Dear Editor,
Back to this Sunwing/Maho thing and in response to the unsigned letter from Tuesday, there has to be some hard analytical thinking done for a change. Mr. Anonymous suggests that everybody should get the same terms of any deal offered to the “big guys.” As I said on Monday, absolutely correct. No matter what happens, that needs to be the absolute standard so that’s a given right away. But beyond that, the thinking gets more emotional than analytical and this is the time for cold hard logic.
First and in regard to the Sunwing/Maho deal, understand something quite clearly. All the planning for the demolition and all the financing for the rebuilding was all in place before the storm. Absolutely nothing has changed in that regard because the storm did damage. Great Bay was going to get torn down and built anew. Done deal. All the storm did was do ½ of the demolition for them. If they had the money to do it in August then they still do. If Maho had insufficient insurance for their damage then what does that tell you about the decision makers there? And why would you think they are any smarter today so as to lend them millions now? Stupid is as stupid does.
If Pelican, Oyster and Belair are able to pull themselves up by the bootstraps then why reward those not smart enough or under capitalized who can’t do that. Too big to fail? No such thing. That’s a concept promoted by those not smart enough to succeed on merit.
The same guys on TV at 3:00am telling you that by being in debt up to your eyeballs is such a great deal because you can always go bankrupt and no one remembers. Mullet Bay is your prime example. They took the money and ran. What makes you think that won’t happen again? If the storm washed away weak and badly run businesses, why would you spend money propping them up when that money can actually be used better by those who actually need and deserve it. Hard choices. But necessary.
Second, the whole timeshare argument. Nonsense on its face. First of all, the “Market” defines what works and what doesn’t. If all the resorts have gone “Time Share” then it’s because that’s the business model that allows them to be successful. Being successful means that everybody gets to keep their jobs ... a good thing by all accounts. Timeshare also guarantees occupancy ... something a hotel doesn’t do.
Beyond that, it is disingenuous to say that these resorts aren’t hotels. Every one has rooms to rent all the time. They are as much hotels as anywhere else. And notice ... They are up and running. Why? Because they have the heart, the will, the drive and leadership not to mention concrete obligations to meet to their clients.
The fact that Sunwing is still sitting on Great Bay and doing nothing tells you everything you need to know about that operation. You think they need an incentive? Nonsense. They have a lot of millions tied up in a non-producing property and they are doing nothing. Why? One of two reasons. Either they didn’t have the money to start with which means they are REALLY bad businessmen to start a project without all their ducks in a row or (far more likely) they see an opportunity to put forth the argument that you support i.e. a sort of legalized extortion where they say to Government “ help us or we’ll leave the place abandoned and see how you like THAT!” To which I would like to think Government would say “Oh really ... remember that nice piece of Long Lease Beachfront you USED to have? ...”
In the end, it comes down to survival of the fittest. Government should first be looking to invest in people and companies that have proven their bona fides. There are a lot of resorts on this island that have already done that. Sunwing hasn’t. Their plans are “Pie in the Sky” and were that way BEFORE the storm.
Let them get started with all that cash they had budgeted BEFORE the storm. Demonstrate a genuine need backed up by a guarantee of performance and a schedule carved in stone. But FIRST help every other resort and business that has exhausted their resources to get where they are and could use a little fast track help. Spend the money where it is needed. Not on some guys who want it just to make life easy. Support the “do’ers” not the “talkers.” That’s what’s needed now.
Steven Johnson
