There has been plenty of talk the past few years about the expected influx of Chinese travelers in the years to come. In fact, there’s been more than just talk—brands have been tailored, and created, to cater to them. Meanwhile, Chinese investors continue to flood the U.S. lodging industry with cash.
Understandably, the focus within the U.S. has been on the enormous opportunity the Chinese represent. However, the increased presence of the Chinese in the U.S. lodging industry represents a huge opportunity for them, too. Chinese development companies, in particular, are champing at the bit to come here and start putting shovels in the ground on large, lucrative projects.
But, such projects can be wrought with challenges. Case in point: Baha Mar, the $3.5-billion resort in the Bahamas that has seen several delayed openings, and now has stalled completely in the wake of financing issues and a Chapter 11 bankruptcy filing.
The development includes four hotels, a golf course and more than 40 restaurants. To say the project has become a complete mess would be an understatement. The Bahamian Contractors Association recently urged the government to intervene on behalf of local companies. China Construction America (CCA) is the general contractor, and has been fingered by developer Baha Mar Ltd. for the delays.
Some of the complaints include CCA bringing in hundreds of Chinese workers despite a high local unemployment rate; late payment to local contractors; repeatedly missed deadlines; and even two deaths. CCA, meanwhile, has blamed the developer for replacing the principal architect after construction began and more than 1,300 change orders, as well as not securing adequate financing.
The real shame of this fiasco—in addition to what it could do the struggling economy in the Bahamas if it’s not completed—is that this was supposed to represent a showcase for one of China’s largest construction companies, which is hopeful of getting additional resort projects in the U.S.
Since I’m not on site or intimately familiar with the inner workings of this project, it would be irresponsible for me to take sides in this blame game. But, what I can say is it’s not the first time I’ve heard stories about Chinese companies and disorganization, confusion and shoddy workmanship. The increasing influence of foreign countries has the potential to dramatically change the U.S. hotel industry. It’s up to the U.S. to make sure it’s for the better.