The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemdia.net

Prime Minister Perry Christie said yesterday that the Government views the impending sale of the Grand Lucayan as a “positive step forward”, with major hotel and casino investors and operators potentially creating “renaissance in Grand Bahama tourism”.

Delivering the main address at the 18th annual Grand Bahamas Business Outlook, Mr Christie said: “Cheung Kong Property Holdings, a part of the Hutchison Group of Companies, recently placed for sale their Lucayan Resort complex with a bidding deadline of June 10, 2016.

“The process is being handled by the internationally well-known HVS Capital Corporation. We see this as a positive step forward, as we expect major, well-known hotel/casino investors and operators to be attracted and bring about a renaissance in Grand Bahama tourism.”

He added: “We are most grateful to Hutchison and CK Property Holdings for the major investments which they have made over the years in their properties, the Container Port and their other interests in Grand Bahama.

“Despite their major investments in their resort complex, the largest one in Grand Bahama, and heavy operating losses, they have partnered with the Government in keeping the hotels open and protecting the jobs of thousands of Grand Bahamians over the years.”

Mr Christie said the Government is close to concluding negotiations with the Freeport Harbour Company and Carnival Cruise Lines over the creation of the latter’s proposed cruise port in eastern Grand Bahama.

“The project will also stimulate construction, employment and entrepreneurial opportunities for Grand Bahamians,” Mr Christie said.

“Last week, my Government signed a partnership agreement with the Grand Bahama Shipyard to provide an avenue for training and long-term employment of Grand Bahamians in a variety of trades at the shipyard, and for reversal of the ratio of foreign personnel in favour of Bahamians.

“The recruitment and training of 200 semi-skilled tradesmen in rigging, scaffolding, painting and blasting to reduce expatriate labour, and 40 apprentices per annum, beginning in September in concert with BTVI, will significantly reduce the number of expatriate workers presently employed, reduce overall operational costs and set the foundation for continued growth and stability of the company and opportunities for Grand Bahamians.

“The Shipyard is evaluating the feasibility of an additional $100 million in capital spending on the possible acquisition of a fourth dock next year, and has already committed to an additional $10 million in capital spending this year.”

Mr Christie said that despite recent improvements, Grand Bahama’s hotel occupancies for the first two months of 2016 declined compared to last year, due largely to a softening in the Grand Bahama tourism industry’s major market – _ Canada - because of a much weaker Canadian Dollar.

“The Ministry of Tourism is working with its airline, cruise line and industry partners to mitigate further decreases during the remainder of the year,” he added.

“I am also advised by the developer and operator that under-deliveries in the service product delivery quality at their Grand Bahama Memories, which fell behind that of its sister properties in the region in its first year of operating in Grand Bahama, is also a contributing factor to the softer than expected demand levels.”

Mr Christie said the Government and Sunwing are committed to making the necessary marketing adjustments to increase traffic from the US, while upgrading service quality levels to win back lost market share.

“Already we are encouraged to know that summer advance bookings are reflecting a 20 per cent improvement in the booking pace compared to last year, while plans to add US cities in the fourth quarter will minimise dependency on the softened Canadian market next winter,” the Prime Minister continued.

“Grand Bahama has demonstrated its resiliency as a tourism destination in 2015 by leading the Country with a 33 per cent tourism growth rate, thereby outpacing all other Bahamas destinations, and exceeding the Bahamas’ average by more than 25 per cent.

“New airlift, driven by our new partner Sunwing, from both Canada and US markets, drove more than 50 per cent of the growth. This was coupled with Memories’ more than 1,100 beds returning to Grand Bahama’s inventory to service the increased demand levels.

“In a complementary fashion to Sunwing, Bahamas Paradise Cruise Lines took a bold step to acquire a 50 per cent larger and newer ship, then expanded their cruise and stopover programme in 2015 to boost their delivery and garner a near 30 per cent share of the incremental stopover visitors generated to Grand Bahama,” Mr Christie said.

“I am also advised that Bahamas Paradise Cruise Lines will close out this March with 90 per cent occupancy levels, and anticipates a strong summer season ahead with growing optimism on the number of stopover visitors that will be generated. Additionally, the cruise line has already hired 104 Grand Bahamians and is actively recruiting others.”