The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamian entrepreneur battling to restore Paradise Island’s lighthouse yesterday accused Royal Caribbean of “trying to baffle us with massive numbers and future promises”, adding: “We’ve heard it all before.”

Toby Smith, the Paradise Island Lighthouse and Beach Club principal, who had been battling the cruise giant for the same two-acre Crown Land parcel until the latter reduced its footprint, again challenged its senior executives to produce studies showing how much of the economic activity generated by its passengers “stays in The Bahamas for the benefit of Bahamians”.

Responding to Royal Caribbean’s senior executives, who pledged that more than 60 percent of the 2.5m passengers they will bring to Nassau by 2027 will not go to the line’s Paradise Island beach club, Mr Smith told Tribune Business: “They’re trying to push this as a done deal without listening to the opposition of Bahamians, and it won’t succeed. Bahamians are smarter than that.

“We have now begun our 12th year [of seeking government approvals], and this is what Bahamians have to experience. I’ve been approached by many other Bahamians where they, too, are having to wait years and years which would amount to millions of Bahamian dollars being invested.

“But we’re placed as second class citizens behind those that want to waltz in and demonstrate that they are royal and should be fast-tracked and should be given our Bahamian land. I’m pleased to see Bahamians standing up and voicing their opposition to a foreign company waltzing in like they’re royalty. How do Bahamians benefit from a three-day Royal Caribbean cruise if one day is in Miami, day two is at Coco Cay, and day three is at sea and returning to Miami?”

Michael Bayley, Royal Caribbean’s president and chief executive, told Tribune Business earlier this week that the Royal Beach Club represents a “win-win” for all parties on the basis that it will enhance the Nassau “brand” and visitor experience, as well as providing increased Bahamian ownership, jobs and entrepreneurial opportunities through a first-of-its-kind tourism model.

Besides the Government converting the four Crown Land acres it is contributing into an equity stake in the Royal Beach Club, Bahamians will also be able to acquire an ownership interest by buying into an investment fund that will hold shares in the project. That equity raise will take place during the 2023 second half, once the Government’s Crown Land has been valued, and between the two they will hold a combined 49 percent stake in the Paradise Island development.

Disclosing that Royal Caribbean’s total investment in the Royal Beach Club, between construction costs and the acquisition of 13 acres of privately-owned land on western Paradise Island, is likely to total $175m when full build-out is complete, Mr Bayley told this newspaper that the cruise line is hoping to complete the environmental approvals process and obtain all necessary permits to proceed by year-end 2023.

This will enable construction to begin in early 2024, with the Royal Beach Club’s opening targeted for June/July 2025. Jay Schneider, Royal Caribbean’s chief product and innovation officer, yesterday told Tribune Business that the project will likely create “hundreds” of Bahamian jobs - “far in excess” of the 200 originally referenced by Mr Bayley - via the local entrepreneurs that will provide its retail, food and beverage, entertainment, water sports, security and other functions.

Mr Smith, meanwhile, has “reaffirmed” his project in response to the Government’s request that he “reapply” for the necessary approvals. The Davis administration took that stance after the Supreme Court ruled the Paradise Island Lighthouse and Beach Club principal did not possess a valid, binding Crown Land lease for the collective five acres he was seeking on Paradise Island’s western end.

Mr Smith, in a March 22, 2023, letter addressed to the Prime Minister, said he had “brought proof of financing” in excess of $7m with additional investors seeking to get into a project requiring just a $3m outlay. Calling on the Government to honour the original lease that was drafted under the former Minnis administration, he added: “Our Bahamian enterprise is overdue for success.”

“In our recent meeting on March 2, 2023, you instructed me to ‘reapply’ for the Paradise Island Lighthouse and Beach Club project,” Mr Smith wrote in his March 22 letter to Philip Davis KC. “I write to you to reaffirm Paradise Island Lighthouse and Beach Club’s all-Bahamian project on Paradise Island.

“As you are aware, we originally applied on April 12, 2012, and to this day continue to remain steadfast in bringing this project to fruition. It started out as a $2m project and is committed to invest $3m. We are ready to commence. We have brought proof of financing for our commitment to you in excess of the $3m the project calls for to the tune of more than $7m.

“We also have additional investment dollars on the sidelines seeking to invest in this bright investment opportunity. We seek to restore the Paradise ‘Hog’ Island lighthouse back to its former 1817 glory. While Paradise Island Lighthouse and Beach Club shall provide the financing for this significant undertaking, we have also received an overwhelming financial interest from others for the purpose of restoring the lighthouse with us.”