Prime Minister Dr Hubert Minnis touring the Grand Lucaya Resort.
By DENISE MAYCOCK
Tribune Freeport Reporter
PRIME Minister Dr Hubert Minnis said Hutchison Whampoa has responded to the government’s offer to purchase the Grand Lucayan resort, which is “pivotal to the survival of Grand Bahama”.
While he did not elaborate on the response received, he said the government has referred the communication to the Office of the Attorney General for the lawyers to “work out something” on the critical deal.
Dr Minnis, along with Minister of State for Grand Bahama Kwasi Thompson, toured the property on Friday and was very pleased with the condition of both the Memories Resort and Lighthouse Point which sustained minimal property damage from the recent hurricane.
When asked about the casino, he said that it was not a priority right now for his government.
“We are taking one step at a time,” he said. “Right now, I am trying to save jobs, and I am trying to save an economy; I am not concerned about gambling right now. Right now, Grand Bahama is suffering, from the early ‘90s, and I want to relieve that pain at this particular time.”
Dr Minnis said that the island’s straw vendors, bus and taxicab drivers have expressed to him the hardship they face in paying their mortgages and utilities.
“What is most important and instrumental to their survival is the hotel, and that is why the government put forth a proposal to purchase the hotel. We think it is essential to save Grand Bahama, but before we purchase, we wanted a tour to look at the hotel,” he said.
Veronica Clarke and Graham Torode, CEO of Grand Bahama Development Company, which is owned by Hutchison Whampoa, took Dr Minnis on a tour of the property.
While Breaker’s Cay requires significant work, Dr Minnis noted the 400-room Memories Resort is in good condition with minimal damage.
“I think we can do minimal work to get that going,” he said. “That will have great impact and survival of the marketplace, bus drivers, and taxis and Grand Bahama, so I think we will concentrate on that.”
The prime minister indicated the government has got a commitment from the Celebration cruise line to resume sailing to the island in December, and introducing a second ship in April.
“So that would be two vessels, so it is essential that we have the rooms to accommodate Celebration. And so we will concentrate on Memories and Lighthouse so that we will have a room inventory of approximately 700 rooms and that would suffice at this particular time, but the most important thing is to save that which is pivotal to the survival of Grand Bahama,” he said.
Senator Thompson said the hotel is the centre of the tourism industry in Grand Bahama.
“It is important as leader of the country to see for himself what the state of affairs is with the hotel,” Mr Thompson said. “As PM has said, this is really the catalyst for our tourism product.
“We know things are slow and we know it has not been the way it should. But we thought it important he come down. The government has made an offer, and we are waiting to hear from those partners, and we will continue with those discussions as quickly as we can.”
Mr Thompson said the prime minister also met and spoke with some residents to hear their concerns.
“The PM has decided that one day out of month he will be working in Grand Bahama. So it was really important that he … meet with residents to hear their personal stories,” he said.
While on the island, Dr Minnis stopped at Wendy’s where he had breakfast and met with residents. He also went to Port Lucaya and spoke with the straw vendors there.
“Tourism is very important to the Bahamas, and it was important to him to hear directly from straw vendors,” Mr Thompson added. “He met with them and shook their hands and heard their stories. He spoke to the bus drivers and taxi drivers. And it was important for the leader of our country to come and hear the personal stories of those in Grand Bahama.
“One of the things we have to do is work as hard as we can to get this property back up and running. It is important for not just the tourism industry, but also for the residents of the island to benefit from this hotel,” said Mr Thompson.
Last weekend, Minister of Finance and Deputy Prime Minister K Peter Turnquest said the government’s bid to acquire the Grand Lucayan resort will “not throw the budget out of whack,” expressing hope it can be partially re-opened for the 2017-2018 winter season.
Confirming that the Minnis administration was now awaiting a response to its offer from Cheung Kong (CK) Property Holdings, one of two main entities into which Hutchison Whampoa has split, Mr Turnquest indicated the government could not wait any longer for private sector bids to gel.
