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From the Online Observer:
Spanish hotels do more harm than good to Jamaica's tourism product
Friday, April 25, 2008
The surge in Spanish hotel operators building all-inclusive emporiums is said to have benefited Jamaica's tourism product, but is that necessarily the case?
Many laud the extra room count and regard the Spanish invasion as a fillip to Jamaica's leading industry. Over the last six years, some six hotel chains coming out of Spain have established cheap but cheerful all-inclusive hotels catering to a more down-market visitor at a time when Jamaica has been trying to reposition itself as a mid- to high-end destination in order to extract the most out of the tourism dollar.
Environmental and quality issues
The rate at which the Spanish hotels have been constructed has been most expeditious, begging the question: have they sacrificed quality for expediency? The collapse of the Fiesta Hotel in Lucea, Hanover last year could support this view.
On September 20, 2007, a section of the upper-level concrete slab collapsed at the 1,960-room hotel, resulting in the injury of four persons.
Jamaica's Prime Minister Bruce Golding expressed deep concern at the reported frequency of accidents and injuries associated with the construction of the Fiesta Hotel and ordered that the necessary investigations be carried out to determine whether the developers are adhering to approved safety measures in the construction process.
According to the investigating team, "the Hanover Parish Council, in its condition of approval of construction (Clause 16) given to the Fiesta Hotel developer, stipulated that only quality metal scaffolding and false work (props) be used in the construction of concrete works". They stated that, "this condition was subsequently relaxed to allow for a variant solution comprising a mix of four inches by four inches sawn timber and metal scaffolding and false work props".
Concluding, the team stated that, "it is our conclusion, following on the observed mode of failure of the round wood props, that if condition 16 and or its subsequent modifications had been followed, the likelihood of a collapse would have been minimised and it is our recommendation that this clause be adhered to for the remainder of such concrete works on the Fiesta Hotel site".
Compounding matters further, construction workers protested against unsanitary working conditions, including insufficient toilet facilities, a lack of drinking water, medical facilities and areas for obtaining food and shelter at the site.
Again, this week, another Spanish hotel chain was found breaching building regulations. The RIU Hotel in Montego Bay breached its building permit by putting up four floors instead of three as approved on June 29, 2007.
According to the permit in question, the hotel should be no higher than three floors for safety reasons, because the building is in the flight path of aircraft utilising the Sangster International Airport, which sits in close proximity to the hotel.
The mayor of Montego Bay, Charles Sinclair, has ordered an investigation into possible breaches by Riu, which could result in a stop-order on the construction of the hotel.
Earlier this week it was revealed that construction activities at RIU Montego Bay are taking place well beyond the agreed time period and on Sundays, thus forming a nuisance to the guests at the adjacent Sandals hotel.
Speaking with Caribbean Business Report yesterday, the general manager for Sandals Royal Caribbean located in Montego Bay said: "RIU has unceremoniously asked us to leave every time we go to their premises to complain about the noise levels. We continuously hear all kinds of banging, drilling and construction activity taking place in the wee hours of the morning and late at night. Now the permit makes it clear that RIU can begin construction work at 8:00 am and knock off at 6:00 pm, which is reasonable. When we go to RIU's management to complain about the breaches they run us off like we were dogs."
Another complaint levelled at RIU is that it has polluted the beach in Mammee Bay, St Ann and continually breaches the Environmental Act by disposing of what can be deemed toxic wastewater, which has caused skin irritation to many bathers.
Chairman of the board of the Mammee Bay Beach Club, Ken Thompson, said that there was no other recourse other than legal action to prevent such wanton environmental breaches, as RIU's management appeared unperturbed by their actions. Board member of the club, Herbert Murdock, described the management of RIU as arrogant and disrespectful of Jamaican people and that the only way to resolve the issue is through the courts.
Another Spanish hotel chain, the Piñero Group, has been prevented from constructing any further hotels because of environmental issues brought to the attention of the National Environment and Planning Agency (NEPA). This has infuriated the chairman of the Piñero Group, Pablo Piñero, who is responsible for the Bahia Principe Hotel in Jamaica.
Speaking in Mallorca on the matter last week, Pinero said: "I am very mad with NEPA because they are preventing me from developing my hotels in Jamaica. The Jamaican Government promised that I would be able to develop three hotels and I still have another US$200 million to invest in two more hotels in Jamaica. What NEPA has to realise is that you can't live in trees."
