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THURSDAY, SEPTEMBER 13, 2018

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Tourism ‘cannot maintain’ double digit growth pace By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

HE Minister of Tourism is targeting “high single digit” growth in stopover visitors for 2019, arguing that the ten to 15 percent fullyear increase he forecast for 2018 “can’t be maintained”. Dionisio D’Aguilar told Tribune Business yesterday that the 15.2 percent stopover visitor rise enjoyed by The Bahamas during the 2018 first half was of such magnitude that it would almost inevitably “taper off”. Explaining that it was hard for any business to

Bahamas broker fined $35k over Canada breach By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

worth of work was required at both the Lighthouse Pointe, the only one still open, and the former Memories resort. Breaker’s Cay, which was thought to be the section requiring most attention, was found to only need $8m in repairs and upgrades. Michael Scott, Lucayan Renewal Holdings chairman, declined to comment on the report and its findings when contacted by

A BAHAMAS broker/ dealer has paid a $35,000 fine to settle allegations it was operating as an unregistered entity in violation of a Canadian province’s securities laws. Seton Securities International, whose principal is New Providence resident, Jay Gottlieb, signed off on a September 7, 2018, deal with the Alberta Securities Commission after a client used its accounts to trade “tens of thousands of shares” in a company whose stock had been suspended. The settlement agreement, a copy of which has been obtained by Tribune Business, disclosed that Seton’s difficulties began when it received an application from Alberta resident, Lambert (Bert) Joseph Lavallee, to open a Bahamas-based securities trading account. Lavallee, who has been accused by the Alberta regulator of insider trading, used the Seton account to help generate $137,000 from the sale of shares in North America Frac Sand (NAFS), a Canadian company he controlled. The trades occurred between May 16, 2016, and September 29, 2017, despite the Alberta Securities Commission’s imposition of a cease trade order on NAFS stock. The regulator also alleged that Lavallee never disclosed his interest in, and control of, NAFS

SEE PAGE 5

SEE PAGE 4

* Minister ‘happy with high single digits in 2019’ * Predicts 10-15% stopover rise for full 2018 * No Baha Mar ‘degradation’ as room rates up

“consistently” achieve “double digit” growth rates, Mr D’Aguilar said he expected the pace of stopover visitor increase to slow

BAHA MAR during the August-October period, which typically represents the tourism industry’s leanest months. He added, though, that

the sector was expected to resume its first half momentum in the latter part of 2018 with the Thanksgiving and Christmas holidays,

DIONISIO D’AGUILAR and forecast that full-year stopover growth would come in near to the 15.2 percent arrivals increase witness over the six months to end-June 2018. “I think we’ll probably, over these shoulder months as they call them, have single digit increases, and as we get to the latter part of the year we will experience double digit increases

SEE PAGE 4

Lucayan repair bill ‘significantly lower’ at $35m By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government’s $35m Grand Lucayan repair bill is “significantly less” than initially feared, Tribune Business can reveal. Preliminary engineering estimates, conducted last week, found that roof repairs were the biggest issue for Freeport’s sole mega resort property, which is now under government management through the

* Resort thought 100 percent over-staffed Lucayan Renewal Holdings special purpose vehicle (SPV). Well-placed sources, speaking on condition of anonymity, told Tribune Business that the estimated repair bill was split relatively evenly between the Grand Lucayan’s three properties. The civil, mechanical and electrical engineering report suggested $13.5m

Resort condo’s 1,200 jobs to be ‘100% Bahamian’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE $2.8bn West End revival will be “complemented” by an adjacent resort condo project that aims to make its 1,200 construction and full-time jobs “100 percent Bahamian”. John MacDonald, principal of Grande Harbour at Old Bahama Bay, told Tribune Business his 460unit development was targeting “the perfect time and the perfect area”, with The Bahamas poised for an economic and investment upswing. He said he was willing to

work with Toronto-based Skyline Investments, purchaser of the former Ginn property, to redevelop Grand Bahama’s West End through their separate projects targeted at high-end clientele. Mr McDonald, owner of three existing condos at Old Bahama Bay, and president of the resort’s operator, explained that his project is earmarked for the 225-acre land parcel acquired from West End Resort Holdings (WERL) Ltd. Pledging that his efforts will soon “be full speed

SEE PAGE 9

‘Brick and mortar’ banks becoming less cost viable By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net DIGITAL banking will drive a “natural” consolidation of commercial banks’ branch networks, the Clearing Banks Association’s (CBA) chairman warning that “brick and mortar” is becoming less viable. Gowon Bowe, pictured, told Tribune Business: “Ultimately the cost of what I would call the ‘brick and mortar’ structure is becoming less feasible in the banking structure. What you are finding is the branch footprint is going to reduce,

but not the services. What you will find is a large part of the larger branch networks was really the accommodation of very heavy foot traffic. “As we move to more digitised activity, you would find that the foot traffic

