A GRAND RESULT: Lucayan deal brings massive economic boost

Thursday, March 28, 2019

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

THE government signed a letter of intent yesterday with Royal Caribbean International and the ITM Group for the purchase of the Grand Lucayan resort and redevelopment of the Freeport Harbour, signaling an impending turnaround for Grand Bahama’s beleaguered economy.

An initial investment of $195m, which includes $65m for the purchase of the hotel, has been earmarked for the first phase of the development which will take place over a 24-month period. It is estimated that some 2,000 jobs would be created in the first phase.

With the redevelopment of the harbour, it is expected that an additional two million cruise passengers will be brought annually to the island.

The announcement of the hotel sale is one that many in Grand Bahama have been waiting for, more than two-and-a-half years since the resort sustained severe hurricane damage, forcing the closure of two-thirds of the property which significantly impacted the island’s tourism sector.

At the signing held at the Office of the Prime Minister in Freeport, Minister of State for Grand Bahama Senator Kwasi Thompson noted the resort attracted some 62 expressions of interest from local and global firms, and by February 14, 11 offer letters were received and evaluated by the board of Lucayan Renewal Holdings. He said that on March 22, the board unanimously approved a resolution to recommend to Cabinet the sale of the 217-acre resort to RCL/ITM.

According to Mr Thompson, the joint venture between RCI/ITM will not only combine the redevelopment of the Freeport Harbour as a cruise port of choice but will also transform the Grand Lucayan resort into a theme park, featuring water-based family entertainment, with dining, gaming and entertainment options and five-star hotel accommodations.

“This provides for the opportunity to create more than a hotel with amenities but a unique water park experience with a hotel and all its amenities,” Mr Thompson said. “The project brings the passengers, provides the experience and integrates and connects visitor experiences at the Freeport Harbour and their experiences at the hotel property maximising opportunities for locals throughout the island, particularly in the Port Lucaya area.”

In terms of airlift and sea arrivals, Mr Thompson indicated that the redevelopment of Freeport Harbour is expected to attract a significant increase in cruise arrivals of an additional two million passengers annually, with the addition of multiple cruise lines calling on Grand Bahama.

There will be significant business opportunities for Bahamians, he added.

“Discussions leading to the heads of agreement, subject to the approval of the National Economic Council, will begin immediately on matters related to Bahamian employment requirements and Bahamian participation in specific areas, however it is anticipated that Bahamians will have significant ownership participation in restaurants, retail stores, transportation and watersports,” Mr Thompson said.

Meanwhile, Minister of Tourism Dionisio D’Aguilar believes the development, which will roll out in Grand Bahama over the next 24-36 months, will go far in restoring Grand Bahama’s economy to its former glory days.

“I am pleased...that the much-anticipated sale of the 217-acre Grand Lucayan resort has finally been agreed upon,” he said.

“Today, a letter of intent was signed between RCL, the ITM Group and Lucayan Renewal Holdings Limited, the special purpose vehicle created specifically to swiftly conclude negotiations with the purchaser who emerged as a result of a sale offering to the investment community by Colliers International,” he said.

He thanked Michael Scott, LRH chairman, and the board of directors for the commendable job they have done to bring the government to this point.

“It was not an easy task and the government placed a tremendous burden on them to find a suitable buyer who will not only purchase and operate the Grand Lucayan but who will also work with the Ministry of Tourism to revitalise the tourism product here in Grand Bahama,” Mr D’Aguilar stated.

Russell Benford, an official with RCL, said the company is excited about the opportunity to develop an “incredible project” in Grand Bahama.

“We are honoured to be chosen from some really great people around the world to do this project,” he said. “It is not only a hotel and port project and or redevelopment, I think we can refer to it as a revitalisation and rebirth.

“. . .We are going to do right by the government, the people of the Bahamas and those who live here in Grand Bahama,” he vowed.

RCL has a 50-year history calling on ports throughout the Bahamas.

According to Mr Benford, purchasing the hotel and redeveloping Freeport Harbour was a “no brainer” for RCL, which has investments of some $600 million already on Grand Bahama through its investment partnership in the Grand Bahama Shipyard.

He said that they are pleased to be partnering with ITM.

