Aruba to Put Moratorium on Hotel Building …”the hotel market is collapsing due to too many hotel rooms”

Once again the theory of if you build it they will come is disproved. Also, just because Aruba is building hotels presently  does not mean tourism is growing. Just the contrary; all it means is that the new accommodations are cannibalizing the older ones.

It is also important to lay down the reasons for the moratorium.   Is it because of the labour market; no more locations to build more hotels; the population is growing; or because the hotel market is collapsing due to too many hotel rooms?”    

“There is no way the labour market can deliver the number of workers to fill the applications.     Not in the tourist sector, nor in other economic sectors that grow along.”    

Of course there is that other little issue of an missing and unsolved teen from Alabama named Natalee Holloway that is putting a dent into tourism as well.

Amigoe, June 1, 2007: Build of tourist accommodations postponed    

ORANJESTAD — In a letter, the Chamber of Commerce asks the council of ministers to establish a moratorium – temporary stop – on the build of tourist accommodation.   The KvK is concerned about the number of hotel rooms, timeshares units, and apartments that are complete till 2010.   “In stead of the planned 8000 accommodations, 12.000 will already be added.”    

The government has established a moratorium on hotel rooms, but it does not go for rooms that are currently being built based on commitments already made by the government, timeshare units, and apartments.     KvK wanted this moratorium all along.   It is also important to lay down the reasons for the moratorium.   Is it because of the labour market; no more locations to build more hotels; the population is growing; or because the hotel market is collapsing due to too many hotel rooms?”    

The KvK has already raised the problems that can arise as a result of the current commitments to expand the number of tourist accommodations.   “There is no way the labour market can deliver the number of workers to fill the applications.     Not in the tourist sector, nor in other economic sectors that grow along.”    

Another concern of the KvK is the coastal areas, where les and less space are left for the recreation for the local population.   With the commitments to build hotels near Arashi, Hadicurari, Baby Beach , Santana di Cacho and Boca Grandi, only the beach at the beginning o Eagle Beach is left for the local people to use; although there are also apartments being built across the street off that beach.   The environmental Development plan must be introduced as soon as possible.”