01202022 BUSINESS

business@tribunemedia.net

THURSDAY, JANUARY 20, 2022

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IMF restructure?: ‘Not on my watch’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A CABINET minister yesterday pledged “not on my watch” after a noted Caribbean economist again forecast The Bahamas will need an “IMF restructure” with GDP still below preCOVID at end-2023.

Senator Michael Halkitis, minister of economic affairs, in a voice message response to Tribune Business inquiries, said the Government has “absolutely no intention of entering any restructuring or IMF programme at any time in the foreseeable future” as it “felt good about the recovery in the economy” driven by tourism’s rebound.

He spoke out after Marla Dukharan, the former

• Minister: ‘Absolutely no intent’ to seek such help • But GDP to be 7% under pre-COVID at end-2023 • Government ‘feels good about economic recovery’

MICHAEL HALKITIS

MARLA DUKHARAN

Royal Bank of Canada (RBC) chief economist for the Caribbean, yesterday doubled down on her longstanding prediction that The Bahamas will have to restructure its debt and follow Barbados in seeking International Monetary Fund (IMF) “in the next year or two”.

While her previous forecast that this would occur in 2020-2021 failed to materialise, Ms Dukharan sounded further alarm for The Bahamas by projecting that economic output or gross domestic product (GDP) would still be some 7 percent below 2019’s pre-COVID levels come end-2023. This was despite relatively strong expansion recorded on both 2022 and 2023.

SEE PAGE 5

Atlantis heads for Somewhere Else

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ATLANTIS yesterday unveiled a partnership that will see part of the iconic property, the Beach Towers, rebranded under a different name for the first time in its 27-year history.

The Paradise Island destination resort has teamed with Grammy Award-winning musician and producer, Pharrell Williams, and his business partner David Grutman, in a deal that was hailed by the deputy prime minister as creating “another standout” for the Bahamian tourism product.

The duo will transform the now-closed Beach Towers into a 400-room property called Somewhere Else, which is set to open in January 2024 after undergoing extensive renovations. Tribune Business sought details on the level of investment involved, plus how many construction and full-time jobs will be created, and other specifics, but no replies were received before press time.

“Teaming up with David Grutman and Pharrell to further evolve the resort is an endeavour we are incredibly proud to be

SEE PAGE 4

Bahamian entry changes ‘more alarming’ than CDC

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIAN tourism operators yesterday shrugged off the latest downgrade by US health authorities, arguing that constant changes in this nation’s COVID protocols are “more alarming” to visitors.

Benjamin Simmons, proprietor of The Other Side and Ocean View properties on Harbour Island and Eleuthera, told Tribune Business that “we’ve weathered the storm before” after the Centres for Disease Control and Prevention

(CDC) downgraded this nation to ‘Level 4’ “do not travel” status once again due to the surge in Omicron cases.

Disclosing that such changes had not significantly impacted his and other Family Island hotels in the past, he said: “I would say that we’ve had two to three guests, per level change, who have said that they are not travelling to the destination or cancelled.

“It seems like most people take it with a pinch of salt. It’s vastly different, the Out Island case load,

SEE PAGE 7

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CHESTER COOPER

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DARRIN WOODS

Hilton’s ‘indefinite’ close threatens up to 130 jobs

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE “fragility” of tourism’s post-COVID rebound was yesterday underscored by the British Colonial Hilton’s decision to “indefinitely” close from February 15, 2022, and terminate up to 130 staff.

Government officials last night gave differing accounts for why the downtown Nassau resort’s owner, China Construction America (CCA), is taking this action. Chester Cooper, deputy prime minister and minister of tourism and aviation, last night attributed

the situation to the end of the resort’s management agreement with the Hilton something confirmed by the hotel brand.

With the Hilton partnership coming to an end on February 15, Mr Cooper said in a statement that he had been informed by CCA it was “facing challenges in keeping the property open” beyond that date without an operator to manage operations and provide a booking/reservations system together with marketing support.

However, Robert Farquharson, the Government’s

SEE PAGE 10

PAGE 2, Thursday, January 20, 2022

DEVELOPMENT BANK UNVEILS $70K GRANT

THE Bahamas Development Bank (BDB) yesterday unveiled a $70,000 grant as the first in a series of initiatives to stimulate investment in the so-called orange, green and blue economies.

The first financing scheme is targeted at the ‘orange’ or creative economy, which covers industries including arts and heritage; cultural industries; digital media; technology and other industries.

The $70,000 technology micro-grant will equip videographers, musicians, photographers and other artists with technology to improve the quality of their productions. These grants are aimed at persons who have shown talent, and have experience, in this specialised creative field but have been challenged in acquiring professional computer equipment.

The BDB, in a statement, said it will provide

THE TRIBUNE MacBook Pros to a limited number of professionals who can show how the device will benefit their craft. They must also produce a plan for expanding their market penetration.

Ashley Outten, BDB’s financial controller, said: “It is the bank’s view that the Bahamian orange economy is ripe with opportunity, so we are interested in directing more investment toward creatives. Young people, in particular, can benefit from this grant which looks to scale up artists with potential”.

The BDB added that global demand for creative goods and services is growing rapidly. The Bahamas, it said, offers cultural experiences that can contribute to building a sustainable, inclusive and equitable economic future for its citizens.

The bank requested that interested candidates visit its social media pages or website at www.bdb.gov. bs for more information regarding the application process and requirements.

