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TUESDAY, JUNE 29, 2021
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Atlantis ‘close to 90%’ occupancy in coming weeks By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net ATLANTIS will operate at “close to 90 percent occupancy” over the next few weeks, its top executive revealed yesterday, with all properties apart from the Beach Towers having reopened post-COVID. Audrey Oswell, Atlantis’s president and managing director, told Tribune Business that the Paradise Island mega resort is currently operating at 75-percent plus occupancies. She added: “All of the resort, with the exception of Beach, is now open and we expect to run close to 90 percent occupancy over the next few weeks.” Comparing this July to 2019’s record-setting year, Ms Oswell added: “Atlantis is pleased to report that we are approaching 2019 occupancy levels. The booking window is much shorter and airlift continues to be a challenge, but booking pace has increased steadily over the past few months. Coral (Towers) is now fully open along with the Cove, Reef, Harborside and Royal (Towers).” “Widespread vaccination throughout the US has contributed to the increase in tourism. More important is that Bahamians are also starting to get vaccinated. Tourists want to know that the people they come in contact with in The Bahamas are also vaccinated. Full vaccination of the hospitality industry is imperative to full recovery of tourism for The Bahamas. We all need to do our part.” Atlantis has also reopened its The FISH, Carmine’s and Chop Stix restaurants. Ms Oswell’s remarks echo the position taken by Dionisio D’Aguilar, minister of tourism and aviation, and Michael Maura, the Nassau Cruise Port’s chief executive, who told Tribune Business yesterday that tourism is “back with a vengeance”. Mr D’Aguilar said “we’re bringing tourism back” as the relaxation of international travel restrictions and the continued roll-out of COVID-19 vaccinations - especially in key visitor source markets - gave persons increasing confidence to again vacation abroad. Describing The Bahamas as “a destination of choice” for Americans who have been emboldened to travel, he added: “Tourism is bouncing back, and more
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GB airport revival pegged at $200m By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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$200M investment is required for the “comprehensive redevelopment” of a Grand Bahama International Airport (GBIA) that lost more than $13m in the two-and-a-half years before the government acquired it. The extent of the potential liabilities facing Bahamian taxpayers as a result of that purchase, which closed as recently as June 1, was fully exposed during yesterday’s briefing for private sector groups interested in bidding on public-private partnerships (PPPs) to redevelop, finance and manage Grand Bahama’s major aviation gateway and six other Family Island airports. Data disclosed during the briefing reveals that Grand Bahama International Airport generated an operating profit in just one of the five years prior to the sale to the government, providing further insight into why its
• Govts latest buy lost over $13m in 2.5 years • Hutchison/GBPA liability switched to taxpayer • All seven PPP airports suffer operating losses
WESTERN Air terminal at GBIA after Dorian. former owners - Hutchison Whampoa and the Grand Bahama Port Authority’s (GBPA) Port Group Ltd - were both so reluctant to rebuild it post-Dorian and so eager to offload a regular loss-maker to the taxpayer. The financials, based on audited and unaudited financial statements for Grand Bahama Airport Company, reveal that it suffered an operating loss (based on earnings before interest,
taxation, depreciation and amortisation or EBITDA) of $5.567m during the 2019 calendar year. Some $9.608m in revenues were dwarfed by $15.1276m in total operating expenses, of which $3.69m related to staff costs and $11.486m to non-labour expenses. Those figures likely resulted from the catastrophic damage that Hurricane Dorian inflicted on Grand Bahama International Airport, and
A CABINET minister says he would “take a cut hip any day” for selecting Kanoo as the Bahamas health travel visa’s payment processor as opposed to delaying tourism’s late 2020 restart. Dionisio D’Aguilar, minister of tourism and aviation, told Tribune Business that the political opposition’s complaints were “pretty pitiful” as its members refused to let the issue drop amid more finger-pointing and assertions yesterday. While the minister declined to respond directly to the pledge by Philip Davis, the Progressive Liberal Party (PLP) leader, to scrap the health travel visa if the party wins the upcoming general election, he reiterated just prior to that announcement his belief
its closure to income-generating commercial and private aviation traffic for several months. And the COVID-19 pandemic, with the closure of international and domestic aviation traffic for a significant portion of last year, was probably the major contributing factor that plunged Grand Bahama Airport Company into a further $6.663m operating loss for 2020. Total revenues, both aeronautical and non-aeronautical, dropped by almost two-thirds year-over-year to $3.046m, while total operating expenses were down by more than one-third at $9.708m. However, the ‘red ink’ continued to mount with a further $1.105m worth of operating losses during the first four months of 2021 to end-April.
