Well, who can argue against the Georgetown Seafront and Resort Convention Centre to be built along Carifesta Avenue over the next three years?
Based on the description by the Qatari Assets Group, this will be a Five-Star development with a unique design. It will occupy 76,000 square feet of built-up area and offer 261 hotel rooms and suites, 156 branded long-stay apartments, 10 duplex premium villas, a members’ club, retail units, a state-of-the-art health club and a world-class convention centre.
Undoubtedly, given the exponential growth in the oil economy and the hoped-for expansion of the tourism sector there could be need for such a facility which would have the benefit of large-scale investment in the economy and the prospect of generating hundreds of jobs.
There should, however, be pause for examination of the governance issues at stake which President Ali’s government tends to ride slipshod over. The first is the matter of control over the land in question. The government is notoriously possessive of lands in its control and should therefore respect the domain of others. These areas of greenery were once part of Plantation Thomas Lands and were conveyed to the city by the estate of Quintin Hogg in 1887. Their use for the creation of a five-star facility would immediately offend the covenant. That is not an insuperable problem but it did require the government to recognise the history behind those lands, show respect to the city by engaging it and arrive at a reasonable concordat. None of this was done. The government just plowed ahead like a bull in a china shop making the Qatari group a potential squatter from the outset. Is this the disrespect with which the government holds local government and the 30-member City Council which includes 12 members from the ruling party? There are all sorts of litigation that can arise from this act of bullying and appropriating and the government and its legal counsel should seek to repair the damage done. Is the land being leased to the Qatari group? If so, at what price and for what period? Is the land to be compulsorily acquired for sale?
The second issue is the consideration of the impact of this project on local businesses. In launching this project yesterday, President Ali did mention the efforts being made by hotels here to upgrade. He adverted to the Marriott – soon apparently to be sold to a US investor – which was unable to make enough money to service its loan and the Pegasus Suites and Corporate Centre. The latter was developed by a Guyanese businessman, Robert Badal at a cost of US$100m – reputedly then the single largest investment by a Guyanese and before the arrival of oil. The Qatari resort will compete directly with Mr Badal’s tax-paying, job-creating investment here. While competition is good and elevates standards, the government must surely consider the impact of newer investments on indigenous ones that exemplify risk-attached entrepreneurship. Is it the case that in three years there will be enough long-stay and other corporate visitors to occupy the Qatari and Pegasus suites and the others under construction or is this just unthinking expansion of a sector just to provide the Qataris with a foothold here? Is Mr Badal’s investment now possibly at risk and will this new investment attract the now standard tax exemptions and concessions that the Pegasus possibly wasn’t accorded? The supine private sector will not enquire as they are all waiting expectantly to gorge on the low-hanging fruit without an assessment of the wider implications.
Third, it was only last December that President Ali spoke of a possible investment from Qatar on Carifesta Avenue. In less than two months the sod has been turned. While one is glad for a cutting of red tape and acceleration of investments isn’t this the other end of the extreme? Is this the future of Guyana, according to President Ali when it should be the future of Guyana, according to its government, parliament and that other segment of society recognised by Article 13 of the constitution? An investment of this type should follow a transparent pattern. The Assets Group is interested in building a massive hotel. Let’s do due diligence on them. What have they built? How are those projects faring? What are their governance standards? How do they protect against corruption? Was G-Invest involved in this examination? There is no telling at this point. Deals made in the dark contain many weak points for corruption and particularly so with the barrage of influence-peddlers, carpetbaggers and ‘deal’ makers who have descended on the city in recent years.
Further, where was the discussion with the public on the taking up of prime recreational space along the seawall? Why should a gigantic structure be permitted on some of the few large remaining green spaces in the city fronting the seawall? Aren’t the citizens of the wards of Kitty, Kingston, Cummingsburg and the rest of the city entitled to views on this? Is there going to be a real environmental and social impact assessment of this project? Would this not have been a perfect matter for discussion at the city council where councillors were elected to represent the 15 wards? That was not to be. President Ali has apparently seized all of the decision-making space to the exclusion of all else. One hopes that the opposition will be able to elicit answers from the Minister of Tourism, Industry and Commerce on the genesis of this project when Parliament meets next.
The sod-turning yesterday for this resort represents bad governance plain and simple and depending on the status of the lands this may not be the last word on it. One expects that the Assets Group also did its due diligence on the land issue. If it didn’t it may face some turbulence.
Shortly after this government entered office in August 2020 there were reports that a hotelier had surveyed the possibilities and was eying the Everest Cricket Club for a massive tourism complex. Given what has transpired down the road one never knows who might be next in this real estate carnival.
