BY: EMMANUEL ROY HAITIS LUXURIOUS ROYAL OASIS HOTEL ON THE VERGE OF BANKRUPTCY PORT-AU-PRINCE, HAITI - Shortly after the earthquake of 2010 in Haiti, poverty pimps around the world went into high gear forming non-profit organizations by the thousands in order to take advantage of the billions of dollars of aid, which was to follow. The Clinton-Bush Haiti Foundation was one of those non-profit organizations that raised several hundred millions of dollars that were intended to help impoverished Haitians affected by the killer earthquake. Instead of investing the money in sustainable development projects like agriculture and small businesses designed to help the greatest number of people, the Clinton-Bush Haiti Foundation invested the money in a five star luxury Hotel in Petionville, Haiti that is now about to go bankrupt in less than three years of operation. According to people familiar with the situation the Royal Oasis, one of the two five-star hotels in Haiti which opened its doors in 2012 to much glitz, glitter and fanfare is experiencing serious financial problems. The 10-story hotel, which includes an art gallery, three restaurants, a commercial bank, a rooftop bar, and many high-end shops, will have to close its doors unless its owners can raise a substantial amount of cash to cover operating expenses, and long-term debts. Royal Oasis hotel under the watchful eyes of Jerry Tardieu began construction in 2008 with the help of local Haitian investors. However, the massive earthquake that shook Haiti left several of the initial investors dead, and those who survived were nearly bankrupt and unable to meet their financial obligations to the project. Mr. Tardieu as CEO of SCIOP, SA, the Haitian corporation that owns the project, sought financing from other sources. Among the new investors were the Clinton-Bush Haiti Fund, and the International Finance Corporation (IFC) a private investment group of the World Bank. Together they invested $10,000,000 toward the completion of the Royal Oasis hotel. The Clinton-Bush Haiti Fund used its charitable donation to finance Royal Oasis with the understanding that the hotel would create at least 200 jobs, and would purchase all of its goods and services from local vendors as a way to stir the local economy. In addition to the original investment, the Fund donated $275,000.00 to the Royal Oasis Foundation for hospitality training of young Haitians. So far, less than one hundred jobs have been filled, and most of them through patronage, revolving door, friendship and family connections. No one has ever graduated from the hospitality-training program and the $275,000.00 has vanished without a trace. Instead of investing in small businesses and long term sustainable businesses such as agriculture, the Clinton-Bush Haiti Fund decided to invest in a money loosing proposition - a hotel that is now hanging close to financial collapse. That type of voodoo economy whereby you give to the rich and hope that their investments will eventually trickle down to the poor does not work. And no one knows this better than Bill Clinton, a former US President. In the case of Royal Oasis, poor Haitians have received nothing for the investment, not the promised 200 jobs, or the training on how to serve drinks to foreign bureaucrats. However, the Clinton Foundation, which was recently taken over by Chelsea Clinton, continues to boast on their websites that they have created 7,500 jobs, and trained as many as 21,000 people in Haiti. The failure of Royal Oasis should be a teaching moment for the Haitian Minister of Tourism, Ms. Stephanie Villedrouin whose budget was increased by 354%. Trickle down economy does not work especially in poor countries like Haiti. Investments that rely on tourism for economic development and job creation are bound to fail because of volatility in the tourism industry. A few months prior to the opening of Royal Oasis, Ms. Villedrouin stated that there were not enough hotel rooms in Haiti to cover the needs of foreign travelers, claiming that the occupancy rate in Haiti was at 60%. So what happened to all the tourists? Where did they go? Why Royal Oasis hotel is not seeing a boom in tourism? Why are all these hotel rooms empty? And, why is Ms. Villedrouin currently seeking foreign investors for a similar project in Cote-de-Fer? The answer is simple. NGOs who are in the poverty business comprise almost 90% of foreigners occupying hotel rooms in Haiti. The remaining 10% is Haitian Diaspora without a home in Haiti. There are no new tourists, vacationing in Haiti. After the 2010 earthquake, the country has seen a surge of foreigners, mostly poverty pimps seeking to capitalize on the suffering of the Haitian people. Those who are making money as consultants to NGOs and the Clinton Foundation will continue to come to Haiti, but as aid money dwindles and comes to an end, less foreigners will travel to Haiti, and many hotels like the Royal Oasis will have to either close their doors or operate at a loss. A year after Royal Oasis opened its doors; Best Western also opened its doors not far from Royal Oasis. The Digicel / Marriott Hotel is scheduled to open its doors in 2015, creating more competition in an already volatile shaky tourist market. One must wonder who are the Clintons helping by investing charitable donations in a private luxury Hotel, the people or their pockets? Emmanuel Roy is a Freelance Writer
Posted on: Sat, 18 Oct 2014 03:34:17 +0000
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