“Right now, we think this is the best offer available to us,” he told Tribune Business. “There have been other companies trying to purchase the property, but where they are and how soon we would see something happen, I don’t know that. The government is trying to be proactive and advance our position at least.”
The Grand Lucayan closed last October after sustaining severe damage during Hurricane Matthew, negatively affecting tourism on the island.
Comments
birdiestrachan 7 years ago
May the Good Lord help the people of Grand Bahama. with out wisdom the people perish.
TalRussell 7 years ago
Comrades! Highly qualified to examine a vagina, yes. But to examine anything involved with buying a hotel, impossible to envision,,,, or so you thought until a picture worth more than a 1000 words, did surface here on this hereto Tribune's blog page.
Freeporters, after listening to what Minnis had to say about Christie buying a hotel - who could've predicted that within less than six-months into their governing mandate the same red shirts cabinet is to use the public purse to become a buyer of their 'first' hotel? { Too unbelievable tall tale to have made up to offer as a Hollywood movie script }.
bahamianadvocate 7 years ago
Terrible terrible mistake! He should not be risking the taxpayers money! Although Minnis may feel as if his government will be fiscally responsible with this acquisition, he cannot assume the same for successive governments. This will easily become the next Bahamasair or BEC.
Well_mudda_take_sic 7 years ago
Whereas many medical doctors become afflicted with an inflated sense of power, ego and self-worth known as the Godlike Complex, many political leaders fall victim to a very similar thing better known as the Moses or Saviour Complex. It is now abundantly clear that Minnis is suffering from a double-whammy of both of these complexes, to the point where he is no longer capable of rational thought.
The Hutchison Whampoa Group is in the business of making money for its owners who are greedy capitalists. This is why the HW Group as a whole is very profitable. If they do not believe they can re-open the Grand Lucaya Hotel and contain/control its operating losses in the near term, with a view to it becoming profitable sometime in the future, then how on earth does Minnis think government can possibly do so?! For decades now our governments, whether PLP or FNM led, have been operating everything they own and control at great losses to the Bahamian people. Minnis is obviously ignorant of the fact that hotel enterprises are a very high stakes business fraught with many risks that require deep pockets. He should cast his mind to the ongoing Baha Mar financial debacle for a moment. He is also ignorant of the fact that there are many other problems associated with the Freeport economy that the government should be tackling so that qualified foreign investors with deep pockets do not shy away from submitting bids for ownership of the Grand Lucaya Hotel. We, the people, must ask ourselves why in the hell is Minnis so anxious to have us - the Bahamian people and taxpayers throughout the Bahamas - effectively bailout a financial giant like the Hutchison Whampoa from a significant loss-making investment rather than forcing the property to be either fully re-opened by its current owner or sold by the government to the highest qualified bidder in a public (state run) auction, to be held by a certain date, with the net proceeds going to HW?! Minnis is deceiving himself if he thinks he can buy this hotel and turn it over to a professional hotel operator and thereby contain/control the significant operating losses. Everyone over the age of 50 remembers the huge losses and national borrowings that the Hotel Corporation of The Bahamas incurred of many decades. I would highly recommend Minnis find a well qualified psychiatrist to treat his Double-Whammy God & Saviour-like Complex before he blows up what little is left of our nation's financial standing in the international community!
By the way, Minnis should tell us whether The Hutchison Whampoa Group is expected to become a big source of funds for the political activities of the FNM if the Minnis-led FNM government proceeds to financially bailout HW by taking ownership of the Grand Lucaya Hotel. We, the people, want the transparency he promised us, especially if there is a major conflict of interest behind this most illogical deal!!!
scampi75 7 years ago
Anyone criticizing the Governments motives here must be In-Bahamian! There is nothing more important to Grand Bahama right now than to open these hotels and the people back to work. An exit pan has already been discussed which is the right way to go!
Well_mudda_take_sic 7 years ago
Ahhh yes, the exit plan. Many of us remember well how that went down with the hotel properties that were once owned by the Hotel Corporation of The Bahamas. Our nation ended up with untold millions and millions of dollars being added to our national debt back then, which we are still struggling to recover from to this very day!
bahamianadvocate 7 years ago
If an exit plan is being discussed before a purchase has even been made then obviously it is not a good investment.