Applicants have until Monday, February 14, to apply.

DAVID BURROWS

CABLE VETERAN IN TOP 100 HONOURS A SENIOR Cable Bahamas executive has received an international award that ranks him among the cable industry’s top 100 executives of 2021.

The honour for David Burrows, REV Media’s vice-president, comes as he marks 25 years with Cable Bahamas - a tenure that makes him one of the communications company’s longest-standing employees.

According to Cablefax magazine, the Cablefax 100 Honorees features “traditional operators, vMVPDs [streaming services], vendor partners and association leaders who are driving the industry forward during a time of unprecedented change”.

“To be recognised among such a prominent group of power players in the communications and media industry in the United States is incredibly validating,” Mr Burrows said.

“I’ve spent over 70 percent of my working career in this industry. Working with the innovative team at Cable Bahamas has been a real source of pride.

Cable Bahamas has always measured itself against the DIRECTVs and Verizons of the world, so maybe it was just a matter of time before a Bahamian from Cable Bahamas joined such a prestigious list of innovators.

“The drive for excellence has always been in the DNA of the company, my mentors and leaders.” Mr Burrows joined Cable Bahamas in 1996, helping to build the company’s broadband market share to more than 75 percent. He then worked on the introduction of the

landline voice product that now commands a 48 percent share of that market.

Cable Bahamas said he also helped to usher in a new product era with the introduction of the REV brand, including REVTV, REVON and REVOICE. Mr Burrows also oversaw the rebranding of Our TV and Our News; the transition to Digital TV; and the million dollar expansion and upgrade of the OUR TV studio. Cable Bahamas said that, over the past two years, REV Media has invested around $1m in local content produced by Bahamians, for Bahamians.

“David’s advocacy and participation in the cable industry, being one of our longest-serving employees, is well recognised,” said Cable Bahamas president and chief executive, Franklyn Butler.

“But, for his industry peers to recognise him for his creative thinking and passion for the industry, is an incredible honour and a recognition of what another great Bahamian is doing in their area of focus and advocacy.”

Aliv chief executive, John Gomez, added: “This amazing recognition is just another step on David’s journey. David’s relentless passion and enthusiasm to continually search for innovative solutions to enhance the content/media offerings during his time with Cable Bahamas has been unwavering.

“Being recognised as one of the top 100 leaders in the cable industry, not in the country but internationally, is phenomenal. We are incredibly proud to have you on our team.”

THE TRIBUNE

Thursday, January 20, 2022, PAGE 3

TOURISM SEES LITTLE IMPACT FROM COVID DOWNGRADE

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net HOTEL operators yesterday forecast that The Bahamas’ downgrade to “do not travel” status yet again by US health authorities will have little to no impact on travel demand.

Muna Issa, SuperClubs Breezes managing director, told Tribune Business that, while the Centres for Disease Control and Prevention’s (CDC) decision to return The Bahamas to ‘Level 4’ status “may have a small effect”, this will be offset by COVID19 “fatigue” among US travellers.

She added: “The levels have changed so many times in the last six weeks, the savvy traveller may not put much weight on the CDC ranking. The CDC ranking is just one aspect of what a tourist considers prior to travelling - testing requirements are another.

I am hoping in the next two weeks the levels will decline significantly and bookings will pick up.”

More than 100 countries are on US federal health officials’ list of destinations to avoid because of the high risk presented by COVID19 and the Omicron variant.

The Bahamas was among 22 countries, including Australia, who were downgraded by the CDC to ‘Level 4’ on Tuesday.

Speaking to The Bahamas specifically, the CDC said: “Avoid travel to The Bahamas. If you must travel to The Bahamas, make sure you are fully vaccinated before travel.

“Because of the current situation in The Bahamas, even fully vaccinated travellers may be at risk for getting and spreading COVID-19 variants. Travellers should follow recommendations or requirements in The Bahamas, including wearing a mask and staying six feet apart from others.”

The Bahamas recorded a further 173 new COVID-19 cases on Tuesday, taking the total number of active cases to 7,314. Some 147 COVID positive patients are in the

hospital, of whom eight are in intensive care.

Matthew Brear, general manager of Long Island’s Cape Santa Maria resort, said earlier ‘Level 4’ advisories had not hurt The Bahamas and he saw no reason why this latest warning will impact the willingness of travellers to come to the island.

He added: “I think a lot of the outer islands have a lot of regular clientele. They know where they’re going.

Just because The Bahamas is raised to a ‘Level 4’, people will not stop going to Nassau or New Providence and, in my case, people are coming to Long Island where we have one case on the island currently, as opposed to however

many cases are elsewhere in New Providence.”

Pointing out that Canada has a ‘Level 4’ ranking with the CDC, Mr Brear added: “The Bahamas isn’t the only place that’s struggling now. I don’t think this has anything to do with any one country’s reaction to COVID-19 spikes; I just think this has to do with the overall situation itself.

“It’s problematic right now but I don’t think it bears any negative press against The Bahamas. It’s just that Omicron has taken over right now. I can’t imagine the CDC ‘Level 4’ warning having a detrimental impact on our tourism business.”

Wesley Ferguson, the Bahamas Taxi Cab Union’s (BTCU) president, added:

“People are just fed up with the CDC, and they are tired of these protocols along with the science behind the demographic of how this COVID-19 just keeps changing.

“America has the highest COVID-19 numbers and I don’t see anybody rating them. They are leading the world on this Omicron variant and I don’t see anybody rating them. People are still going to America.

