The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Freeport hotelier has backed the Government’s “aggressive” approach to reviving Freeport’s tourism industry and wider economy, saying: “Maybe that’s what’s needed.”

Magnus Alnebeck, Pelican Bay’s general manager, speaking before Chester Cooper, deputy prime minister, revealed that the Government is trying to narrow the field of Grand Lucayan buyers from five to three, said Freeport was “in a horrible state” and in desperate need of a boost from renewed energy and economic activity.

Backing Mr Cooper’s desire for “shovels in the ground” given that it would signal to potential investors that Freeport is open for business, he asserted that the city’s economy could enjoy a rapid turnaround once construction activity is triggered.

The deputy prime minister, in his recent address to the Grand Bahama Outlook, unveiled aggressive timetables for dealing with both the Grand Lucayan’s sale and the Grand Bahama International Airport’s redevelopment. For the former,he said the Government had set an April target for closing sale negotiations with a preferred bidder, while a 30-day Request for Proposal (RFP) seeking a private partner to transform the airport launched yesterday.

Many observers regard the deputy prime minister’s timelines as unrealistic, but Mr Alnebeck argued: “It’s aggressive but maybe that’s what’s needed.... There is no doubt that Freeport is in a horrible state at the moment. It really needs an energy boost, and it needs economic activity.

“I can only say that it is great they are pushing it ahead, and if they start doing something with the airport and try to get pre-clearance back it shows there is an interest from the Government of The Bahamas. That in itself is a valuable signal to any investor. What happened over the years is that the owners of the airport (Hutchison Whampoa and the Grand Bahama Port Authority) did not show an interest in it.

“I think it’s great that the Government is taking an aggressive approach to it and trying to move it in the right direction at this point in time. The signal that is sending is extremely important. If the Government says let’s wait and see what happens with the hotel before they do the airport, that will not send an aggressive signal that will make people feel comfortable,” he continued.

“The aggressive approach is great. Whether it comes off and that, of course, is finding the right kind of people [to buy the Grand Lucayan]. They are evaluating the bidders’ plans, and I think it is great that they are focusing on the vision as opposed to the dollar amount they are prepared to pump into the hotel. The long-term standing, and long-term benefits, are dependent on people with good ideas.”

Praising the Government for trying to change the mood around Freeport, Mr Alnebeck said: “At least there’s some positive talk at the moment. We’re not seeing anything on the ground, but the deputy prime minister said how important it is to put shovels in the ground. I’m one of those people who will believe it when I see it. When the day comes, seeing physical activity, seeing construction activity, then you will see a boost in confidence that’s very important.”

The Pelican Bay chief said the Grand Lucayan had largely been closed for five years after Memories pulled out following Hurricane Matthew in October 206. Warning that the resort will be hard to revive if left in its current state much longer, he nevertheless said a turnaround could take place rapidly under the right owner, pointing to the impact from Baha Mar’s resumption following its Chapter 11 bankruptcy and receivership woes.

Mr Cooper, in his Grand Bahama Business outlook address, suggested that the Grand Lucayan will be “fully on stream by 2024”, with parts of the redeveloped property open sooner. He pledged that the Davis administration would be just as swift in moving to repair Grand Bahama International given that its status as the island’s leading stopover gateway is vital to the Grand Lucayan’s success.

The Request for Proposal (RFP) process, seeking an investor to transform the key infrastructure asset via a design, finance build and manage private-public partnership (PPP), will launch on March 28 with bids to be submitted within a tight 30-day deadline.

Promising that the Davis administration “will not tarry” or delay in efforts to revive Grand Bahama’s economy, Mr Cooper said he had also reiterated the Government’s support for Carnival’s Grand Port project at Sharp Rock to the cruise line.