The Tribune

Dear Mr Hartnell I refer to your recent article in The Tribune, concerning our resort, newly named "Grand Lucayan" - a Radisson resort. I would like to clarify some of the content, which might otherwise cause some confusion in Grand Bahama island. As you may know, I have been personally associated with developments on Grand Bahama for a number of years, indeed since the beginning of sour group's involvement with the Container Port, and my heart is as ever, happiest when I am there. As you will also be aware, in order to see whether through cost sharing between the various Hutchison entities it might be possible to turn around the hotels, I became involved with a somewhat larger portfolio earlier this year. Through a number of Town Hall meetings and direct discussions with those involved, we have been quite frank as to the problems facing the resort. We have, as reported, attempted to reduce costs whilst at the same time seeking new markets. This has not been easy in the current economic climate, but we are trying our best and have made fledgling efforts to attract visitors from Latin America, European and even Far East originations. We have from the start been quite open as to the level of losses sustained at the hotel, which amount annually to some tens of millions of dollars. As we all know, any other local establishment losing that amount would have closed years ago, and it is a tribute to the Group that it has kept the hotels open despite these heavy annual losses. We have been encouraged by the support of the Bahamas Government, who continue to assist in the marketing of Grand Bahama Island, and they fully realise our dilemma. We have this year made some minimal inroad into those losses. We have by careful husbandry reduced our power bill, but not nearly enough to make a material difference, and we are frankly desperate to seek a way to lower electricity costs at the resort. We have also reduced costs by closing the Reef hotel. This has had a negative impact on the local community, and we would love to see it reopened subject to improved visitor numbers. To effect this we would need to put in place a competitive regime, and that can only come about through the support of all involved and, in particular, those working in this industry. When all is said and done, we need to meet the needs of our shareholders, and that means returning the properties to a sustainable, positive bottom line. We are now at a point where everyone who has an interest in the future of Grand Bahama Island needs to realise the perilous position the resort faces, and to acknowledge the historical support of the investors and what is needed to continue that support. The resort has many long-serving, dedicated staff whom I know earnestly seek to help in the turnaround, and have asked me personally what they have to do to help. Might I take this opportunity to thank them. The continued encouragement of the Government of the Bahamas, and that of the Prime Minister especially, in constantly seeking ways to support Grand Bahama Island, is specially worthy of acknowledgement by the Hutchison Group. Yours sincerely Dr John E Meredith Group Managing Director Hutchison Port Holdings