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Gov’t close to deal on Club Med re-opening

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The deputy prime minister yesterday revealed the Government is close to “an agreement in principle” with Club Med for the winter 2022 re-opening of its San Salvador resort property.

Chester Cooper, also the minister for tourism, aviation and investments, told reporters ahead of the weekly Cabinet meeting he was also confident that the now-closed British Colonial property in downtown Nassau will be “back on stream” in time for The Bahamas’ next winter tourism season.

Speaking to the re-opening of Club Med, he said: “Club Med is in the Prime Minister’s constituency. He has given me a mandate along with a [Cabinet] sub-committee to see the reopening of Club Med in time for the winter season. We’re working in that direction.

“We have almost reached agreement in principle with the owners of Club Med to cause that to happen. There are significant infrastructural adjustments that the Government is already committed to inclusive of an ambulance, fire truck, certain adjustments at the airport, certain repairs at the airport, certain adjustments in relation to Water and Sewerage capacity, certain adjustments in relation to BPL (Bahamas Power & Light) capacity.

“So we have already committed to everything that we need to do. We have one follow up meeting before, I believe, shovels in the ground, but I am confident this is going to happen. I mentioned this is in the Prime Minister’s constituency. He’s asked me to get it done, and it will be done.”

Tribune Business reported last month that the Government was working closely with Club Med and its owner, Fosun International, the Chinese conglomerate, to have the Columbus Isle property re-opened before the company’s October 2022 target.

Club Med terminated 190 staff, including 172 union members, in early January 2021 as it reaffirmed its decision to shutter the Columbus Isle property due to COVID-19’s devastating impact on global travel and tourism. No re-opening date was given at that time, and Club Med’s website still has October 2022 as the time when operations will resume.

The closure had a traumatic impact on San Salvador’s economy and wider community, as it provided the island’s major source of employment as well as spin-off entrepreneurial activities and jobs associated with those. Club Med, though, cited several factors behind its decision to close the Columbus Isle resort during the COVID pandemic’s 2020 peak.

First, it said the property’s remoteness and lack of healthcare infrastructure could endanger guests and staff if an outbreak occurred. The San Salvador property also catered to a significant number of European guests, and outbound travel from that continent was heavily curtailed by lockdowns and border closures in 2020-2021, meaning that its customer base had largely dried up.

Dionisio D’Aguilar, former minister of tourism and aviation, in 2020 admitted that the Government had a “difficult mountain to climb” to persuade Club Med to re-open before 2022 due to San Salvador’s limited airlift and healthcare capacity.

Turning to the British Colonial, and efforts to secure a replacement for the Hilton as the downtown resort’s brand/operating, partner, Mr Cooper said: “All I can say in relation to the British Colonial hotel at this point is that CCA (China Construction America), the owners of the property. are committed to the ongoing re-opening and operation of this property.

“They understand the iconic nature of this property, and the significance of it to tourism and Bay Street, and they have committed to the Government that this hotel will re-open. That’s all I can say at this point. I spoke to it in the House of Assembly the other day, and I have - based on what I know - confidence that a renovated property will be back on stream for the winter season.”

The British Colonial closed in February after the Hilton brand did not renew its partnership with CCA, leaving around 120-130 staff out of work. Some have been hired in by Sandals’ Royal Bahamian and Emerald Bay properties, Mr Cooper added.

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