SEE PAGE 8

THE GRAND LUCAYAN RESORT

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THE TRIBUNE

Private island’s manager bakes trail for Bahamians THE Bahamian manager of Royal Caribbean Cruise Lines’ CocoCay private island is celebrating 15 years with the company, having ascended to its top onshore position in this nation. Ginea Wilson, who holds a master’s degree in hospitality management, oversees 116 staff and the satisfaction of up to 20,000 cruise visitors who arrive at the Berry Islands destination each week. And she remembers the exact moment she fell in love with the Berry Islands, and knew she would accept a job that was never previously on her radar. “We were heading over to the island on the boat. It was the most beautiful sunset; everything around was just sparkling, it took your breath away. The water and sky were so blue you could not tell where the water ended and the sky began,” Ms Wilson said. That was 15 years ago. Today, she recalls that introduction to CocoCay as vividly as if it had just happened. “We handle everything from logistics to tours to staffing needs to security,” said Ms

Wilson of her current role. “Every day, every incident is unique. You can be handling a major HR (human resources) issue one minute, and worry about keeping the birds away from the buffet line the next.” Like other managers in different positions on the island, Ms Wilson is concerned that Bahamians are unaware of the highranking posts occupied by their countrymen and women in RoyalCaribbean’s private island operation and its importance to the local economy. “Over 50 percent of the managers on the island, including top management, are Bahamian,” said Ms Wilson. “People also do not understand how many jobs the operation of this island creates – water taxis, glass bottom boats, straw vendors, parasailing, Customs, Immigration. “CocoCay is a very significant revenue generator for the communities of Great Harbour Cay and Bullock’s Harbour. And we are all so proud to showcase our country’s beautiful islands to the guests of Royal Caribbean that come from all

over the world.” “CocoCay was one of the first private island destinations for the cruise industry anywhere in the world,” added Russell Benford, Royal Caribbean’s vicepresident of government relations for the Americas. “That was 40 years ago and, since then, the model has changed somewhat but the principle remains the same. There is a sense of adventure satisfying the desire for a fantasy island experience, and from all the guest comments we receive CocoCay continues to be among their favourite destinations.” Royal Caribbean is investing $200m to expand the island’s offerings, creating its first “Perfect Day” island experience. Along with a water park and activities such as ziplining, the cruise line is building a new pier to handle the world’s largest ships capable of carrying 6,000 guests plus crew. “During the 2019-2020 season, we aim to increase the total number of guests we bring to The Bahamas from 1.2 million to 1.75 million,” said Mr Benford. Ms Wilson added: “When you are on an island, you

play every role – you are counsellor, teacher and preacher in addition to the job you have to perform. It is not like telling someone to go down the street and see an expert.” She grew up in Nassau, her father the highlyrespected former ministry of national security permanent secretary, Mark Wilson, and her mother a nurse and midwife who somehow found time to bake cakes for weddings and special occasions. By the time she was eight, Ms Wilson was stirring the mix for her mother’s homemade cakes, and this turned into a fascination with culinary arts. She attended Bahamas Hotel Training College, did her undergraduate work at Johnson & Wales University in Providence, Rhode Island, and, in 2003, with several work stints abroad and consulting contracts in between, earned a Master’s degree in hospitality management. The cruise industry was conducting a talent search in conjunction with her university department just as she was graduating from Florida International University

GINEA WILSON

(FIU). A professor urged her to attend the presentation. She resisted, but caved in only because he said at least she would help them make up the numbers to avoid the school disappointing the people making the presentation. By the time her interest was sparked, and she agreed to see the private island Royal Caribbean ran in The Bahamas, Ms Wilson said she was swept away. “I felt like Jonah and the whale,” she said. Ms Wilson signed on as a consultant, initially writing policy to standardise practices in The Bahamas and Labadee, Haiti, where Royal Caribbean manages another private island destination.

She moved up every time there was a vacancy until she hit the position she has held for the past nine years. It is harder with a four year-old at home in Nassau, and Ms Wilson is sometimes gone for three weeks at a time, but she loves the continuing challenges. “When the guests leave the island, that’s when the real work begins. It’s 24/7, the show must go on,” she says. She likes the never-ending change and co-workers like working with her. “She understands team work, she gets the culture, she knows the people,” said assistant island manager, Hubert Rolle. “She’s good, real good.”

BAHAMAS INSTITUTION NAMES CAYMAN HEAD STERLING Global Financial, the Bahamian financial institution, has named Cory Macculloch as its managing director of its Cayman Islands operation. Mr Macculloch, pictured, will manage Sterling’s fiduciary business, and look to strategically expand its fin-tech (financial technology) and digital asset-based service offerings. He joins Sterling from

an offshore law firm, where he was a founding attorney of the firm’s digital, blockchain and fin-tech group, and led the firm’s growth in this practice area. Mr Macculloch also has experience with international initial coin offerings (ICOs), and has acted as Cayman counsel for several high-profile funds and decentralised blockchain projects. “Sterling has an

impressive and innovative slate of fiduciary services, and is making significant advances in the digital asset/ blockchain space”, said Mr Macculloch. “More importantly, there are very few teams outside of Silicon Valley, or anywhere else, that have the breadth of knowledge of the industry as the team here,” adds Mr. Macculloch. “Sterling is a leading independent financial services firm with a strong team of professionals. The addition of Cory Macculloch to the team is consistent with the firm’s strategy of continuing to build its management expertise to best serve our clients,” said Stephen Tiller, president and chief operating officer.

