PM Douglas explains ‘Marriott irony’

BASSETERRE, St. Kitts – WHAT appeared to be a case of situational irony regarding the Marriott’s decision to cut staff one day prior to its launch of a multi-million dollar investment project has been explained by the Prime Minister as a decision made at two different levels of the company.

Last Thursday (Apr. 16), the Royal St. Kitts Marriott Resort terminated 100 of its employees in order to help reduce lost revenues due to the global economic crisis. The next day the resort announced its intentions to invest US $125 million to expand the existing property for the construction of high-end condominiums.

During a brief address at his April 21 town hall meeting in Sandy Point, Prime Minister Dr. Hon. Denzil Douglas informed that the move to reduce staff was made by Marriott International, which is not the same body investing in the resort’s expansion.

“The owners of Marriott are a group of Canadians who have invested close to US $500 million over the last few years in the hotel. They have constructed it; they own the casino and golf course, but they have signed a contract arrangement with the Marriott International to manage the operations of the Marriott hotel.

“Marriott International, which does not own any hotel but instead manages a number of hotels around the world, has recognized that as a result of the global challenges that are being faced, they have issued a directive to all of the hotel managers that they must cut back on the permanent staff,” Douglas informed.

Douglas said that although the layoffs were “not good” for the employees, the new investment, envisioned by the owners of the resort shows their confidence in the viability of the nation’s promising investment climate.

“At the same time, the owners of the Marriott in St. Kitts (the group of Canadian investors) believe that St. Kitts is an ideal place in which to continue their investment. Even though there is a global downturn, they are confident that eventually things will improve, and the Marriott International will again be managing the new building they are going to construct to expand the existing Marriott hotel.” 

Douglas said that although the situation may be unfavourable, when completed the facility is likely to employ a large number of local workers.