A leading Jamaican hotelier said: "The Spanish hoteliers get away with breaching environmental regulations and building codes and it is plain to me that they have very little regard for Jamaican law. The previous Government made all sorts of promises to the Spanish and has allowed them to construct these monstrosities with little attention paid to the environment. One just has to take a look at how they have damaged the coastline of Jamaica irreparably. Jamaican hotel builders could never get away with the breaches committed by the Spanish."
Cheapening the Jamaican product
In the heyday of Caribbean tourism, Jamaica was regarded as a high-end destination whereas Spain was seen as down market - a short hop for the working-class and students fresh out of college with beer money in their pockets. Men like John Pringle and Heinz Simonitsch made Jamaica the destination of choice.
Many local hoteliers now realise that it is not enough to just offer a basic all-inclusive package and are now looking to upgrade their properties and provide value-added services.
The Sandals Group, with 13 hotels in Jamaica, is now in the process of propelling its brand in the luxury category as evidenced by its advertising campaign in both North America and Europe apperaing on highly popular programmes such as CNN's Larry King Live. Sandals is now in the never before achieved upper-market for all-inclusives. It is the standard bearer for Jamaican hoteliers and has spent some half-a-billion US dollars upgrading its hotels over the last two years.
The Tavistock Group, headed by Joe Lewis, sees Jamaica as once again inhabiting the high-end market and to that end is planning the launch of the US$5-billion Harmony Cove project in Trelawny aimed at high-end visitors. Only this week, Prime Minister Golding announced that the Government will be entertaining casinos for high rollers with the revenue it brings providing a boost to Brand Jamaica.
"Jamaica cannot afford to be the Torremolinos of the Caribbean," said an industry analyst. "A glut of all-inclusive hotels at US$120 a room per night will hurt us, and the likes of Four Seasons, Mandarin and Trump will steer well clear of Jamaica. The trickle down effect will be minimal. Let's not forget that the industry depends on gratuities, and these cheap all-inclusives do not provide those. What you will see is that the Jamaican tourism dollar will contract."
"I would argue that the Spanish hotels have not brought in incremental business to Jamaica. All they have done is target the North American and Canadian markets. They have brought nothing to Jamaica and are undervaluing local hotels," added the analyst who opted for anonymity.
To support this premise, she pointed to the fact that wherever there is a Sandals hotel in Jamaica, one finds a RIU serving to dilute one of the Caribbean's leading brands.
"It is utter nonsense when RIU says that it is just a coincidence that their hotels are next door to Sandals hotels and that they go where the land is available," said the analyst. "You can clearly see what their strategy is. Many of the Spanish hotels have allotted themselves five-star status but anybody who knows this business will tell you that most of these hotels are nothing more than three-star all-inclusives masquerading in shiny tinsel and cheap stucco. The Spanish hotel players would like to turn Jamaica into the concrete jungle that is the Dominican Republic!"
The arrival of the Spanish hotels has spelt the demise of the smaller local hotel operators and in many instances they have had to endure their rates being reduced by 50 per cent. Negril Gardens, a small hotel that once commanded rates of US$130 per night, now has to settle for US$65 per person per night since RIU has established itself in Negril.
"The small hotel sector reflects the indigenous culture, and they should be given all the help they can get," said another tourism industry player. "Instead, the previous administration chose to help the Spanish chains, who are well-capitalised and have operations across the world and do not need government assistance."
A Montego Bay businessman, speaking with Caribbean Business Report yesterday, said: "You take Sangster International Airport in Montego Bay - yes, it is very good that it is being upgraded, but why are contracts being manipulated to favour the Spanish? Local workers are treated badly there and no one does anything about it. Why? Because there are those who say Jamaica is in dire need of foreign investment, but at what cost?"
Sandals continues to win the industry's top awards
Last year, the world tourism industry acknowledged the Gordon 'Butch' Stewart-owned Sandals and Beaches resorts with 16 of its awards, thus proclaiming it the best all-inclusive brand in the Caribbean. For the 14th year in a row it was voted the Caribbean's Leading Hotel Brand, beating out the likes of SuperClubs, RIU, Ritz Carlton, Hyatt, The Hilton and Iberostar.
The year 2007 also saw Sandals voted the top hotel by Canadian travel agents for Baxter Travel Media Agent Choice Awards. Just over 4,000 Canadian travel agents voted in the annual survey in which they named their favourite hotel and best all-inclusive resort, among a list of categories.