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Thursday, September 13, 2018, PAGE 3

CRYPTO ADVOCATES CALL FOR ‘FRIENDLY’ REGULATION By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net A BAHAMIAN cryptocurrency advocate yesterday called for a friendly regulatory regime that would encourage Bahamian entrepreneurs to bring technology-driven solutions to market. Wayne Johnson, a corporate manager for the Zucaz Group, told Tribune Business: “The digital economy is here to stay.

The legislators have to be thorough with their legislation, but they must do it in a way that creates enthusiasm for entrepreneurs to be able to create solutions in this marketplace. “You shouldn’t bring legislation to block people from the marketplace, but bring solutions to encourage people to start new businesses and bring new wealth into the economy.” During a cryptocurrency and blockchain conference back in June, Sterling Global’s technology head

Brandon Caruana urged The Bahamas to adopt cryptocurrency legislation as a key element in plans to establish the nation as a “technology hub”. Mr Johnson’s comments came after the Central Bank of The Bahamas, responding to a rash of companies promoting initial coin offerings (ICOs) and crypto/blockchain solutions, moved to warn Bahamians of the risk involved in investing in an unregulated, stillevolving industry.

“The Central Bank of The Bahamas wishes to advise the public that no licence has been granted to crypto currency operators by the Bank or any other financial regulator to offer digital currency, or to provide such services such as cryptocurrency exchanges, crypto loans or crypto and fiat processing in or from within The Bahamas,” the regulator warned. “Persons investing in such products and services do so at their own risk.” The Central Bank added

that crypto/digital currencies were not legal tender in The Bahamas, are not issued or backed by it, and are not legal foreign currency either. “The Central Bank does not regulate or supervise virtual currencies, nor has the Bank authorised any entity to operate a virtual currency platform,” the Central Bank reiterated. “The public is further advised to seek professional advice with respect to matters regarding savings and investments from

legitimate and licensed financial institutions.” Mr Johnson yesterday said this warning was likely sparked by what the Central Bank saw as some proposals crossing the line into its regulatory territory. “Any time you are offering what they consider a financial instrument; where if you are offering ATM services, and activities that come under the Central Bank’s authority, the regulator is going to raise the alarm,” he added.

DPM URGES GB FIRMS TO EXPAND TO NASSAU ‘TAP IN’ TO YOUTH FOR ECONOMIC SUCCESS BY DENISE MAYCOCK Tribune Freeport Reporter dmaycock@tribunemedia.net THE Deputy Prime Minister yesterday urged Grand Bahama businesses to consider Nassau expansion rather than just confine themselves to their home island. KP Turnquest, pictured, made his call while delivering the keynote address at the official opening of the newly-constructed Freeport Insurance Agents and Brokers Building on West Mall Drive. He praised the company for taking “a leap a faith” in December 2014 to become owners in the insurance industry on Grand Bahama, and also expand to New Providence. “They took the challenge and look at them today; they come from a team of five to now 50,” said Mr Turnquest, who praised the company for expanding its service to Nassau on Shirley Street with a staff of four. “You do not have to be confined to GB,” he added. “The Bahamas is available to all of us. Some how we believe we are locked here. We have licenses from the Grand Bahama Port Authority that do not allow us to do certain things, and so we think we are stuck. But I want you to think

about expanding your brand - you do have something to offer, and you can compete.” Mr Turnquest said there was a sentiment among some that Grand Bahama’s economy was not moving, but added that Freeport Insurance Agents and Brokers’ expansion “marks a more positive truth” of what is happening on the island. He added that young Grand Bahamians were moving from employees to becoming successful entrepreneurs. “Things do not automatically move; people make things move, and that is what we are witnessing here,” the Deputy Prime Minister said. He mentioned several successful businesses that were formed by Grand Bahamians, including Quality Wash and Press; Express Food Mart; Fowlco Marine; and Elnet Maritime Center, which recently broke ground in Freeport for a $2m facility.

“These are all Bahamian businesses; these are all GB residents all demonstrating confidence in the local and national economy, and following their dreams with well thought out business plans, Mr Turnquest added . He conceded, though: “It is fair to say things are not happening fast enough for everyone.” The Deputy Prime Minister said the Government was implementing policies and legislation to grow the economy, such as the Self-Starter and Jump Start programmes on Grand Bahama. He added that 80 young Bahamians have received a start from the Apiary Programme, with the honey-making business experiencing tremendous opportunity and growth. The Government also plans to launch the Small Business Development Centre, a collaboration between the Ministry of Finance and University of the Bahamas, on Grand Bahama next week. “It is a very holistic programme we are engaging on. Through deliberate intent of the Ministry of Finance and the Government, we set aside 20 percent of our procurement budget for these kinds of start-ups to ensure they have a base from which grow,” Mr Turnquest said.

