The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The deputy prime minister yesterday pledged demolition work at Grand Bahama International Airport will begin "within the next 30 days" after the Government "executed an agreement" with the UK operator.

Chester Cooper, also minister of tourism, investments and aviation, told the Grand Bahama Business Outlook conference that Manchester Airport Group (MAG) has been charged with updating the business plans and designs for a transformed airport which he promised will "exceed" international standards.

Shrugging off "the prophets of doom", he appeared to blame attorneys and the complexity of the winning bidder's consortium for the nearly year-long delay in making tangible, physical progress on what was initially touted as a $200m redevelopment that was set to start work in April/May last year.

Mr Cooper, who unveiled the airport deal at last year's Grand Bahama Business Outlook conference in March 2023, did not linger too long on the subject in yesterday's presentation while asserting that the Government was "still hopeful for completion in 2025" despite the year's delay.

"The cornerstone of any thriving economy is its connectivity to the world, and the heart of this connectivity lies in our airports," the deputy prime minister told attendees. "Last year, you heard me say you were getting your airport, and you are indeed getting your airport.

"Despite the prophets of doom amongst you, the winning bidder is progressing steadily. Suffice to say it a complicated consortium and there are a lot of lawyers involved." It is unclear whether the make-up of the winning consortium has changed, or its source of financing, which was originally set to come from the UK government's export financier and provider of trade credits and guarantees.

Tony Myers, Bahamas Hot Mix’s (BHM) chairman, the company itself and CFAL president, Anthony Ferguson, were all members of the Bahamian investor group last year named as spearheading what was then billed as a complete overhaul of Grand Bahama International Airport. They were joined in Aerodrome Ltd by two fellow Bahamians - Anthony Farrington, an engineer; and Greg Stuart, a businessman.

BHM’s involvement in the project was through its UK-based international arm, BHM Construction International. The group teamed with Manchester Airport Group as its operating partner, with financing for the project to be provided by UK Export Finance, the British government body.

While Manchester Airport Group remains, several sources have suggested that UK Export Finance may no longer be involved, although that has not been confirmed. And, given that Mr Cooper is sticking to a 2025 completion timeline, it is also possible the redevelopment may have been scaled back from the original $200m overhaul that included international cargo, warehouse and logistics ambitions.

Mr Cooper said the airport project has been given the go-ahead, although no details beyond the immediate term were provided. "The Grand Bahama International Airport will undergo a transformative construction phase that promises to redefine our island's access to global opportunities," he added.

"I can tell you definitively that the partnership with Manchester Airport Group, renowned for their expertise and innovation in airport management, is a testament to the ambitious scope of this project. We have executed an agreement with them.

"Their mandate to update the business plan and complete conceptual designs within the next 45 days has set the stage for a facility that will not only meet international standards but exceed them. As you can see, the mock-up designs showcase the future of air travel in Grand Bahama. These designs are not just blueprints; they are a vision of efficiency, beauty and innovation, in line with the feel and culture of Grand Bahama," Mr Cooper continued.

"Furthermore, the involvement of a local Grand Bahama construction company for the demolition phase, commencing within the next 30 days, underscores our dedication to empowering local businesses and integrating them into the fabric of our developmental narrative. We anticipate that when the vertical construction begins, it will move quickly. We are still hopeful for completion in 2025."

Ensuring Grand Bahama has an airport with the capacity and capabilities to handle ever-growing volumes of visitors, as well as locals, is critical to the success of projects such as those either initiated or contemplated by the likes of Carnival, Royal Caribbean's consortium, the Grand Bahama Shipyard and Weller Development's Six Senses resort.

"In the recently executed pre-clearance agreement with the US, we have left the flexibility to add the return of Freeport pre-clearance, which will enhance the economy and create a much greater ease of travel for Grand Bahamians," Mr Cooper added yesterday.

"We are also planning for the introduction of a digital Immigration card in The Bahamas, following the Immigration Amendment Act, a forward-thinking initiative that promises to enhance the efficiency of the immigration process, improve national security, boost tourism and align The Bahamas with global digital trends.

"This represents a significant step in modernising the country's Immigration system, offering benefits to travellers, residents and the Bahamian government alike." Mr Cooper also provided few details on the Government's search for a buyer for the Grand Lucayan resort.

"We also continue to work on the upgrade and the sale of the Grand Lucayan resort," he said. "Interest in this iconic property remains very strong and we are making strides, but we’re doing it carefully and deliberately, so as to avoid any unforeseen issues.

"Meantime, the anticipated occupancy rates for 2024 are surpassing those of 2023, and room revenue is up 35 percent in 2024 compared to 2023, reflecting the growing confidence in Grand Bahama’s tourism sector."

Turning to Grand Bahama's tourism performance as a whole, Mr Cooper described the island as the fastest growing in The Bahamas for air arrivals and the third-fastest for total visitor numbers - albeit both measures are coming off a very low base.

Noting that Grand Bahama received 559,812 visitors in 2023, he added: "This does not include guests who arrive via Nassau and travel onward to Freeport. This figure is not just a number; it represents a robust 44 percent increase over the previous year, 2022, and a significant 7 percent increase over the pre-pandemic year of 2019....

"Grand Bahama is, in fact, the fastest growing destination in the Bahamas by air arrival and the third fastest growing island overall. The cruise sector has also seen phenomenal growth, with 467,215 cruise visitors making Grand Bahama their first port of entry.

"This represents a 48 percent increase over 2022, and 12 percent above 2019 pre-pandemic levels, highlighting the island's capacity to host and entertain large volumes of tourists with its unique blend of natural beauty and cultural richness," Mr Cooper continued.

"Turning our attention to aviation and airlift, the opening of the newly renovated domestic terminal on January 2nd, 2023, marked the beginning of a year of significant progress. Throughout 2023, Grand Bahama experienced a 32 percent year-over-year increase in air arrivals and 1 percent ahead of pre-pandemic levels.

"With enhanced services from key markets such as Charlotte, Fort Lauderdale, Miami, Montreal, Orlando, Raleigh-Durham, Toronto and even Milan, Italy, this expansion in services represents a 4 percent increase in seat capacity over 2019 and a remarkable 68 percent increase over 2022," he added.

"Looking ahead to the first quarter of 2024, we are already witnessing continued growth with American Airlines increasing its frequency into Freeport from Miami, and Western Air scheduled to launch their inaugural Freeport to Fort Lauderdale service in mid-March. This momentum is expected to push our seat capacity for the first three months of 2024 to exceed the levels of 2023 by 7 percent."