The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Port Lucaya Marketplace's principal yesterday said he and his tenants were enduring "a nail biting" time with just 50 percent of stores having re-opened amid the wait for tourism's post-COVID restart.

Peter Hunt told Tribune Business that tenants were receiving 40 percent discounts on their normal rental payments as he warned that Grand Bahama faced "a slow death" without the rebuilding of its international airport and re-opening of its major resort.

Arguing that both are "key to the island's survival", he added that the Government could not afford for Grand Bahama's sake to "wait" forever for the ITM Group/Royal Caribbean joint venture to close the Grand Lucayan's acquisition and begin their planned redevelopment of Freeport Harbour.

Sources familiar with developments, speaking on condition of anonymity, suggested the Government was now hoping to avoid giving ITM Group/Royal Caribbean a further extension and instead close the deal next month.

However, a further complication is that the joint venture has yet to close the arrangement with Hutchison Whampoa-controlled Freeport Harbour Company for the harbour, and does not want to commit to sealing the Grand Lucayan's purchase until this is closed.

Mr Hunt, though, argued that the Government will have to intervene to both acquire Grand Bahama International Airport from Hutchison/the Grand Bahama Port Authority (GBPA), and reinvest to re-open the Grand Lucayan itself, if both situations continue to drag on.

Port Lucaya Marketplace and its tenants have traditionally relied heavily on Grand Lucayan guests, and Mr Hunt: "The stores that have been allowed to open, we're offering 40 percent off the rent and are currently undertaking a clean up of Port Lucaya with landscaping, painting and cleaning to give it a bit of a lift for when the cruise lines come back and the airlines start flying again.

"But a lot [of tenants] didn't want to open because they're saying there's no business. There's no cruise ships, no airlines and, more importantly, the Grand Lucayan is not off the ground. A lot of the businesses survive off tourists."

Mr Hunt said that while cruise passengers typically provided the volume and numbers, it was stopover arrivals that typically gave the Port Lucaya Marketplace the bulk of its spending, making it critical to address the airport and its post-Dorian rebuilding before The Bahamas' borders re-open to tourists.

"My personal suggestion to the Government is that they should buy the airport, open it and manage it," the Port Lucaya Marketplace chief added. "They should also reinvest in the Grand Lucayan and re-open it. The longer that stays closed, that is the slow death of Grand Bahama and the island goes slowly down.

"I think the Government should re-open that resort and re-open the airport. I do think that's key to the island's survival. My tenants are saying to me that the airport and Grand Lucayan has dropped their revenue by 50 percent even though COVID-19 closed us down. That's why I'm hoping the Government will say we can't wait on ITM/Royal Caribbean for ever."

Emphasising that he was not blaming the Government, and acknowledging it has multiple competing priorities as a result of COVID-19 and Dorian, Mr Hunt nevertheless warned: "We're biting our nails here. How long can local businesses and Bahamian companies survive?"