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Bahamas must “tap in” to the potential of its youth, a governance reformer said yesterday, with economic success “hinging” on its capacity to develop a viable workforce. Matthew Aubry, executive director for the Organisation for Responsible Governance (ORG), stressed the importance of identifying the key gaps in this nation’s workforce. He was speaking with Tribune Business on the sidelines of a press conference to announce a National Skills Symposium, slated for Monday, September 19, at the National Training Agency (NTA) on Gladstone Road. The symposium is an initiative of the Ministry of Labour’s National Committee for Industry and Skills Development, in conjunction with key stakeholders elsewhere in government, the private sector, civil society and educational institutions. Among the symposium’s objectives are “the development of a consensus-based assessment of the current skills needs among the key sectors in private industry in The Bahamas”, and “he creation of a list of competencies, credentials and certifications that are required to stimulate growth in

the Bahamian economy”. Mr Aubry said: “The symposium is really driven towards bringing all the stakeholders together to understand and analyse what are all the key gaps in our workforce, and what’s holding us back. “The reality is we have a lot of groups in private industry, government and the educational system that are working towards meeting these skills needs. None of us have come together under one roof to determine what is working and what’s not working; what are the real needs and how do we line those up? If we see that different industries have the same key needs then we need to prioritise that.” Mr Aubry continued: “One of the assets The Bahamas has is the talent of our youth. We need to ensure that they are given every opportunity to not

only get skills that are recognised locally but also internationally. “If we don’t have those training and certifications available now in BTVI or the National Training Agency, then we have to work out how we can get them. The economy is hinged on our capacity to have a viable workforce. We want to see certifications and competencies that are recognised on a larger scale.” Labour Minister Dion Foulkes yesterday said his ministry considers the skills gap issue a “national priority”. “The longstanding negative impact of the disparity between employer needs and the available workforce has critically limited the growth of the private sector and, subsequently, the economic development of our nation,” Mr Foulkes added.

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THE TRIBUNE

Tourism ‘cannot maintain’ double digit growth pace FROM PAGE ONE again,” Mr D’Aguilar told Tribune Business. “Overall stopover visitors will be up somewhere between ten to 15 percent for the year, which is very impressive. I’m very encouraged by the first six months of the year.” But, when asked by Tribune Business whether The Bahamas’ stopover tourism industry will maintain

this pace in 2019, the Minister of Tourism responded: “Certainly not. “The level of increase, that begins to taper off, as you can’t maintain that level of increase consistently. High single digits will make me happy, and I remain hopeful.” Stopover visitors are the highest-yielding segment of the Bahamian tourism market, typically spending $1,500 per head every visit on average, compared

to the $64 per capita that cruise passengers leave with this destination. This makes stopover, or land-based, visitors the most valuable tourist category for The Bahamas. Mr D’Aguilar recently acknowledged as much when he said the 15.2 percent stopover visitor increase for the year to end-June translated into an extra 110,000 visitors, and based on an average $1,500 spend, some $165m being

injected into the Bahamian economy. He yesterday told Tribune Business he was further “encouraged” by hotel industry data which indicated that the much-feared room rate “cannibalisation” between Atlantis and Baha Mar - as a result of the latter’s opening - had yet to materialise. First-half performance statistics for Nassau/Paradise Island’s largest hotels showed that average daily room rates (ADRs) were up 4.3 percent year-overyear, standing at $256.65 compared to $246.11, and beating 2017 comparisons in four of the six months. Revenue per available room (RevPAR), a key hotel industry statistic measuring cash flow from inventory on the market, was also up on prior year figures, standing at $169.03 as opposed to $165.55. Fears that Baha Mar may split, rather than grow, the market for high-end visitors with Atlantis have been present ever since the $4.2bn Cable Beach development was conceived in 2003-2005. Many observers were concerned that Baha Mar’s full opening would create downward pressure on room rates at both New Providence’s mega resorts

and, potentially, other hotel properties, with none generating the profits they need to keep Bahamians employed and maintain a sustainable business model. Mr D’Aguilar said the industry data suggested these fears were unfounded, adding of the figures: “It shows that the degradation of room rates that one predicted is not as significant; it hasn’t gone down at all. That is a good trend and hopefully we can maintain that. Time will tell.” Room revenue generated by Nassau/Paradise Island’s largest hotels was shown to have increased by 32 percent for the 2018 first half compared to the prior year, while air arrivals and room nights sold were up by 17 percent and 26 percent, respectively. The only indicator down on 2017 was occupancies, which stood at an average 65.9 percent for this year’s first half compared to 67.3 percent a year ago. The slight decline will likely have resulted from the additional room inventory brought on to the market by Baha Mar. Breaking the stopover visitor increase down by island, Mr D’Aguilar said New Providence’s 7.3 percent increase for the 2018 first half was eclipsed by

both Abaco and Eleuthera, which saw growth of 16.3 percent and 29.6 percent, respectively. Andros, the Berry Islands and San Salvador also saw stopover growth of 11 percent, 28 percent and 10.5 percent, respectively. Exuma’s growth was more muted at 1.3 percent, while Bimini was down 7.3 percent. As for visitor spending, Mr D’Aguilar said there was no data that suggested ‘“any movement” in per capita expenditure by cruise passengers. Acknowledging that this issue needed further study, he added that Global Blue, the company that handles the VAT-free shopping scheme for Bay Street merchants, indicated earlier this year it was processing more tax refunds - a possible indication of increased spending on luxury goods. Besides Baha Mar, and its increased room inventory and new product, Mr D’Aguilar attributed 2018’s stopover visitor growth to the buoyant US economy, his ministry’s targeting of digital and social media marketing channels, and lingering hurricane damage in other parts of the Caribbean that had helped divert tourism to The Bahamas.

