How long more will they let Reef Hotel deteriorate?
On the 12th of July 2019 the Seychelles Government approved the sale of The Reef Hotel to two Mauritians, Krishan Malhotra, who is Sir Anerood Jugnauth’s son-in-law and Jadoo Harmann Dookan.
At the press conference that followed the Minister for Finance, Trade and Investment, Maurice Loustau-Lalanne, said that the developers were planning to invest $34 million in the redevelopment of a new tourism facility.
“The development will comprise of demolishing and rebuilding a whole new hotel. It will comprise of 135 rooms, including nine residential apartments and villas,” Loustau-Lalanne said.
The minister now also running mate added that the new owners have acquired the hotel at the price of $6 million. The Seychelles’ government is getting $300,000 for processing fees and stamp duty. Before giving their approval the Seychelles’ government has set some conditions with the proprietors.For instance, the proprietor should retain the name Reef Hotel for their new establishment.
“This decision has been taken to retain the historical memories that place once had,” said Loustau-Lalanne, adding… “that there should be a dedicated pedestrian access to the beach. The facilities should also be accessible to the locals.
ONE YEAR ON….
It is now August 2020, a year on since the sale, nothing is happening and the former hotel is still an eyesore in a five star tourism destination! Let’s blame it on the COVID-19, which has now become a convenient scapegoat for many sad developments.
The Reef Hotel has a colourful history. Opened on March 17th 1972 the 150-room Reef Hotel was the first tourist establishment of international standard to be opened in the Seychelles.
One month before its official opening, in the early hours of the morning of February 14, 1972, the Reef Hotel sustained a very nasty bomb blast which caused heavy damages to two adjoining bedrooms. Luckily, no one was hurt. The bomb blast was sponsored by the SPUP. One wonders how those honeymooners must have felt. After all, it was Valentine’s Day in Seychelles. Three days after its opening, on March 20th, Her Majesty Queen Elizabeth II stopped during her tour in the South to visit the place and to talk to the staff. The Queen had come to Seychelles expressly to inaugurate the airport at Pointe Larue. The facilities at that time included a restaurant, bar, swimming pool, tennis court and a golf course. The hotel, which was once a popular venue for seminars, beauty pageants, fashion shows and many other high points of the islands’ social calendar, hosted the first Tourism Ball and the opening of the U-first campaign in December 1993.
The hotel closed down in 1990 and In 1991, COSPROH, a parastatal company, 100 percent owned by the government of Seychelles, acquired 55 percent shareholding in Indian Ocean Hotels (Seychelles) Ltd from D & L (Pty) Ltd, a British-owned company for R127,400. The other shareholder of Indian Ocean Hotels (Seychelles) Ltd was Commonwealth Development Corporation with 45 percent shareholding.Following the grant of sanction on September 7, 2001, the Reef Hotel property was purchased by St Anne Resorts Limited for $3 million for use of the hotel facilities as offices, training centre and staff quarters from the 5-star hotel under construction on St Anne island at the time, with the view of being converted into either a hotel training centre or redevelopment.
On February 7, 2019 following the grant of sanction again the property was transferred from St Anne Resorts Ltd to Reef Resort Limited, at the book value of R81, 067,500, as part of the internal restructuring of St Anne Resort Ltd.The transfer was exempted from the payment of Stamp Duty as St Anne Resorts Ltd and Reef Resort Ltd as associated companies in terms of Section 30 of the Stamp Duty Act. The transfer was also exempted from payment of Sanction duty, as the transfer was in respect of a bona fide investment in the tourism sector, as per the policy. Another scam in our opinion to deny tax revenue to the poor people of Seychelles. However a Sanction processing fee of 1.5 percent of the book value, therefore R1, 216, 001.50 was paid to the government of Seychelles.Thus in August 2020 its illustrious journey continues with no end in sight.
Darny Eddry