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Bahamas to ‘recalibrate’ airlift with airports PPP By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas is seeking to “recalibrate the aviation asymmetry” that results in more than two-thirds of international flights coming to Nassau as opposed to other islands, it was revealed yesterday. Jim Lew, managing director of LeighFisher, the consultants hired by the Government to develop the tender process for outsourcing seven Bahamian airports via the publicprivate partnership (PPP) model, told a briefing for potential bidders that the project was vital to boosting tourism as “there’s a huge cohort of hotels nowhere near at capacity”. Driving increased direct international flights will be a key remit for the successful bidder(s) in a process that has presently separated Grand Bahama International Airport into
• Aims to cut ‘asymmetry’ of Nassau dominance • As ‘huge cohort of hotels nowhere at capacity’ • Govt already reviewing Out Island airport fees
ALGERNON CARGILL a separate bid from six Family Island gateways in Abaco, Exuma, North Eleuthera, San Salvador, Long Island, and the Berry Islands. Bidders can submit offers for either Grand Bahama or the Family Islands “bundle”, or both, but were warned that “it’s not possible to cherrypick put a single airport”
from the latter group via a tender document that will be released in a 2021 third quarter that begins this week. Mr Lew, in his presentation, said it was vital that The Bahamas’ key aviation infrastructure and its management/operation be enhanced and expanded to enable it to cope with the increased tourism growth that is anticipated once the COVID-19 pandemic recedes. He added that better airport facilities are essential to both aiding and encouraging tourism industry expansion, especially in the Family Islands, given that there has been $5.4bn in “indicative approved inflows” of foreign direct investment (FDI) into
‘Cut hip’ for Kanoo over tourism delay
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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• Minister blasts opposition claims as ‘pretty pitiful’ • Hails health travel visa as ‘tremendous success’ • Will likely remain until COVID-19 ‘settles down’
DIONISIO D’AGUILAR that the initiative has been “a tremendous success” and helped to keep COVID-19 infection rates relatively low. And Mr D’Aguilar also questioned how The Bahamas could continue permitting non-vaccinated tourists to enter, and verify
that they had complied with this nation’s testing requirements, without having the health visa vetted to validate all this. Responding to the opposition’s outcry that the health travel visa will stay in place until the 2022-2023 fiscal year, as per the budget estimates, Mr D’Aguilar said it was likely “to stay in place until things settle down” and more persons worldwide - especially in The Bahamas’ key source market - become inoculated against COVID-19. While the opposition has become obsessed with the absence of any health tourism visa revenue from the 2020-2021 budget’s
approved forecasts, those estimates were put together pre-May 2020 - well before the need for the visa was realised in the year’s second half. Of more significance, though, is the absence of any health travel visa revenue being shown for the July 2020-March 2021 period despite the Ministry of Tourism last week revealing that some $9.8m in health travel visa revenue had been collected and $7.4m in related expenses paid, leaving a $2.4m surplus. Mr D’Aguilar, though, said that $9.8m in revenue had been included in “other
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the seven targeted islands between 2017 and 2021. Such a figure may surprise some observers, and was not broken down into projects, although Mr Lew attributed some $3bn of this sum to Grand Bahama. Another $900m was allocated to Long Island, some $700m to North Eleuthera, and $400m each to Abaco and Exuma based on data said to have been provided by the Bahamas Investment Authority (BIA). “This is all about upside, unlocking value in assets to generate incremental growth in line with tourism projects under way, aligning with the tourism and hospitality sector to maximise the potential in these assets,
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$5.01 Six airports to need more than $150m funding By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net SIX Family Island airports will probably require a greater collective investment than the $150m a Bahamian merchant bank is seeking to raise from local investors, it was revealed yesterday. Jim Lew, managing director of LeighFisher, the aviation consultants hired by the government to develop the private-public partnership (PPP)M process for outsourcing these assets to private developers/ managers, told a bidders’ briefing that they would likely have to raise excess capital beyond the sum RF Bank & Trust is putting together. Describing the award of this contract to the former RoyalFidelity as a “prestep”, Mr Lew said the investment bank had been asked to raise the financing so that Bahamians “can invest in this project”. While the $140m-$150m “can be a source of financing” for the winning bidder, he added: “There’s a strong indication the $150m will not be sufficient to cover, so the private sector will have to find their own lenders to cover the shortfall.” Mr Lew also said the financing for the six Family Island airports will be separate from the $200m now estimated as necessary for Grand Bahama International Airport’s complete transformation and rebuild after Hurricane Dorian. With the North Eleuthera and Exuma airport revamps estimated to involve $65m each, the $10m price tags for San Salvador and Abaco, as well as $18m for Long Island and $15m for Great Harbour Cay, take total projected capital investment costs to $183m - well above the $140m-$150m to be raised by RF Bank & Trust. Meanwhile Dionisio D’Aguilar, minister of tourism and aviation, told the briefing that by packaging the six Family Island airports together the government was mitigating the risk to bidders posed by a Hurricane Dorian-style storm wiping out one or two of these assets. Describing the Family Islands as the fastestgrowing and most resilient segment of the Bahamian tourism industry, he said: “Tourism has been impacted by the COVID-19 pandemic, but we are roaring back at a phenomenal rate. As Americans become
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