← Back

Your message to the BLOGMASTER was sent

Adrian Loveridge - Hotelier
Adrian Loveridge – Hotelier

While it was very tempting to write about any subject this week other than the Butcherisation I received at the recent Barbados Chamber of Commerce monthly luncheon, that would have been the easy way out and certainly not in my character. First for the record, I had no intention of offending anyone. In fact I made it abundantly clear in my opening remarks that many of us greatly admire Mr. Gordon ‘Butch’ Stewart and the hotel empire he has spearheaded. I am not so remotely naive to believe that any one person can achieve this alone and a great part of the success is attracting the right people around you. This equally applies whether it is a small or large business. Perhaps what surprises me more than anything is that a person who has received everything he has asked for within weeks and possibly more than we are aware of is so unwilling to respond to legitimate concerns. Especially, while so many who actually live on Barbados have toiled to build the destination’s tourism industry over several decades while being consistently denied similar extraordinary concessions.

Equally baffling were the number of persons present at the event who over the last months had, albeit in the shadows of anonymity, literally moaned about their inability to solicit business from Sandals Barbados but were now cheering their new found ‘super hero’. There is the temptation to name and shame these persons but they know who they are.

Are we really such a Nation of hypocrites?

It really takes me back to the story of Hotels and Resorts Ltd (GEMS), a subject that only I and the late Peter Morgan persistently criticised publicly. Of course over this long saga there were prominent hoteliers in the background but their frequent contributions via platforms like me always carried the warning sign, ‘never mention my name’. Perhaps if a few had been more vocal the taxpayer would have been spared the squandering of hundreds of millions of dollars which could have helped to uplift or even transformed the entire industry.

Seasoned journalist, Patrick Hoyos questioned in this publication whether or not the BCCI forum was a suitable one to pose these questions. Probably not but where else would there have been another opportunity to engage Mr. Stewart?

Quoted at the meeting were seemingly impressive figures regarding Sandals local purchasing but not a single reporter either at the time or subsequently, sought to compare these amounts against the overall stated or projected turnover. So let’s do it here. ‘$648,000 was spent on supplies from local manufacturers and farmers’. Based on the quoted 85 per cent occupancy, two persons per room with an average 7 night stay that’s a daily spend of $12.15 per person over the 16 weeks identified. Bearing in mind the current lowest published room rate is over US$500 per night, are you still impressed?

My question regarding the level of VAT actually levied directly on guests can easily be verified by Government because by now Sandals Barbados would have by law been required to file at least two VAT returns.  Whether this is part of any ongoing due diligence and monitoring by the current administration only time will tell.


Discover more from Barbados Underground

Subscribe to get the latest posts sent to your email.

67 responses to “Butch Stewart: Public Relations and Truth”

  1. Adrian Loveridge Avatar
    Adrian Loveridge

    David, I really appreciate your comments and thank you, but it is a proportional thing. Yes, we have just 22 rooms but there are 119 other small hotels like ours on Barbados with a total of four times the number of rooms that of the current Sandals Barbados. If they were all to adopt the Sandals model and keep the bulk of their FX offshore., just think what our economy would be like.
    This echos right through the economy with our locally owned hotels buying local, employing local people (no need for 150 work permits) etc. etc.

  2. Fair and Balanced Avatar
    Fair and Balanced

    David i would like you educate this joker Loveridge that the loss of foreign exchange earnings did not start with Sandals as in his own world he believes.
    That existed many long ages ago lets go back to Gooding and company at The Asta, or Peter Odle or Bernie Weatherhead or Ralph Taylor with property in both London and New York, or Gordon Seale with his villa in Portugal does he know how all of the above found resources to buy villas in the far away places ?
    Don’t let him make more of ass of himself than he so likes to do, all of the above directed Room revenue that should have been paid into Barbadian Bank Accounts but make it into property purchases over and away.


  3. Prosecutors want statement of former ATL auditor admitted as evidence

    Published: Wednesday | March 12, 2014

    After opting not to call Appliance Traders Limited (ATL) boss Gordon ‘Butch’ Stewart to give evidence, prosecutors in the billion-dollar ATL Pension Fund fraud trial yesterday made an application to have the statement of another key witness admitted into evidence without him having to testify.

