Chairman of Intimate Hotels says new game plan urgent

With some small hotels struggling to keep their doors open as a result of the impact of the COVID-19 pandemic, Chairman of Intimate Hotels of Barbados (IHB) Mahmood Patel says urgent steps need to be taken to turn things around.

Pointing to the impact of the ongoing pandemic as well as the recent freak storm and Hurricane Elsa on the tourism sector, Patel said some small hoteliers were finding it difficult to meet their tax obligations and it was becoming “impossible to operate even at break-even”, as expenditure continued to outstrip revenues.

While urging the hoteliers to put systems in place to help make their operations more sustainable, Patel also called for a “radical overhaul” of the financial system and improvements in some government processes to help hotel operators make the necessary investments to keep their doors open.

“So, as a group, as hoteliers, we have to do some massive soul searching and reinvention if we are going to survive this period,” said Patel.

“The challenges that I see ahead would be, how do we keep our business intact, containing our operating costs and, on the other side, how do we generate new guests, new markets and new types of tourism. Also, how can we maintain our quality of life, our standard in Barbados for ourselves and our staff.”

Pointing to the urgent need for the establishment of the proposed IHB co-operative, Patel told the group’s annual general meeting that this form of collaboration could be part of the solution to cut operating costs.

“We should also try to create sustainable energy platforms through a solar farm and individual solar energy at each property. Then, the co-operative and bulk buying would help us save costs and become more efficient. These are just some of the big ideas I would like to work on in the next year,” said Patel, who also pointed to the need for properties to have water storage facilities.

He said the current environment called for greater investment but lamented the challenges associated with getting business done in Barbados.

“What I find really difficult is our ease of business. Barbados is listed at 128 out of 190 states in terms of the ease of business. If we could collectively move to solve that, I think that would remove a lot of our problems and increase investment into our country. To me, it is one of the biggest hindrances in trying to get things done,” said Patel.

“The other thing I find as a young businessman is that our financial system needs radical overhauling. The current model of the financial system does every Barbadian an injustice. There is about $8 billion in savings in our economy, but it is not available to invest at a developmental interest rate. To me, that is an anomaly that needs a serious look at.”

The hotelier added: “The other part that is perhaps a little bit touchy, is our governance system. I would like to suggest a rethink of how we govern ourselves as a state, and move away from a binary way of thinking and look at a more inclusive and merit based way of governance.”
(marlonmadden@barbadostoday.bb)