“People are just tired of this thing and are just travelling, whether you tell them to travel or not, because if they have the money and are vaccinated they will take the chance and say that once they can survive in America they can survive in The Bahamas.”

MINISTERS UNITE TO SCALE UP GOLDEN GATES FISH MARKET TWO Cabinet ministers have teamed up to help the Golden Gates Fish market scale up operations and improve food security in The Bahamas.

Pia Glover-Rolle, minister of state for the public service and Golden Gates MP, said she wanted to improve the market’s organisation so that it becomes more inclusive for local farmers and fishermen.

“It is important to me, because this is the heart of Golden Gates. Golden Gates residents come here early in the morning and late at night. There’s a sense of community here.

It’s a place where persons in the Golden Gates Constituency, who engage in backyard farming, come to sell produce,” she said.

“The fishermen who are out here, this is their livelihood. There has always been an issue with the necessary administration and management to run a good enterprise. I want to ensure that this fish market, which is a hub for the community, is well taken care of.”

Mrs Glover-Rolle is partnering with Clay Sweeting, minister of agriculture, marine resources and Family Island affairs, on the initiative as part of the drive for increased food security and sustainability

within Golden Gates and The Bahamas at large.

Promising his ministry’s support, Mr Sweeting added: “My ministry is looking to assist her and bring some regularisation to the market to enhance the overall experience.

“We’ve been speaking a lot about food security and sustainability, and finding ways to encourage backyard farmers and fisherman to be a part of this national

MINISTER Glover-Rolle is partnering with a cabinet colleague, Minister of Agriculture, Marine Resources and Family Island Affairs, Hon. Clay Sweeting, to assist her in organizing the necessary resources to make her vision for the Golden Gates Fish Market a reality.

change. Golden Gates and the people in the south corridor in Nassau can play a pivotal role.

“Once you create avenues for Bahamians to sell their agricultural products, then they are playing a role in feeding themselves. We always talk about eating what you grow and growing what you eat. Our hope is that Golden Gates will assist in doing that.”

PAGE 4, Thursday, January 20, 2022

THE TRIBUNE

ATLANTIS HEADS FOR SOMEWHERE ELSE FROM PAGE ONE embarking upon this year,” said Audrey Oswell, Atlantis president and managing director, said in a statement.

“We can’t wait to share the Somewhere Else experience with new and returning guests, which will be amplified by the culture and warm Bahamian hospitality that can only be found at Atlantis, Paradise Island.”

“Somewhere Else is going to be a one-of-a-kind resort,” said Mr Grutman, founder of Groot Hospitality. “Not only will it offer a major extension of the unforgettable and highenergy experiences we deliver with Groot Hospitality, but also, a clear focus

on nature and restorative elements.

“We’ll have something for everyone, yet Pharrell and I are making sure Somewhere Else is unlike anywhere else.” Messrs Williams and Grutman, who are already partners in Swan, a Miami-based restaurant, and The Goodtime Hotel, a Miami Beachbased boutique property, will retain 100 percent of the rights to the Somewhere Else name Few specifics were provided on what a rebranded Beach Towers will ultimately look like, although restaurants and bungalows featuring recording studios were said to be part of the project. And Somewhere Else will be priced

SOMEWHERE ELSE ARTIST RENDERING somewhere between the hotel market’s most affordable end and high-end luxury.

Shawn Sullivan, of global architecture and design firm Rockwell Group, is the lead designer on the project, and he was yesterday quoted in a CNN report as saying: “What we’ve done

as an approach is to strip away a lot of bulk from the architecture.

“We’re opening up the structure to the landscape and to the sea. Warmweather resorts also often have ample natural elements, but they’re usually very controlled. We’re excited to let nature pervade the space.”

The Somewhere Else tie-up marks somewhat of a change in strategy and direction for Atlantis given that this is the first time, since it opened in December 1994, where the part of the property that will be branded by a name that is not its own. Its Cable Beach mega resort rival, Baha Mar, is the one that to-date has adopted the strategy of having multiple resort brands.

Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, hailed the Somewhere Else partnership as a sign of growing investor

confidence in The Bahamas post-COVID and an affirmation of the tourism product’s strength.

“The redevelopment of what was the Beach Towers at Atlantis into a brand new property, Somewhere Else, further reaffirms the strength of The Bahamas’ tourism product viability, overall investor confidence and the commitment of the Government to support tourism stakeholders,” Mr Cooper said.

“This new boutique resort, inspired by worldrenowned musician, Pharrell Williams’, artistic sensibilities and the wellestablished reputation of David Grutman for luxury and hospitality, will be another standout among Paradise Island’s many stellar offerings.

“The redeveloped resort is set to open in 2024 and will create more direct employment for hoteliers, entertainers and culinary professionals, and also

serve as a critical business support for countless other persons who are indirectly employed in the hospitality industry,” he added.

“It is a signal to the world that The Bahamas is not only ‘open for business’ but remains the premier tourist destination in the region.”

Darrin Woods, the Bahamas Hotel, Catering and Allied Workers Union’s (BHCAWU) union president, told Tribune Business that the Somewhere Else partnership was “definitely something to keep an eye on” from the union’s perspective.

He added that Atlantis management “reached out” to union executives to inform them of the plans before the announcement went public, although few hard details were provided.