Bahamas broker fined $35k over Canada breach FROM PAGE ONE in its regulatory filings despite being required by law to do so, and exploited this - and his access to inside information on the company - to reap profits from trading in its shares. “Lavallee also executed a non-solicitation acknowledgement and agreement in favour of Seton,” the Commission’s settlement with the Bahamian broker/

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dealer stated. “In it, Seton affirmed it was not registered to trade in securities, or act as a broker/dealer or investment advisor, in Alberta. “Between approximately May 2016 and September 29, 2017, Lavallee traded tens of thousands of securities of North America Frac Sand. From May 25 to 30, 2017, Lavallee traded thousands of shares of NAFS through an account with Seton in the Bahamas for proceeds exceeding $32,000. “NAFS was cease traded by the Commission on May 16, 2016, for accountingrelated deficiencies and disclosure. The CTO Order is still in place.” Seton admitted to breaching the Canadian province’s securities laws “by acting as a dealer in Alberta without registration”, but said it had been unaware of the order that froze trading

in NAFS shares. The settlement agreement also acknowledged the Bahamian broker/ dealer’s co-operation with the Canadian regulator’s probe, which was assisted by local regulator, the Securities Commission of The Bahamas. Tribune Business efforts to contact Mr Gottlieb and Seton proved fruitless over the past two days. The company’s website is not properly functioning, and did not supply contact details for The Bahamas broker/dealer. A February 2014 list of the Securities Commission’s licensees gave an address of 432 Bay Street for Seton, but the contact number was permanently engaged when this newspaper called multiple times. Seton’s registered personnel were named as Mr Gottlieb, Craig Spivey and Endric Deleveaux.

THE TRIBUNE

Thursday, September 13, 2018, PAGE 5

Lucayan repair bill ‘significantly lower’ at $35m FROM PAGE ONE Tribune Business last night. However, multiple well-placed sources, speaking to this newspaper on condition of anonymity, confirmed both the total $35m figure and numbers for each of the properties. “They had a study done last week, which showed it would only take $35m to fix it,” one contact confirmed. “They’re saying the mold issue is not a big one. The main issue is the roofs. They’ve got to be replaced, and in the Memories section you’ve got plumbing and electrical problems. It’s not as bad as everyone thought.” Paul Wynn, chief executive of the Toronto-based Wynn Group, which was the last potential buyer to pull out of talks to acquire the Grand Lucayan, had told Tribune Business that between $45-$55m was needed to renovate and remediate the resort’s problems.

YOUR

He had unsuccessfully sought to renegotiate the $65m purchase price with outgoing owner, Hutchison Whampoa, down to $40m to free-up financing for repairs and rebuilding marketing/airlift support. The buildings will need substantial remediation,” Mr Wynn had told Tribune Business. “Our budget, done with AMR and before that with Sunwing, was $45-$55m.” He explained that the variance was for mold remediation, given that a new owner would only have been able to fully assess this situation once an acquisition was completed. “We’re not even certain that the Lighthouse Point should stay up,” he added. “The 23 villas that face the water, they have to be demolished. You open the doors and the mushrooms are coming out the walls; it’s that bad.” The much-reduced $35m estimate will be a relief to the Minnis administration, which has come under fire

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for committing taxpayer funds to the purchase of a resort that many fear will become a major drain on the Public Treasury if a buyer is not found quickly. While the Government will likely seek to sell the Grand Lucayan without undertaking major capital upgrades, in a bid to minimise the taxpayer’s exposure, it could be forced into taking such action if the search for a new owner drags on beyond six months. Meanwhile, Tribune Business was told that the seeming eagerness of many Grand Lucayan staff to accept voluntary separation packages and leave the resort was not an unwelcome development where the Government and Lucayan Renewal Holdings were concerned. Several sources told this newspaper that the property was “100 percent over-staffed”, carrying double the number of employees needed to operate the 196-room Lighthouse Pointe. “They’ve got too much staff; probably 100 percent more staff than they need for 196 rooms,” one contact said. Some 423 employees remain at the Grand Lucayan, but the two unions that represent its workers - the Bahamas Hotel Managerial Association (BHMA) representing middle managers, and the

Commonwealth Union of Hotel Services and Allied Workers for line staff have both indicated that a “substantial” number of members would be willing to leave if the terms are right. Obie Ferguson, president of the Trades Union Congress (TUC), and who represents the BHMA, told this newspaper on Wednesday: “Some of the staff are asking for severance pay; quite a lot. The feedback I’ve received is that it’s a substantial number. I believe most of the workers would take a package. “That’s my general view, but we’re trying to get the exact number. I put out a questionnaire to the BHMA because we want to be in a position to say to the chairman [Mr Scott] how many persons are mindful to go that route. “We will know the exact number in a day or so, but as it stands a sizeable number want to take severance pay.” One source, speaking on condition of anonymity, said the Grand Lucayan’s staff structure and costs had been skewed by Hutchison Whampoa’s policy of retaining middle managers - and letting line staff go - whenever downsizings occurred. “They’d welcome more money if those middle managers took the package,” they added of Lucayan Renewal Holdings,

revealing that the SPV and its board were still seeking high-level management executives to run the resort on their behalf. A formal sales prospectus, which will inform potential Grand Lucayan buyers on the resort’s financial performance, physical condition and other material business information, was said to still be at least a fortnight away from being ready for release. “To sell a hotel in a dead tourism market is almost impossible,” one contact told Tribune Business. “The buyer of a hotel, the first thing they ask you for is comparable room rates. They’ll kill you in this town if you can find them. “They really need a professional sales prospectus so that buyers coming in know what the hell they’re going to get. They’ve had three or four different groups make offers, but they don’t know if they have the money or not, or whether they’re good or bad.” Closing of the Government’s $65m Grand Lucayan purchase has been “slightly delayed” to September 21 because the necessary resolution authorising the Government guarantee that will underwrite the acquisition financing can only be effected when Parliament resumes two days prior following the summer recess.

