Dockyard traders distraught as Wedco drops rent relief
By Alex Wright
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Shipping them in: Dockyard will get one more cruise ship visit in 2009 than it did last year.
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Dockyard's traders are up in arms over the West End Development Corporation's (Wedco) decision not to offer rent relief this winter, for the first time in 15 years.
Retailers in the Clocktower Mall were baffled when Wedco told them they would not be receiving the relief for January and February, especially during the current economic crisis when they need all the help they can get.
Some have branded Wedco as "out of touch" with what is happening in the retail sector in Dockyard and others have called on them to start promoting the area as a destination to locals and tourists alike.
Meanwhile, the number of cruise ship visits to Bermuda for 2009 as per the draft schedule, was up by only one at 138 from 137 in 2008, but well down on the three years prior to that, including 2007, when it reached 203.
Pierre Dutoya, general manager of Hornburg Calypso Ltd., blasted Wedco, describing the government quango as "totally out of touch".
"For the last 15 years, for the months of January and February Wedco has waived the minimum rents for traders," he said. "And this year, with the downturn of the economy, especially when rent relief is most needed, it decided to go the other way and not offer any at all.
"It is difficult to explain, especially when Wedco is subsidised by the government — it should help the retailers."
Mr. Dutoya said Wedco had given him no reason why it made the decision, but added that it was time for them to show solidarity among shopkeepers in the midst of today's financial turmoil.
He said Government was always willing to sacrifice quality over quantity when it came to cruise ship arrival numbers, however, it needed to understand that Bermuda is a niche destination for luxury boats and not a mass market for mega-ships.
Kristi Grayston, chairman of the retail division of the Chamber of Commerce and owner of Pulp & Circumstance, which has a store in Dockyard, said tenants tried to find out whether the rent relief was in place as usual for this year and paid their rent assuming they would get relief, only to be informed that they would not receive any.
"It boggles the mind in this period of economic hardship and I think it could force some people out," she said.
She questioned why a new cruise ship terminal had been built at Dockyard when the amount of ship visits planned to the Island has increased only slightly, and added that she would have to make the most of her loyal cruise ship customers.
Bulent Ganal, owner of Grand Bazaar, which has been based in Clocktower Mall for the past four years and moved to a new location there in November, said that traders were given a rent break every year, but this year found out that it was no longer on offer.
"We paid them the rent according to those arrangements by the 10th of each month, but Wedco came up on the 12th and said 'you are not going to be getting a rent break this year'," he said.
Mr. Ganal, who normally receives almost $1,000 per month in rent relief for the three units he leases, said it came as a bitter blow to his business and many others because the Clocktower Mall stores were the only ones in Bermuda open seven days a week, even during the lean periods, and were grateful of any financial assistance they received to ease the burden.
And he was keeping his fingers crossed that cruise ships coming to the Island in the future would be able to fill their compliment of passengers who would spend money in Dockyard and boost Bermuda's economy.
"The more cruise ships there are the better it is for us," he said. "It is good for Bermuda's economy that we bring in more goods and sell more goods and the more we sell the more money Wedco gets.
"I think Wedco needs to market Dockyard and, in particular Clocktower Mall, in Bermuda, as a destination — if you ask anybody on the street today I bet that 50 percent of them do not know that we are open on Sunday."
Wedco did not respond to messages by press time.