TalRussell 7 years ago
Comrade BahamianAdvocate, strange when the only "KP Exit" plan there is to take the taxpayers out debt - just happens be that terribly bad investment hotel in Freeport? {Even the late Wallace Groves, wouldn't thought of selling the UBP's minister of finance Sir Stafford, some badly in need of repairs, and lots paying tourists Freeport hotel }. Should I even mention how this hotel purchase goes so against how Minnis, KP, Jeffery, Marvin and Dionisio, were so aggressively campaigning against Christie's involving the public purse out at Cable Beach...or is this "Trump" lost on the rest of you who voted for the red party? Tell me, has you reds ever before laughed at the 'bonkers' theatrics put on to entertain us by the Three Stooges, Moe, Larry, and Curly?
sheeprunner12 7 years ago
Just give the hotel to Sarkis Izmirlian ............ and let the man do the rest
Well_mudda_take_sic 7 years ago
Sarkis would not be the least bit interested in acquiring the Grand Lucaya Hotel. The strangle hold on Freeport by the Grand Bahama Port Authority and Hutchison Whampoa would make it impossible for any third party investor or our government to avoid huge operating losses from the ownership of that hotel.
sheeprunner12 7 years ago
That is why the Government needs to terminate the HCA ....... smt
screwedbahamian 7 years ago
Since Bank of Bahamas transferred all the Delinquent Dead Political Loans to Resolve Recovery, Reconstruction and Forgiving Corporation, and NIB does not have to fund them any longer, plenty money now in NIB that has to fund some sort of losing projects and maintain the Bahamas Government Financial reputation. Also, if I recall correctly VAT was to be implemented at 15 percent, but now only 71/2 percent and the Rating agencies and IMF have recommended Personal and Business Income Taxes, we going shopping. The Bahamas Government has a long track record in business Ownership and Management.
FreeportFreddy 7 years ago
TAKE A DEEP BREATHE!!!
The properties that are involved in this are 3 hotels; 1 casino; and 2 golf courses. To have a consortium of the best operators there needs to be a HUGE amount of negotiation and 'back and forth'. This takes time ... which is not available to Grand Bahama as it is getting to the tipping point of 'too far gone'.
I BELIEVE that the government strategy here is to purchase it from HW (don't get me going on them!!!) and then piecemeal it out to the operators in order to hasten the regeneration of the strip/island.
This is ESSENTIAL to the economy of GB as well as The Bahamas. Otherwise everyone will be forced to move to New Providence and that would create another set of issues.
PLEASE support this move by the new government!
TalRussell 7 years ago
Comrade FreeportFreddy, my understanding of the purchase by the government is that it 'excludes the casino' - which doesn't add up?
ThisIsOurs 7 years ago
Can't get over the feeling that all of this is a campaign tour. Wondering what his presence in GB will accomplish over a conference call? Will the other islands demand his presence to get things done in their local communities? Does this undermine the local minister? What's their purpose if Dr Minnis has to come there and do it himself? This isn't what a CEO does, he lays the vision, delegates and gets those responsible to report on the work.
If it works I suppose none of these concerns matter. I really hope it works, no time for campaigning.
bogart 7 years ago
The private sector knows best.
Where exits should have been made is Bahamasair.....BEC...Water and Sewage....Development Bank, !,,Mortgage Corporstion....Bank of The Bahamas.....and where it should have kept is Batelco...Govt is not good at buying or selling. Total a,mounts especially in Bank of the Bahamas have cost us dearly and yet noone has been charged and o It seems ecpected that all loan customers were to blame. Instead the new govt bailed out BoB and politically changed Board Of Directors. Looking at spending some 110 milliom to buy is a lot less than pumped into BoB and fron results it might be better to look at giving the money to start up variois ventures with the private sector instead where the mathematical probability of success is greater.
