Puerto Rico casinos losing money
Caribbean, a former hotel chief warned yesterday.
Wilhelm Sack, the former general manager at Horizons and Cottages, is now the owner of the Horned Dorset Primavera, in Puerto Rico.
Mr. Sack sent a copy of an article from the San Juan Star with the note: "The attached is good reading material for anyone still wanting gambling as a possible cure for tourism.'' The October 17 article in the Puerto Rican newspaper by Elsie Gutierrez is entitled "Caribe Hilton casino shutters doors''.
The casino, one of Puerto Rico's first, closed for good on October 15. The closing was attributed to losses sustained since 1990.
Hotel manager Raul Bustamante told the San Juan Star: "Twenty-five years ago, you had guests staying for 15 days, who dressed up, dined in elegant restaurants and played at the casino each night of their stay.
"People now take shorter vacations, spend their money differently, and worry about creating their own retirement fund because their corporate benefits are not as generous as they were in the past.'' Apparently increased competition in Puerto Rico and around the globe also played a part in the casino's demise.
Ms Gutierrez wrote: "At one time, Puerto Rico had the only existing casinos in the Caribbean. Now over 25 states have them and the island competes with many other Caribbean destinations.'' A 1996 study by chartered accountancy firm Arthur Andersen indicated that casino operations in Puerto Rico experienced a steep decline in profitability from $8.51 million gross profit to $108,668 gross loss between 1993 and 1996.
Williams Hospitality Group president Brian Gamache told the San Juan Star that nobody was making money on operating casinos nowadays.
Businessman John Casling, a leading member of the Coalition for Change, has openly embraced the idea of casinos, while Eldon Trimingham, chairman of the Bank of Bermuda and president of Trimingham Brothers and Visitor Industry Partnership chairman W.A. (Toppy) Cowen, have supported looking into casinos.
Tourism Minister David Dodwell said last night: "I have always taken the view -- and continue to hold it -- gaming is not to be looked at as a marketing tool, it's a product situation.'' TOURISM TOU