Caribbean hotels 'owed millions by tour ops' says tourism chief

"We have become alarmed in recent weeks to learn of the extent to which some of your member tour operators are withholding reimbursements to hotels for services which were rendered as early as January and into February and March," said Comito in his letter.

Comito said hotels had been advised to expect payments an average of 60 days later that scheduled, with some payments likely to be delayed by up to four months.

He said operators were citing staff shortages, high demand and reduced cash flow for the delays, despite payment often having been taken from consumers "many months in advance".

The CHTA chief has urged operators to "expedite" payments or risk contributing to the demise of some Caribbean hotels, warning the consequences would be "long-term" for many operators and the reputation of the sector.

"[It has] already impacted the ability of many Caribbean hotels to meet their own financial obligations to employees, vendors and government for taxes owed related to past activity," said Comito.

He further urged trade association to "rein in" some operators attempting to revise future contracts with new rates and payment terms, and seeking "deep discounts" that defy "an extremely high-cost/low-revenue operating environment".

Comito said the situation risked undoing the years of effort poured into mutually successful business relationships. "This [situation] will require give and take by all parties," he added.