Cash climbdown puts hotel casino in crisis

St Pierre Park Hotel casino project is in jeopardy. Owner C. I. Traders wants to spend less than the original '25m. it pledged for redeveloping the site.

Commerce and Employment now has responsibility for the project and said that any changes to the original licence were unacceptable.

It still thinks that the hotel's reduced plans are a considerable and much-needed investment in tourist facilities, but will not recommend a change of the licence conditions.

'These conditions remain in force and if the first phase of the hotel and casino development is not completed by September 2006, the current concession will lapse.'

C. I. Traders chairman Tom Scott was unavailable for comment yesterday, but said on Wednesday that he believed the States would have the chance to change the licence terms.

He stressed that the company was still keen to go ahead with the project, which is also waiting for the department's permission on upgrade proposals.

CIT said that St Pierre Park would have to attract more customers if a plan to create the island's only casino there came to fruition.

It is already incurring substantial costs and plans have not yet been approved to redevelop the site.

'Following the award to the hotel of the concession to operate a casino at this location, we have continued to negotiate with the relevant authorities in Guernsey on the terms of the operator's licence given our intention not only to construct premises but also to become the operator,' said Mr Scott.

'To do this we have had to incur substantial costs, particularly regarding the prospective management team holding the necessary qualifications and experience to fulfil the requirements of an operator's licence.

'We continue to believe that a casino is attractive as a venue for the Guernsey market to support its tourism industry and we hope to come to a satisfactory conclusion of our discussion with the authorities later this year.'

Deputy Falla said that the group was aware of the situation and it had discussed other options for investing in tourist and hospitality facilities, but had not yet had a response.

If the hotel casino does not go ahead, it is unlikely that Guernsey will have one in the foreseeable future because the department is not planning to take proposals back to the House because of the current market and economic circumstances.

'Should those circumstances change, however, the department would consider all options for encouraging investment in tourist facilities to help stimulate economic activity.'