The guarantee will be worthless without the resolution, since this is required to bring it into compliance with the law in the form of the Financial Administration and Audit Act. The Minnis administration is thought to be financing the Grand Lucayan purchase with a combination of debt and the $25m allocated in the 2018-2019 budget to support the now-abandoned Wynn Group purchase. The deal is structured so that the Government pays a $10m deposit, which it has done, and a further $20m upon closing. This is likely to be financed largely through the budget, with the $35m balance split into semi-annual $5m payments spread over three-and-ahalf years. That portion will come from debt, with the funds likely to be extended by the Grand Lucayan’s departing owner, Hutchison Whampoa, as a form of vendor financing. This was proposed a year earlier, when the Minnis administration first suggested it would take an equity stake in a purchase of the resort. A mortgage, secured on the Grand Lucayan’s real estate assets, will provide security for the loan or any form of debt financing. The Government guarantee is needed to provide assurance to the lender that its monies will be repaid.

PAGE 8, Thursday, September 13, 2018

THE TRIBUNE

‘Brick and mortar’ banks becoming less cost viable FROM PAGE ONE reduces and there will be a natural consolidation. I wouldn’t call it a trauma or blunt blow to the industry; it was really more about the reaction to the cost, and decisions had to be made on the ability to afford ‘brick and mortar’ in some of the locations that would have had very little need for foot

traffic and very little ability to recover those costs.” Mr Bowe acknowledged that commercial banks have pulled-out of several Family Islands in recent years, and said: “We are looking at how do we, in conjunction with the Central Bank, move towards a cashless society, and how do we - in the various islands - look at the expansion of the debit card and credit card activity, where

persons are becoming more comfortable buying services and merchants are becoming more comfortable as well. “That is an ongoing dialogue between the clearing banks and this working group that will hopefully provide viable alternatives in some of these locations. which will meet the need of customers and, at the same time, are not requiring unprofitable brick and mortar structures.”

US ‘likely’ has taken over as the world’s top oil producer By DAVID KOENIG Associated Press

THE United States may have reclaimed the title of the world’s biggest oil producer sooner than expected. The US Energy Information Administration said yesterday that, based on preliminary estimates, America “likely surpassed” Russia in June and August after jumping over Saudi Arabia earlier this year. If those estimates are right, it would mark the first time since 1973 that the US has led the world in output, according to government figures. The energy information administration and the International Energy Agency, a global group of oil-consuming nations, had predicted that the US would eventually pass Russia and Saudi Arabia but possibly not until 2019. US production jumped in recent years because of techniques including hydraulic fracturing, or “fracking”, which is the use of chemicals, sand, water and high pressure to crack rock formations deep below ground, releasing more oil and natural gas. Fracking is driving a drilling boom in the Permian Basin under Texas and New Mexico. The practice is controversial, however. Opponents say that fracking results in toxic contamination of groundwater and increases the number of earthquakes in places like Oklahoma and Texas. The US energy agency estimated that the United States produced an average of 10.9 million barrels a day in August, compared with about 10.8 million barrels a day by Russia and around 10.4 million from Saudi Arabia. It said the

US passed Saudi Arabia in February for the first time in more than two decades, and this summer it topped Russia for the first time since 1999. The agency expects the US will continue to top Russia and Saudi Arabia for the rest of this year and through 2019. US production has soared since 2011, led by output from the Permian Basin, North Dakota and the Gulf of Mexico. The pace of drilling slowed after oil prices tumbled starting in 2014, but roared back as operators learned to produce oil more efficiently and crude prices rebounded. Production has been relatively steady in Russia and Saudi Arabia, both of which took part in an OPEC agreement to limit output beginning in 2016 to drive up prices. The US agency said its data on Russian production comes mainly from the Russian Ministry of Oil but also oil companies and industry publications. The agency said figures on Saudi output are based on its own internal estimates. The US led the world in oil production for much of the last century until the Soviet Union and later Saudi Arabia passed it during the 1970s. Until the last few years, it seemed farfetched that the US would ever regain the number one spot. Daniel Yergin, author of “The Prize”, a history of the oil industry, said the rebound of US production helped avert a severe shortage of world oil that would have sent prices far higher.

