The quality of accommodation in some Caribbean destinations is under threat because tour operators are driving such hard deals hoteliers cannot afford to invest in their properties.
The warning came from Antigua and Barbuda tourism minister and Caribbean Tourism Organisation council of ministers chairman John Maginley.
Maginley, who is advising hoteliers to seek more direct sales, singled out Virgin Holidays for criticism, revealing Antigua had owed it hundreds of thousands of pounds in marketing funds.
Maginley said APD was also harming Caribbean economies by making it more expensive to fly there and stripping visitors of money to spend in the destination.
Virgin Holidays insisted the hotel rates it negotiates are “fair” and represent “good value to customers who seek the reassurance of travelling with an Atol-bonded tour operator”.
A Virgin Holidays spokesman said: “We respect the comments of minister Maginley and look forward to discussing the matter in greater depth with him at the earliest opportunity, and reinforcing our long-standing commitment to Antigua and
the Caribbean.
“We believe in working collaboratively with our hotel suppliers to achieve mutually beneficial agreements in a very competitive climate.”
Andy Thesen, owner of the five-star Hermitage Bay hotel in Antigua, said luxury hoteliers are not so reliant on tour operators, but he had witnessed the impact on other hoteliers.
“I get the impression that when opertors are desperate to fill aircraft they might get a bit heavy-handed
in negotiations.
“A lot of hoteliers are getting completely stressed because they are not getting enough in the daily rate to invest back into their products. They may be forced to find ways to go direct.”