TalRussell 7 years ago
Comrades! Sometimes you need slow down and ask if its possible that God is against Freeport? Freeport was to be that new magically city created to restrict access to blacks who were not welcomed without a need be there for work, but exit the gates quickly after your work shift was over? Personally, God might not forget - until those connected to the genes of demons of the past Barron's - have made their final exits? What's missing from Freeport, is Freeport has yet to graduate to the neighbourhoods of the natives. Even some the blacks behave likes they is some kinds transplanted from the capital city plantation owners.
Well_mudda_take_sic 7 years ago
Here's how this very foolish proposition by Minnis is going to play out:
1) Government will grossly overpay Hutchison Whampoa for the hotel properties.
2) Government will then have to pay an arm and a leg to the operator(s) it hires to operate and manage the hotel properties.
3) With no ownership skin in the game, the hired operator(s) will only be interested in their operating and management fees with no incentive to mitigate the massive operating losses that will be for the account of the government (no reputable hotel operator would dare take on the risk of having their fees tied in any way to the occupancy rates or loss making performance of these hotel properties).
4) The government will quickly rack up massive unsustainable losses from its ownership of the hotel properties and be forced to try find one or more buyers.
5) Government will find, as Hutchison Whampoa has found, that it is unable to sell the hotel properties without incurring a mammoth loss on its investment and without granting the buyer(s) enormously unreasonable giveaway concessions that would make the Red Chinese owners of Baha Mar very green with envy.
6) Bahamian taxpayers get left royally screwed by all and sundry with mega millions and millions of dollars added to our annual deficits and national debt, and with Grand Bahama ending up no better off because of the government's failure to address the real reasons why Hutchison Whampoa was unwilling to re-open and operate the hotel properties in the first place.
Yes indeed....Bahamians all over the Bahamas must ask: "Why is Minnis so willing to flush our nation down the proverbial toilet by buying these loss making properties at an exorbitant price from Hutchison Whampoa, a deep pocket Red Chinese conglomerate?" No right minded government would ever do this! As the saying goes, something smells rotten in the state of Denmark and it's not the Danish Blue cheese!!
sheeprunner12 7 years ago
The GBPA and HW have no motivation to sell the tourism infrastructure in Freeport City ........ That is why the Government needs to force a sale of the GBPA or Hutcheson or both to really see a shift in GB/Freeport City ........ or shift development to the East and West and buy back the Airport and Seaport so that the communications can be freely accessed by the Government agencies and GB investors ....... something has to give.
Well_mudda_take_sic 7 years ago
Government forcing HW to either re-open the Lucaya hotel properties or offer them for sale at a price low enough to attract foreign buyers is one thing. But government bailing out HW by buying the loss-making properties at an exorbitant price is entirely different thing. Questions to be asked and related matters to be fully investigated include the following: (1) How did government so quickly arrive at the price that it bid? (2) Why is government the only bidder at the exorbitant minimum reserve price being demanded by HW? (3) Why would government submit a bid without first having identified suitably qualified and reputable hotel operators that would be willing to manage the properties, and without having agreed in principle the key terms under which they would operate and manage the properties for government? Is HW currently a major contributor to the FNM party or expected to be one in the near future? Was HW a significant funder of the FNM party's last general election campaign? All of these questions must be answered by Minnis who promised his supporters time and time again during the last general election campaign that his government would set the gold standard for transparency in doing the people's business.
TalRussell 7 years ago
Comrades! The not so Rt. on this bad hotel purchase, PM Minnis, does not need an 'exit plan' to get away from some stinky hotel purchasee, What is urgently required is a immediate plan to' finish breaking' that economic slavery and plantation-like 1955 Hawksbill Creek Agreement. For sure the Chinese is not a trusted partner in the eyes of Freeporter's.
You might want ask exactly, how badly has Freeport suffered under the sinful mismanaged by its private controllers and consecutive governments wearing all kinds party colours t-shirts - beginning with the one with the UBP's 'put your backs to the wheel'' party's logo on them...... Mismanaged so fish smelly rotten from the head down stinky that the 'Numbers People' have emerged as the only people in Freeport who are making a daily cash flow killing and they're making it right out the pockets of a financially strapped customer base..... the poor and near poor Freeporter's.
