The Tribune

By NEIL HARTNELL Tribune Business Editor ATLANTIS is looking at a 12-14 per cent increase in group business for 2012, the head of Kerzner International's Bahamian operations yesterday saying its $50-$60 million annual capital expenditure plans would likely be finalised by mid-February. Giving an upbeat assessment of the operational prospects for the company's Paradise Island operations, even as its lenders jockey for position over the past due $2.5 billion debt, George Markantonis, Kerzner International (Bahamas) president and managing director, said Atlantis's peak 2012 winter season was "looking stronger" than last year. While reluctant to give figures due to how swiftly booking patterns and trends could change, Mr Markantonis told Tribune Business that there had been "a definite uptick" in sales at the Reef condo-tel, with the sales pace "up 500 per cent" over the slump seen in 2009-2010. Amid the ongoing uncertainty over job security for Kerzner International's 7,500-8000 Bahamian employees, given the termination of Brookfield Asset Management's planned assumption of ownership at the Atlantis and One & Only Ocean Club, Mr Markantonis hinted that additional employees might be taken on once it had finalised its 2012 capital expenditure plans. "It's really looking like a nice January," Mr Markantonis told Tribune Business. "We've been fortunate to have some strong groups; we've had this very large poker group which always comes in during January. "Right now, the bookings indicate we will have a very strong winter. It's a good omen when the pace is ahead. It's looking stronger than last year, for sure." And the Kerzner International (Bahamas) chief added: "The group side is up strongly over last year and the year before. Right now, our group business for 2012 is looking like 12-14 per cent ahead of 2011, and last year was 35 per cent ahead of 2010. "I think that's a trend we're seeing across North America as businesses start to get more confident. When we get a strong group base that really helps us with everything else." Asked by Tribune Business about Kerzner International's planned capital spending/investment plans on Paradise Island, Mr Markantonis noted that Virgil's Restaurant had opened last November, creating some 180 Bahamian jobs. "Each year it's in the $50-$60 million range," he added of capital investment levels. "We always have something exciting. We're busy finalising what others [apart from Virgil's] we will do. We always do at least one restaurant, the public areas and entertainment features. We will probably finalise that some time around mid-February. "We've just increased staffing levels with Virgil's, some 180 jobs being created. As we announce our new capital projects in February, I'm sure those will lead to more positions becoming available." Mr Markantonis, meanwhile, said the Reef condo-tel was attracting "more and more interest all the time". He added: "The pace, the selling pace, has gone up 500 per cent. The Reef is nowhere near the lows of 2009 and 2010. Over the last 14 months, we've seen a definite uptick in condo sales at the Reef." The Kerzner International (Bahamas) chief, though, acknowledged that the proposed development of at least three mega resort/casinos in south Florida would present a medium-term competitive threat to this nation's gaming and tourism product. "I do think that will be a big issue for all of us here," Mr Markantonis conceded of the Florida developments. "It's something we're closely watching, as I'm sure our colleagues at Baha Mar and colleagues at the Ministry of Tourism are doing. "It may not be imminent, and is perhaps four-five years out, but is something we're watching very closely." Mr Markantonis said the performance of Atlantis's casino tracked "the general health of the resort", being driven by the level of leisure, group and cruise passenger business it attracted.