FEATURE ADDRESS THE HONOURABLE JOSEPH T. ROSS MINISTER OF TOURISM
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1 MINISTRY OF TOURISM MEDIA LAUNCH OF THE TRINIDAD AND TOBAGO HOTEL & GUESTHOUSE ROOMSTOCK UPGRADE INCENTIVE PROJECT FEATURE ADDRESS THE HONOURABLE JOSEPH T. ROSS MINISTER OF TOURISM Date: Wednesday February 03, 2010 Venue: Hilton Trinidad and Conference Centre, Port of Spain Time: 10.00am 1
2 The Honourable Oswald Williams, the Secretary of Tourism and Transport, Tobago House of Assembly Mr. Brian Awang, Chairman of the Tourism Development Company (TDC) and other Directors of the TDC Board Mr. Ernest Littles, President and Director of Tourism of the Tourism Development Company Mrs. Ethel Berkeley-Sylvester, Administrator within the Tobago House of Assembly Mr. Warren Solomon, Director of Tourism at the Tobago House of Assembly Tourism Stakeholders Corporate Executives Members of the Media Specially Invited Guests I am pleased to be here today to formally launch the Trinidad and Tobago Hotel and Guesthouse Roomstock Upgrade Incentive Project. 2
3 As I look into the audience this morning, I must register a special sense of satisfaction in seeing not only a broad cross section of tourism industry stakeholders but also key supporting players such as financial institutions and Government development agencies. It is clearly indicative of the importance of this room upgrade incentive project. Ladies and gentlemen, this project is an explicit and unequivocal expression by the Trinidad and Tobago Government of its belief in and support for the tourism industry. The Government of Trinidad and Tobago is serious about tourism. The role of oil and natural gas in the economic development of our twin island Republic will never be in question. There is no need to reiterate our world-class achievements in methanol and ammonia production or in the export of natural gas. These are well known. 3
4 What I am saying today is that government is fully cognisant of the life cycle of these industries. And that, at the same time, Government recognises the potential of the tourism industry for employment creation, hard currency earnings, income generation and human development. As such, tourism is one of the drivers to transform and diversify the Trinidad and Tobago economy. It is in this regard that Cabinet, in the later part of 2009, agreed to an incentive plan for the upgrade of the hotel and guest room stock of Trinidad and Tobago. The plan is only applicable to accommodation facilities with 100 rooms or less. This incentive plan is in keeping with our Vision 2020 goal of upgrading the quality of the accommodation options available to international visitors as well as establishing a critical mass of new rooms. 4
5 Against the background of aggressive competition in the global market place and the sophisticated discerning tastes of today's travelers, high quality accommodation is mandatory. In Trinidad and Tobago presently we face a challenging future. The implementation of an incentive plan for hotels and guesthouses is necessary as it places resources behind improving product. By taking advantage of the incentive plan these properties can now effectively position themselves to take advantage of the projected upswing in tourism which is projected to come. Moreover the incentive plan for hotels and guest houses will improve the overall competitiveness of Trinidad and Tobago as a destination and more competitive pricing and improvement in perception of value for spend by visitors. 5
6 Upgrades of our room stock quality will protect and enhance our brand reputation. It goes without saying also that upgrades will go a long way in addressing tour operators and travel agents concerns about quality and will pre-empt similar concerns by meeting planners as we move into the meetings and conferences market in a more meaningful way. As well, it will assist in consolidating persistent airlift issues. Moreover the room upgrade project will result in an increase of critical mass of first-class rooms. Equally important, would be the ability of owners of upgraded properties to achieve higher average daily rates as well as attain higher occupancy levels. Conservative estimates thus suggest that as a result of this project revenue earned per person can go up by 10% in the short term and 10 to 15 % in the medium to long term. 6
7 I would also point out that the resultant enhanced financial visibility of these properties would augur well for the future sustainability of product quality and consequently, overall industry competitiveness. An added benefit of this initiative and its impacts is that a level of confidence in the long term viability of the tourism industry will be engendered among property owners. This we hope this will serve as an impetus for future re-investment and expansion decisions by existing owners who see such actions as prudent business decisions today and for the future generations who will operate these establishments. Ladies and gentlemen, should you be in any doubt, investment in the tourism industry of Trinidad and Tobago is healthy. The Carlton Savannah just recently opened its doors with one hundred and sixty-five (165) rooms. 7
8 The Cara Suites Hotel and Conference Centre last year completed and opened a fifty (50) room expansion, an almost one hundred percent (100%) increase in their room stock. The Star Hotel in Piarco is well advanced with construction of a one hundred and twenty (120) plus room facility. In all, we are talking about over $250 million in investment. And I must add, that these (3) projects are approved tourism projects which have accessed benefits under the Tourism Development Act. Major refurbishments have also been undertaken by several large hotels. In Tobago, all guests rooms at Rex Turtle Beach were upgraded. At the former Hilton Tobago, now called Vanguard Hotel Limited, Phase one of refurbishment works are well underway and this will eventually lead to the re-introduction of two hundred (200) world-class rooms to the Tobago market. 8
9 In Trinidad, all four hundred (400) rooms of the Hilton Trinidad have been restored to full 4-star status. At the Crowne Plaza and the Marriott Courtyard, refurbishment projects are being implemented. As I close I want to invoke an earlier appeal and ask you to share my personal optimism about the future of Trinidad and Tobago tourism. I respectfully ask you to do your part, avail yourselves of the benefits of this project that we are launching and let us work together to realise a profitable and sustainable tourism industry. I thank you. February 02,
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