The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Old Bahama Bay resort is not closing but is instead poised to undergo a change in operational and management control, Tribune Business confirmed yesterday.

Michael Scott KC, attorney for Lubert Adler-Old Bahama Bay, the West End property’s owner, in response to this newspaper’s inquiries said his client is set to take back management and operational control from a group of the resort’s condo owners, headed by John MacDonald, which have operated the property as Island Ventures Resort & Club (IVRC).

“Our concern is, in the short-term, the relationship between Lubert Adler-Old Bahama Bay and IVRC, which has not worked out,” Mr Scott told this newspaper. “As you put it succinctly, it’s a change in management and operational control. That will be without any detriment or prejudice to the people that live and work there.” He confirmed the resort will remain open through the transition and there will be no job losses.

Mr Scott spoke out after Kwasi Thompson, the Opposition’s finance spokesman, raised concerns over developments at Old Bahama Bay during yesterday’s mid-year Budget debate. “By the way, what’s happening with the property in West End?” the east Grand Bahama MP had challenged. “We are hearing some very disturbing news about what is happening with the hotel property in West End. What’s happening?

“We are hearing news and hearing reports, which we hope are not true, about there is going to be a closure or some sort of issue happening with that hotel. What is happening with respect to that hotel?”

Kingsley Smith, the west Grand Bahama and Bimini MP, later blasted Mr Thompson for “spreading fear and hearsay” with his Old Bahama Bay concerns. Refuting suggestions that the hotel will close or that jobs will be lost, he called on his east Grand Bahama counterpart to make sure his facts are correct before speaking, and said more will be revealed in the coming weeks.

Tribune Business understands that Lubert Adler-Old Bahama Bay, which was set up by Lubert-Adler, the US investment house that financed the former Ginn project, has given IVRC seven weeks’ notice that it is terminating the lease agreement - which allowed the latter to manage the resort, marina, restaurants and other amenities - on March 28.

The developer/owner will then take back management and operational control, while retaining all staff. In doing so, Lubert Adler-Old Bahama Bay believes that by taking direct control with a more ‘hands-on’ management approach it will be able to extract greater revenues and operational efficiencies for the benefit of all condo owners and guests.

Mr Thompson, meanwhile, in his mid-year Budget debate speech, challenged the seeming lack of progress in redeveloping Grand Bahama International Airport. “The Davis administration’s handling of Grand Bahama’s redevelopment is nothing short of a disgrace, marked by broken promises, secrecy and a complete disregard for the people who call this island home,” he blasted.

“There seems to be a sudden shift from a public-private partnership (PPP) for the Grand Bahama International Airport to an all-encompassing mystery deal lumped together with the long- stalled Grand Lucayan sale. What happened to the $200m that was supposedly secured? Can we please get an update as to what’s happening with Grand Bahama International Airport?”

The Opposition’s finance spokesman then sought to raise the alarm over the late 20204 decline in The Bahamas’ high-spending stopover visitors as this nation became solely reliant on cruise passengers to drive arrivals growth.

“The Government’s deafening silence on the alarming decline in stopover tourism cannot be just an oversight,” Mr Thompson argued. “The Central Bank’s most recent quarterly economic review (December 2024) lays bare a grim reality: While total foreign arrivals increased by 15.9 percent, this so-called ‘growth’ is propped up almost entirely by a surge in cruise visitors - a lower-spending segment.

“Meanwhile, the true backbone of our tourism industry - the high-value stopover tourists - plummeted by 3.9 percent to just 400,000 passengers in the fourth quarter of 2024. Even more damning, air arrivals to New Providence fell by 5 percent, and the Family Islands saw a 1.8 percent drop.

“Where is the urgency? While this administration pats itself on the back for rising cruise numbers, they seem to ignore the catastrophic impact of losing high-spending visitors who drive hotel occupancy, fuel the restaurant industry, and keep Bahamian businesses alive.

“This government cannot continue to hide behind inflated cruise figures while air arrivals - a direct indicator of economic strength - wither before our eyes. The report itself cites ‘accommodations capacity constraints’ as a limiting factor so where is the strategy to restore growth?”