Diamond Hotel — too soon to panic?

In June 2022, the government signed an EC$52 million contract with a Trinidad company for the construction of the hotel at Diamond — Holiday Inn Express. By all media reports, we’re told that this amount is comprised of a “grant” from the Caricom Development Fund (CDF), an investment by the NIS, and some other local funds.

The CDF’s annual report of 2020 stated: “Supporting Economic Diversification – Expanding the Accommodation Sector (Loan of US$5m and Grant of US$0.7m): This project supports the Government

of St. Vincent and the Grenadines’ economic diversification efforts, and capacity to attract airlines and visitors,

with the construction of a 93-room budget hotel through a public-private partnership. Approved in December

2019, a protracted review of the draft loan and grant agreements delayed agreement signing.”

Was the CDF’s contribution a grant, or were most of this amount really a loan? The 2024 Estimates presented in the Parliament, allocated EC$14 million for 2024, while another EC$5.1 million was approved for 2023, all coming from the CDF for spending on this hotel. The EC equivalent of US $5.7 million (CDF 2020 report) is roughly EC$15.4 million, which is closer to the numbers we saw presented in the Estimates. Again, was this all a grant, as widely reported, or were most of this amount from the CDF another loan? What’s further confusing is that NBC radio in its coverage of the hotel opening, stated that the CDF “contributed” over US$10 million.

Then we wonder how much of the $52 million came by way of NIS investment, and is it too soon to panic? Is it too soon for pensioners to panic about this investment? Granted, returns on investments of this magnitude don’t usually come quickly. After all, the hotel has only been opened for about three months. Having said that, perhaps there are possible trends that we can consider.

This hotel hosted cricket teams soon after it opened. In fact, the minister of finance in presenting the 2025 budget, boasted that it was “fully booked”, hosting both the West Indies and Bangladesh teams. Then, recently, we’re told that the players were not too happy with the service, and therefore the hotel isn’t quite suited for hosting teams like Australia for future matches. Holiday Inn EXPRESS, as the name suggests, caters for short stays.

Now that we’re here, the questions are: for the last three months, what has been the average weekly occupancy of the hotel, besides the cricketers who stayed there right after it opened? How many persons are employed there?

We asked about employment because of the finance minister’s budget of 2019, which states: “… At Mt. Wynne, we have secured US$50 million to commence construction of a 250-room resort, which will be the country’s largest hotel and the first mainland resort to be managed by an internationally-recognised brand. The designs of this hotel are well advanced, and promise to be a unique and standard-setting statement of Saint Vincent and the Grenadines’ entry into the Caribbean mass tourism sector. At Diamond, the Government will construct a 93-room facility that

will take advantage of its status as the closest hotel to the Argyle International Airport. That facility, to be constructed with support of the CARICOM Development Fund and investment from our National Insurance Services, will complement the already-constructed Hospitality and Maritime Training Institute, which is also located at the Diamond Industrial Estate. When completed, the two hotels will directly employ over 350 Vincentians.”

Six years ago, we’re told that $50 million has been secured for the hotel at Mt. Wynne. What became of this $50 million? We’ve not seen any reports of soil being turned yet for construction. Then we’re told that both hotels will directly employ 350 Vincentians. Now that we’re three months in with Holiday Inn Express, how many persons are employed there so far? Again, what is the current and anticipated weekly occupancy of this hotel? Is it too soon for NIS pensioners (and taxpayers for what appears to be a CDF loan) to panic? How soon will the NIS begin to realise a return on its investment?

Observer

The opinions presented in this content belong to the author and may not necessarily reflect the perspectives or editorial stance of iWitness News. Opinion pieces can be submitted to [email protected].