Janet Silvera, Freelance Writer
WESTERN BUREAU:
HIGH UTILITY costs have forced some small hoteliers to reduce the number of rooms they offer and close some of their vital facilities.
According to the Jamaica Hotel and Tourist Association (JHTA), approximately 75 per cent of the 134 small hoteliers are stifling under the high utility costs imposed on them by the Jamaica Public Service Company (JPSCo) and the National Water Commission (NWC). Many have had to shut down their bars and restaurants or suspend the use of their pools due to multi-million-dollar bills.
"Our members consider the utilities as a major concern, meaning we don't agree with the method being used by the JPSCo and the NWC to determine how much is paid on a monthly basis," says Donahue Jarrett on behalf of small hotel owners.
During September, the slowest month in tourism, the 40-room Jamaica Grandiosa Hotel received a bill of $75,000 for electricity and $100,000 for water. The management says that its water bill has doubled since the installation of the new Montego Bay sewerage system.
"Before the system our water bill was $90,000 per month, it is now $180,000 per month, annually we pay close to $2 million for water and $1.5 million for electricity," says Carl Erskine, owner of the hotel.
UNSYMPATHETIC TO PLIGHT
And while Mr. Erskine is contemplating closing his property if things don't improve this winter season, Vernon Chin of the 28-room Seashell Inn located on Montego Bay's Hip Strip, says he is now down to a 10-room property.
"I had to close my bar, my dining room and my swimming pool, because of the high electricity rate," he told The Sunday Gleaner.
He said he had to convert 18 of his rooms into long-term rental, when it really got tough.
Mr. Chin's problem lies mainly with the electricity company. He said the utility company is not sympathetic to the plight of the small hoteliers, "they are not willing to accept the amount you can pay, they are demanding the amount they want, they are not willing to make concession to the industry players."
The JHTA small hotels chairman, who operates the 55-room Altamont Court Hotel in Kingston stated that the NWC charges a 100 per cent sewage fee, which is applied to the monthly bill.
"This is unwarranted as the usage of the drinking water cannot be the same as the output, due to use of water in lawns and pools."
However, NWC's community relations officer, Lisa Golding, has rebuffed that statement. She remarked that a lot of people are convinced that sewage water is related only to what comes from toilet.
"Arguably there is nothing wrong with the billing method, because all waste water that leaves the business place has to be treated," she responded.
FUEL COST CHANGES
Additionally, Mr. Jarrett stated that the formula that the JPSCo used to determine demand energy and fuel charge is not transparent and regardless of whether or not occupancies are down the company uses a multiple of the highest demand charge over the previous six months to calculate.
Checks made by The Sunday Gleaner with a number of properties on the south, west and east coasts showed some alarming bills, ranging between $70,000 and $500,000, with a number of them showing brought-forward figures.
JPSCo's manager of corporate communications, Winsome Callum told The Sunday Gleaner that the fuel rate cost changes each month depending on the international cost of fuel that the company has to buy.
She said that her company is willing to facilitate persons who are having problems. "We don't particularly want to disconnect people's light, but we have to deal with customers on a case by case basis to facilitate payment arrangements within reason."
She added that the company has been lenient and facilitates payment arrangements wherever possible, however. "We cannot continue to extend indefinite credit to customers who are always in arrears."
In regards to the high rates they are experiencing, Miss Callum recommended that the small hoteliers can take advantage of a special facility, called the 'time of use option.'
"They can reap significant savings if they shift the bulk of their energy use from the peak to the off-peak period or partial peak."
