Small hoteliers are looking at the possibility of establishing a co-operative credit union so that owners and workers could benefit from cheaper financing.
The idea, which was put forward on Thursday during the annual general meeting of the Intimate Hotels of Barbados (IHB), was immediately accepted by the new board.
Director of the IHB and owner of the Infinity on the Beach Hotel Renee Coppin said she has already had several discussions and received all positive feedback.
“For the past 15 years we have been talking about the sustainability of the organisation. I think one of the things we have to look at doing is having our own financial instrument. I know there have been a lot of discussions around co-operatives and credit unions.
“So what I am proposing that we consider is to set up our own co-operative and credit union for the small hotels. Having done a bit of research, I think we can have a two-tiered membership – a membership for owners as well as for the workers. There are a lot of us who do things like offering loans to our staff. Things like that can be brought into the unit as part of the services that we offer,” Coppin proposed.
Pointing to the island’s first ever renewable energy cooperative, the Barbados Sustainable Energy Cooperative Society Ltd (CoopEnergy), Coppin said it could be used as a benchmark with similar features.
Membership of that co-op would be offered to individuals, other co-operatives and corporate entities. To become a member, an individual must have ten fully-paid-up, non-withdrawable shares valued at $1,000 and pay a membership fee of $100. No member can own more than ten per cent of the co-op.
Coppin said the small hotels co-op would serve as a facility from which member hoteliers and workers could access funds at more favourable rates to do their refurbishment and embark on projects.
“It is something I thought I would raise here that you can think about it and digest it. I certainly have a lot of frustration with the banking sector, and I think this is the time that we need to be looking at creating greater opportunities, greater investment in ourselves, greater opportunity for financial literacy for our members and staff,” said Coppin.
IHB officials are expected to come up with the business plan in the coming weeks.
New chairman of the IHB Mahmood Patel said he endorsed the idea, describing it as one of the innovative measures needed by hoteliers at this time.
“That is the kind of disruptive thinking that we have to adopt going forward, to look at how the IHB served and what it did, but post-COVID-19 we have to start looking at disruptive ways and creative ways to become more sustainable financially, environmentally and also for our people,” said Patel.
He announced that the new board would also be setting up several committees so they would have a more targeted approach in addressing challenges and the concerns of members.
The small hotels co-operative comes a month after immediate past chairman of the Barbados Hotel and Tourism Association (BHTA) Stephen Austin proposed a provident fund for tourism workers.
In his final report as chairman Austin told the BHTA’s annual general meeting that while the financing of the proposed fund would have to be considered the tourism workers’ fund, it is something that will be critical towards assisting those in the industry.
“It would be an emergency fund as well as a human development-type fund – a 50/50 type fund,” said Austin. marlonmadden@barbadostoday.bb