JOB VACANCY

Wholesale Pharmaceutical Sales Representative A leading wholesale company requires the services of an experienced Wholesale Pharmaceutical Sales Representative. It is a fulltime position. Applicants must possess the following MINIMUM qualifications; Associate Pharmacy degree or higher 3 or more years working experience in Wholesale Sales, Marketing, & Trade Promotions Must have an automobile and be 25 years of age or older with a Valid Driver’s License Must be able to multitask and have strong organizational skills Proficiency in Word, Excel, Power Point, & Popular Web-Based Platforms (Face Book, Twitter, etc.) Good Communication Skills (Verbal & Written) Be able to work with little supervision Please do not apply if you do not possess the minimum qualifications Only successful candidates who are short-listed will be contacted Submission deadline is: Friday, September 21, 2018 Submit resume to peter@pghrbahamas.com

THE TRIBUNE

Thursday, September 13, 2018, PAGE 9

xx-xx-xxxx

DATE

COMMENTS

REVISIONS

Resort condo’s 1,200 jobs to be ‘100% Bahamian’ X

8 7 6 5 4 3 2 1

6/12/2018

BJD

BAM

18-1015

4/10/2018

4 X

JOB NO.

CHECKED

RELOCATED FUEL

DATE

DRAWN

DESIGNED

EMERGENCY RESCUE BOAT SLIP

DATE ISSUED

MARINA ACCESS

7 3 2

MARINA ACCESS

CART PATH TYPICAL

MARINA ACCESS

CART PATH TYPICAL

5 MARINA ACCESS

3 5

OLD BAHAMA BAY DEVELOPMENT

BAHAMAS

WEST END, FREEPORT

VOLLEY BALL

MARINA ACCESS

CART PATH TYPICAL

CONCEPTUAL OVERALL SITE PLAN

NOT FOR CONSTRUCTION

PLAN SHEETS ARE PRELIMINARY AND FOR INFORMATION ONLY. PLANS SHOULD NOT BE USED AS A BASIS FOR BIDS. CONTRACTOR SHOULD ORDER THE OFFICIAL PLANS FROM THE ENGINEER OF RECORD TO ENSURE THAT ANY ADDENDUMS ARE PROPERLY DISTRIBUTED. PLANS ARE INVALID WITHOUT ENGINEER OF RECORDS SEAL AND SIGNATURE.

SUBJECT BOUNDARY GOLF CART PATH

SHEET 60

C-1.0 18-1021

PRELIMINARY SET

ARCHITECTS renderings of resort project. FROM PAGE ONE ahead”, he added that Grande Harbour was currently negotiating a Heads of Agreement with the Government, and in the process of obtaining all necessary planning, environmental and other approvals, having first approached it with the project in 2017. “I’ve had my crews there, engineers there working with Bahamian engineers, a general contractor there taking applications from qualified builders and electricians,” Mr MacDonald told Tribune Business. “We already have full blown blueprints; we know where every screw and every nail is going.” He added that he had “kept quiet” over his plans, which have been five years in the making, until the land acquisition and related title searches were completed to ensure there were no obstacles that might interrupt progress. Grand Harbour will feature 460 resort-style condos divided into one, two and three-bedroom units. It will also boast a 78-slip dockaminium, with a combination of fixed and floating docks to accommodate vessels up to 75 feet in length. Fixed docks will be made available with optional boat lifts for centre console-style boats 40 feet in length or less, while some 2,500 lineal feet of dockage will offer space, power and water for mega yachts. Mr MacDonald said that while he was still awaiting financial projections from Grande Harbour’s economic impact study, the

investment involved will be “not quite as much but pretty close” to that contemplated by Skyline. “There’s going to be roughly 900 construction jobs and a little over 300 full-time employees,” he told Tribune Business. “Our first phase is going to expand the marina, build a new check-in facility and we immediately want to move on the amenities.” Grande Harbour’s proposed amenities include two infinity pools; hot tubs; a spa; two restaurants; tennis courts; basketball courts; volleyball courts; the “largest fish cleaning station in all of The Bahamas”; a convention hall; gym facilities; and a private members-only club. Mr MacDonald said he wanted to develop the amenities before starting vertical construction on the condos to ensure that both the last and first buyer at Grande Harbour have access to the same facilities. “I’ve seen so many projects go up where they start selling the real estate, and there are all the buyers hanging out with no restaurants,” he explained. “Since we are fully funded my thought is to start the marina, the check-in and the pool house. “So, if you come in tomorrow to buy the first unit you’re not sitting there wondering: Where’s the coffee shop? You’ll have the same amenities as the last guy to buy. We will do the amenities, and then do the first condo building. These are going to be resort condos sold off to people wanting to come and stay and rent.

This [Grande Harbour] has been a dream of mine. I’ve been working on the funding for a long time, and didn’t even approach WERL until I had the money in the bank. In total, I’ve been working on this for five years.”

Mr MacDonald explained that he had been alerted to the demand for a “world renowned, high class and ultra luxury resort” by the high-end clients he has brought to the existing Old Bahama Bay property, who were calling for facilities

such as spas. “My favourite place in the entire world, and I travel all over the world, is The Bahamas,” he told Tribune Business. “It’s the perfect time and the perfect area for it. The Bahamas is on the upswing, and if we

do it right we will keep it like that.” Mr MacDonald added that, as neighbours, Grande Harbour and Skyline “could share employees, experiences and save a lot of money” by working together.

