration has shown preferential treatment towards foreign companies, citing as an example where Beal Aerospace obtained a lease in one year and in four years he could not get permission to build a road and airstrip. Singh said that earlier in the year when Cortours and the logging company suffered losses in the vicinity of $30 million, he tried to obtain some relief for his logging enterprise. He requested the assistance of Minister with responsibility for finance, Saisnarine Kowlessar, in order to secure tax relief, a waiver of acreage fees and immediate financing to cover the cost of repairs to access roads and machinery. He also applied for other financial relief but got no reply from the minister.
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