Funding the hotel projects
Editorial
Kaieteur News
December 17, 2006
On Thursday, the National Assembly voted to approve supplementary provisions for capital and current expenditures totalling some $6 billion. Included in these votes were monies for the local broadcast of World Cup Cricket, and for some 250 rooms for International Cricket Council (ICC) personnel and players in the various teams, who would be playing in the Super Eight stages of the World Cup matches early next year.
Prime in the equation is the completion of the two hotels in the vicinity of Providence Stadium, one of them being Buddy's International Hotel, which is billed to have some 400 rooms, and Casique Hotel, aback of Buddy's International.
When the debate on the expenditures began, one big question was about the ethnics of making money available for rooms that are, so far, non-existent. Of course, the House approved the supplementary votes, but there was a lot of talk about the government making money available to an investor to help him complete his project.
The truth is that Guyana has committed itself to providing accommodation for the important visitors. It is also committing to hosting half of the Super Eight matches. We have been hearing the various reports about the incomplete nature of the various facilities associated with the cricket stadium. There were complaints about the pitch, the outfield, the location of the cameras, and certain seating positions.
On each occasion the ICC team visited, the local officials took great pains to have them inspect the possible accommodation; and on the most recent occasion, they were satisfied with what they saw. However, we hear know that all is not well. We know that those constructing the hotels are up against it financially.
One of the hotels is being touted to cost hundreds of millions of dollars. Initially, the investor went into his pockets; but, as is customary, people would usually borrow to undertake such ventures.
In this case, the banks are reportedly hesitant to lend money towards the completion of what promises to be the largest hotel ever constructed in this country, because, as far as they are concerned, when Cricket World Cup is over, the owner would be hard pressed to make a profit or, at least, make the facility viable.
At this time, with Cricket World Cup less than ninety days away, failure to deliver would be blamed on the government. It is the government that has made the commitments, and it is to the government that the international community would look when the time comes.
Writing in The Economist, former West Indies Cricket captain Clive Lloyd said that one would never get a second chance to make a first impression.
He is right. If Guyana fails to host the ICC officials and others who have been promised accommodation, then Guyana would never get a second chance to impress the international community.
It is therefore the government's responsibility to ensure that the hotel is completed and ready for the big occasion. Cabinet Secretary Dr Roger Luncheon, when asked about the likely problems should the rooms not be ready despite the government paying in advance, said that the question does not arise.
Indeed, such a possibility is too gloomy to contemplate. The penalties that would be levied against this country would be immense. In one instance, there would be the monetary penalties, but far worse would be the blacklisting of this country from hosting certain international events. The reputation would be far from creditable.
With the banks reluctant to lend, and with other monied people firmly against putting their capital into what they see as a risky venture, it is left to the government to ensure that everything is in place.
Governments are not known to be good at business, but in this case, it must be prepared to be integrally involved in the construction of the hotels. There may be need for mortgages or liens on the properties, because the government must ensure security for its investments in the projects.
There may be criticisms at this time, but these would pale into insignificance if the hotels are not ready when the ICC personnel arrive.
And it is not only in this instance must the government delve into its coffers. There are road repairs and general sanitation works that must be undertaken by the time Cricket World Cup comes around. City Hall says that it is cash-strapped. Who else, then, must be prepared to foot the bill if this country is to present its best image to the rest of the world?