Tuesday 26th August ,2008

 

Competition, upgrade hitting Hilton hard

 
 
 
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BY SANDRA CHOUTHI

State-owned Hilton Trinidad and Conference Centre is losing significant revenue due to competition from the newly opened Hyatt Regency Trinidad hotel in Port-of-Spain as well as having 296 of its 412 rooms out of commission for upgrade.

This according to Jonathan Cumberbatch, human resource director at the Hilton Trinidad, St Ann’s.

Cumberbatch spoke with the media yesterday in response to statements earlier in the day by Joseph Remy, president of the Communication Workers’ Union (CWU) who said that scores of temporary Hilton workers had been sent home.

Cumberbatch said the upgrade had affected the number of available rooms at the hotel, resulting in a severe reduction in revenue.

“At last count, there was a 43 per cent reduction in revenues compared to the year before,” Cumberbatch said.

He said the Hilton has regularly provided work for more than 250 temporary workers over the last decade when the hotel was in a “monopoly situation.”

He said its monopoly position has changed with competiton from the Hyatt and the Trincity-based Holiday Inn Express. The Carlton Savannah hotel in nearby Cascade is under construction.

“We have been hit with competition, which has significantly affected our banqueting arm of the business,” Cumberbatch said.

“Economic challenges in terms of rising food prices have affected our material cost.”

He said banquets, conferences and seminars provided significant revenues for the Hilton, but he could not provide figures.

Cumberbatch said renovations are due for completion by next year September, but he’s uncertain that deadline can be met.

“One can see that 2009 is already looking kind of bleak.”

About T&T hosting the Summit of the Americas and the Commonwealth heads of government meetings, Cumberbatch said, “The Hilton will host a guest or two. That is it.”

Since the Hyatt opened in January, it has hosted 17 high profile business events that covered such areas as energy, investment, tourism, accounting, e-government and the judicary.

Cumberbatch said the hotel can therefore no longer sustain its staff complement.

A reduction in guests has also forced the hotel to close down three of its revenue-earning bars, Carnival, Gazebo and Ranchers.

Cumberbatch said the company will follow the usual practice in the hiring of temporary workers—they will be called as needed.

Commenting on the union’s claim that there is no cost of living allowance (Cola by indexation, given that inflation has risen to 13.3 per cent, Cumberbatch said that the format of Cola by indexation does not exist in the collective agreement.