CHTA: Hotels could collapse over late payments from tour operators
The Caribbean Hotel & Tourism Association has urged international tour operators to pay up or hotels across the region could close down.
CHTA chief Frank Comito says many tour operators have yet to disburse money for services provided earlier this year before travel ground to a halt.
The association says 69% of hotels are owed payment for services provided in the first quarter of 2020.
Comito wrote to trade organizations representing many tour operators that do business with Caribbean hotels, saying the future of some hotels is in doubt unless payments are quickly made.
"We have become alarmed in recent weeks to learn of the extent to which some of your member tour operators are withholding reimbursements to hotels for services which were rendered as early as January and into February and March," Comito wrote.
Hotels are owed an average of $219,000, with several owed more than $1 million.
"One hotel is out-of-pocket $15 million," Comito said.
Small and mid-sized independent properties are most at risk he said.
Tour operators have said reimbursement could take 60-120 days longer than normal, citing staff shortages due to stay-at-home restrictions and their own cash-flow woes.
The CHTA says it understands the entire industry is experiencing severe financial strain but each company should ‘make every effort to expedite their obligation to reimburse Caribbean hotels for services which have been rendered.’
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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