“They’re probably going to try and bring that [Miami] concept to spruce up the Beach Towers because the Beach Towers are old,” Mr Woods said of Messrs Williams and Grutman.

“That was where they made the 700 persons redundant last year because they were not prepared to open the Beach Towers the way it was. They didn’t want to keep those people on furlough, and had to do all the renovations anyway.

“If they’re able to get more people to come in and get business up, that should be a pretty good move. They didn’t say what staff complement will be needed, but based on the number of rooms they will have to bring the number of persons back if capacity returns.”

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THE TRIBUNE

IMF RESTRUCTURE?: ‘NOT ON MY WATCH’ FROM PAGE ONE

“We expect the economy to grow 5 percent in 2022 and 4 percent in 2023, backed by reconstruction and the continued recovery of tourism. This will still leave the level of economic activity around 7 percent below its 2019 level,” she wrote.

Ms Dukharan’s near-term GDP growth forecasts for The Bahamas are more pessimistic than both the IMF’s and that given by John Rolle, the Central Bank’s governor, at last week’s Bahamas Business Outlook conference where he predicted that the economy is poised for 8 percent growth “or just over” in 2022 as tourism continues to reflate after the pandemic.

The IMF forecast that Bahamian GDP will expand by 8.5 percent in 2022, recapturing a significant chunk of the $2bn it lost in 2020 due to COVID-19.

However, its 2023 forecast matches the 4 percent cited

by Ms Dukharan.

The Government’s 20212022 supplementary Budget forecasts that GDP in current prices, which includes inflation’s impact, will only return to pre-COVID levels or just above in the 2023-2024 fiscal year. This suggests that Ms Dukharan’s prediction that Bahamian GDP will be 7 percent, or $810m, below 2019 levels at end-2023 may not be too far off the mark.

“We expect a debt restructure and an IMF programme

in the next year or two,” the economist, who now runs her own consulting firm, said in her Bahamas assessment.

“The high level of external debt (43 percent of central government debt) would make a [currency] devaluation very costly in terms of the overall debt burden.

“In 2020, the IMF assessed that the currency was overvalued by 6-9 percent. The alternative to currency devaluation is an internal devaluation much like the IMF BERT programme in Barbados, lowering labour costs and the overall cost of doing business through reforms, and raising taxes.”

But Mr Halkitis, who said he had received Ms Dukharan’s analysis himself just yesterday morning, said the Government was “very proud” of never having to seek restructuring assistance or a bail-out from the IMF and “we expect to continue that record”.

He told Tribune Business: “I guess if it was to be a headline it would be: ‘Not on my watch’. The Government of The Bahamas has never restructured its debt, it has never been part of an IMF programme, and we don’t intend to start notwithstanding the analysis by the esteemed economist.

“Our job is to manage our affairs so that we can fulfill our obligations to our creditors and provide services to the Bahamian people.

We’ve been doing that, and are continuing to do that.

We manage every day, keeping an eye on all the levers,

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and we manage our expenditure and manage, or try to administer, our revenue and continually improve our revenue so we’re in a position to continually do these things.

“We’ll continue to do that. Notwithstanding the analysis, we feel good about the recovery in the economy driven by the tourism [industry]. That is recovering nicely as indicated in the report and, again, we are embarking on a revenue enhancement programme to improve our revenue and we’re watching our expenditures,” Mr Halkitis continued.

“We expect to continue to fulfill our obligations and, again, there is absolutely no intention of entering into any restructuring or IMF programme at any time in the foreseeable future.

We’re very proud of that record and expect it to continue.”

Ms Dukharan said stopover tourist numbers for the period to end-October 2021 totalled 667,881, representing 48 percent of 2019’s pre-COVID figures. Cruise passenger arrivals were

at just 10 percent of 2019 levels for the same period, standing at 444,974, with the industry having only slowly resumed sailing from June 2021 onwards.

“Hurricane Dorian reconstruction and FDIled projects continue to drive economic activity,” Ms Dukharan wrote.

“Tourism is recovering gradually with 48 percent of January to October 2019 stayovers recorded in January to October 2021, with results for September and October 2021 at 80 percent and 76 percent of 2019 levels, respectively.

“External reserves strengthened as a result of increased US dollar borrowing and were not based on economic activity. Nonusable reserves amount to 46 percent of total external reserves. Non- borrowed, usable reserves at November 2021 stood at negative $404m, and have been negative for more than a year.”

Mr Rolle, the Central Bank’s governor, could not be contacted for comment before press time on the external reserves despite

Thursday, January 20, 2022, PAGE 5 several text and voice messages being left.

Ms Dukharan’s economic forecasts as they relate to The Bahamas have in the past been criticised for being alarmist, since previous IMF restructuring projections failed to come true, while the likes of Gowon Bowe, Fidelity Bank (Bahamas) chief executive, said her analysis was based on a static model that failed to account for the possibility of future policy actions to address her concerns.

One economic analyst, speaking on condition of anonymity, yesterday suggested that her analysis was “accurate” but the timeframe in which she forecasts events to happen is wrong.

By this, they explained that while The Bahamas will not require any IMF intervention for the next three to four years, this need may arise after that if the Government fails to tackle the fiscal crisis.

“What she’s saying is accurate,” the source said of Ms Dukharan, “but not in that timeframe? The impact is down the road, three to four years. We have enough cushion to last, but what the Government has to do in the Fiscal Strategy Report, midyear Budget and full-year

Budget is really lay-out what the game plan is for fiscal consolidation.

