The Tribune

• Top executive: ‘Don’t read too much into it’

• ‘Increasingly optimistic’ on Freeport Harbour

• ‘Be patient’ on Grand Lucayan ‘crown jewel’

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Royal Caribbean’s top executive has confirmed the cruise giant sent a team to scout a potential new destination on Rum Cay, saying: “You can never have enough great product.”

Michael Bayley, its president and chief executive, told Tribune Business not “to read too much into it” as Royal Caribbean is constantly sending technical teams and executives throughout the world scouring for new locations that can deliver high-quality customer experiences. Yet the fact it is exploring shows it has not given up on adding to a Bahamas portfolio that is headed by its ‘Perfect Day’ location on Coco Cay.

Questioned by this newspaper, after it was tipped-off to Royal Caribbean’s Rum Cay mission, Mr Bayley replied: “It’s true. Our perspective us that you can never have enough great product. We are constantly looking for any opportunity where we can create a customer experience that we think the customers will love. We were approached about a potential opportunity, and sent a team to look at that opportunity.

“We send teams around the world constantly looking for opportunities. I wouldn’t read too much into it. We were approached, looked and it’s a great space. It was a look and evaluation. We have to look at things. Everything comes with pros and cons.’

Mr Bayley gave no indication of whether Royal Caribbean plans to further pursue the potential Rum Cay opportunity or if negotiations to secure the necessary land have started or are ongoing. However, the visit to the southern Bahamian island indicates the cruise giant remains willing to cast its net beyond Paradise Island, Coco Cay and Freeport in efforts to constantly refresh and upgrade the product offering it provides to passengers.

Well-placed Tribune Business sources, speaking on condition of anonymity, told this newspaper that Royal Caribbean’s Rum Cay interest had focused on a 375-450 parcel in the island’s north-west corner right by the sea that was recently appraised. It is understood the site is part of a larger 1,000-acre tract that had previously been caught-up in the multiple land disputes that have afflicted the island, but it is thought all title issues and legal battles have now been resolved.

One contact said the cruise line’s plans for an island, which has a population of around just 60-70 persons and is part of Prime Minister Philip Davis KC’s constituency, may be slightly more advanced than it is letting on. They added that negotiations over the land were “in the final stages”, and suggested a contract may have already been “accepted”.

The source said Rum Cay’s north-west was ideal for accommodating cruise ships because of the deep water that lies relatively close to the shore. They suggested that a cruise line could construct a jetty, or pier, out into the ocean to bring passengers from the vessel to shore as the industry has done at countless other Bahamian locations.

“It really will give an island like Rum Cay an uplift,” one source said. “The only way Rum Cay is going to work is a very big, powerful organisation coming in here. With the cruise ships coming in, it will take it to a particular plateau where the airlines also come in here.” Should Royal Caribbean’s interest every crystallise, its scale and passenger volume would transform Rum Cay and reverse the island’s de-population.

Meanwhile, Mr Bayley said Royal Caribbean was “increasingly optimistic” that its joint venture with ITM Group for Freeport will finally come to fruition as negotiations - which have already taken several years - continue with Freeport Harbour Company.

“That’s still going through its process,” he told Tribune Business. “I would say we are increasingly optimistic about the timing of that. In the coming months hopefully we will be in a position to make some positive announcement on Freeport. Our intent is to bring more capacity into Freeport. The first step, which will be in conjunction with others, is investing in improving the port.”

The cruise chief said that investment would involve other parties, especially fellow lines that will use Freeport harbour’s revived cruise port. One of those is believed to be Mediterranean Shipping Company (MSC). Mr Bayley also confirmed that Royal Caribbean/ITM’s plans still call for an expansion in the number of cruise ship berths, and development of a water-based adventure theme park for passengers in close proximity to the harbour.

“That again will be a signal more tourists are coming to Freeport, and that will be an opportunity for investors and entrepreneurs to start creating what we’re seeing in Nassau - new experiences that enhance the value to tourists the cruise industry is bringing to Freeport,” he added.

Ian Rolle, the Grand Bahama Port Authority’s (GBPA) president, told last month’s Grand Bahama Business Outlook conference that Royal Caribbean’s $70m cruise port expansion, and redevelopment of Freeport Harbour in partnership with ITM Group and another party who he did not identify, remains on the table.

He added that both Carnival and Royal Caribbean’s Grand Bahama investments are projected to each bring one million cruise visitors per annum to the island once fully operational. Freeport Harbour Company, with which Royal Caribbean is negotiating, is owned 50/50 by Hutchison Whampoa and the GBPA’s affiliate, Port Group Ltd, with the Hong Kong conglomerate enjoying Board and management control.

Asked whether Royal Caribbean would consider a renewed bid to acquire the Grand Lucayan, having mutually agreed with the Government to withdraw its interest in late 2021, only for the subsequent Electra America Hospitality Group deal to fall through and the resort still be on the market, Mr Bayley described the hotel and surrounding land as a “crown jewel” for development.

Acknowledging that the Grand Lucayan’s revival will require an investment in the hundreds of millions of dollars, he urged Bahamians to “be patient” as the Government must focus on securing the right buyer with the vision and financing to make it a true destination product. He pointed out that Royal Caribbean’s Paradise Island project was now in its sixth year of development and that construction has yet to start.

“I’m going to give you my personal feelings about the Grand Lucayan. I was very involved with that project pre-pandemic,” Mr Bayley told this newspaper. “I believe the Grand Lucayan and that whole space is a crown jewel. It will only be a matter of time before a group... renovates that space and creates something wonderful.”

Adding that he is prepared to assist with, and advocate for, such a change, the Royal Caribbean chief added: “It’s a beautiful space. The hotel needs rebuilding, but there’s a lot of opportunity in that space and someone will take it on. It’s not unusual for five, six or seven years to pass before a project comes to life. Be patient. If it’s good, it’s going to be good, and people will make it that way.”