Island Hotels Group celebrates hotel property acquisition

Island Hotels Group, which yesterday celebrated its total acquisition of the Golden Sands Hotel in GhajnTuffieha, has circulated a letter among its management and staff guaranteeing that they would not be replaced by foreign employees if Malta joined the EU.

Group managing director Winston Zahra said he felt it was his duty to issue the internal letter of assurance to his 800 employees in view of the fact that politicians had said the four- and five-star hotels were among the companies that would discard Maltese employees in favour of foreigners if Malta joined the EU.

The reason given was that foreigners would accept lower wages than Maltese workers - a statement that was "completely untrue", Mr Zahra insisted.

Mr Zahra categorically denied that the group would shed its local employees for foreigners and expressed his disapproval that four- and five-star hotels were being "dragged into the political jungle".

He stressed his confidence in the potential of Maltese workers and his belief that the success of the company - which has developed from employing 20 Maltese at the Bugibba Holiday Complex in 1987 to 800 employees today - was only possible through the staff's hard work.

IHG's executives, line managers and staff were all Maltese, Mr Zahra pointed out, adding that "pure Maltese hospitality is one of the main reasons behind our success".

The total acquisition of the Golden Sands Hotel would raise the number of IHG employees to 1,000 over the next two years.

A milestone in the company's 16-year history, the hotel - a Lm10 million investment - would generate another 220 jobs, creating opportunities for the present 800 employees.

In accordance with company policy, existing IHG staff would be given preference over external candidates as new opportunities arose, Mr Zahra guaranteed.

The acquisition was celebrated on site through the symbolic hoisting of the IHG flag, which marked the handing over of the property by the Fenech family to the IHG directors.

Following two years of arduous negotiations and fighting off competition, the company was about to embark on another two years of overcoming hurdles, group chairman Nazzareno Vassallo said.

The 300-room, all-suite, five-star resort is scheduled to open in spring 2005.

IHG already has a building permit for the restructuring and complete refurbishment of the hotel. However, it recently decided to go all the way and demolish the property to build it again from scratch in the form of three blocks, further inland for minimal impact on the cliffs.

The company was working towards obtaining a permit in the shortest time possible, and work on the new Golden Sands Hotel is scheduled to start in the near future.

The international company, WATG, has been commissioned for the architecture and interior design, while Scape Ltd of London are the appointed landscape consultants.

Both these companies would be working closely with Maltese architect Edgar Rossignaud of BCS Ltd. Discussions and consultations were currently being held with the Malta Environment and Planning Authority to come up with a design that would fit in with the environment, while being visually pleasing.

The Golden Sands is the latest addition to IHG's portfolio, incorporating the Bugibba Holiday Complex, the Coastline Hotel, the Radisson SAS Bay Point Resort and Island Caterers.

Tourism Minister Michael Refalo, who attended the ceremony, congratulated IHG for finding one of Malta's best sites for its fourth hotel.

Sandy beaches were scarce in Malta and the fact that the Island Group hotel was located over one of the most impressive bays was a major asset.

"There are not many hotels around with a beach on their doorstep," Dr Refalo pointed out.

He said the reports on the "re-nourishment" of the sandy beach at St George's Bay had been completed and passed on for implementation by the Resources and Infrastructure Ministry to the MEPA. The pilot project was making headway and steps were expected to be taken in the coming weeks, the minister said.

Although Malta could compete with its sea, it could not with bays, Dr Refalo said, adding that the pilot project would be developed to deal with other sandy beaches.

Golden Sands Hotel was one of Malta's oldest properties, having been around for the last 35 years, Dr Refalo said.

Speaking about the controversy over the number of hotels being developed in Malta, he praised the company's exemplary strategy in taking over a property whose time was up and not increasing beds, but instead improving the product.