The most recent outburst from the Guyana Pegasus, owner/CEO, Mr. Robert Badal, (in KN’s article of 29 July 2010) on the proposed Georgetown Marriott, is yet another display of his fear of competition. Instead of refurbishing the hotel and improving the quality of service, Mr. Badal gripes about the upcoming competition.  Unlike the Pegasus hotel, the Marriott Hotel will be a modern facility offering services, capacity and accommodations under an internationally recognizable brand associated with high quality. The Marriott project has been on the agenda since 2004, long before Cricket World Cup or Carifesta were announced and long before Mr. Badal’s assumption of ownership of the Pegasus hotel in 2009. It was also clearly known that the Marriott project would be completed post-World Cup cricket. This has been public knowledge for a long time.  Notwithstanding the detractors, the Government has been steadfast in its promise that the Marriott project will become a reality.
The arguments touted that Guyana has more rooms than demand can fill, that jobs will not be created but “shuffled,” are ludicrous and more likely a current reflection of Mr. Badal’s approach to management.
Interestingly, in respect of workers, Mr. Badal has been at odds with his staff and Trade Union, over workers rights and benefits, as evidenced by recent protests action by FITUG/CCWU outside the hotel.  Conflict with trade unions seems to be the hallmark of Mr. Badal’s management style.  Having previously ousted the Unions at NEOCOL and GSFL, following their privatisation, the CCWU is now claiming that Mr. Badal is seeking to do the same at the Pegasus.  Mr. Badal is more likely to lose workers from his own management style rather than the presence of increased competition.
Most countries continue to expand their hotel stock even with period of low occupancy.  By example, today Stabroek News reports that the Chinese will be investing in a US$2.6 B Bahamian resort project.
Notwithstanding the overall drop of tourism performance in the Caribbean, Guyana has attracted a record number of visitors. The Caribbean Tourism Organization (CTO) in its October 2009 report stated that “ Guyana, not traditionally regarded as a major destination of choice among tourists to the region, recorded the highest level of visitor arrivals among select destinations in the region.” In 2008, 129,595 arrivals into Guyana were recorded and 2009 recorded an increase to 138,318. Of the recorded 2009 figures, 58.6% of arrivals were for leisure and recreational purposes while 25.7% was for business and professional purposes. So additions to the stock of hotel rooms, even with low occupancy, is a common trend in the region. In Guyana ’s case, demand is growing.  Many persons know that with major events, the stock of hotel rooms is insufficient.
Mr. Badal treatment of minority shareholders has been called into question by the Government a long time ago. In 2008, NICIL/GOG won a legal battle against GSFL, majority owned by Mr. Badal, when he diluted the GoG shares from 38% to 7%.  See judgement in favour of NICIL by the Honorable Jainarayan Singh dated 29 September 2008, with respect to action #33/SA of 2001 before the High Court.   Rather than accept the ruling, Mr. Badal and GSFL have appealed this matter.  Similarly, Mr. Badal, without permission, constructed a wharf across land owned by NICIL/GOG.  This matter is now before the courts of Guyana .
Badal’s reference to the NIS’ receipt of 4.96% of dividends is again misleading since the  last pay out of dividends by the Pegasus in early 2009 shortly before the takeover by Mr. Badal.  Ever since the Pegasus Hotel’s management, stewardship and ownership were assumed by Mr. Badal, no audited accounts for the year 2009 have been issued nor has the annual shareholders meeting in respect of 2009 been held.  Mr. Badal has also failed and/or refused and/or neglected to present any plans to the NIS , as a minority shareholder, to finance the so frequently announced US$4m rehabilitation of the Pegasus.
Government suggests that Mr. Badal spend his energies on improving his hotel product rather than criticizing new competing investments that will improve the sector and lead to an expansion of its tourism and hospitality sector. Unlike Mr. Badal, most prominent hotel owners have come out in support of the Marriott project.
(NICIL/Government of Guyana)