The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

THE government signed a letter of intent yesterday with Royal Caribbean International and the ITM Group for the purchase of the Grand Lucayan resort and redevelopment of the Freeport Harbour, signaling an impending turnaround for Grand Bahama’s beleaguered economy.

An initial investment of $195m, which includes $65m for the purchase of the hotel, has been earmarked for the first phase of the development which will take place over a 24-month period. It is estimated that some 2,000 jobs would be created in the first phase.  

With the redevelopment of the harbour, it is expected that an additional two million cruise passengers will be brought annually to the island. 

The announcement of the hotel sale is one that many in Grand Bahama have been waiting for, more than two-and-a-half years since the resort sustained severe hurricane damage, forcing the closure of two-thirds of the property which significantly impacted the island’s tourism sector.  

At the signing held at the Office of the Prime Minister in Freeport, Minister of State for Grand Bahama Senator Kwasi Thompson noted the resort attracted some 62 expressions of interest from local and global firms, and by February 14, 11 offer letters were received and evaluated by the board of Lucayan Renewal Holdings.   He said that on March 22, the board unanimously approved a resolution to recommend to Cabinet the sale of the 217-acre resort to RCL/ITM. 

According to Mr Thompson, the joint venture between RCI/ITM will not only combine the redevelopment of the Freeport Harbour as a cruise port of choice but will also transform the Grand Lucayan resort into a theme park, featuring water-based family entertainment, with dining, gaming and entertainment options and five-star hotel accommodations. 

“This provides for the opportunity to create more than a hotel with amenities but a unique water park experience with a hotel and all its amenities,” Mr Thompson said. “The project brings the passengers, provides the experience and integrates and connects visitor experiences at the Freeport Harbour and their experiences at the hotel property maximising opportunities for locals throughout the island, particularly in the Port Lucaya area.”   

In terms of airlift and sea arrivals, Mr Thompson indicated that the redevelopment of Freeport Harbour is expected to attract a significant increase in cruise arrivals of an additional two million passengers annually, with the addition of multiple cruise lines calling on Grand Bahama.  

There will be significant business opportunities for Bahamians, he added. 

“Discussions leading to the heads of agreement, subject to the approval of the National Economic Council, will begin immediately on matters related to Bahamian employment requirements and Bahamian participation in specific areas, however it is anticipated that Bahamians will have significant ownership participation in restaurants, retail stores, transportation and watersports,” Mr Thompson said. 

Meanwhile, Minister of Tourism Dionisio D’Aguilar believes the development, which will roll out in Grand Bahama over the next 24-36 months, will go far in restoring Grand Bahama’s economy to its former glory days. 

“I am pleased...that the much-anticipated sale of the 217-acre Grand Lucayan resort has finally been agreed upon,” he said. 

“Today, a letter of intent was signed between RCL, the ITM Group and Lucayan Renewal Holdings Limited, the special purpose vehicle created specifically to swiftly conclude negotiations with the purchaser who emerged as a result of a sale offering to the investment community by Colliers International,” he said.

He thanked Michael Scott, LRH chairman, and the board of directors for the commendable job they have done to bring the government to this point.

“It was not an easy task and the government placed a tremendous burden on them to find a suitable buyer who will not only purchase and operate the Grand Lucayan but who will also work with the Ministry of Tourism to revitalise the tourism product here in Grand Bahama,” Mr D’Aguilar stated. 

Russell Benford, an official with RCL, said the company is excited about the opportunity to develop an “incredible project” in Grand Bahama. 

“We are honoured to be chosen from some really great people around the world to do this project,” he said. “It is not only a hotel and port project and or redevelopment, I think we can refer to it as a revitalisation and rebirth.

“. . .We are going to do right by the government, the people of the Bahamas and those who live here in Grand Bahama,” he vowed. 

RCL has a 50-year history calling on ports throughout the Bahamas.

According to Mr Benford, purchasing the hotel and redeveloping Freeport Harbour was a “no brainer” for RCL, which has investments of some $600 million already on Grand Bahama through its investment partnership in the Grand Bahama Shipyard. 

He said that they are pleased to be partnering with ITM. 

ITM, as hotel operators, operates 600 rooms and convention centres in Mexico. It has a relationship with brands like Starwood, Hard Rock, Nobu, and Accor. It has port projects in Mexico and Honduras. 

Mauricio Hamui, CEO of ITM, said that the LOI signing is an “important day” for his company, which has five principle objectives, one of which is to make Grand Bahama “one of the best destinations in the Caribbean” within the next three to four years.

Another important aspect, he said would be bringing more than two million passengers to Freeport, the creation of more than 2,500 jobs for Bahamians, the resurgence of the economy, and the creation of a community centre for Bahamians. 

“We make our work and construction with good quality, and that is our idea for this project,” he said.

When asked about the theme park, Mr Thompson said the government is entering into the negotiation period for the heads of agreement, and that all details with respect to the specifics of the project, employment, and Bahamian opportunities, will be negotiated in the document.

He was confident that once that is completed, the government will hold consultation with the public when it would reveal all the specifics of the project.