By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Nassau Airport Development Company’s (NAD) lease to manage Lynden Pindling International Airport (LPIA) has been extended by a further 20 years to 2057, it was disclosed yesterday.

The revelation is contained in the just-released request for proposal (RFP) for the development of an airport hotel at The Bahamas’ major gateway - a project that has effectively been on the drawing board for at least seven years.

“In April 2007, NAD signed a 30-year lease with the government to manage and operate LPIA on a commercial basis while providing Bahamians with opportunities for business and investment,” the RFP said. “In 2019, the lease was extended a further 20 years to 2057.”

No further details on the rationale for the lease extension, or its terms, were provided in the bid documents. Dionisio D’Aguilar, minister of tourism and aviation, could not be reached for comment before press time.

There was also no mention of whether the contract with NAD’s operator, the Canadian-headquartered Vantage Airport Group, will be extended beyond its current expiry date of April 2019. Vantage manages NAD on behalf of the latter’s owner, the government, with the corporate structure designed to enable it to operate as a private entity with no political interference.

Setting out the potential attraction for any bidder on the hotel contract, the NAD RFP document said: “In 2018, LPIA handled more than 146,000 aircraft take-offs and landings.

“LPIA primarily serves the tourist market, with around 67 percent of its traffic originating in, or destined for, North America. Other international destinations, including the United Kingdom and the Caribbean, account for approximately 11 percent, while a further 22 percent serve the Bahamian Family Islands. Currently, 21 commercial air carriers provide scheduled and charter service to 55 domestic, transborder (US) and international destinations.”

With some $410m invested in transforming LPIA into a “world-class” airport with a Bahamian identity, the RFP said NAD handled some 3.693m passengers in 2018, with the vast majority - some 2.472m - travelling to and from the US. A further 800,200 were domestic passengers, while the balance was made up of 420,480 international travellers.

“Under NAD’s operation, LPIA’s commercial programme has transformed into a well-appointed, exciting and memorable shopping and dining experience for visitors to The Bahamas,” the bid documents added.

“Incorporating a local sense of place through uniquely Bahamian art, architecture and design elements, the airport offers a range of options for travellers. Driving non-aeronautical revenue through amenities for shopping, dining and relaxing (such as an Airport Hotel) is an important focus for NAD.”

The 4.68 acre hotel site is located at the north-eastern boundary of the airport complex, bordered by the airport highway and exit road and one of the roundabouts.

Tribune Business exclusively revealed plans for an airport hotel first originated back in October 2011. The original developers were the owners of the Atlantic Resort & Spa in Fort Lauderdale, who were looking to construct the hotel on a three-acre site immediately to the south of Windsor Field Road, right between the two entrance and exit roundabouts for LPIA.

The project was anticipated to create between 100-150 full-time jobs, and the developers were aiming to construct a facility of ‘four-star’ standard, rather than the typical ‘two-star’ airport hotel, targeting the private aviation market and foreign directors of Bahamas-based companies who fly into LPIA for Board and other meetings.

George Allen, one of the principals in the original developer group, subsequently told Tribune Business they had elected not to pursue the LPIA ‘airport hotel’ because feasibility studies showed it could sustain only 50 rooms.

Jan Knowles, NAD’s vice-president of marketing and communications, said in a statement: “We are looking for strong proponents with the financial capability and experience to execute the project and operate the on-site hotel.

“We want the design and build-out of the hotel to complement the airport by taking into consideration the current design and environmentally sustainable features at LPIA. Ideally, the hotel will enhance the customer experience for travellers as well as other airport stakeholders by offering convenient accommodations for those transiting LPIA for either domestic or international travel.”