The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE DNA's ex-leader yesterday said government was "putting the cart before the horse" by acquiring the Grand Lucayan, as potential buyers will be deterred by Freeport's economic plight.

Branville McCartney told Tribune Business that the Minnis administration was likely acting out of desperation to preserve jobs, but warned that Grand Bahama's ailing economy could dampen its prospects of a quick exit by selling the resort to a private sector investor.

"There is a considerable amount of amount of money which will be required to keep the property maintained, and the Government is already broke as they say," Mr McCartney said. "Past administrations have proven that government owning hotels is not a profitable exercise. I think this is something the government is doing out of a feeling of desperation to create jobs.

"I think it's important they try to stimulate Grand Bahama's economy first. I think they are putting the cart before the horse in this instance. Right now there is no indication of a rebound for the economy of Grand Bahama. It is very possible the government can get stuck with that property for a while.

"I certainly hope that doesn't prove to be the case, as it would come at more cost to the Bahamian people. Any entity that seeks to purchase that hotel is going to want to see that the economy on Grand Bahama is growing to cause them to want to commit to making any significant investment."

Prime Minister Dr Hubert Minnis, following a tour of the resort on Wednesday, confirmed that the Government has made a $10 million down payment to acquire the Grand Lucayan. The purchase, which is expected to be completed within the next 30 days, will carry a $65m price tag.

Dr Minnis said that once the Government's acquisition is complete, an incentives package will be available to prospective buyers, the terms of which will be more favourable to Bahamians than foreign ones.

He said the Government plans to keep the 196-room Lighthouse Pointe open, which reopened in November 2016, and is considering re-opening the 400-room Memories property.

"The money they are spending purchasing the property could be spent to ensure there are sufficient beds at the Princess Margaret Hospital (PMH), medication and equipment. That there is an issue of life and death, so do I think the money could be better spent certainly."