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The $3.5 billion Baha Mar resort has failed to confirm or deny that one of its hotels may owe thousands of dollars to the Bahamas Electricity Corporation (BEC).<\/p>\n
In response to a question as to whether one of the Baha Mar hotels may be among those highlighted by BEC Executive Chairman Leslie Miller as in arrears by a substantial amount, Senior Vice President of Finance and Corporate Alliances for the resort Vaughn Roberts said that the company is focusing all of its resources on ensuring that Baha Mar opens successfully.<\/p>\n
While the company \u201cintends to honor\u201d all of its financial obligations, Roberts added that people must be reminded that Baha Mar \u201cis an investment today for the future of everybody\u201d.<\/p>\n
\u201cIt\u2019s a struggle – it\u2019s a struggle to make money in this business that we\u2019re in and so that\u2019s why it\u2019s so critical for us to really marshall all of our resources to deliver a successful opening of Baha Mar,\u201d said Roberts, who appeared as a guest on Guardian Radio 96.9 FM\u2019s \u201cMorning Blend\u201d show yesterday morning.<\/p>\n
Recently, BEC Executive Chairman Leslie Miller sent out a warning to major hotels and large commercial consumers to either pay up or face disconnection, as the corporation clamps down on arrears.<\/p>\n
Miller said BEC is owed millions of dollars and the corporation cannot allow major hotels and other companies to remain delinquent.<\/p>\n
While applauding the chairman\u2019s practical and prudent approach to collecting its outstanding receivables, Roberts stressed that major hotels like Baha Mar are still operating in a very challenging economic climate.<\/p>\n
\u201cOne of the interesting things about our economy is really the high cost of utilities. In the tourism business, it makes it very difficult to offer the kind of value for dollar to the guest that comes here particularly when you look at competing destinations,\u201d Roberts said.<\/p>\n
He added that the pressure from the BEC chairman is \u201cacceptable\u201d but added that \u201cthe reality of our time is that we are in a difficult economic environment and people tend to pay when they are able\u201d.<\/p>\n
Roberts said the high cost of energy is an issue that must be addressed soon as the burden not only falls on hotels but the average Bahamian citizen.<\/p>\n
\u201cThese hotels use a significant amount of energy and we as a country have got to come together to find more effective, efficient and lower costs when it comes to finding sources of energy,\u201d he shared.<\/p>\n
\u201cWe need to revisit the significant elements of cost in our income statement and energy is a significant one of those.\u201d<\/p>\n
Meantime, Bahamas Hotel and Tourism Association (BHTA) President Stuart Bowe said he believes that most hotels are compliant with their obligations to BEC.<\/p>\n
The hotelier told Guardian Business that the BHTA is aware that some hotels have been delinquent in their BEC payments, but is not aware of any specific hotels.<\/p>\n
\u201cRecognizing that the past several years have been extremely challenging financially for many companies, we have requested BEC’s support in working with hotels on payment arrangements,\u201d he said.<\/p>\n
\u201cWe have also encouraged our members who are delinquent to contact BEC to agree on a payment plan. This is really a matter between BEC and its customers.\u201d<\/p>\n
Bowe pointed out that energy costs continue to pose a \u201cmajor\u201d challenge to the hotel sector, representing anywhere between 15 and 20 percent of a resort\u2019s operational costs.<\/p>\n
\u201cThis is a major challenge for the industry. Next to labor, it represents the second highest expense. Energy costs represent between 15 and 20 percent of operating costs.\u201d<\/p>\n
However, he did stress that every hotel has a responsibility to meet its BEC obligations and he is therefore encouraging any affected parties to negotiate a payment plan with the corporation.<\/p>\n
\u201cThe anticipated reduction in the fuel charge, which we have been told will result in as much as a 10 percent reduction in energy costs, presents a great opportunity for those savings to be applied to one’s outstanding balance,\u201d according to the BHTA chief.<\/p>\n