Again here, Sandals, a Jamaica-based chain, topped renowned brands such as Fairmont, Riu, Bahia Principe and Sheraton.
"To be recognised as the favourite hotel chain - a first for Sandals and for a Caribbean company - is proof that our long-standing partnership with Canadian travel agents is paying off," said Stewart.
Sandals Resorts International (SRI) still has more rooms in Jamaica than any other hotel brand and the group, comprising Sandals, Beaches and Royal Plantation also have more luxury quality suites than any other player in the Jamaican market.
While other brands place an emphasis on room count, SRI has focused on quality and is continually upgrading its product. It is differentiating itself from the Spanish operators as a luxury brand and associating itself with some of the world's leading goods and services like Beringer Wines and Preston Bailey wedding service.
"Stewart is leading the charge for Jamaica as the Caribbean's destination of choice. He is the country's leading hotelier but has not rested on his laurels," said a leading international hotelier operating from Dubai. "One only has to see what he is doing with the brand now by upping the ante and attracting more discerning visitors who demand a richer vacation experience.
"The Spanish hoteliers have said that they can bring more visitors from Europe, but only four flights a week come out of Europe. I suspect that the Spanish are eyeing the more lucrative North American market, a market that Stewart helped develop while he was at the helm of Air Jamaica by adding new routes. The Spaniards have just piggy-backed on that pioneering work and it is disingenuous to say that they have placed Jamaica's interests first," added the hotelier.
1. No byline or writers credit... if this piece appeared in print.. I assume it had a byline.
2. Obvious use of copy from previous Sandal's press releases published as news in the Observer.
3. Shameless pandering to and promotion of Sandals in a so-called "news" piece
4. No attempt at balance - where is the opposing viewpoint reflected? Any attempt to get the opinion of the Spanish investors or others who may support them? - apparently not.
5. Use of anonymous sources for opinions supporting article's conclusion
No doubt there is some truth to the central focus of the story i.e. the negative effects of the Spanish invasion BUT the clumsy use of the newspaper as a club against your competitors is an egregious corruption of the public duty of the media.
Never thought I'd say this but ... thank God for the Gleaner!
Spanish hotels do more harm than good to Jamaica's tourism product
Friday, April 25, 2008
The surge in Spanish hotel operators building all-inclusive emporiums is said to have benefited Jamaica's tourism product, but is that necessarily the case?
Many laud the extra room count and regard the Spanish invasion as a fillip to Jamaica's leading industry. Over the last six years, some six hotel chains coming out of Spain have established cheap but cheerful all-inclusive hotels catering to a more down-market visitor at a time when Jamaica has been trying to reposition itself as a mid- to high-end destination in order to extract the most out of the tourism dollar.
Environmental and quality issues
The rate at which the Spanish hotels have been constructed has been most expeditious, begging the question: have they sacrificed quality for expediency? The collapse of the Fiesta Hotel in Lucea, Hanover last year could support this view.
On September 20, 2007, a section of the upper-level concrete slab collapsed at the 1,960-room hotel, resulting in the injury of four persons.
Jamaica's Prime Minister Bruce Golding expressed deep concern at the reported frequency of accidents and injuries associated with the construction of the Fiesta Hotel and ordered that the necessary investigations be carried out to determine whether the developers are adhering to approved safety measures in the construction process.
According to the investigating team, "the Hanover Parish Council, in its condition of approval of construction (Clause 16) given to the Fiesta Hotel developer, stipulated that only quality metal scaffolding and false work (props) be used in the construction of concrete works". They stated that, "this condition was subsequently relaxed to allow for a variant solution comprising a mix of four inches by four inches sawn timber and metal scaffolding and false work props".
Concluding, the team stated that, "it is our conclusion, following on the observed mode of failure of the round wood props, that if condition 16 and or its subsequent modifications had been followed, the likelihood of a collapse would have been minimised and it is our recommendation that this clause be adhered to for the remainder of such concrete works on the Fiesta Hotel site".
Compounding matters further, construction workers protested against unsanitary working conditions, including insufficient toilet facilities, a lack of drinking water, medical facilities and areas for obtaining food and shelter at the site.
Again, this week, another Spanish hotel chain was found breaching building regulations. The RIU Hotel in Montego Bay breached its building permit by putting up four floors instead of three as approved on June 29, 2007.
