Monday, October 28, 2013
By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The 45-60-strong construction workforce for Resorts World’s Bimini cruise terminal and jetty is expected to have just a 10-30 per cent Bahamian component, the project’s Environmental Impact Assessment (EIA) has revealed.
While the development’s main benefits are expected to be the 600 permanent jobs created at the Bimini Bay Resort, the EIA suggests that Bahamians - at a minimum - could account for just five to six members of the construction workforce.
And the document also reveals that Bimini Bay’s survival as a sustainable resort will be in jeopardy if the accommodation for Resorts World’s Miami-based cruise ship is not constructed, the hotel’s occupancy levels having fallen below 10 per cent at their worst.
The EIA also notes that Resorts World and its Malaysian parent, Genting, plus Bimini Bay’s original developer, the Capo Group/RAV Bahamas, have received “substantial concessions” from the Government for the resort’s new casino and cruise ship service.
These investment incentives are not detailed, but presumably include the normal Customs duties exemptions, plus the likes of Stamp Duty and real property tax exemptions, running into the thousands, if not millions, of dollars.
“A total of 45 to 60 construction workers are proposed during the offshore work,” the EIA said of the construction demands created by the Resorts World cruise ship terminal (an artificial 4.5 acre island created from dredge fill), and jetty.
“Construction of the three primary components of the project (pier construction, sheet-pile island creation, and dredging) is to be carried out largely by international firms, with specialised skill in these areas of construction (e.g. Boskalis or Great Lakes).
“As such there will be a temporary influx of foreign workers. The likely percentage of skilled Bahamian labor utilised for the offshore’s three main components will be on the order of 10-30 percent.”
Sweetening the blow, the EIA adds: “Permanent employment has been estimated to exceed 600 employees. Of those 600 permanent employees, over 90 per cent are anticipated to be Bahamian. All measures will be taken to provide work to Bahamians first, where feasible.”
Again indicating the urgency with which the developers and the Government are approaching the project, the EIA said construction would take six months and involve up to two 10-hour shifts per day, with work taking place six-seven days per week.
The document added that of Bimini Bay’s existing 264-strong workforce, some 97 per cent were Bahamian. The same ratio held for the newly-constructed casino, where 174 workers are based.
The anticipated 11-fold increase in Bimini’s current visitor figures, from 52,000 to 570,000, which will be created by the cruise ship’s daily sailings is clearly pivotal to Bimini Bay’s financial well-being.
“The Ferry Terminal is considered necessary in order to make best use of the recent developments in Bimini, most notably Bimini Bay,” the EIA states.
“Bimini Bay can currently accommodate approximately 3,000 people.. However, the island experiences extreme occupancy highs and lows, with full occupancy during holidays such as Memorial Day and Labour Day weekends, but occupancy has been below 10 per cent during other periods.
“It is considered necessary to provide a means by which the number of visitors visiting the island is more constant, thereby making better use of the facilities and resources available at Bimini Bay.”
And, from the Government’s perspective, apart from unleashing the creation of badly-needed full-time jobs for Bahamians, the Resorts World project also holds out the possibility of providing employment outside New Providence, thereby reducing the population drift to the capital.
Resorts World is projecting that its cruise ship, which can carry a maximum 1,595 passengers, will operate with capacity levels of 50 per cent on weekdays and 85 per cent at the weekend. It will make two sailings from Miami at the weekend.
The two capacity levels work out to a yearly average of 66 per cent. Resorts World is projecting that of its 150,000 yearly weekday passengers, some 40 per cent - 60,000 - will choose to overnight stay at Bimini Bay.
And on weekdays/holidays, the developer has forecast that some 10 per cent of passengers - 42,075 - will stay overnight. When combined, these two figures will give Bimini Bay an extra 102,705 stopover visitors per year, plus 468,6785 day trippers.
However, the EIA warned that these projections far exceeded those contained in an Economic and Fiscal Impact Analysis of the proposed $10-$15 million project, and were “more than half more” than those indicated by the developers.
“At weekdays the ferry is expected to operate at 50 per cent capacity, with 60 per cent of the passengers being day trippers,” the EIA said.
“It must be noted that this is 210,375 passengers greater than that per the Economic and Fiscal Impact Analysis Report, and that the level of demand indicated in this report is not adequately supported, let alone a demand that is more than half as much more as has been indicated by the Bimini Bay developers.”