    The application seeks to have Kenneth Lewis, then auditor for the pension scheme and its parent company, Gorstew Limited, and the head of a firm that provided secretarial services to Gorstew, excluded from testifying because of his poor health.

    However, defence attorneys blasted the application as outrageous and unfair, pointing out that with Gorstew Limited listed as the complainant in the case against their clients, it would deny them the opportunity to question the two Gorstew representatives who were down to give evidence.

    http://jamaica-gleaner.com/gleaner/20140312/lead/lead6.html


  4. http://jamaica-gleaner.com/gleaner/20140313/lead/lead5.html

    Atl Investigator Unaware If Us, Uk Were Probing Sandals
    Published: Thursday | March 13, 2014

    The lead police investigator in the billion-dollar Appliance Traders Limited (ATL) Pension Fund fraud trial yesterday testified that he was not aware whether the United States Justice Department and Scotland Yard’s Major Crimes Unit were probing activities in the Turks and Caicos Islands that were related to local hotel chain Sandals.

    This testimony by Senior Superintendent Fitz Bailey came as he responded to questions from defence attorney Deborah Martin during cross-examination.

    Martin asserted that the information was given to police investigators in writing by Patrick Lynch, former chairman of the ATL pension scheme and one of the three accused on trial. He questioned whether it was “acknowledged or investigated at all”.

    “I am not aware of that,” Bailey replied.

    When prosecutors objected by questioning the relevance of her questions, Martin told the court that Lynch had informed the police that the probes by US and UK authorities were the reason “he thought all of this [the criminal case] was happening to him”.

    “That is the defence that will be advanced,” she insisted.

    ……….MORE………….


  5. Of interest…

    Widow of financier killed after boat hit him sues resorts

    By Selim Algar

    March 13, 2014 | 7:49pm

    The panicked father managed to push his boy out of the way but was struck by the boat as it towed passengers from a neighboring Sandals Resort who were inner tubing in the area.

    As his hysterical family looked on from the beach, the severely injured dad was rushed to a nearby hospital where he was pronounced dead two hours later, according to the suit….

    http://nypost.com/2014/03/13/widow-of-financier-killed-after-boat-hit-him-sues-resorts/


  6. Can someone please translate this from the article IN DEMAND on the back page of Barbados Today.

    “He (Sealy) said that while the Almond brand was an internationally reputed one, negotiations were under way to have a new brand in at the hotel in 2015.

    Sealy also expressed regret that he had agreed to the decisionto get the Government involved in running Almond. He noted that though Government would go all out to facilitate investment, it was getting out of the business of ownership”

    DD understood that Government had bought the Almond property at Heywoods, would demolish the existing plant, and would build a new facility to be managed by Butch under the Beaches brand.

    Given that Weatherhead is reported to have a a contract to manage/operate the existing Almond plant until April/May 2015, DD wonders how it will be possible to have a new brand in at the hotel in 2015.

    Has the deal with Butch to build him a new $500 million Beaches plant on the Heywoods property purchased/owned by Government been scrapped?

    Who wants out of that deal – Butch or Government?


  7. Which former executive implicated Sandals in TCI corruption?

    Friday, March 21, 2014     2 Comments

    AN attempt by a fraud accused to link the ATL pension trial to an old investigation implicating Sandals hotel chain in the Turks and Caicos Islands, has raised speculation about the identity of the unnamed former Sandals executive fingered by authorities.

    Patrick Lynch, the former chairman of the pension fund, brought up the old TCI case in a statement to the Financial Services Commission (FSC), after he was arrested and charged for fraud. Last week, defence attorneys at the trial suggested that the TCI corruption case was behind Lynch’s current woes.

