Archive for November 18th, 2010
Ritz prices out local captain
(CNS): A local captain is speaking out about what he considers unfair treatment by Grand Cayman’s leading resort. Although Captain Dexter Ebanks, one of the most popular local operators, has been working with the Ritz–Carlton Grand Cayman since it opened, taking guests on excursions to Stingray City and other snorkelling adventures, he says he is now being priced out by the hotel. Ebanks told CNS that the Ritz has asked him and other tour operators to increase insurance liability to as much as $25 million. At such a high level with no guarantee of business Ebanks said he can no longer work with the hotel. Meanwhile, the Ritz told CNS that the request for increased cover reflects its experience in the Caribbean.
Explaining that he had already met one request by the Ritz to increase his liability cover for tours through his company Fantasea Tours, Ebanks said that this time he could not meet the unrealistic demands. “About two years ago, I previously complied with the Ritz Carlton request by increasing my liability insurance from $1million to $2 million as a requirement to carry on doing business with the hotel,” Ebanks told CNS. “In July I received their new request for more liability insurance.”
This time the Ritz said it was looking for as much as $25 million in cover if the tour operator was carrying 12 or more passengers and asked for a certificate of insurance, in 15 days, evidencing the new rates. It asked for $1 million in general liability coverage for each occurrence and for protection and indemnity for 5 or less passengers of $5 million, 6-12 passengers $10 million, over 12 passengers $25 million and liquor liability insurance $1 million. It also asked that if the operators offer transportation the auto liability requirement for 5 or less passengers was $3 million, 6-12 passengers $5 million and 13-25 passengers $10 million.
Even if he had gone ahead with a policy, providing he could find a willing insurer, Ebanks said the hotel was not prepared to give him any assurance about the level of business it was prepared to do with him to justify his investment. The captain pointed out that by pricing local operators out of business with such over inflated rates it would create resentment. He also questioned why the Ritz seemed to be pushing him out when he had offered top class service to the hotel for so long.
“The Cayman Island government has given away millions of dollars in concession to these companies to encourage development so that Caymanians can get work,” the captain said. “I know there has been many a disappointment with some Caymanians’ performance and attitude, but I challenge any of them to question mine. All anyone has to do is to go on Trip Adviser and see for themselves what Fantasea Tours is all about.”
While Ebanks said it certainly affected him directly, he felt it was a slap in the face of all Caymanians and he is not alone. Although, they have asked not to be named, there are other operators who say they too are facing the same request for high insurance coverage that they simply cannot justify purchasing, especially when the hotel gives no guarantees of business.
A number of operators have said, however, that they believe the real reason for the unrealistic liability cover demand is so the hotel can justify creating its own water sports tour operator, completely cutting out opportunities for local businesses.
When CNS contacted the hotel regarding the increase and the operators’ concerns, the vice president and general manager, Franz Ferschke, issued a statement in response: “The safety and security of our hotel guests is one of our highest priorities. We therefore require insurance coverage from vendors. The coverage required reflects our experience in the Caribbean and worldwide. In our experience, guest safety is a critical component of a successful program of tourism,” he said via email.
CNS asked about the issue of pricing all the local operators out of the market and what that would do to the relationship between them and the hotel. We also asked if speculation that the hotel was going toestablish its own water sports operator was true but the manager did not respond to either of those issues.