The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

ATLANTIS’s top executive believes the resort could end up spending $69-$70 million on electricity this year, a sum close to what it pays the Government in taxes.

George Markantonis, Brookfield Hospitality (Bahamas) president and managing director, told the Rotary Club of West Nassau that while the resort was paying the Government about $75 million in taxes per annum, the Bahamas Electricity Corporation (BEC) was now giving this cost item “a run for its money”.

Atlantis is expecting its annual energy bill to increase by $3-$4 million year-over-year in 2013, but is also eyeing a 200-strong increase in its workforce.

Mr Markantonis said Atlantis employs 7,700 associates, a number which is expected to increase to 7,900 as new facilities are opened..

“We pay out in salaries and wages every year just under $250 million,” he added. “That’s a very sizable number, but when we talk about the salaries and wages, and the people who can have a direct economic impact on the community, we have to remember that Government collects from just that property about $75 million in taxes and fees annually.

“Actually, BEC is giving them a run for their money. I’m estimating this year that our total BEC spend will be $69-$70 million. That’s not an unusual number; it was $66 million last year.”

Mr Markantonis said the cost of electricity was one of the biggest concerns for the Bahamas.

The Government has decided to exempt BEC from Excise Tax payments on its fuel imports, which will likely save the monopoly energy supplier $35-$40 million a year.

The Government also believes that removing the Excise Tax on BEC’s fuel imports will lead to a reduction in electricity costs equivalent to 6.6 per cent of a consumer’s bill.