Caribbean Tourism fund being
formed to encourage upgrades
TRINIDAD--Small and medium sized hotels in the Caribbean looking to upgrade their facilities to keep up with competition and to go green with the installation of new energy saving equipment will soon have access to a regional investment fund.
The Caribbean Tourism Investment Fund, a product of the Caribbean Hotel Association (CHA), was introduced Thursday to delegates at the twelfth annual Caribbean Hotel and Tourism Conference (CHTIC) held in the Hyatt Regency Trinidad.
The gathering of investors, developers and hoteliers received a Pre-0ffering Memorandum about the proposed fund that seeks to raise US $100 million as its start off capital. The memorandum is contingent and conditional upon expressions of interest received from potential investors and investees. It is also relevant to governmental and regulatory approvals.
Hotels and other tourism related enterprises in CHA member countries, of which St. Maarten is one, will be able to access funding based on merit and return on investment their upgrades will generate.
The fund will address the investment needs of specific sectors of the Caribbean tourism industry which is not receiving attention of traditional financing sources, CHA President Peter Odle said.
He added that it is widely recognized that in the region there are gaps which limit access to third party financing for owners and operators of small and medium sized hotel and other related enterprises looking to expand or renovate.
“In a region dependant on tourism as the Caribbean, it is critical that this financing gap be addressed and this is the ultimate object of CHA in proposing this fund,” Odle said. The target group is hotels with up to 150 rooms and other tourism related enterprises that have a proven track record and robust business plans.
CHA plans to register the fund with relevant authorities in Barbados and Trinidad and Tobago and may consider other countries in the region. An investment board will be responsible for approving and declining investment projects submitted by the fund manager.
Caribbean Financial Services Corporation will be the manager of the fund. The majority shareholding in the corporation is held by ECIC Holding Ltd., a holding company established by 10 indigenous commercial banks mainly in the OECS countries.
