The Editor
The Anguillian

I was extremely disappointed when I read the headline of the Anguillian of Friday, August 25th. Everyone in Anguilla is well aware of the importance of Cap Juluca to Anguilla. There is now great concern about the long-term damage such a headline will cause Cap Juluca and Anguilla in the international tourism market. This could well negatively impact occupancies and rates going forward.

This is especially the case since the body of the article does reflect the sensationalism of the headline. The article reports on extracts of the motion passed by the House of Assembly which gives the Government of Anguilla direction to explore the legal options available to them for the potential acquisition of Cap Juluca.

It is most unfortunate that we were not given the opportunity to respond to the article as regards the debate that took place in the House of Assembly. Therefore we would like this opportunity to express our position in the matter.

During the House of Assembly debate certain facts and figures were misquoted, inaccurately quoted and misused. Since the date that I obtained all the shares of the company that owns the Cap Juluca Resort at a public auction in September, 1997 (where I was the only bidder) all profits of the hotel have been reinvested in the refurbishment and capital improvements of the hotel. Significant improvements have been made to the infrastructure and facilities at Cap Juluca during this time - a laundry, a new building and kitchen for George’s restaurant, a new warehouse, a hurricane sea wall, etc.

Earlier this year an expanded exercise room with additional equipment was opened and a new kitchen costing $300,000 was installed at Pimm’s Restaurant.

Unfortunately, meaningful funds have been required to be used in defending the company (Leeward Isles Resorts) from the legal action brought against the Company by Charles Hickox. The amount of funds invested in the defense have been significant but not even close to the $10 million suggested during the House of Assembly meeting.

Since 1997 Cap Juluca has consistently generated increased room revenues resulting in increased Occupancy Tax and Land Lease payments to the Government of Anguilla as well as higher Service Charge payments to all Cap Juluca employees. Cap Juluca’s Room Revenues and average daily room rate have increased consistently each year. Therefore, once again the information cited during the House of Assembly debate was unfortunately inaccurate and misleading. The Inland Revenue department and the Island Statistics Department has all the information which could easily confirm our position.

Cap Juluca has consistently achieved over 90% occupancy during the 10 months that it has been open each year over the past several years. Accordingly, there is limited time to do major refurbishment without causing interruption and annoyance to guests. This, however, does not mean that Cap Juluca is in a dilapidated state because the refurbishment work is performed during September and October each year when the Hotel is closed for this purpose.

We are in the process of injecting over U.S. $2.5 million for the refurbishment and upgrading of the Hotel during the next two months.

This is part of the customary refurbishment program that is undertaken every year during the months of September and October but this year we have planned an expanded program including using the services of an international architect/designer.

In April this year the Government of Anguilla insisted that I find a buyer for the hotel. I agreed to follow their request. At the same time they expressed their desire to change certain aspects of the present Land Lease once the sale was completed. We feel the potential purchasers are compatible with Anguilla and share our common goal of making Cap Juluca the number one resort hotel in the world.

Negotiations with one such potential buyer are well advanced and this buyer has been in conversation and negotiations with the Government of Anguilla for some time. Therefore, we were extremely surprised to learn about the Government’s passing of the motion in the House of Assembly seeking to find “a meaningful ownership for Cap Juluca”. This process had already started.

Additionally, the Government indicated their desire to have local representation in the potential purchase of the shares of Cap Juluca. Once again the potential buyer not only agreed to this request but is seeking local investors with the financial capacity and shared vision for the future of Cap Juluca.

We trust that all parties involved will do the right thing to ensure the continued success of Cap Juluca which is, we all know, one of Anguilla’s most precious assets and home to so many Anguillans.

Sincerely,
Dion Friedland

Editor’s note:
The article in question was merely a report on the proceedings in the House of Assembly. The opportunity to respond to the motion and the report has been available and is therefore gladly granted to Mr. Friedland with the publication of this letter.

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