By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamian investor group believes it can generate $1.5bn in gross revenues during the 25 years in which it plans to transform key Nassau heritage sites into “world-class” landmarks.

Olvin Rees, a member of the Public Private Investments (PPIL) group, yesterday told Tribune Business it planned to invest between $30-$50m over that period to restore and revitalise locations that include Nassau’s three forts, the Queen’s Staircase (66 Steps) and Water Tower, and the Pompey Museum.

Describing the recent Memorandum of Understanding (MoU) signed with the Antiquities, Monuments and Museums Corporation (AMMC) as the “first step” in this process, Mr Rees said PPIL was now “pushing” to conclude a management agreement and formally take over operations at these sites by end-summer 2019.

It is aiming to make all the facilities financially self-sustainable by enhancing the visitor experience and “pre-selling” tour packages to both cruise ship passengers and hotel tourists, reversing perceptions that Nassau is “boring” with little of interest to do amid “run down” attractions.

Voicing optimism that PPIL’s private-public partnership (PPP) with the Government will become “a model template” for similar joint ventures throughout The Bahamas, Mr Rees revealed that the group was open to an initial public offering (IPO) of shares to the Bahamian public in three to five years’ time once its turnaround phase was completed.

Describing the condition of several historic sites as “a disgrace”, he said PPIL’s members had a shared determination to restore them to their proper status and unlock the monetary potential of heritage and cultural tourism.

“This is the first step, the signing of the Memorandum of Understanding (MoU), before we go to the management agreement,” Mr Rees told Tribune Business. “We have roughly two months to flesh out the management agreement and also to present the business plan and strategy for the capital expenditure, and the phasing of it.

“The management agreement will give us 25 years to manage the facilities in conjunction with the AMMC, as they will play an integral role with the technical expertise. We will basically manage the facilities and inject the capital for the revitalisation, upkeep and maintenance of the facilities.”

Besides Fort Charlotte, Fort Fincastle and Fort Montague, and the Queen’s Staircase and Water Tower, Mr Rees said the management agreement will also see PPIL take over operational responsibility for the Botanical Gardens, Pompey Museum and the National Public Library.

He added that the group could be taking on “anywhere from 40 to 80” direct employees “in the first instance”, along with indirect responsibility for between 300 to 500 workers - the straw vendors, taxi drivers, tour operators and others who all earn a living from providing goods and services to visitors attracted to these landmarks.

“The Government really wants us to get moving on this,” Mr Rees said. “A lot of these facilities are beginning to run down and deteriorate. Some of them have to be more secure because the cruise ship have some concerns with respect to the main forts, and we have to upgrade and clean them up, and also train the staff.

“We will bring the staff up to world class standards. Every employee - from the janitor right the way up - will be trained to world class standards. We’re looking, over the 25 years, to spend between $30m to $50m of capital investment. We know we can generate projected gross revenues of $1.5bn over that period.” That is equivalent to $60m per year.

Mr Rees disclosed that PPIL originated from the shared interest, and concern, he and its chairman, Dr Nigel Lewis, had for Nassau’s major historical and cultural landmarks. In particular, he said the failure to properly maintain them and realise their true economic and tourism potential was what brought them together.

“Personally, I’ve been really looking at the Water Tower for a number of years and saying: ‘What a disgrace’,” Mr Rees told this newspaper. “It’s been sitting there for 25 years as a national monument and no one is doing anything with it.

“About a year-and-a-half ago Dr Lewis and myself met, and I said: ‘I’m looking to see if I can source some funding to restore this tower. He said: ‘Well, you know, I was looking at Fort Charlotte for some years’.”

With the Minnis administration just elected to office, Mr Rees added: “We started to put some minds and people together, and said: ‘Let’s approach the Government, because they have other priorities, and see if we can manage these facilities.

“We put a proposal to the Bahamas Investment Authority (BIA) and National Economic Council (NEC), and they basically said they’d approve it because these are the types of arrangement we’ll be dealing with going forward. A lot of these projects will be PPPs, so this will be a test model going forward. We’re very excited that the Government saw the vision and are prepared to execute this concession.”

Mr Rees said PPIL aimed to upgrade the visitor experience such that both tourists and Bahamians came back to Nassau’s key landmarks as repeat business, while “at the same time capturing history”.

“We have lots of history but we don’t tell it in a colourful way,” he added. “We want to tell the history of these forts, make it more a appealing, tourism-oriented and enjoyable experience.

“Right now, heritage tourism is selling all over the world. People really want to begin experiencing the culture, see how people live, feel and touch the culture. With these multiple offerings, if they can’t do everything this year they can come back next year. Cultural tourism is very big around the world, and we haven’t done a very good job of maintaining and upkeep of our landmarks and historic sites.”

Many observers have long held the view that tourists are not being properly exposed to Nassau’s rich history, and Bahamian culture, at a time when travellers are increasingly seeking authentic experiences and true interaction with citizens of the countries they visit.

The Government has stated publicly that cultural and heritage tourism is a key component in its strategy to re-energise and diversify Bahamian tourism, and PPIL’s plans tie-in directly to this and the wider downtown Nassau revitalisation.

“The main strategy will be as a pre-selling package to the cruise ships as well as the hotels and other entities,” Mr Rees told Tribune Business of the business model, pledging that a significant portion of the revenues generated will be set aside for maintenance and capital investment in these sites.

“A lot of people are complaining that Nassau is boring; that there’s nothing to do, nothing exciting, there’s some run down facilities with no expenditure and upkeep. We feel our project is in line with what the Government plans to do with the cruise port downtown, the new location for the Central Bank at the site of the old Royal Victoria Hotel, the imploding of the Post Office building and revitalisation of downtown up to the bridge. We feel now is the time for Nassau to take on a new look.”

Mr Rees said PPIL’s plans would also boost the communities around these historical sites, as well as encouraging others to look at cultural and heritage tourism opportunities in areas such as Fox Hill, Gambier Village and Bain Town.

He added that it was vital for Nassau, and the wider Bahamas, to place itself “on the cutting edge of change and transformation as far as the tourism product is concerned” given that hurricane-ravaged Caribbean rivals were likely to return with an enhanced, modernised offering.

“Three to five years down the road we will look at a public share offering once we get these facilities up and running,” Mr Rees said, “and allow other people to make investments.

“It’s a very positive thing, and we want to commend the Government for their foresight and seeing the vision. Hopefully this will be the template for other joint ventures going forward throughout the length and breadth of the country.

“This also signals the beginning of the revitalisation of the tourism product at cultural sites, and we look forward with great enthusiasm. Between June and August is when the handover of these facilities should be taking place. We’re going to be pushing to make sure it happens.”