“And not only do you have plans, but that you are taking steps to generate new revenues, cut subsidies to state-owned enterprises (SOEs).

There’s some belt tightening that has to happen, and we have to do it between now and the fullyear Budget” in May 2022.

The Government has yet to release its Fiscal Strategy Report, which sets the foundation for its economic and fiscal planning, and upcoming Budget, as well as The Bahamas’ first-ever Debt Management strategy.

The Fiscal Responsibility Act mandates that the Fiscal Strategy Report be released by the third week of November every year, but that date is now some two months ago. The last such report was published late by the Minnis administration in December 2020, with the delay blamed on the response to the COVID-19 pandemic.

With the mid-year Budget close, as it is normally released to Parliament and debated around February, it is possible that the Government will release the Fiscal Strategy Report and Debt Management Report may be disclosed at the same time.

PAGE 6, Thursday, January 20, 2022

THE TRIBUNE

US, UK BEGIN TALKS ON LIFTING TRUMP'S STEEL TARIFFS

By PAUL WISEMAN AP Economics Writer

WASHINGTON (AP) — The United States and the United Kingdom have agreed to begin talks on removing former President Donald Trump's import taxes on British steel and aluminum.

In a joint statement Wednesday, U.S. Commerce Secretary Gina Raimondo, U.S. Trade Representative Katherine Tai and U.K. Trade Minister Anne-Marie Tevelyan said they would be working toward a swift deal that ensures the viability of the steel and aluminum industries in both countries and also "strengthens their democratic alliance.''

In 2018, Trump imposed tariffs of 25% on foreign steel and 10% on aluminum, calling them a threat to U.S. national security — a move that outraged the British, Europeans and other longstanding American allies.

Although President Joe Biden had criticized Trump for alienating allies, he was slow once taking office a year ago to undo the metals tariffs, popular in the politically important steelproducing states.

Last year, the Biden administration reached a deal with the European Union, agreeing to drop the tariffs on EU metals that come in below new import quotas and continuing to tax imports that exceed

them. The EU dropped retaliatory tariffs on U.S. products, including whiskey.

In a statement Wednesday, the U.K. Department for International Trade said: "Our focus now is on reaching a speedy resolution that lifts these tariffs promptly and clears the way for our thriving trading relationship to grow."

U.S. distillers are hoping the talks with Britain will lead to an end to the U.K.'s remaining tariffs on American spirits. Chris Swonger, president of the Distilled Spirits Council of the United States, called Wednesday's announcement "a very positive development.''

IN this May 9, 2019, photo, steel rods produced at the Gerdau Ameristeel mill in St. Paul, Minn. await shipment. The United States and the United Kingdom have agreed to begin talks on removing former President Donald Trump’s import taxes on British steel and aluminum. In a joint statement Wednesday, Jan. 19, 2022 U.S. Commerce Secretary Gina Raimondo, U.S. Trade Representative Katherine Tai and U.K. Photo:Jim Mone/AP

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Thursday, January 20, 2022, PAGE 7

BAHAMIAN ENTRY CHANGES ‘MORE ALARMING’ THAN CDC FROM PAGE ONE

from Nassau and we communicate that to the clients - that The Bahamas is a very diverse country with regional differences. What happens in one part of The Bahamas does not reflect what’s happening in this destination.

“People do ask, but usually that explanation is sufficient to save some of the business from going elsewhere.” With just eight out of 147 patients hospitalised with COVID-19 presently requiring intensive care, Mr Simmons voiced hope that The Bahamas was starting to reach “the endemic part of the pandemic”.

“I don’t think that the CDC thing will impact us too much,” he reiterated. “We’ve weathered the storm before. People are used to these kinds of changes happening. The vast majority of our clientele are vaccinated so they don’t have the same concerns.”

Mr Simmons said the hotel and tourism industry similarly had to explain that no two parts of The Bahamas are alike when Hurricane Dorian struck Abaco and Grand Bahama in September 2019, thus

ensuring other islands retained their travel business.

And he added that the constant changes in The Bahamas’ testing requirements and entry protocols were likely more off-putting for tourists than any CDC advisory. “We have to be wary of these curfews,” he said. “I think one thing that has brought great stability is what the current rules are. The medical guidelines are pretty fixed.

“There’s less nervousness about getting here and there suddenly being a lockdown and curfew.

That’s what’s more alarming to people: The constant change in regulations.”

The Bahamas’ inconsistency, and frequent changes in testing and entry requirements, are thought to have previously created uncertainty that deterred some visitors from travelling, while also sparking complaints that it was difficult to get tested and obtain the results in the required timeframe.

“February is slow,” Mr Simmons told Tribune Business. “This month is a little slower than I’d like it to be at 75 percent occupancy.

We’d lost one or two events which was more to do with

changes in regulations on the US side of things. For March and April we’re back up to 85-90 percent, for which we’re very grateful. We’ll take the win.”

The CDC, in downgrading The Bahamas back to ‘Level 4’ due to the recent spike in COVID numbers, said: “Avoid travel to The Bahamas. If you must travel to The Bahamas, make sure you are fully vaccinated before travel.

“Because of the current situation in The Bahamas, even fully vaccinated travellers may be at risk for getting and spreading COVID-19 variants. Travellers should follow recommendations or requirements in The Bahamas, including wearing a mask and staying six feet apart from others.”

