The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Atlantis is predicting that a 15,000 group room night decline year-over-year will result in a softer September-October period, with average occupancy rates dropping “into the mid-30 per cents from the mid-40s”.

Describing the fall-off as ‘a timing issue”, George Markantonis, its most senior executive, indicated that it was more a temporary blip, given that “definite” group room nights for 2015 were already running 100 per cent above the pace set for this year.

The Brookfield Hospitality president and managing director told Tribune Business that the Paradise Island resort still expected to finish 2013 with an average occupancy rate “a point or two higher” than 2012.

He added, though, that room rates remained “relatively flat”, and were about 2 per cent down year-over-year due to market conditions.

But Mr Markantonis said that with 174 jobs added at Atlantis since year-end 2012, largely due to the opening of Todd English’s Olives Restaurant and the Moon Club, the resort’s 7,964 total staff complement had almost returned to the 8,000 level it had reached prior to 2008’s 10 per cent downsizing.

Disclosing that Atlantis was expecting “a much better” winter than 2012, Mr Markantonis told this newspaper that the resort’s performance had been “hurt” by Easter falling in March this year, rather than April, plus the lingering impact of Hurricane Sandy on its core US east coast markets inthe first half.

“We were hurt by April this year,” he said. “April turned out to be the worst month compared to what we had forecast. Most of that was attributable to Easter being in March, and part of that was the Sandy aftermath.”

Apart from April, Mr Markantonis said Atlantis was performing in line with expectations, and would hit its forecast targets for the year. He acknowledged, though, that the resort was in for a “soft fall” because it was “15,000 room nights short for September-October”.

Those two months are traditionally the slowest period in the Bahamian tourism cycle, and Mr Markantonis said of the year-over-year group decline: “That’s more of a timing issue. It means our occupancy numbers will be in the mid-30s [per cents] rather than the mid-40s.

“What we have to do is control our costs over that period and encourage as many people as possible to visit in those months. There’s very few people travelling.”

Despite short-term weakness, Mr Markantonis indicated that Atlantis’s long-term group bookings picture was much brighter. “It’s far out, but 2015 looks good,” he said.

“The only thing you can judge it on is room nights for groups. I believe we might be 100 per cent higher in definite group room nights for 2015 than we were last year for this year. The group room night temperature reading is very positive.”

Mr Markantonis said group bookings accounted for about 25 per cent of Atlantis’s business, and were “critical” in providing an advance core business base that allowed the property to “yield rate” for leisure travellers and other business categories.

Indicating that the market continued to suffer from soft demand and pricing, Mr Markantonis added: “Our rates are probably a little bit lower than last year - about 2 per cent. It’s where we have to price ourselves to get the business coming in.”

Still, the Brookfield Hospitality chief reported a positive consumer reaction to its recently-opened new attractions.

“It’[s just doing great. Gangbusters, to be honest,” Mr Markantonis told Tribune Business of the new Olives restaurant. “We had a remarkable Labour Day weekend, getting a lot of support, and it’s doing exceptionally well.

“It’s also very popular with locals. They’re doing between 400-500 orders every evening. It’s ramping up.”

Meanwhile, the new $6 million casino sports book, operated by Cantor Gaming, is set to open softly this week with a grand opening scheduled for October.

“It’s just fantastic and has lived up to all our expectations,” Mr Markantonis told Tribune Business of the new facility. “It’s state-of-the-art and better than many in Las Vegas. We’re very excited to open up that side of our operations.”

Mr Markantonis added that Atlantis’s casino gaming expansion was “not being held up in any way” by the Government’s delay in bringing proposed legislative reforms to Parliament, and the resort was “confident” the issue will be addressed.

Confirming that Atlantis would again enjoy a $40-$50 million capital improvements budget for 2014, Mr Markantonis said the resort was currently prioritising which projects it would tackle.

He added that the One & Only Ocean Club’s performance was “also up a bit” compared to 2012.

“We had a slower start to the year, but have had a very good last three months,” Mr Markantonis told Tribune Business.