According to the permit in question, the hotel should be no higher than three floors for safety reasons, because the building is in the flight path of aircraft utilising the Sangster International Airport, which sits in close proximity to the hotel.
The mayor of Montego Bay, Charles Sinclair, has ordered an investigation into possible breaches by Riu, which could result in a stop-order on the construction of the hotel.
Earlier this week it was revealed that construction activities at RIU Montego Bay are taking place well beyond the agreed time period and on Sundays, thus forming a nuisance to the guests at the adjacent Sandals hotel.
Speaking with Caribbean Business Report yesterday, the general manager for Sandals Royal Caribbean located in Montego Bay said: "RIU has unceremoniously asked us to leave every time we go to their premises to complain about the noise levels. We continuously hear all kinds of banging, drilling and construction activity taking place in the wee hours of the morning and late at night. Now the permit makes it clear that RIU can begin construction work at 8:00 am and knock off at 6:00 pm, which is reasonable. When we go to RIU's management to complain about the breaches they run us off like we were dogs."
Another complaint levelled at RIU is that it has polluted the beach in Mammee Bay, St Ann and continually breaches the Environmental Act by disposing of what can be deemed toxic wastewater, which has caused skin irritation to many bathers.
Chairman of the board of the Mammee Bay Beach Club, Ken Thompson, said that there was no other recourse other than legal action to prevent such wanton environmental breaches, as RIU's management appeared unperturbed by their actions. Board member of the club, Herbert Murdock, described the management of RIU as arrogant and disrespectful of Jamaican people and that the only way to resolve the issue is through the courts.
Another Spanish hotel chain, the Piñero Group, has been prevented from constructing any further hotels because of environmental issues brought to the attention of the National Environment and Planning Agency (NEPA). This has infuriated the chairman of the Piñero Group, Pablo Piñero, who is responsible for the Bahia Principe Hotel in Jamaica.
Speaking in Mallorca on the matter last week, Pinero said: "I am very mad with NEPA because they are preventing me from developing my hotels in Jamaica. The Jamaican Government promised that I would be able to develop three hotels and I still have another US$200 million to invest in two more hotels in Jamaica. What NEPA has to realise is that you can't live in trees."
A leading Jamaican hotelier said: "The Spanish hoteliers get away with breaching environmental regulations and building codes and it is plain to me that they have very little regard for Jamaican law. The previous Government made all sorts of promises to the Spanish and has allowed them to construct these monstrosities with little attention paid to the environment. One just has to take a look at how they have damaged the coastline of Jamaica irreparably. Jamaican hotel builders could never get away with the breaches committed by the Spanish."
Cheapening the Jamaican product
In the heyday of Caribbean tourism, Jamaica was regarded as a high-end destination whereas Spain was seen as down market - a short hop for the working-class and students fresh out of college with beer money in their pockets. Men like John Pringle and Heinz Simonitsch made Jamaica the destination of choice.
Many local hoteliers now realise that it is not enough to just offer a basic all-inclusive package and are now looking to upgrade their properties and provide value-added services.
The Sandals Group, with 13 hotels in Jamaica, is now in the process of propelling its brand in the luxury category as evidenced by its advertising campaign in both North America and Europe apperaing on highly popular programmes such as CNN's Larry King Live. Sandals is now in the never before achieved upper-market for all-inclusives. It is the standard bearer for Jamaican hoteliers and has spent some half-a-billion US dollars upgrading its hotels over the last two years.
The Tavistock Group, headed by Joe Lewis, sees Jamaica as once again inhabiting the high-end market and to that end is planning the launch of the US$5-billion Harmony Cove project in Trelawny aimed at high-end visitors. Only this week, Prime Minister Golding announced that the Government will be entertaining casinos for high rollers with the revenue it brings providing a boost to Brand Jamaica.
"Jamaica cannot afford to be the Torremolinos of the Caribbean," said an industry analyst. "A glut of all-inclusive hotels at US$120 a room per night will hurt us, and the likes of Four Seasons, Mandarin and Trump will steer well clear of Jamaica. The trickle down effect will be minimal. Let's not forget that the industry depends on gratuities, and these cheap all-inclusives do not provide those. What you will see is that the Jamaican tourism dollar will contract."
"I would argue that the Spanish hotels have not brought in incremental business to Jamaica. All they have done is target the North American and Canadian markets. They have brought nothing to Jamaica and are undervaluing local hotels," added the analyst who opted for anonymity.