The Bahamas recorded a further 173 new COVID-19 cases on Tuesday, taking the total number of active cases to 7,314. Some 147 COVID positive patients are in the hospital, of whom eight are in intensive care.

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However, Darrin Woods, the Bahamas Hotel, Catering and Allied Workers (BHCAWU) president, told this newspaper that pent-up travel demand - especially among vaccinated Americans - was likely to overcome any concerns related to the CDC’s Bahamas downgrade.

“It is concerning but people are travelling no matter what,” he said.

“That’s something they [the CDC] from time to time because of the numbers.

That never really affects the travelling public because they want to travel no matter what. They’ll take

whatever precautions are necessary.

“That’s never really had an effect on travel before, and I don’t see it having an effect now because people are more anxious to travel than ever before. They want to take a chance now.

Let’s hope and keep our fingers crossed that they follow suit.”

Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, though, voiced concern that the CDC warning could disrupt efforts to revive the group, meeting and convention business upon which larger

resorts rely for 30-40 percent of their bookings.

“There’s no question that this is a move in the wrong direction and we have to do our level best to get back down the scale,” he told this newspaper. “It’s not good for our destination at this time. We have to correct this very quickly.

“The numbers are higher than we’d like them to be, but they appear to be plateauing and hopefully it plateaus very quickly to get this downgrade reduced to a ‘Level 3’ and then back to a ‘Level 2’.”

PAGE 10, Thursday, January 20, 2022

HILTON’S ‘INDEFINITE’ CLOSE THREATENS UP TO 130 JOBS FROM PAGE ONE director of labour, told Tribune Business that he was advised yesterday morning by British Colonial management that

the decision to close Bay Street’s ‘anchor’ property “indefinitely” was based on its poor “past performance” and the absence of any prospects for improvement.

His account of CCA/ British Colonial’s explanation was backed by Darrin Woods, the Bahamas Hotel, Catering and Allied Workers Union’s (BHCAWU)

president, who also told this newspaper that the union was informed via letter on Tuesday night that the resort “cannot keep going in the direction it’s going”

and sustain present occupancy levels.

“The saga continues,” Mr Woods said of the Hilton situation. “This shows how volatile the industry still is.

This is just to show that the industry is still fragile, and is a case of it going in the opposite direction. We have just got to keep our fingers crossed and hope we navigate ourselves out of this whole pandemic situation.”

He added that British Colonial executives had been vague on the reasons for the closure and associated staff terminations, and did not explicitly state in yesterday’s meeting with the union whether the shutdown would be permanent or temporary.

“We got a letter late last [Tuesday] night that said they thought they would be much further along than where they are, and they had decided to cease operations as of February 15,” Mr Woods said. Whether the closure was permanent or temporary was among the first questions asked when union executives had a “brief” meeting with resort management yesterday.

“They couldn’t say,” the BHCAWU president said.

“We wanted to know if the closure would be temporary, and they were closing for renovations, or if it is permanent. By all accounts it’s a permanent closure. Based on the economic climate right now and the industry, they said they cannot keep going in the direction they are going right now with occupancies.”

Mr Woods added that the union and British Colonial staff had been taken by surprise over the closure’s timing, giving that it was happening right at the start of the peak winter tourism season that lasts from mid-February to Easter and April.

“That’s not something we would be expecting at this time of year, just coming into the New Year,” he said.

“We wanted to see how everything started to pan out in the New Year. It’s a little slow and will start to pick up after the end of January.

“No one really expected it. The Hilton was one of the hotels that was low-key, where you did not hear anything from them about what was happening on-property. This will be the third, fourth, hotel that closed as a result of the pandemic.

That’s more than 120 persons on the unemployment line in an already-depressed economy.

However, the British Colonial Hilton is likely to have been hit hardest than many hotels by the COVID-19 pandemic because it catered primarily to business travellers - the market segment that has suffered most.

And the 291-room property was also focused heavily on the groups, meetings, conventions and conferences market that is among the last to rebound from the pandemic’s clutches. This was not just foreign groups, which continue to be impacted by US health advisories, but the local corporate market that now relies on Zoom calls as opposed to face-to-face meetings.

Mr Woods said his main focus now was to ensure the union’s 65 line staff members receive the redundancy pay and benefits due to them under the industrial agreement and their contracts. Mr Farquharson, director of labour, said his department will today receive information on the managerial staff that will be impacted, but said between 120-130 total employees stand to be terminated.

“The resort would have advised us this [yesterday] morning that the management team had taken a decision to close the hotel indefinitely,” he told Tribune Business. “They indicated that a review of the past performance of the property was not very good, and in the foreseeable future they didn’t see where that position will improve. They’ve advised

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ROBERT FARQUHARSON they’re closing the hotel indefinitely.”

Mr Farquharson said British Colonial management had pledged that all staff will receive their severance entitlement.

However, he declined to say that the resort had failed to give sufficient notice that it was terminating such a large number of people as required by the changes to the Employment Act in 2017.

While conceding that it was non-compliant thus far, Mr Farquharson said it could yet come into line by pushing the termination date back. The notice period is to allow for negotiations between employer, government and union to see if any jobs can be saved or staff moved into other posts.

“The loss of any job has a significant impact,” the labour chief told this newspaper. “Those persons now have to call on NIB to seek unemployment benefits and, in some cases, call on Social Services, and the Department of Labour has to see what it can do to find alternative employment for these people.”

