New hotels must plan strategically to ensure viability
Stabroek News
April 17, 2007
A call has been made for the newly established hotels to join associations within the hospitality sector and to develop a strategic plan to ensure high occupancy levels.
Two of these hotels, which opened in March had a fair number of guests during the Cricket World Cup Super Eight matches, while the early knockout of India and Pakistan hit some of the more established hotels.
There has been a debate over the past weeks with regard to the viability of the new hotels in the light of Guyana's fledging tourism sector.
From March 28 to April 9, six CWC matches were held in Guyana. Expecting large groups of tourists, the government gave generous concessions to entrepreneurs seeking to provide accommodation.
Duty-free concessions were given on imported items used in constructing and furnishing the hotels and some six new hotels were opened; five in the city, and one at Providence.
Last month, Le Grand Penthouse, Zoom Inn on Croal Street, Tropical View International Hotel on Campbell Avenue, Ocean Spray on Vlissengen Road and Imataka Hotel opened their doors. Buddy's International Hotel opened at Providence in February.
The 250-room Buddy's Hotel was guaranteed a number of CWC-related guests, but the other newly built hotels had no such guarantees.
However, according to information, Ocean Spray had full occupancy during the six CWC matches. The hotel reported that it hosted a musical band from India in Guyana, which consisted of 12-14 members. During the period some guests spent as long as one week and others three days.
Of the 20 rooms at Ocean Spray, only 12 are operational and all were full during the CWC period. As of Friday the hotel had six guests and was expecting four more later that afternoon; it also had bookings for the coming days.
"We are doing great," was the response from the receptionist at Ocean Spray, when Stabroek News called for information as to the occupancy levels. She said they had guests from Canada, England and the United States and some overseas guests extended their stay.
Ocean Spray is a stroll away from the Atlantic Ocean and overseas visitors looking for that experience would have seen the hotel as an ideal location.
The hotel is a three-storey building and has four rooms operational on each floor.
Zoom Inn reported 75% occupancy for the two weeks during the CWC period and 40% occupancy as of last Thursday. CEO Terry Singh said the 50-room facility was expecting steady bookings. This hotel was completed just before the CWC matches began. The managers of Imataka and Le Grand Penthouse in media reports have said that they were disappointed with the bookings they received during the CWC, in the light of the thousands of CWC fans that were expected to follow the seven teams that played in Guyana.
Information could not be had from Tropical View International and other new hotels.
Waterchris Hotel and Bar Managing Director Gregory Lewis said the elimination of India and Pakistan saw cancellations at that hotel, since fans supporting both teams had made bookings for two weeks. During the period, Waterchris put its occupancy level at 50%. Lewis told Stabroek News that the hotel had guests that stayed for one or two days for the matches, but not for longer.
At Wind Jammer International, Carey Griffith said a booking for 26 double and single rooms was cancelled once India and Pakistan were eliminated from the CWC. However, Wind Jammer did have some other overseas guests.
Roraima Residence Inn had full occupancy for three weeks during the CWC period. Its Managing Director Gerry Gouveia said the new hotels need to join associations like the Tourism Hospitality Association of Guyana (THAG) and get involved in trade shows like GuyExpo and other events to attract business. "The hotels, we need to work together… we can't be shortsighted… "We need to get involved in marketing Guyana," he said.
He cautioned that the new hotels would have to pay close attention to service and maintaining very high standards.
Asked about increased competition in the sector and whether a price war may be looming, Gouveia said: "the established hotels are not going to get into a price war." He said the quality of clients that the established and recognized hotels attract would not forsake quality service for cheap rates.
Gouveia also said that the new hotels need to start preparing strategic plans to occupy their rooms.
On Thursday last, Zoom Inn's CEO had said that a price war would not be beneficial to the new hotels but they must work together to improve occupancy levels.
President Bharrat Jagdeo who was visiting the hotel at the time had also noted that dialogue should be open between the hotels and airlines. The President had also pointed out that it would not have been possible for the hotels to recoup what they would have spent during the CWC, but added that the concessions were to be used as a springboard.