Gov’t says Kaieteur News attacks on Marriot project worrying

By Michael Younge

Flashback: Officials of the Shanghai Construction Group along with their Guyanese counterparts after a brief tour of the construction site
Flashback: Officials of the Shanghai Construction Group along with their Guyanese counterparts after a brief tour of the construction site

Government said it remains concerned about the unwavering campaign being waged by the privately-owned Kaieteur News against the Marriott Hotel project.

Finance Minister, Dr Ashni Singh, speaking during an exclusive interview with Guyana Times International said that the newspaper was “making a misleading comparison between the Guyana Marriott and the Jamaica Marriott projects” which were distinctively different.

“Once again, a misleading comparison is done to draw an erroneous conclusion for the sole purpose of undermining the Guyana project. No person committed to national development would question the merits of a new internationally branded hotel being in Guyana such as the Marriott,” the minister submitted.

He stated that the Kaieteur News article published on Sunday January 6th, under the caption “Guyana Marriott costs three times more than Jamaica Marriott” seeks to compare two dissimilar things.

He argued that Guyana was constructing a full-scale five star Marriott while Jamaica was seeking to establish a Marriot Courtyard.

He also rubbished attempts to rationalise and compare the costing of the two hotels, deeming it as an “inappropriate comparison”. He disagreed with the notion that government was unwilling to make the necessary information available to the press and political opposition about the new Marriott Hotel project. “It has been quite the contrary,” Dr Singh declared, arguing that the ruling party has consistently answered questions in Parliament about the project.

The Finance Minister noted too that a significant number of documents and information was laid in the National Assembly about the Marriott Guyana investment, but the Parliament subsequently moved to block the project.
The minister’s comments came on the heels of attempts by Kaieteur News to suggest that government was wasting taxpayers’ monies by constructing a Marriott hotel in Guyana for US$ 50 million when the project could be undertaken for far less.

It sought to promulgate the view that corruption was afoot, while noting that Jamaica was constructing a similar branded hotel for US$ 23 million.

Understanding economics
Acting Tourism Minister Irfaan Ali has taken the newspaper to task for not understanding the simple economic principles that underpin the costing behind the two projects.
Ali, speaking during the first edition of TVG’s Current Issues and Analysis Show for 2013, said that Guyana was getting value for money while utilising economies of scale to save revenue.
He too said the comparison should be rejected because it was akin to comparing oranges and apples as anyone in the hotel business would know the fundamental differences in costing between a full-scale Marriott Hotel project and a Marriott Courtyard project.

“… Some people are comparing a Marriott resort with a Marriott Courtyard, but there is a fundamental difference between the two… you are talking about comparing a low-end car with a high end luxury vehicle…” he alluded during the show.

The tourism minister said that Guyana Marriott would contain a “spread of developments” in one and would result in hundreds of people becoming employed as he rubbished the view that it could be compared to the kind of hotel and rooms that would become available in Jamaica.

Ali said, “If you calculate the per square foot cost of our Marriott hotel with other Marriotts around the world, you will see that indeed our pricing has been very good.” He also advised that locally produced stone, sand and materials were being utilised in the construction of an internationally accredited and branded hotel.

“The Marriott is not in competition with anyone… it has its own market and its own methods of attracting its clientele… it is a brand by itself,” the minister emphasised, explaining that Guyana would be promoted in 170-odd Marriott magazines across the world.

He was keen to point out that the Marriott project because of its magnitude has to be built to specification, noting that there are strict guidelines that must be followed.

This project is an investment of over US$ 50 million that will bring a major international brand to Guyana, create hundreds of jobs in the construction phase and beyond when it becomes operational, and significantly raise the standards of the hospitality industry. The project is being implemented through a public/ private partnership, whereby government is merely acting as a catalyst.

Locals to remain in business
In June, President Donald Ramotar had assured that the opening of a Marriott Hotel would not run local hoteliers out of business, but would give local hotels the opportunity to lift their standards, thereby raising the level of competition.

It will have 160 rooms along with a 75,000 square foot entertainment complex.
That complex will be furnished with modern amenities including a casino, restaurants and a night club. Currently, only the Princess Hotel can operate a casino.

The Marriott has chains in 72 countries with more than 3600 hotels globally.

Progress being made
Guyana Times International visited the construction site of the Marriott Hotel last week, and engineers as well as other employees were hard at work, and full of praise about the progress made to date.

Chief budget engineer from the Shanghai Construction Group Ping Zhao, speaking with the help of his interpreter, James Wang, told this publication that work is moving apace with respect to various aspects of the project.
Work on the main structure of the restaurant and hotel is to be completed by mid-year according to initial projections. “Apart from that… after the middle of this year, we will start working on the interior designs and the exterior work,” the official said.

By mid-2014, the Chinese officials hope to have completed all work under the development project. Asked about challenges endured thus far, the chief budget engineer explained that these have been minimal and largely circumstantial.

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