    But prosecutors in the trial rubbished the link between the local and TCI cases as a "red herring" to divert attention away from the alleged forgery of four letters to deceive that consent was given for the distribution of $1.7 billion in pension fund surplus.

    http://www.jamaicaobserver.com/news/Which-former-executive-implicated-Sandals-in-TCI-corruption_16315822


  8. david i am truly saddened to see u caught up in the butch stewart frenzy of political demonizing an investor who by all reports in the tourist business and financial world have produce a first class tourism product …. a man ( he) also a to be well known and respected in and out of the tourism industry.it seems as though you have made it a one man or maybe a two man mission including loverridge to make butch a target of an onslaught of negative articles to slur and ruined,,where others have tried and fail….., mind you !this is a fish which needs a very large pan and lots of heat to fry which i don;t think that neither you or loveridge can afford , but first you have to reel him in..not going to be easy…….


  9. Although this article is 2 months old, and printed in Mr. Stewart’s own newspaper, it is noteworthy that Sandals/Beaches has contributed so much to the tourism industry and to the islands on which their properties are located. I do realize that there are 2 sides to every story, but some of these facts are undeniably advantageous to Barbados. Please note that I am David Carlisle, not the other David who is commenting on this subject and site. http://www.jamaicaobserver.com/mobile/news/Fidel-Castro–Bob-Marley-and-Sandals—Carib-s-most-powerful-brands_15830976


  10. “No one disputes the fact that it (Sandals) has one of the world’s most formidable marketing machines”

    No one should read this article without bearing in mind that the Jamaica Observer is controlled by, and is a PR organ for, Mr. Stewart.


  11. Thank you Due Diligence for pointing out that the Sandals organization has the marketing ability to aid in the promotion of Barbados as a tourist destination, thus creating more airlift and jobs. Please note that I did point out that Mr. Stewart did in fact own the newspaper in which the article was printed, but the jobs created and increase in tourism for each island is still undeniable.


  12. The question is whether the KPI should be jobs only.


  13. David

    KPI?

  14. David Carlisle Avatar

    Although I am not an economist, I do consider jobs an important part of the Key Performance Indicator. With an 11.70 % unemployment rate, according to the internet, adding perhaps 1000 jobs in new hotels does a lot for the local economy. These new positions that are created stimulate the economy by spending their paychecks. The businesses that receive those monies then spend it locally again. Also, by increasing the amount of arrivals to the island by several thousand per month, the airport revenue increases, more food/beverage is sold, more taxis run, more fuel purchased, more departure tax collected, more souvenirs sold. It seems to me that it is a cycle that keeps growing. More people….more money circulating through the economy. Being in business myself, the more people that I have come into my business, whether spending $1 or $100, the more prosperous my business becomes.

  15. Adrian Loveridge Avatar
    Adrian Loveridge

    David Carlisle,
    I cannot fault your argument, but can you please explain why Sandals would pay the TCI Goverment US$12 million to avoid a trial linked to the bribery, corruption and money laundering charges levied against the former TCI Premier ?


  16. @David Carlisle

    Nobody is trivializing job creation as a KPI, we are saying though that Sandals for example has to satisfy a key expectation that it will generate forex for Barbados. So far this deliverable is a little muddy.

  17. David Carlisle Avatar

    Thank you David for acknowledging that the key is generating foreign exchange. It has not been delivered yet and it will take time to come about. The tourist arrivals have been decline recently, especially from Canada, in which Sandals advertises heavily. I did see that cruise ship arrivals have increased, but how much does the country actually benefit from a 1 day stop over by a cruise ship? I guess that I am saying that if 2 Almond Hotels are empty and in disrepair, what good is that for the country? So why not at least give a major player a chance to turn things around and create something that could be positive.
    Adrian, please be advised that I do not, nor have I ever been employed by Sandals or any of it’s affiliated companies. Therefore, I don’t have any intimate knowledge of the TCI scandal. But, high ranking employees of many companies worldwide, have been known to do some “shady” things and are not always sanctioned or approved by the man at the top. Perhaps the bad publicity was enough reason to settle the matter quickly, instead of enduring a lengthy public trial. As you know, with your many years of experience as a hotelier, bad publicity can seriously injure a hotel, even one with billions of US$ of annual revenue. Protecting a good reputation worldwide is important too.

The blogmaster invites you to join the discussion.

Trending

Discover more from Barbados Underground

Subscribe now to keep reading and get access to the full archive.

Continue reading