The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Royal Caribbean’s Paradise Island beach club was yesterday revealed to have passed another regulatory hurdle by obtaining a Certificate of Environmental Clearance (CEC) for the construction phase.

Philip Simon, the Royal Beach Club’s president and general manager for the cruise line’s Bahamas operations, in written replies to Tribune Business questions revealed the Department of Physical Planning (DEPP) is “satisfied” with the Environmental Management Plan (EMP) submitted for a project that will see some 100 structures - 53 of which are cabanas - erected on the 17-acre site.

“The DEPP is satisfied, and has sent us a final review letter and a Certificate of Environmental Clearance for the construction development of the Beach Club at Paradise Island,” he confirmed. However, he acknowledged that not all government approvals have been obtained, and added: “We aren’t rushing into construction.

“We are doing all the necessary and methodical due diligence required in the process, including review of our demolition and site clearing plan, working towards our eventual equity raise and additional governmental approvals. As we shared earlier this summer, our target start for site clean-up and preparation is late this year with the hope to start construction in early 2024.”

Royal Caribbean has already initiated the process to value the four Crown Land acres that will be included in the overall 17-acre site. This valuation will be used to monetise the Government’s contribution in the project and determine the size of the equity stake it will hold via the National Investment Fund, the country’s sovereign wealth fund.

Once the value of the Government’s equity stake is determined, the balance of the collective 49 percent Bahamian ownership interest in the Royal Beach Club that will be held by private investors can be calculated. That will then set the stage for the equity capital raise from Bahamian investors,

Asked yesterday how far work has advanced on valuing the Crown Land and government equity stake, Mr Simon replied: “We don’t have the final valuation of the Crown Land and our own private property. We have draft numbers that have to be reviewed by the Government before we can publish them and before the final equity plan can be finished. We hope to wrap that up in the coming months.”

The construction phase EMP, prepared by Bahamian environmental consultancy, Islands by Design, confirmed that Royal Caribbean is targeting an early 2024 start date for building work at the site located on Paradise Island’s western end in the Colonial Beach vicinity.

“As part of Royal Caribbean group’s commitment to The Bahamas, they will continue to grow tourism to Nassau far in excess of the maximum capacity of the Royal Beach Club. When Royal Caribbean initially began exploring a beach club concept, the company brought approximately one million visitors to Nassau per year, and it is expected to grow to more than 2.5m visitors per year by 2027,” the EMP said.

“Royal Caribbean will continue to follow all government requirements and processes that are required for project approvals, and we anticipate that construction will start in early 2024 with a target opening date of the 2025 second quarter.”

Providing a broad overview of what Royal Caribbean will be building, the EMP said: “A total of 100 buildings will be constructed on the site including five food venues, eight bars, six retail stores, six restrooms and lockers, three dining pavilions, two beach game huts, 53 cabanas, six maintenance and storage buildings, one wastewater treatment plant, one reverse osmosis (RO) plant, and one power and utility building.

“Five piers and ramps are included in the conceptual plan. Two piers will be constructed on the harbour side of the site to accommodate the entry and exit flow of our guests and employees. An existing provisioning ramp constructed of concrete will be utilised by the project. Upgrades and repairs will be made to this structure as needed to support site construction and operation.

“Two provisioning ramps will also be constructed on the harbour side of the site, one at the eastern property boundary and one at the western boundary, to support back of house logistics. No dredging will be required for the construction of these ramps. Docks that currently exist on the harbour side of the site will be further inspected and assessed for opportunities to retain and refurbish.”

Among the amenities offered to Royal Caribbean passengers and others will be a “splash pad” and three separate swimming pools. “Three pools will be constructed for a total of 38,000 square feet,” the EMP added. “One large pool at 18,400 square feet, one medium pool at 13,300 square feet and one small pool at 6,200 square feet.

“Approximately 590,906 gallons of water will be utilised for both pools and will be sourced from the reverse osmosis plant. All raw water will be sourced from an intake well drilled to a minimum depth of 150 feet and cased to a minimum depth of 100 feet. Brine concentrates will be disposed of into a deep well injection system.

“All wells will be developed under the guidance and requirements of the Water & Sewer Corporation. Both pools will be below the current grade and will require excavation. The pools are strategically placed at higher elevation locations to minimise excavation and will not extend to the water table.”

Giving an insight into the Royal Beach Club’s overall concept, the EMP said: “The site’s master plan creates three distinct zones – chill, party and family - that cater to the diverse vacation styles of Royal Caribbean guests. Each zone offers amenities such as a pool, food and beverage services, cabanas, lounge chairs and umbrellas, restrooms and decentralised back of house structures.

“Across the site, guests have convenient access to entry/exit piers, artisan huts, service kiosks, game/towel stands, walking trails and beaches that include local shore excursion services.... Upon payment of an entrance fee, guests will receive a range of experiences and amenities that include water tender transportation (provided by a Bahamian-owned company), food and beverage, Internet, basic beach toys and beach chair access with umbrellas.

“For additional fees, guests can upgrade their beverages, reserve cabanas and daybeds, and participate in water sports and local tours. There will be an array of activities available to guests including, but not limited to, snorkelling, floating mat rentals, volleyball and other related activities. The construction of a family attraction, potentially featuring water fountains and splash zones, will provide enjoyment for visitors of all ages.”