To support this premise, she pointed to the fact that wherever there is a Sandals hotel in Jamaica, one finds a RIU serving to dilute one of the Caribbean's leading brands.
"It is utter nonsense when RIU says that it is just a coincidence that their hotels are next door to Sandals hotels and that they go where the land is available," said the analyst. "You can clearly see what their strategy is. Many of the Spanish hotels have allotted themselves five-star status but anybody who knows this business will tell you that most of these hotels are nothing more than three-star all-inclusives masquerading in shiny tinsel and cheap stucco. The Spanish hotel players would like to turn Jamaica into the concrete jungle that is the Dominican Republic!"
The arrival of the Spanish hotels has spelt the demise of the smaller local hotel operators and in many instances they have had to endure their rates being reduced by 50 per cent. Negril Gardens, a small hotel that once commanded rates of US$130 per night, now has to settle for US$65 per person per night since RIU has established itself in Negril.
"The small hotel sector reflects the indigenous culture, and they should be given all the help they can get," said another tourism industry player. "Instead, the previous administration chose to help the Spanish chains, who are well-capitalised and have operations across the world and do not need government assistance."
A Montego Bay businessman, speaking with Caribbean Business Report yesterday, said: "You take Sangster International Airport in Montego Bay - yes, it is very good that it is being upgraded, but why are contracts being manipulated to favour the Spanish? Local workers are treated badly there and no one does anything about it. Why? Because there are those who say Jamaica is in dire need of foreign investment, but at what cost?"
Sandals continues to win the industry's top awards
Last year, the world tourism industry acknowledged the Gordon 'Butch' Stewart-owned Sandals and Beaches resorts with 16 of its awards, thus proclaiming it the best all-inclusive brand in the Caribbean. For the 14th year in a row it was voted the Caribbean's Leading Hotel Brand, beating out the likes of SuperClubs, RIU, Ritz Carlton, Hyatt, The Hilton and Iberostar.
The year 2007 also saw Sandals voted the top hotel by Canadian travel agents for Baxter Travel Media Agent Choice Awards. Just over 4,000 Canadian travel agents voted in the annual survey in which they named their favourite hotel and best all-inclusive resort, among a list of categories.
Again here, Sandals, a Jamaica-based chain, topped renowned brands such as Fairmont, Riu, Bahia Principe and Sheraton.
"To be recognised as the favourite hotel chain - a first for Sandals and for a Caribbean company - is proof that our long-standing partnership with Canadian travel agents is paying off," said Stewart.
Sandals Resorts International (SRI) still has more rooms in Jamaica than any other hotel brand and the group, comprising Sandals, Beaches and Royal Plantation also have more luxury quality suites than any other player in the Jamaican market.
While other brands place an emphasis on room count, SRI has focused on quality and is continually upgrading its product. It is differentiating itself from the Spanish operators as a luxury brand and associating itself with some of the world's leading goods and services like Beringer Wines and Preston Bailey wedding service.
"Stewart is leading the charge for Jamaica as the Caribbean's destination of choice. He is the country's leading hotelier but has not rested on his laurels," said a leading international hotelier operating from Dubai. "One only has to see what he is doing with the brand now by upping the ante and attracting more discerning visitors who demand a richer vacation experience.
"The Spanish hoteliers have said that they can bring more visitors from Europe, but only four flights a week come out of Europe. I suspect that the Spanish are eyeing the more lucrative North American market, a market that Stewart helped develop while he was at the helm of Air Jamaica by adding new routes. The Spaniards have just piggy-backed on that pioneering work and it is disingenuous to say that they have placed Jamaica's interests first," added the hotelier.
1. No byline or writers credit... if this piece appeared in print.. I assume it had a byline.
2. Obvious use of copy from previous Sandal's press releases published as news in the Observer.
3. Shameless pandering to and promotion of Sandals in a so-called "news" piece
4. No attempt at balance - where is the opposing viewpoint reflected? Any attempt to get the opinion of the Spanish investors or others who may support them? - apparently not.
5. Use of anonymous sources for opinions supporting article's conclusion
No doubt there is some truth to the central focus of the story i.e. the negative effects of the Spanish invasion BUT the clumsy use of the newspaper as a club against your competitors is an egregious corruption of the public duty of the media.
Never thought I'd say this but ... thank God for the Gleaner!
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