The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A GRAND Bahama hotelier yesterday said the lease agreement between Hutchison Whampoa and the Sunwing Travel Group meant that the island’s properties would no longer be fighting “over the same piece of cake”.

Pelican Bay Resort general manager, Magnus Alnebeck,, said the deal to convert the 400-room Reef Village into an all inclusive, five-star Blue Diamond Resort, was “exciting news”.

Addressing the issue following the Government’s Mid-Year Budget communication in Parliament, Prime Minister Perry Christie said Hutchison Whampoa and the Sunwing Travel Group, an affiliate of TUI, the world’s largest tour operator, had agreed to the terms of the lease agreement, the scope of work and renovation costs.

“This major initiative to revive the Grand Bahama tourism economy falls upon the earlier negotiations and the Memorandum of Understanding between the Government, Hutchison Whampoa, the owner of the Grand Lucayan Resort, and Sunwing, the Candian affiliate of TUI, the world’s largest tour and charter company,” the Prime Minister said.

“The Blue Diamond Resort brands have been very popular and successful in Cancun, Cuba, the Dominican Republic and Jamaica. This particular company carries over 300,000 tourists a year to Cuba, over 100,000 to Jamaica and many more to Cancun Mexico.”

He added: “In the coming weeks construction will get underway, providing several hundred much needed jobs for contractors. It is anticipated that the construction and refurbishment will be completed for the opening of the Blue Diamond Resort later this year.

“Sunwing, when the new resort opens, will operate several flights a week from Canada to Freeport, and will support airlift from the United States to Freeport. The combined hotel airlift and tour operations of Sunwing and its affiliate, Blue Diamond Resorts will create over 1,0000 new jobs in Grand Bahama.”

Mr Christie said these flights will be beneficial to all Grand Bahama hotels, and not only Sunwing’s Blue Diamond Resort.

Mr Alnebeck expressed similar sentiments, telling Tribune Business that Sunwing would be more focused on bringing new visitors to the island, unlike the current situation where resorts were all “fighting over the same piece of cake that is getting smaller and smaller”.

“It’s very important that this works,” Mr Alnebeck said.

“Sunwing is a vertically integrated company that owns their own distribution channels and tour operators, as well as their own planes. They are a solid operator in the region.

“I believe it’s great news for Grand Bahama. That part of the Grand Lucayan has been closed for several years, and just getting that reopened and back on the map is great news. To get a company like that is trying to attract new business is fantastic news.”

Mr Christie added that the Treasure Bay casino agreement has been extended until the end of April, as negotiations continue with several companies to secure a new operator.

Tourism minister Obie Wilchcombe recently confirmed to Tribune Business that the Government was reviewing at least three proposals for the casino takeover, having recently travelled to the Dominican Republic, to visut the Dream Group’s operations there.