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American Recession Affecting Local Resorts--- Employees not happy with outcome.

Marigot: --- Employees of Club Orient maybe the first sets of locals who have to deal with the trickle down of the economic crisis in the United States which is now affecting the island. That is according to information reaching SMN News which states that the new management of the resort is not able to pay it's 100 plus employees their December salaries plus bonuses.
Some of the employees are not at all happy with the news which was given to them a few days ago.
It is said that the two unions that are representing the workers already met with the workers and explained them that they need to be patient and most of all they would have to cooperate with management who is doing all they can to keep them on the job.

According to Cedric Andre a union representative and employee said they met with the new management who assured them the workers will receive their December salaries and part of their annual bonus, while the balance of the bonus will be paid at a later date. Andre said as far as he can see the new management came and reached a situation and they are trying to deal with it in a positive way. He said all hotels and or resorts are currently suffering from the recession in the US. Andre said many of the rooms remained empty and these employers still has to pay their workers and social dues.

Already the union representatives met with the Collectivity of St. Martin and requested some sort of relief for the resort. Furthermore the Director of Club Orient also went to see the President of the COM and he was told the same thing that the union was told. "Even though we have not seen or gotten a response from the COM as yet I believe they are working on the matter. I truly believe it is just a matter of time before we would hear or see what is done for the business and the workers." Andre said.

Just recently the President of Association des Hôteliers de Saint-Martin (AHSM) Maurice Perrinmarechal has warned French side hotels may in the future resort to opening on a seasonal basis if the Collectivité cannot satisfactorily address the issue of crippling taxes affecting the industry.
Perrinmarechal said mirroring the example of European ski resorts opening in the winter and closing in the summer was not an unrealistic option for St. Martin.
"It's not the monetary help for marketing that we need, it's a waiving of the taxes for at least one or two years that will help us to survive," explained Marechal. "A significant part of our revenue goes in taxes. Everybody is hurting.
The president of the hotel industry said they are thinking of six months contracts.
"This way of thinking is totally contrary to how one normally operates on an island with year-round tourism. If we don't get help this is what will happen. Already hotels here are closing for longer periods of time."

Marechal said the French side hotel industry has suffered for years with the burden of high taxes and high water rates. Even if room rates were reduced, the taxes would still remain the same, he added.

Adding insult to injury a survey indicated that for every $100 spent on marketing, only $28 is spent in the hotel itself, he noted.
He said that even if they are to get 60% of occupancy that would not make a difference since it is the taxes that are killing them.
"If we are not operating, everybody suffers...the maintenance people, plumbers, air conditioner suppliers, florists, restaurants, shops, and activity people. The list can go on and on."

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