Venezuela Seeks Ways To Strengthen Sagging Economy
<B>Venezuela Seeks Ways To Strengthen Sagging Economy</B>
By Frank Rosci
Recent changes in Venezuela that now permit private investment have spurred more business activity from the United States and other corners of the world. "Yet, the economy is quite weak at present," said Luis Vezga-Godoy, president of Asesorac A.C., a consulting firm in Caracas and an affiliate of Fleishman-Hillard, a Miami, Fla.-based public relations firm.
"The current administration has not defined an economic policy that allows for sustained economic growth," added Vezga-Godoy. "This is a reflection of a period of profound political transition. We are currently experiencing a rising cost of living, capital flight, increased unemployment and lower consumer spending, while half of Venezuela's industrial capacity sits idle. The trend is toward a centralized, controlled economy, as in the 1970s." Still, growth and development are happening, particularly in the capital city.
As one of South America's most accessible countries, Venezuela often is described as a gateway to the continent. Caracas, the country's bustling capital, is the primary point of entry and most prominent place of business interest for U.S. visitors. Average daily costs for U.S. business travelers in Caracas in 2001 could be around $400, including lodging, said Vezga-Godoy.
As for lodging, Caracas' newest hotel will be the Four Seasons Hotel Caracas, scheduled to open in the city's upscale Altamira district in late 2000. The 212-room, 34-suite hotel will offer extensive meeting space, a 24-hour business center and guest rooms equipped with up-to-date communications technology, such as two-line telephones (one will be a speaker phone), with connections for computers and modems.
Additional electrical outlets in guest rooms, which will be among the largest in the city, ensure the ability to charge laptops, cell phones and other electronic devices. The hotel's business center will provide fax and copying services, as well as three private computer workstations and other services upon request. Four business center meeting rooms, which will share a common breakout room, also will be available.
Among the city's recent new hotels is the 432-room Gran Melia Caracas, which offers more than 30 meeting rooms. "The hotel, which is actually a complex of three main buildings, has enjoyed tremendous success over the past several months," said Emanuel Schreibmaier, vice president of Sol Melia Hotels in Miami.
Meanwhile, renovation of the 543-room Tamanaco Inter-Continental Hotel continues. Work on floors three through seven is in progress, and is expected to be completed by year-end. The hotel's Executive Center offers eight rooms outfitted with videoconferencing.
Hilton will open an Embassy Suites hotel in Caracas in the next 60 days, and for the first time working with a local group will develop a minimum of five Hampton Inns in various places in the country. The first Hampton Inn, a 100-room property, is under construction and will open in El Tigre, an oil-producing region, in nine months, said Nelson Diaz, international managing director for franchise development for Hilton Hotels Corp. in Memphis, Tenn. While there will be a minimum of five hotels, there could be as many as 10 built in the next five years, he added. "We see great potential in Venezuela, a rich, well-educated nation, especially for medium- to limited-service hotels, which are practically nonexistent in the country," Diaz said.
In airport news, Maiquetia International Airport, which is about a 40-minute drive from downtown Caracas and operated by the state agency Instituto Autonomo Aeropuerto Internacional de Maiquetia, is being expanded and modernized. The project, delayed by last December's devastating floods in Venezuela, again is underway and is expected to be completed by 2003.
Being implemented in phased stages, the work is expected to cost $150 million. Phase 1 will place the flow of arriving and departing passengers on separate levels. Work began in February and should be completed by year-end.
Construction of a $25 million hotel--cost is independent of the $150 million airport expansion--with 256 rooms, is planned as the major part of phase 2. The new hotel will create 600 construction jobs, 600 permanent hotel jobs and open about the same time the airport expansion project is completed. Room rates are expected to be about $125 per night.
Phase 3 features enlargement of the International terminal. Work there will add three new gates to the existing six, expand aircraft parking space by 80 percent, modernize customs and baggage claim areas and improve security. This year, it's projected 3.3 million passengers will use the airport. That number should rise to 5.5 million by 2003, airport authorities said.
Another airport important to business travelers from the United States is Jose Antonio Anzoatequi International in Puerto La Cruz. A new terminal has been built, as has a new runway, and restoration of the existing architecturally significant Art Deco terminal is planned. Expansion and renovation, plus 32 daily flights, is expected to boost yearly passenger counts to more than 500,000, including 200,000 business travelers, an airport spokesman said.