ITM, as hotel operators, operates 600 rooms and convention centres in Mexico. It has a relationship with brands like Starwood, Hard Rock, Nobu, and Accor. It has port projects in Mexico and Honduras.

Mauricio Hamui, CEO of ITM, said that the LOI signing is an “important day” for his company, which has five principle objectives, one of which is to make Grand Bahama “one of the best destinations in the Caribbean” within the next three to four years.

Another important aspect, he said would be bringing more than two million passengers to Freeport, the creation of more than 2,500 jobs for Bahamians, the resurgence of the economy, and the creation of a community centre for Bahamians.

“We make our work and construction with good quality, and that is our idea for this project,” he said.

When asked about the theme park, Mr Thompson said the government is entering into the negotiation period for the heads of agreement, and that all details with respect to the specifics of the project, employment, and Bahamian opportunities, will be negotiated in the document.

He was confident that once that is completed, the government will hold consultation with the public when it would reveal all the specifics of the project.

Comments

bogart says...

EXCELLENT...!!!!!!!!.......jus mak sure the salaried gubbermint people have better persons going over the Sales Agreement....who paying da Stamp Tax....who taking da used golf cart mussey a hundred dollars....who paying settling severances entitlements pensions.....an who if any politicians getting limosuine car contracts etc.......hands off politicians by office from cutting personal deals using political suasian...!!!!!!!!....its da peoples time...!!!!!

Posted 28 March 2019, 10:36 a.m. Suggest removal

TalRussell says...

Yes, yes and yes, official closing date Grand Lucayan's sale delayed until comrade chairman Michael Scott's has handed over very last PeoplesPublicPurse's termination cheque to very last left on hotel's property's hotel worker, and Royal Caribbean can physically take inventory of all opened and unopened cases toilet papers, true?

Posted 28 March 2019, 11:13 a.m. Suggest removal

geostorm says...

I am so happy for Grand Bahama. They been neglected for far too long. It's time that they are allowed to get back to work. I look forward to the economic boost that is expected along with this sale. Glad that the government will be getting it's 65 million dollars back. I noted that the hotel will be sold for 65 million.

Great job to Mr. Michael Scott and team!

Posted 28 March 2019, 12:25 p.m. Suggest removal

Ma comrade GeoStorm, if deal goes better than it has OBAN's "LOI," the sole financial winner for second time will turn out be Whampoa, yes, no?
Were there no "repeated" serial of lies orchestrated by officials at PMO about OBAN's, LOI.... and not one red MP stood up on floor Peoples Honourable House, to knowingly repeat OBAN lies, yes, no?
Is not the Commish Policeman's after something likes 365 days, still unable solve the mystery suddenly went from custody government - MISSING OBAN documents, yes no? This is not made up, okay?

Posted 28 March 2019, 12:45 p.m. Suggest removal

FreeportFreddy says...

Not okay!

You are just a partisan troll.

You have no consideration whether something is good for The Bahamas and Bahamians or not .... ONLY whether it is red shirt or gold shirt.

GROW UP!

Posted 28 March 2019, 1:34 p.m. Suggest removal

Ma comrade FreeportFred, the one thing Christians should stop repeating is that the reds have been truthful towards "Free porters," true-never challenge a lie with another lie, yes, no?

Posted 28 March 2019, 2:09 p.m. Suggest removal

Posted 29 March 2019, 6:18 a.m. Suggest removal

Naughtydread says...

Tal rather eat Chinese dog food and get robbed blind by his faithful PLP. You really are an ignorant asshole aren't you?

Posted 28 March 2019, 1:45 p.m. Suggest removal

Oh my god..... what insight ma comrade Naughty - indeed, indeed I walk around my AH, don't you? I also think Queen's official opposition have fallen asleep at wheel, true?

Posted 28 March 2019, 1:59 p.m. Suggest removal

Well_mudda_take_sic says...

Kwasi singing for his supper while honest and hardworking taxpayers await full details of all the "giveaway" concessions associated with this 'deal' for decades to come. LMAO

Posted 28 March 2019, 1:04 p.m. Suggest removal

DDK says...

Can't wait for the sordid details, Mudda, can't wait!

Posted 28 March 2019, 1:24 p.m. Suggest removal

One says...

