The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Downtown Nassau Partnership's (DNP) co-chair yesterday said the $250m cruise port developer's decision to push ahead will provide a major confidence boost in "the darkest stages" of COVID-19.

Charles Klonaris told Tribune Business that despite the "quite bleak" outlook, with Bay Street and the city of Nassau "completely shutdown" due to the government-imposed nationwide lockdown, it was "only a matter of time" before tourism and commerce returned.

Arguing that it was critical to launch Prince George Wharf's transformation before the cruise industry revives, Mr Klonaris said the departure of many international banks and trust companies to office locations in western New Providence had left downtown Nassau reliant on tourism as its sole economic engine.

He suggested, though, that the area's lower rental rates will help attract law firms and small businesses back to the city in the pandemic's aftermath due to the lower rental rates on offer compared to areas such as Albany, Lyford Cay and Old Fort Bay.

"It's really important we get this new port underway," Mr Klonaris said, after Tribune Business revealed that Nassau Cruise Port is planning to raise up to $150m next month via a bond issue to finance construction activities. "I think that should play a major role in the redevelopment of the city.

"I feel they should be able to get the $150m they're trying to raise. We're in the darkest stages of this virus, and looking around it appears quite bleak, but I think we have to take the long-term perspective. I think bringing back confidence is key, and I think a shrewd investor will look at this long-term; not just for six months or a year.

"It's only a matter of time, I believe, before the city of Nassau re-opens. I can't say exactly when, whether it will be July or the end of the year, but our destination being the nearest will give cruise passengers more confidence knowing they're closer to the US," he continued.

"It's not going to be a quick turnaround; more a gradual process, but in the end the city will come back and in a better position than before." Besides the cruise port transformation by Nassau Cruise Port Ltd and its Global Ports Holding parent, Mr Klonaris said completion of The Pointe resort, construction of the new US Embassy, and the harbourfront boardwalk will all improve the downtown product.

"There's a lot in the air," he added. "How quickly everything co-ordinates and comes together, I don't have the timeline for that, but these are gratifying and important developments that bring more confidence to the city.

"It's a long road. The city's been shut down so there's nothing there at the moment. There's nothing in operation; it's a complete shutdown."

Mr Klonaris said downtown Nassau had arguably been hit harder than most sectors of the Bahamian economy due the departure of many financial services institutions to western New Providence, which had left the area almost totally reliant on cruise ship passengers and other visitors for commerce.

"The fact that the financial industry left the city has made it totally dependent on tourism and the cruise ships as the major contributor to the lifeblood of the city, leaving it without a more diverse business sector," he added.

"I believe that, down the road, you're not going to see so many foreign banks occupying office space but you may see more locals coming in whether it's small law firms, individual attorneys and start-up businesses owned by locals.

"They're going to see the city as more attractive because rental rates will be lower than Albany, Lyford Cay and Cable Beach. The rates there are incredibly expensive. There is an opportunity for downtown Nassau, especially if we get the port going again, to be a brighter spot with a more diverse, more stable and more local group of entrepreneurs."