Permanent Secretary in the Ministry of Tourism, Karen Prevost, is calling on the hotel sector to take advantage of a loan facility at the AID Bank which was created for the tourism sector.
The $15-million facility from the proceeds of the Citizenship by Investment (CBI) Program was available for on-lending to the hotel sector and had an interest rate of 3 percent and a grace period of one year.
However, after Hurricane Maria, the interest rate was reduced to 2 percent.
After the hurricane, hoteliers and other key stakeholders in the tourism industry have expressed frustration with insurance companies over delayed payments.
The lag, the Dominica Hotel and Tourism Association (DHTA) said, “is preventing many hotels from moving forward with reconstruction and restoration.”
Prevost said hoteliers should take advantage of the loan facility.
“We are working with the DHTA, we are very aware of the challenges and the issues that they face so we are advocating as well on their behalf,” Prevost said.
She said the Government has reviewed the facility available at the AID Bank with better terms and conditions post-Hurricane Maria.
“We have seen a decline in the interest rate from 3 percent to 2 percent, an increase in the repayment period from 10 years to 15 years and also a grace period of 1 year and I should add integration of climate resiliency criteria in this project financing,” she stated.
She said under the revised terms, the private sector, hotels, tourism service providers can also benefit from the facility to integrate renewable energy and energy efficiency projects in their rebuilding process.
Prevost went on to say that these are some of the ways government is assisting in terms of financing, “and the government is also looking at other areas of support to the sector in terms of rebuilding.”
Meanwhile, Tourism Director Colin Piper said if there is a delay in payment from insurance companies, it is a setback for the tourism sector and it is something that should be addressed.
“The other thing that we can speak to is, we also need to adapt or come up with another formula, another mechanism, that will allow us maybe to go to the bank or take a short-term out while the insurance settlement is being taken care of, and what the department is trying to do is put such a facility together in terms of the AID Bank,” he stated. “So the hope is that those processes can be such that it does inconvenience or it does not unduly delay, but I dare say we have a little work to do in that regard.”
It is very easy to make comments on DNO but this is a sweet deal. Almost free money, 15 yrs to pay back @2%. It’s a win win for the industry and economy. When you take time to read the story one can plainly see that insurance payments are part of the issue. Many of you commenting here do so with forked-tongues or rather forked-fingers/brains. You are the same ones who also bash the government for giving handouts to help citizens get back on their feet, like the U.S, St. Marten are currently doing, nothing unprecedented. Here you bash a sweet deal. Id10t5!
As with everything in Dominica, the political affiliation of the businesses plays a huge role in the decision making process. It is time to show the dictator the red card now.
Hoteliers cannot make it under skerrit with a loan interest rate of 3 percent and a grace period of one year
Hoteliers are not taking advantage of the credit facility because it is not demand-led. The design of such facilities must be based on the needs identified by the targeted groups not on what the government thinks they want or ought to desire. Additionally, given the relatively low levels of stay-over visitors to Dominica and the perennial problem of very limited airline connectivity to Dominica, people are risk averse in borrowing monies to invest or expand their existing businesses in the tourism sector.
Dont ever stop calling them. Call all of them. But when they come, when all of them come, I HOPE YOU TELL THEM EXACTLY WHY THEY CANNOT ACCESS THE FUNDS. Aid bank acting like nobody not coming forth and i know personally of at least 5 reputable hotel operators who have applied but have been denied. Now what the public needs to understand is that this fund is for the upgrade and expansion only. it is not for refinancing or for new hotel projects. To my knowledge, ONLY Fort young has been able to access this loan facility. Ms. Prevost, you need to go to the bank and sit with jno rose and ask her why arent more coming forth. then go to the hoteliers that your ministry represents and hear their side of the story. Public sector should not be supporting private sector but i fully understand that many hoteliers were already cash strapped pre maria, much less for post. …………… same thing for manufactur
You really think that the ps doesn’t know that. As for that John rose , that lady is a waste of time. The pm refuses to revamp aid bank with proper management . Everything gets stuck in lalala land and then you are denied
aids bank is the worst bank on island
With all due respect to Ms Prevost, the PS in the Tourism ministry, the stakeholders in the tourism business are not fools and they are not dohtish. If things are on the up and up and the tourism business is growing steadily, the stakeholders would not need you to urge them to go borrow money to expand their businesses. The government you serve recently passed legislation making it easier for the banks to take possession of the assets of borrowers who are in financial difficulty.You and your ministers need to do things to jolt the sleepy economy, especially on the hills of hurricane Maria to convince the businesses that the sector is on an upward trajectory and they will be falling over each other to go borrow money to make money.
If Fort Young for example can tell me they have no funds in the bank to fix it’s roof and they are depending on hurricane damage insurance funds to do so, that is poor business management. A well managed business would go ahead and repair it’s roof to set it’s self above the rest. My guess is Dominica businesses seems to me have the same mentality expecting government to hold their hands like toddlers. Will this Country ever move forward? I doubt it.
Lenpro, Everybody in Dominica is not looking for a hand out. Especially the Tourism Industry. There are hotels that are not as liquid as others, hotels that cant get reinsured because a river wall needs to be built close to the property (who’s fault is that). There are businesses that still don’t have access to their properties and are “next to government road” (who’s fault is that?). And a loan facility that is a dead horse because the barriers to getting it are TOO HIGH. but i guess thats the tourism industry’s fault to huh…. Please keep your mouth closed the next time you want to make sweeping generalizations.
might be the government for not setting the terms and conditions to the AID bank to access the funds. the government put millions and allowed the bank to facilitate like it is business as usual. NO if i put money somewhere, i should be the one to set the terms and conditions on how it should be set up, and all the bank has to do is make sure it goes how we agreed it will go. they get their cut on reduced interest rates, business people get access, the government benefits primarily from the taxes received from thriving hotel and tourism industry. everybody wins. But, that is just a pipe dream i guess.