by CHERYL HAREWOOD

PORT-OF-SPAIN – Hoteliers and those in the tourism ancilliary services will soon be able to borrow up to US$10 million to help develop their properties and businesses.

This is being made possible through a special fund which has been launched by the Caribbean Hotel Association (CHA).

The formation of the Caribbean Tourism Investment Fund, designed to help close the financing gap in the Caribbean which has traditionally resulted in limited access to third party equity, follows a series of several meetings between the CHA and tourism partners.

The announcement was made by the CHA president Peter Odle at the recent 12th annual Caribbean Hotel &
Tourism Conference.

Borrowers will have up to seven years to repay.

"The establishment of the fund is intended to address the investment needs of specific sectors of the Caribbean tourism industry which are currently not being addressed by traditional sources of finance," said Odle.

"It is widely recognised within the Caribbean tourism industry that there is a financing gap which limits access to third-party equity and financing for owners and operators of small and medium sized resorts and tourism related enterprises looking to expand, renovate or build.

"In a region dependent on tourism as the Caribbean, it is critical that this financing gap be addressed and this is the ultimate objective of the CHA in proposing this fund," said Odle.

He added the facility would target owners and operators of hotels with up to 150 rooms and other entities with proven track records and robust business plans.

The CHA intends to register the fund with relevant authorities in Barbados and Trinidad & Tobago and might consider other counties in the region.

"We believe that the fund will present an attractive investment opportunity for investors that wish to access the Caribbean tourism sector," Odle added.

Caribbean Financial Services Corporation will manage the fund. The majority shareholding in CFSC is held by ECIC Holdings Ltd., a holding company established by ten indigenous commercial banks mainly from OECS countries.

The CHA hopes that leading lending institutions like the Caribbean Development Bank and Sagicor will become partners in this venture.