The Government of Grenada is taking further steps to help safeguard the survivability of small hotels in Grenada, as they face the unprecedented impact of the Covid-19 pandemic.
Having made an additional $5 million available through the Small Hotel Loan Facility at the Grenada Development Bank as part of the economic stimulus package, government is now making the option more attractive and accessible to hoteliers.
The cabinet agreed on Monday that the 10-year repayment terms will include a grace period of one year, with small hoteliers having the option to defer the interest and/or the principal payments. In addition, the loans will be administered at a reduced interest rate of 2% in the second year and 3% thereafter.
Prime Minister and Minister of Finance, Dr.the Right Honourable Keith Mitchell, said, “Through this concessional loan facility, government is expecting to help stimulate recovery in the sector as well as help to ensure the long-term survivability of small hotels. The tourism sector has been especially hard-hit by the pandemic, with many of the smaller properties being left cash-strapped. By streamlining the application process and making the loan facility more accessible, it is our hope that small hotels can better position themselves to continue being significant contributors to the local economy, as collectively, they provide scores of jobs to Grenadians.”
The Small Hotel Loan Facility was first announced by the government as part of the 2019 budget, with an initial injection of $2 million. It was intended to help proprietors undertake upgrades/minor refurbishment, marketing and training of staff, with the aim of boosting overall quality in the sector. With the advent of Covid-19, government increased the available sum to $7 million and expanded the potential uses to include payroll support and operational expenses as part of the Covid-19 ready strategy.
Dr Mitchell said, “It is anticipated that when the country’s borders reopen, small hotels will see an uptick in business. I encourage them to be ready to take advantage of this possibility by implementing the required protocols for the accommodation sector and ensuring that staff is properly trained. Restarting our economy is important but we must also be prepared to do it in a manner that safeguards public health and safety.”
Office of the Prime Minister
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I sometime wonder what is the mindset, thinking, or objectives of the people in government who say they represent the interest of us, Indigenous Grenadians, as they seem to be doing nothing in the interest of current and future generations of Indigenous Grenadians.
Take, for example, our limited resources that our government seems to think would be put to better use in the hands of so-called “small” hoteliers. How does a government who truly represent our interest comes up with this kind of strategy? Is our Government aware that Indigenous Grenadians own little or no shares in these private hotels. Show just one bank or credit union on the island that provides loans at this rate to Indigenous Grenadians for whatever reasons.
When a private entity decides to embark on any business project, including a hotel, that entity is in fact assuming the risks and rewards associated with this project. There is not doubt that government can put mechanisms in place that are supportive of business projects, such as hotels, which our government has overly done in forms of duty-free concession, cheap land, and more.
So why is it that our government still feel obligated to pour our limited resources in the form of moneys in to the hands of private individual for the purpose of propping up and reviving failed or failing hotels?
I could care less about slogans stating that tourism is everybody’s business, whatever this means, until Indigenous Grenadians are true partners in terms of ownership in these hotel projects. As we are not owners of these projects, Indigenous Grenadians should tell the people in government who say they represent us to let “capitalistic” market forces dictate the fate of these failed or failing hotel projects, “big” or “small”. The COVID issue just shows that some of these so-called hotels were not viable in the first place and may have been fronts for unscrupulous activities.
The moneys funnelled to these failed or failing hotel projects could be better spend on supporting business project for vital supplies we need here on this islands, which will in turn reduce our imports bill.
Wake up, Indigenous Grenadians, and demand better from our representatives as there are no future in hotels jobs when we do not fully or partially own the hotels. Please remember that nothing in this so-called tourism industry, hotels, cruise ship, planes, etc., is owned by us. We are just pawns in a bigger scheme. Look at Barbados and Jamaica and take sock.
These loans should have no interest…or less than 1% throughout the term.