The Bahamas Hotel Association (BHA) is calling for the elimination of the 25 per cent market value investment required under the Hotels Encouragement Act for the renewal of investment incentives.
Its President Stuart Bowe told Tribune Business many small hotels were unable to come up with that much capital to invest in tough economic times.
Mr Bowe said: “The recession has underscored the vulnerability of many of our hotels, particularly our small hotels. It has also forced many of them to put a hold on investing in refurbishments and capital improvements as they found it necessary to first meet basic operating expenses in order to survive. As a consequence, there is a critical need for investment to upgrade many of our hotel products. Hotels must continually invest in their product and if they fail to do so; room rates cannot be increased which further increases cash flow challenges, and increases the negative perceptions of the destination and staff service. The Bahamas Hotel Association recommends that incentives be put in place to stimulate capital improvements and refurbishments.”