Pablo Menoni assured that the problem with the previous administration was a lack of prior analysis and unfulfilled promises.
Uruguay.- After the call for bids to operate the Hotel Casino Carmelo failed, following several months of anticipation, the new Minister of Tourism of Uruguay, who took office in early March, spoke about the situation of the complex and criticized the actions of the previous administration in relation to the process.
In an interview with the local media Búsqueda, Pablo Menoni said that the mistake was not in the bidding process itself, but in the "lack of prior analysis" and the "unfulfilled promises".
In that regard, the newly appointed official detailed: "The error there is not in the bidding process itself, but in the expectations that were created among the population. That's what the people are complaining about" and compared the situation with other failed projects, such as the announced five-star hotel in Rocha.
Although Menoni did not want to delve into the context in which the bidding was conducted, he did say that "the cart was put before the horse" and emphasized that a hotel was promised in Carmelo and it never materialized, which generated frustration in the community.
"I understand that a risk analysis that was not done was missing," concluded the minister, in a diagnosis that suggests that the new administration will evaluate announcements in tourism investment more cautiously.
With this statement, Menoni marks the stance of the new Tourism team on an issue that has been a cause of complaints in Carmelo and leaves open the question of whether the current administration will resume the project or look for alternatives for the recovery of the historic hotel.
It is worth remembering that in March, before leaving office, Eduardo Sanguinetti, the outgoing Minister of Tourism, regretted the failed fate of the property. In an interview with the local media Búsqueda, Sanguinetti, acknowledged that the government management failed to find a definitive solution for the emblematic Hotel Casino Carmelo.
Furthermore, the outgoing official left the decision in the hands of the next administration, although he highlighted that the Ministry of Economy might consider tax exemptions to attract investments.
Sanguinetti explained that, upon taking over the administration, the situation of the hotel was critical: it accumulated debts close to UY$50m in taxes, while its guarantee barely reached UY$1.6m. "When we demanded the payment of these debts, the owners said: '(It's) much cheaper to close the company, here are the keys, and that's it, your problem'. There was a lack of control by the previous administration," stated the official to the Uruguayan weekly.
The outgoing Minister of Tourism recognized that there was interest from investors, who even purchased specifications for a possible bid. However, the high cost of recovering the building and the lack of profitability of traditional casinos discouraged the offers.
And he concluded: "The casino licenses that people in the activity are interested in today are the online ones, because those are the ones that really have an economic return. So, it's going to be difficult."
