Remo Monzeglio published a letter to detail the current situation of the call for tenders.
Uruguay.- There are less than 24 hours left until the deadline to submit bids within the framework of the call for tender to operate the Hotel Casino Carmelo, and it seems that there will be no bidders. It is worth remembering that in November the deadline for receiving projects was extended again until January 10, 2025, and given the uncertainty regarding the process, Remo Monzeglio, Undersecretary of Tourism of Uruguay, referred to the current situation of the call.
Monzeglio sent a letter to the local media Carmelo Portal where he detailed the entire process that the Hotel Casino Carmelo went through in recent years up to the present, with a new attempt by the Ministry of Tourism to sell two plots on which the hotel is located, along with the concession of the exploitation of gambling for 20 years renewable for the same term.
“The Hotel Casino Carmelo is owned by the Ministry of Tourism and was leased to a private company for several decades. Once the concession ended and with no interest from the company to continue and invest, the building was returned to the Ministry of Tourism,” Monzeglio detailed in his letter and explained that this happened during the pandemic and the Ministry considered different options: granting it again in concession; selling it, and selling it subject to the construction of a hotel tourism project.
Regarding the first option, the official said that the state of the building was calamitous, no one was going to take charge of its repair and exploitation. As for the second, he assured that it would have been an option but nothing guaranteed that the buyers would build a tourist proposal there, therefore, they opted for the third option.
After opting for that alternative, the portfolio began working on the tender specifications, forming a multidisciplinary group to determine the conditions of the same. This group that met fortnightly was made up of members of the Ministry of Tourism, Ministry of Economy, Municipality of Colonia, and OPP.
In the letter published by Carmelo Portal, Monzeglio said: “Work was carried out continuously for two years and insurmountable obstacles were overcome. Despite this, nothing demoralized us and we continued working overcoming each difficulty,” and added that once the call was launched, the “repercussions were impressive” and they received “dozens of calls interested in the tender.”
“Carmelo somehow became a name considered in the international tourism scene. This gave the project additional hierarchy and visibility,” the official stated.
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Subsequently, Monzeglio referred to the exponential growth of online gambling: “This phenomenon has caused physical casinos to have seen their attendance decline (except in exceptional cases) and consequently their profit and profitability decreased,” he wrote and added that as there is no law in Uruguay that regulates online gambling, the country is “at a disadvantage compared to others that already apply it and enter millions of dollars into their coffers from royalties, taxes, etc.” The bill to regulate online gambling in Uruguay is under consideration in Parliament.
“During all this time the nine companies interested in the purchase, remodeling, and exploitation of the Hotel Casino Carmelo (mostly Argentine), have been closely following the treatment of the issue at the legislative level. At this point, it can be affirmed that none of them will make such an investment if the online gambling law is not approved in our country,” Monzeglio assured.
And he added that of the nine interested companies, one bought the tender specifications, but so far, has not presented the project with which it would take charge of the investment. “The deadline expires this January 10 and, if the group that bought the specifications does not present itself, in concordance with the Minister of Tourism it will be determined what to do with the tender,” said the official detailing that it is most likely that it will be left without effect so that, once the new authorities assume, “they can evaluate with total tranquility the destiny they want to give to that historic place.”
In the letter, Monzeglio indicated that the paradox is that if the law is approved, only those casinos that are installed will be able to access online gambling. “Therefore, the attractiveness of investing in the Hotel Casino Carmelo was so important and if the law is approved none of the nine interested companies will be able to access online gambling, missing out on very significant sums,” he stated.
Furthermore, the official emphasized the relevance that the presidential elections had in the process, since on March 1 a new government that until now was opposition will assume. “This, at least, has generated caution in potential investors. It remains to be seen how the online gambling project continues in the deputies and the opinion of the new government about it. Time will tell,” he wrote.