Mr Cooper, in a statement that acknowledged the threat to more than 100 jobs, attributed the threatened closure to the Hilton brand’s departure rather than poor resort performance.

He said he was “cautiously optimistic” that any closure “can be avoided or mitigated” with the Government seeking to facilitate talks between CCA and other resort operators, flags and management companies to acquire a replacement for the Hilton.

“I met with the owner of the British Colonial Hilton, China Construction America (CCA), which indicated that the agreement to carry the Hilton brand at the property has come to an end. Therefore, without a management company in place, CCA is facing challenges in keeping the property open,” Mr Cooper said.

“During this meeting, the Davis-Cooper administration expressed our concern about the livelihoods of the more than 100 employees of the property. We also drew attention to the iconic nature of the British Colonial hotel and its historic significance.

“We are currently attempting to facilitate discussions with the owners and established management companies with a view to making sure the closure can be avoided or minimised. I am cautiously optimistic that a resolution can be reached.”

There were suggestions last year, unconfirmed, that CCA was seeking to sell both the British Colonial Hilton and the adjacent $200m development at The Pointe. The resort’s closure would represent a setback, and blow, for downtown Nassau’s revival post-COVID. The resort was the first to be built in The Bahamas, and past owners included Henry M. Flagler and Sir Harry Oakes.

A Hilton spokesperson told Tribune Business via e-mail: “Hilton and hotel ownership have reached a decision to end the management agreement for the British Colonial Hilton in Nassau effective on February 15, 2022. I can share that the termination is mutual and amicable, and allows both parties to explore new opportunities.

“The hotel will notify all future guests and clients, and assist in the event alternative accommodations are required. Hilton has enjoyed serving the community in Nassau and looks forward to continuing welcoming guests with our signature Hilton hospitality at more than 20 hotels and resorts across the Caribbean.”

PAGE 14, Thursday, January 20, 2022

THE TRIBUNE

STOCKS EXTEND 2022 LOSSES AS INVESTORS BRACE FOR RATE HIKES

By DAMIAN J. TROISE AP Business Writer

STOCKS closed broadly lower on Wall Street Wednesday and deepened the losses for major indexes this year following another choppy day of trading.

Stocks bounced between gains and losses throughout the day, largely following the direction of technology stocks, which sold off in the afternoon. The sector has triggered much of the choppiness in the market as investors shift money in expectation of rising interest rates. Higher rates make shares in high-flying tech companies and other

expensive growth stocks relatively less attractive.

"We've seen some givebacks from the returns we got last year," said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. "What we're seeing is that the market is resetting now." The tech-heavy Nasdaq fell 166.64, or 1.1%, to 14,340.26 and is now 10.7% below the all-time high it set on Nov. 19. That decline puts the index in what the market considers a "correction."

The S&P 500 fell 44.35 points, or 1%, to 4,532.76, with 77% of stocks in the benchmark index losing

ground. The only sectors that closed with gains were utilities and household goods makers, signaling a shift to less risky investments by traders. The Dow Jones Industrial Average fell 339.82, or 1%, to 35,028.65.

Stocks have slid this month as investors try to gauge how aggressively the Federal Reserve will act to combat inflation. The Fed is already pulling back on bond purchases aimed at holding down long-term interest rates. As of late Tuesday, investors were pricing in a better than 86% probability that the Fed will raise short-term rates at its

meeting of policymakers in March. A month ago, they saw less than a 47% chance of that, according to CME Group.

At a Wednesday news conference marking his first year in office, President Joe Biden called on the Fed to do more to fight inflation.

"Given the strength of our economy, and the pace of recent price increases, it's important to recalibrate the support that is now necessary," the president said.

The specter of higher interest rates has put the clamps on high-flying growth stocks. On Wednesday, technology giant Apple shed 2.1% and chipmaker

Nvidia fell 3.2%. So far this year, the technology sector of the S&P 500 has fallen more than 8%.

Small company stocks, another gauge of confidence in economic growth, fell more than the rest of the market. The Russell 2000 index fell 33.44 points, or 1.6%, to 2,062.78, and is down 8.3% for the year.

Gold prices, which often rise when investors are nervous about risks in the broader market, gained 1.6%. And investors bought bonds, sending the yield on the 10-year Treasury down to 1.85% from 1.87% late Tuesday. The yield began the year around 1.5%.

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 78° F/26° C Low: 57° F/14° C

TAMPA

SATURDAY

SUNDAY

MONDAY

Mostly sunny, a shower in the p.m.

Partly cloudy with a shower

Sunshine and patchy clouds

Cloudy

A t‑storm in spots in the morning

Partly sunny with t‑storms possible

High: 79°

Low: 68°

High: 79° Low: 70°

High: 79° Low: 67°

High: 78° Low: 66°

High: 75° Low: 66°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

82° F

69° F

86°-68° F

84°-66° F

83°-64° F

77°-63° F

The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.

almanac

E

W

ABACO

S

N

High: 77° F/25° C Low: 72° F/22° C

6‑12 knots

S

High: 79° F/26° C Low: 66° F/19° C

4‑8 knots

FT. LAUDERDALE

FREEPORT

High: 79° F/26° C Low: 69° F/21° C

E S

E

W

WEST PALM BEACH

W

uV inDex toDay

FRIDAY

N

N

| Go to AccuWeather.com

TONIGHT

High: 76° F/24° C Low: 59° F/15° C

High: 79° F/26° C Low: 68° F/20° C

MIAMI

High: 78° F/26° C Low: 69° F/21° C

4‑8 knots

KEY WEST

High: 77° F/25° C Low: 70° F/21° C

ELEUTHERA

NASSAU

High: 79° F/26° C Low: 68° F/20° C

Forecasts and graphics provided by AccuWeather, Inc. ©2022

N

The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.

tiDes For nassau High

Ht.(ft.)