May God have Mercy on ya red soul! .
birdiestrachan 7 years ago
Never mind doc, he makes promises he has no intention of keeping, Some years ago under the FNM he took a bus tour with the press in tow. he was pointing out the land where the new hospital was being built in Nassau. that was the end of that a Kodak moment , The Bains Town tax free Zone statement nothing else. VAT removal talk cheap talk. he moves on a make new promise It means Nothing, Nothing at all.
proudloudandfnm 7 years ago
Just open the damned hotels! We can deal with issues after. Just ooen those hotels ASAP. Freeport cannot possibly last much longer..
Reality_Check 7 years ago
Freeport is dead for many other reasons - not because these hotel properties shutdown. The hotel properties shutting down and not re-opening is a symptom of Freeport's more serious problems, but certainly not the cause. Stop and think for just a moment. What on earth does Freeport have to offer tourists compared to so many other competing destinations in the Bahamas and Caribbean at large? Freeport was always intended to be developed as a commercial/industrial community. Nassau can barely compete for tourists in our region of the world with the unsightly monstrous hotel developments that it has, namely Atlantis and Baha Mar with the latter still struggling to show its viability.
bogart 7 years ago
Brilliantly Diagonosed that Grand Bahama has been suffering from the early 90s.
Any economic stimulus from the govt part must be coupled and augmented by the govt investogating predatory banking activities and exceptionally high banking fees that strip any gains the community makes. Much of the new employment will directly go to the banks .......All Bahamians should not make sacrifices to Grand Bahama only to have the employed and families go to the banks and profits leave through the back door....and before business go to Bank of the Bahamas there should be a forensic investigation into its banking and anyone responsible for fraud punished so that business will go to build a healty bank. .?All banks need to be examined on the past mathematical calculations and other in granting loans and marginonal loans given without anyone looking out for the customer. And the use of mandated Indemnity insirances to protect loans. Indemnity insurance should have been restricted as in the hurricane senario which would have massive destruction as happened and the placing of massive teal estate fpr sale is impractical and common sense for it to work or beneficoal. Another banking practice to investigate. Also needed is to check if mortgages are underwater in that customers are paying for loans and the value of the home is now so much less than the loan balance. Any stimulus has to be benefocial on a number of fronts moreso for the people.
Since the 90s some 27 years later many Grand Bahamians now reside in Nassau.
Kudos to Dr Minnis for forward movement
Reality_Check 7 years ago
Get real! See my posting immediately above yours.
bogart 7 years ago
Dead for many reasons I fully agree.....Harbour is an industrial Harbour.....electricity prices drive away investors, HawksBill Agreement needs revamping...full tax incentives outside of zFreeport....remarketing of the missile base movie business, abandoned plans for the new touirist port between Caravel beach and Lucaya on non Port land, abandonment of Ginn marketing, non use of West End airport, Banks selling huge amounts of foreclosed property by one dept and next dept lowering collateral value held by existing businesses to survive.....unused Bazzar which has already millions of marketing dollars spent....closure of free roadway in front of Kings Inn....Oasis, New hospital needed....etcetcetc.... I dont fully agree with the current plans and if its only the persons who came out who are siffering what about the thousands others siffering.. A bonus for the sellers ...a bonus for the banks...customers likely paying loans for houses nor wort the loan balamce....attract more web shop gamblers....more employment for people who know better will have them relocate to nassau to their friends and families.......and more money shuffled down. When you dont have mammy grammy will do ...after searching for 42 million and now having to spend 110 million plus.........this is an alternating situation how many govts have tried to change from over 30 years ago when Borco was closing laid off staff.....plus many Cabinets stuffed with Freeport residents in Ministerial posts, finance etc...and now a Deputy PM.....
BahamasForBahamians 7 years ago
Mark my words.
Hubert will have hard time defending this move from the RM bailey park in 2022.
M a r k m y w o r d s.
TigerB 7 years ago
It interesting the amount of comments coming from persons who don't live here. I do, and I appreciate what efforts are being done. Its not political, it about survival!
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