By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The deputy prime minster yesterday voiced optimism that Grand Bahama will enjoy "quite significant" economic activity during 2020 despite its ongoing recovery from Hurricane Dorian's challenges.

K Peter Turnquest, who is also the east Grand Bahama MP, talked up the island's short and medium-term prospects by telling reporters: "Despite it all we are still very confident that we're going to have some positive developments in Grand Bahama.

"As you know the [Carnival] cruise port is still on track. The sale of the Grand Lucayan, while delayed, is moving forward closer and closer towards conclusion. The airport is open again, not to the standard that we're used to and what we need, but at least we are able to accept international flights now."

He added: "Surprisingly to some, the residents in east Grand Bahama, the businesses in east Grand Bahama, are opening and are interested, in fact eager, to reopen and to expand. Again, power being one of the limiting factors in that.

"So I think overall, when you look at the businesses reopening as well as the tremendous amount of construction work that is going to be required to restore these homes and communities, I think overall the economic activity we are going to see over the course of this year is going to be quite significant and it may surprise some."

Mr Turnquest acknowledged that the Government's year-end target for selling the Grand Lucayan to the ITM Group/Royal Caribbean joint venture had not been met, and said: "Again, it is moving forward. I don't know the specific timeframe at the moment. But I know that the major issues are resolved, and so it's just a matter now of tidying it all up and getting it done." He declined to give a revised timeline.

The Royal Caribbean/ITM project, which involves the creation of some 2,000 jobs via a $195m first phase investment that includes the $65m resort purchase price, is among the projects the government is banking on to revive the Bahamian economy post-Dorian and return it to 2.1 percent growth by 2021.

The development was branded "a game changer" for Freeport's economy when revealed by this newspaper earlier this year, as it promises a revival of the tourism industry that could - together with Carnival's $100m cruise port - help drag the city out of a 15-year slump.

"The project is poised to act as an economic stimulus to Grand Bahama, bringing approximately two million passengers annually to make use of the associated facilities which will include a five-star hotel property, water-based family entertainment, as well as dining, gaming and other entertainment options," the government's just-released Fiscal Strategy Report said.

"The additional cruise passengers will also present an opportunity for local vendors, taxi drivers, arts and crafts artisans and other souvenir businesses to benefit from increased sales. Negotiations to finalise this sale are expected to be completed by end-2019."

The government is also likely to be extremely eager to exit the resort ownership business, and get the Grand Lucayan off its books, given the $43m that it pumped into the hotel to cover its operating losses and other costs during the 2018-2019 fiscal year.

Selling it will also reduce its contingent liabilities by some $35m. While the $65m purchase price may not recover the government's entire Grand Lucayan outlay upfront, it will be hoping that the increased economic activity and extra employment created by the Royal Caribbean/ITM project will more than offset this on the back end.

Mr Turnquest, meanwhile, said of Grand Bahama International Airport's status: "The airport is operating, and they have reopened for evening flights, which is wonderful thing for us because that was a very limiting factor.

"We are receiving flights from Sunwing out of Canada, Silver Airlines out of Florida and Bahamasair. So things are staring to come back. We still don't have an American Airlines yet, but we anticipate they will come along soon."