Low

Ht.(ft.)

Today

9:14 a.m.

9:34 p.m.

2.8 2.2

2:55 a.m. ‑0.1 3:42 p.m. ‑0.1

Friday

9:52 a.m.

10:16 p.m.

2.8 2.3

3:36 a.m. 0.0 4:18 p.m. ‑0.1

Saturday

10:31 a.m.

11:01 p.m.

2.7 2.4

4:20 a.m. 0.0 4:57 p.m. ‑0.1

Sunday

11:14 a.m.

11:50 p.m.

2.5 2.5

5:08 a.m. 0.1 5:38 p.m. ‑0.1

Monday

12:02 p.m. ‑‑‑‑‑

2.4 ‑‑‑‑‑

6:03 a.m. 0.2 6:24 p.m. ‑0.2

Tuesday

12:45 a.m.

12:56 p.m.

2.5 2.2

7:04 a.m. 0.2 7:17 p.m. ‑0.2

Wednesday 1:46 a.m.

1:58 p.m.

2.6 2.1

8:11 a.m. 0.2 8:15 p.m. ‑0.3

sun anD moon Sunrise Sunset

6:56 a.m. Moonrise 5:46 p.m. Moonset

8:21 p.m.

8:57 a.m.

Last

New

First

Full

Jan. 25

Feb. 1

Feb. 8

Feb. 16

CAT ISLAND

E

W

High: 79° F/26° C Low: 74° F/23° C

N

S

E

W

6‑12 knots

S

7‑14 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

Statistics are for Nassau through 1 p.m. yesterday Temperature High ................................................... 77° F/25° C Low .................................................... 52° F/11° C Normal high ....................................... 77° F/25° C Normal low ........................................ 65° F/18° C Last year’s high ................................. 77° F/25° C Last year’s low ................................... 62° F/16° C Precipitation As of 1 p.m. yesterday ................................. 0.00” Year to date ................................................. 3.28” Normal year to date ..................................... 0.81”

High: 79° F/26° C Low: 74° F/23° C

Investors are busy reviewing the latest round of corporate earnings.

Health insurer UnitedHealth Group rose 0.3% after reporting encouraging financial results. Bank of America rose 0.4% after reporting a jump in profits that beat analysts' forecasts.

Both stocks posted solid gains as trading opened but fell back as the broader market turned lower.

Wall Street is closely watching the company reports for signs that inflation is cutting into profit margins and to see whether consumers are accepting higher prices without pulling back on spending.

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 80° F/27° C Low: 74° F/23° C

High: 80° F/27° C Low: 75° F/24° C

N

High: 77° F/25° C Low: 70° F/21° C

E

W S

LONG ISLAND

tracking map

High: 81° F/27° C Low: 75° F/24° C

6‑12 knots

MAYAGUANA High: 81° F/27° C Low: 75° F/24° C

Shown is today’s weather. Temperatures

CROOKED ISLAND / ACKLINS

are today’s highs and tonight’s lows.

RAGGED ISLAND High: 81° F/27° C Low: 76° F/24° C

High: 81° F/27° C Low: 76° F/24° C

GREAT INAGUA High: 83° F/28° C Low: 76° F/24° C

N

E

W

E

W

N

S

S

8‑16 knots

8‑16 knots

marine Forecast ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR

Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday:

WINDS SE at 4‑8 Knots ESE at 4‑8 Knots E at 6‑12 Knots ESE at 4‑8 Knots ESE at 7‑14 Knots ESE at 7‑14 Knots ESE at 8‑16 Knots E at 8‑16 Knots E at 6‑12 Knots SE at 6‑12 Knots SE at 4‑8 Knots ESE at 4‑8 Knots SE at 7‑14 Knots ESE at 6‑12 Knots E at 8‑16 Knots E at 8‑16 Knots E at 8‑16 Knots ESE at 8‑16 Knots ESE at 8‑16 Knots E at 8‑16 Knots E at 6‑12 Knots ESE at 4‑8 Knots E at 8‑16 Knots E at 8‑16 Knots SE at 6‑12 Knots ESE at 6‑12 Knots

WAVES 1‑3 Feet 2‑4 Feet 0‑1 Feet 0‑1 Feet 3‑5 Feet 3‑5 Feet 3‑6 Feet 3‑5 Feet 3‑5 Feet 2‑4 Feet 1‑2 Feet 1‑2 Feet 1‑2 Feet 1‑2 Feet 2‑4 Feet 2‑4 Feet 2‑4 Feet 3‑5 Feet 4‑7 Feet 4‑7 Feet 1‑2 Feet 1‑2 Feet 3‑5 Feet 3‑5 Feet 1‑3 Feet 1‑3 Feet

VISIBILITY 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 7 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles

WATER TEMPS. 77° F 77° F 73° F 74° F 78° F 78° F 80° F 80° F 77° F 77° F 77° F 76° F 79° F 79° F 79° F 78° F 79° F 80° F 79° F 79° F 77° F 77° F 79° F 79° F 78° F 78° F