The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Cabinet minister yesterday hailed Carnival Corporation's $100m Grand Bahama port deal as "monumental" for breaking the model of cruise line control at their private destinations.

Dionisio D'Aguilar, minister of tourism and aviation, told Tribune Business that the agreement was "transformational" in that it will create Bahamian-owned small and medium-sized businesses inside the planned port.

He argued that this would provide a break from the cruise industry's traditional private island and destination model, where it typically "controls" the guest experience via a vertically-integrated business model that sees it profit from virtually all transactions that occur.

Besides creating a "more convenient" gateway to Grand Bahama for millions of additional visitors per year, and providing 1,000 direct and indirect jobs, Mr D'Aguilar said the Heads of Agreement signing had occurred at a time when the island was especially in need of an economic lift.

He added that the devastation inflicted by Hurricane Dorian made Carnival's largest-ever private cruise port "so much more important", and said its "unflinching desire" to proceed in the Category Five storm's aftermath represented "a boost of confidence" for Grand Bahama and the wider Bahamas.

"This transaction, this new port in Grand Bahama, is monumental in many ways," Mr D'Aguilar told Tribune Business. "First of all, it expresses confidence in Grand Bahama by the Carnival Corporation - to be investing as much as they're investing, $100m in a completely new port which provides at least 1,000 jobs in terms of direct and indirect employment, and getting it up and running.

"What's transformational about this deal is they're creating businesses for Bahamians to own in the port. Unlike other ports, where much of the experience is controlled by the cruise companies, and involves vertical integration where the cruise companies benefit from all transactions that occur, this [ties in] to a major population centre.

"So the economic impact is substantially greater, and all businesses in the port are owned and operated by Bahamians. Third, it provides a venue, a point, from which vast amounts of tourists can begin to experience the island of Grand Bahama in the sense that the location is far more convenient than before."

Carnival's cruise port was initially destined for Dorian-ravaged east Grand Bahama under the former Christie administration, but it is now to be developed on 329 acres of land at Sharp Rock that is owned by a combination of Grand Bahama Port Authority (GBPA) affiliate, Port Group Ltd (the Hayward and St George families) and the Grand Bahama Development Company (Devco).

"This is going to create a lot of opportunities for small businesses in Grand Bahama to benefit from a significant amount of additional visitors coming to the island," Mr D'Aguilar reiterated to Tribune Business.

"This is a monumental deal and monumental agreement in many ways.... We've suffered a setback with the storm, which makes this deal so much more important. The fact Carnival has been unflinching in its desire to continue on is a boost of confidence for the island of Grand Bahama."

The Prime Minister, speaking at yesterday's signing ceremony with Carnival, said the Heads of Agreement for the new $100m port - as well as the $80m expansion of the Half Moon Cay private island used by its affiliate, Holland American Line - will be tabled in the House of Assembly once parliament returns in early October.

Carnival's plans for its $100m port, as unveiled by Dr Hubert Minnis, sound eerily similar in some respects to what Global Ports Holding is proposing for its $250m transformation of Nassau's cruise port.

This especially applies to Carnival's plans for an open-air concert, or entertainment facility and amphitheatre, which will host day and night-time events, musical concerts and other live performances - exactly what Global Ports Holding intends to build on Nassau's waterfront.

Carnival, meanwhile, also plans to develop aquatic facilities, a lighthouse and fort structure, and food and beverage pavilion at its Grand Bahama destination. It will also feature a "Harbour Town" plaza with shops eligible for duty-free status on approved goods sold to cruise passengers.

A Junkanoo Bahamian art plaza of Bahamian-operated stores; facilities for recreational and sporting activities, such as a zipline and rock climbing walls; ski lifts and water slides; beach volleyball, basketball, soccer, a yoga pavilion, walking and bicycle trails, an 18-hole miniature golf course and park areas will also feature prominently at the development.

Tams, trains, ferries and other vehicles may be used for transportation within the port, while a transportation hub with parking stations and areas for land tour/shore excursion buses, vehicles, taxis, rental cars and related transportation operations will also be built on site following consultation with tour operators in Grand Bahama and the Grand Bahama Taxi Union.

"There will be significant opportunities for business development and entrepreneurship by Bahamians. The new port will result in greater Bahamian ownership in terms of a range of business opportunities," said the Prime Minister.

"In order to rebuild Abaco and Grand Bahama we have to spur economic development throughout the country. We must also accelerate economic projects on Grand Bahama and begin rebuilding on Abaco as soon as is possible."

As for Half Moon Cay, the expansion includes construction of a cruise pier and supporting facilities. Beach restoration, restaurants and nightclubs, a shopping plaza, sports and entertainment facilities, nature trails and the development of a park and/or natural reserve areas are included in the plans.