I hope our leaders are advised by both economists and environmentalist. Our developments must be diversified for a stable economy and healthy environment. The revamp of the cruise port in Nassau, Disney cruise port in Eleuthera and a cruise ship company buying Grand Lucayan resort. Not diverse at all. How much will cruise ship activity increase in our waters? Cruise ships have a major impact on the environment. How will it impact our hotel industry? They operate in an economic bubble in our country. Tourist pay the cruise line which comes with its own staff and infrastructure; no long-term development or infrastructure in the Bahamas besides a port. If it doesn’t favor the cruise lines to operate here, they just sail off to the next country. At least hotels added some security. Hotels also have interests in improving our infrastructure since our infrastructure feeds into their property. I’m concerned about the long-term impact. Unfortunately, our country is in such a poor state we’re jumping at any glimmer of hope.

Posted 28 March 2019, 1:20 p.m. Suggest removal

Excellent point on the risk of putting too many eggs in the cruise ship industry basket. It's a basket that can all too easily be moved from our shores to another country's shores. But that darling little constantly yapping white-haired poodle (D'Aguilar) has obviously allowed himself to be wooed by the cruise ship industry. His father Vince always did claim among his closest friends, "the boy is studious but lacks common sense." How right Vince was.

Posted 28 March 2019, 1:58 p.m. Suggest removal

TigerB says...

I'm sure Brave dem piss over this... they was here on TV in port lucaya ramblin' on... Ill see what they come up with in this deal.

Posted 28 March 2019, 5:41 p.m. Suggest removal

realitycheck242 says...

Brave them need to sit small and watch the investment results pile up for every island. These kind of results happen because Bahamians wised up and changed the status quo and put a doctor in charge. Them lawyers like brave been talking fool to the people for too long. The Bahamian population are no longer interested in the PLP foolishness

Posted 28 March 2019, 11:38 p.m. Suggest removal

Yes, yes and yes to sit small would mean "Free porters" would be flourishing: under representation of 5 red MP's on the entire Out Island ... Yet, the 687 days that followed the coup against PLP have been stacked with catastrophic "official out PMO" - OBAN and Tech Hub lies whilst the economy dived even deeper and Out Island wide natives poverty shot up...... You might think the lies are be suddenly make Okay, all because reds switched over 2022 general election mode ..... "Free porter"s don't think it's okay not look back over 687 days of being lied to - including one they own elected red MP's to have been attacked for asking questions about their poverty, disappearing and dwindling paycheques and families returning coming home to lights turned off dwellings..... the "official" lies out PMO and on floors House and Upper Red Chamber - were indeed made up, yes, true?

Posted 29 March 2019, 12:24 a.m. Suggest removal

mandela says...

Excellent nearly 200 million $$ investment 2500 or more jobs. Foolishness 5 billion $$ investment 600 jobs. 400 million $$ investment 150 jobs,

Posted 29 March 2019, 6:32 a.m. Suggest removal

BMW says...

Tal you and the rest of the moaners are the problem with this country, seems nothing will satisfy you all, kinda like the crab in the corner of the cage. This government has done more the the plunder loot pillage has done in two terms. Grand Bahama welcomes this news.
You want an example of total incompetence, listen to what came out of hanna martins mouth about the post office in Nassau. she had 5 years to deal with it and what did she do? not a damned thing! tells you what kinda people in the plunder loot pillage party. Das my 5 cent!

Posted 29 March 2019, 8:10 a.m. Suggest removal

@BMW, thank you for your summation. I am not sure what is wrong with our people. It's good news for Grand Bahama and all some of us are doing is make it political. Can we please put politics aside so that we can move our country forward? We have been stuck in a rut for the past 10-15 years and I can' believe that we are still politicizing everything. I think Doctor Minnis and his team are doing what is right to turn the country around even in the face of so much criticism.

Posted 29 March 2019, 1:07 p.m. Suggest removal

Ma comrade GeoStorm, to borrow a catchphrase - "Free Porters must asks their Out Islands 5 Imperial red MP's - "Where's the god damn beef...... the Grand Lucayan, still remains 100% UNSOLD, yes, no, maybe so?

Posted 29 March 2019, 1:43 p.m. Suggest removal