Barbados Tourism Facility to be set up

The tourism sector will receive much needed help from the government through the establishment of the Barbados Tourism Facility, funded to the tune of $200 million.

During an address to the nation last night, Prime Minister Mia Amor Mottley announced that the government was in talks with IDB Invest, the private sector arm of the Inter American Development Bank (IDB), to provide funding in support of the tourism product of Barbados.

“We will also develop a $200 million Barbados Tourism Facility to provide urgent working capital and investment loans to Barbadians hotels during the current period,” said the prime minister.

Mottley contended that even though there would be discussions about the diversification of the economy, traditional ‘sun and sea’ tourism, medical and educational tourism would remain a mainstay for the island. Pointing out that the sector would be providing services to new and repeat visitors and a growing number of long-stay tourists, especially as a safe place after COVID-19, it needed aid to be ready.

With the absence of guests and hotels, villas, guest houses…empty, Mottley explained that owners and shareholders were provided with the unique opportunity to upgrade, expand and modernise their facilities all at the same time. The additional benefit would be a higher level of overall service, bringing in more revenue when the sector begins to move again.

Seeing the need for all hands to be on deck, Prime Minister Mottley encouraged commercial banks, credit unions, institutional and individual investors to participate in the facility, offering co-financing from the IDB. Also offered would be a 10% guarantee from the Tourism Loan Guarantee Fund. However, Mottley stated that there was a need for urgency.

“We recognise that while the scale of the solution needs to match the size of the challenge, so must the speed of the solution,” explained Mottley.

As a result, the government of Barbados is working with ANSA Merchant Bank in the provision of bridging financing. The government of Barbados will seed the Barbados Tourism Facility with $10 million, matched by ANSA, until the discussions with the IDB have been concluded. (AS)