Casino will never pay for £20m. hotel plans'

IF ST PIERRE PARK'S owners are relying on casino cash to fund their £20m. plans, they are in for a shock - according to a rival hotelier. Old Government House Hotel owner Ken McVey said that in the current climate the multi-million pound redevelopment was a big gamble. Owners CI Traders this week unveiled plans that would turn the hotel into a one-stop holiday village that guests would not need to leave - but only if it got the casino licence. 'It would surprise me immensely if they were able to justify the £20m. on the basis that the casino would bring in the amount of business to repay that,' said Mr Mc Vey. 'I think it is mathematically impossible. 'It is in need of refurbishment and if it cost me nearly £10m. to refurbish the OGH, £20m. is not an unlikely figure to bring St Pierre Park up to standard.' The OGH pulled out of the casino tendering process because it did not think it was financially viable. 'There were three reasons that all came together. One was the immense cost required up front for the tendering process,' said Mr McVey. 'Another was that one of the requirements was the necessity to expand the hotel and increase the bedstock. 'At a time when numbers of visitors are not increasing it is difficult to justify that. And then add to that the cost of building a purpose-built casino.' Mr McVey said he had two operators interested in working with him on the casino, but they could not make the sums work either. 'You just can't get enough bodies through the door in Guernsey to make it pay. 'If they were not prepared to take the risk and open a casino, I was not prepared to take the risk and double the size of the hotel on the hopes that the casino would bring in loads of guests.' Guernsey Hotel and Tourism Association president Carl Symes welcomed the St Pierre Park plans. But CI Traders said that if it was unsuccessful in obtaining the casino licence it would have to review the redevelopment. 'It is not surprising that they will have to review the plans if they do not get the licence. It is clearly part of the development,' said Mr Symes. 'As for the investment, it shows an act of faith in the business and the island. 'We believe that once development like this starts others will follow. 'It could be the catalyst to give people confidence to spend more money in the industry.'