Six hotels in the Caribbean island of St Martin may have to close if the government does not offer financial assistance, according to a senior executive on the island.
Philippe Thevenet, vice-president of the Hotel Association of St Martin refused to identify the properties but said the number of rooms on the island had fallen from 4,700 in 1995 to today’s level of 3,500 because of high costs and taxes.
Thevenet said the hotels were at break-even point and needed help to achieve profitability. He said excessive water and insurance costs and government minimum wages were causing particular problems.
Thevenet claimed wages were three times higher than on other Caribbean islands and about 10 times higher than in the Dominican Republic because they were in line with French pay levels.