The EIA warned that Resorts World’s cruise ship would also likely put the rival Balearia ferry service out of business.
“The occupancy of the Balearia service for March 2013 averaged 32 per cent for arrivals and 21 per cent for departures. Seasickness has been a problem on this service,” the EIA alleged.
“The new ferry service as proposed is a more comfortable and shorter journey that is cheaper ,and with additional facilities onboard than the Balearia service will likely reduce the demand for the Balearia service and potentially put it out of business given that it is not particularly successful at this time.”
Tracing the history of the 560-acre Bimini Bay Resort’s development, the EIA added: “Bimini currently offers tourists approximately 1,170 bedrooms between Bimini Bay (major contributor with 1,050 rooms), and approximately 10 smaller inns.
“Bimini also provides approximately 400 slips which are likely to provide accommodation for 1,400 persons. This equates to a total accommodating approximately 3,800 visitors.”
It added: “Today, Bimini Bay has over 480 luxury homes and villas, a 230-slip yacht marina, a shopping village, four restaurants and a Beach Club. Just over half of the units at Bimini Bay are rented out as part of a condo-hotel programme.
“Rates at Bimini Bay Resort and Marina begin at $250 a night, and ownership opportunities comprise of condominiums beginning at $249,000; bayfront lots at $700,000 and oceanfront estate lots at $1.8 million Home prices are additional, starting at $325,000 and three bedroom oceanfront Treehouses cost $1.4 million (lot and home).”
Comments
John says...
Seems like these developers are keen on displacing Bahamian workers and Bimini residents with resorts. If it is allowed to happen here, then what will happen to the rest of the Bahamas?
Posted 29 October 2013, 9:46 a.m. Suggest removal
Ben says...
It's a well known fact that locals on the Island of Bimini do not want to work. The islands "labor dysfunction" is legendary and a barrier to ANY development.
The sad fact is that so many outside developers have seen the potential of this magnificent island only to be disappointed by the reality on the ground.
You can blame developers all you want but first ask why staff fail to show up to work for days at a time, steal equipment, and are rude to guests.
Until Bimini folks start looking at themselves as a source of the problem, and their youth, the issues if skilled labor, and outside labor will not go away.
It's a hard fact.
Posted 29 October 2013, 12:28 p.m. Suggest removal
proudloudandfnm says...
SO don't trust Bimini workers and just bring in 97% foreign laborers? Nothing about Bimini Bay was specialized. This could have easily been built by Cavalier or Reef or Waugh or anyone of the many Bahamian contractors. But no we ga let Capo the crook build it. And I'd love to know how Capo can build without a foundation? Can a Bahamian contractor build without a foundation? Wait til all those homes in Treasure Cove gets hit by a southern storm and all a those houses start floating out to sea! Bimini Bay should have been built by Bahamians not just Biminites...
Posted 29 October 2013, 12:56 p.m. Suggest removal
Ben says...
Good point. As far as a labor force there are quite a few Bahamian companies that work to mainland standards and have good ethics.
But again, the Chinese example in Nassau has started a trend. Fact is mainland money and mainland tourists need to be treated in a manner that looks like the mainland.
The Caribbean is a huge place with other developments and other islands, folks on Bimini need to get with the program or be locked out of the process. They can argue that they LIVE there so they are entitled to something, but that argument fails in the face of the millions and millions that Resorts World can throw down.
It will be up to the local workforce to organize and start behaving like a responsible and respectable workforce if they are to reverse years and years of "earned distrust" by developers.
Choice is for Bimini to make. Stay a third tier workforce with a chip on their shoulders, or start to develop the workforce into a serious entity.
Posted 29 October 2013, 2:11 p.m. Suggest removal
thomas says...
Governments have for decades promised to build a high school on Bimini and still there is none. Many families send their children to schools in the U S., Nassau and Freeport. and they do not return to Bimini. Those who remain on the island and attend school may not be an accurate representation of a Biminite. We have many who have done very well in their chosen careers.
Posted 29 October 2013, 3:41 p.m. Suggest removal
Ben says...
"Those who remain on the island and attend school may not be an accurate representation of a Biminite. We have many who have done very well in their chosen careers."
Exactly, so no one should complain about foreign workers, especially service workers being brought in to service off island tourists.
Those who have done well in careers are mostly off island now, those that are left are not even close to ready to enter into the growing workforce needs.
Posted 29 October 2013, 7:02 p.m. Suggest removal
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