25 Aug 2010

Tonga hotel partnership flounders

3:07 pm on 25 August 2010

The head of the Tonga Chamber of Commerce says he suspects the Government is ending its joint venture with the co-owners of one of the country's main hotels, the International Dateline, because of its partner's failure to honour its contract.

The Government is in the process of acquiring full ownership of the hotel and has released an advertisement seeking expressions of interest for either a new, skilled manager or owner.

The President of the Chamber of Commerce, Paul Taumoepeau, says he believes the Chinese partners have failed to complete all terms under the agreement.

"I haven't read the actual agreement but what I understand is when the government and the party when they agreed on on this agreement, the party had to perform certain building stages. And what I think has happened is that the parties haven't fulfilled all of their obligations."

Paul Taumoepeau says it is fair enough for the government to annul the agreement and take full ownership, if it's found that the joint venture partner has not met all the conditions of the contract.