PAGE 10, Thursday, September 13, 2018

THE TRIBUNE

US STOCKS WOBBLE AS TRADE HOPES FLICKER AND TECH STOCKS SLIP NEW YORK Associated Press

US stocks wobbled between gains and losses then finished with a split decision yesterday as technology companies dropped. That cancelled out gains for energy companies. Oil and gasoline prices continued to rise yesterday after a big gain the

day before, and US crude reached its highest price in two months. Chipmakers fell, while Apple slipped after announcing new features for iPhones and Apple Watches. The market staged a brief rally around midday following a report that the US was seeking new trade talks with China. Stocks climbed, but they retreated to their earlier levels in less

than an hour. Kristina Hooper, chief global market strategist for Invesco, said investors have learned from earlier trade updates that didn’t amount to much. “Every other time this has happened, it wasn’t worth the positive market move,” she said. “Investors ... are a lot more skeptical this time around, having been burned a few times with

false optimism about positive trade developments.” The S&P 500 index edged up 1.03 points to 2,888.92. The Dow Jones Industrial Average added 27.86 points, or 0.1 percent, to 25,998.92. The losses for technology companies weighed on the Nasdaq composite, which slid 18.24 points, or 0.2 percent, to 7,954.23. The Russell 2000 index of

MARKET REPORT WEDNESDAY, 12 SEPTEMBER 2018

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

smaller-company stocks lost 2.71 points, or 0.2 percent, to 1,715.70. Most of the stocks on the New York Stock Exchange finished higher. Oil prices built on Tuesday’s gains after the Energy Information Administration said US crude stockpiles fell by more than five million barrels last week. The prospect of tighter supplies and higher prices also helped energy company stocks. Benchmark US oil climbed 1.6 percent to $70.37 a barrel in New York. Brent crude, the standard for international oil prices, added 0.9 percent to $79.74 a barrel in London. Wholesale gasoline rose one percent to $2.03 a gallon. It jumped almost three percent the day before. Goldman Sachs analyst Mark Delaney downgraded Micron Technology stock to “Neutral” and said he expects weaker market conditions for several types of computer chips. Micron fell 4.3 percent to $41.74 and Nvidia slipped 1.7 percent to $268.20. Apple unveiled new iPhones with larger screens yesterday, and also said new Apple Watches will have larger screens and new health-monitoring features. Apple tends to trade lower on the days it announces new products, and it fell 1.2 percent to $221.07 yesterday. It’s up 31 percent in 2018, however. As the Apple Watch updates were announced, shares of fitness tracker company Fitbit slumped 6.9 percent to $5.53 in heavy trading. According to the Wall Street Journal, US officials recently proposed a new round of trade negotiations to give the Chinese government another chance to address US concerns before the Trump administration imposes bigger tariffs on goods imported from China. The two countries have already placed new taxes on $50bn in imports, and the government is threatening higher tariffs on $200bn in goods. Many experts feel that China will make substantial concessions to resolve the trade impasse, and some are hoping for major progress over the

next few months. But Hooper of Invesco says she doesn’t think China is about to give in. She said the Chinese government is preparing for a long dispute by ramping up spending, and notes that unlike US politicians, Chinese President Xi Jinping doesn’t have to worry about facing voters. Cigarette makers jumped after the Food and Drug Administration said it is looking at steps to combat “an epidemic” of e-cigarette use by teenagers, and said companies need to address the problem or risk having their flavoured products pulled off the market. Altria Group surged 6.7 percent to $63.43, its largest gain in just under a decade. Philip Morris International rose 3.4 percent to $80.05 and overseas rivals like British American Tobacco and Imperial Brands also jumped. The Labor Department said wholesale prices unexpectedly dipped in August, the first decline in a year and a half. That’s a sign inflation pressures could be easing. The agency’s producer prices index slipped 0.1 percent in August, although it’s up 2.8 percent over the last year. The department said transportation and warehousing service prices fell for the month. The dollar weakened and interest rates dipped, which put pressure on bank stocks and also boosted commodities prices. The yield on the ten-year Treasury note fell to 2.96 percent from 2.98 percent. The dollar fell to 111.22 yen from 111.59 yen. The euro rose to $1.1632 from $1.1586. Gold rose 0.7 percent to $1,210.90 an ounce. Silver added one percent to $14.29 an ounce. Copper climbed 2.1 percent to $2.68 a pound. Heating oil added 0.3 percent to $2.26 a gallon and natural gas remained at $2.83 per 1,000 cubic feet. France’s CAC 40 gained 0.9 percent while the British FTSE and the DAX in Germany both rose 0.5 percent. Japan’s benchmark Nikkei 225 lost 0.3 percent, and the Kospi in South Korea was almost flat. Hong Kong’s Hang Seng index fell 0.3 percent, its ninth loss in ten days.

BISX ALL SHARE INDEX: CLOSE 1,949.38 | CHG 1.33 | %CHG 0.07 | YTD -114.19 | YTD% -5.53 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.46 1.26 0.19 3.92 9.17 6.60 5.30 12.50 2.71 1.77 8.21 6.21 13.10 7.00 4.50 13.50

52WK LOW 3.50 19.17 7.50 3.32 0.90 0.12 2.50 8.55 6.09 3.49 9.00 2.30 1.40 7.25 6.00 9.50 5.67 3.25 12.50

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 ##########

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 3.95 17.43 9.09 4.45 1.01 0.18 2.55 9.17 6.15 3.60 12.40 2.83 1.75 7.61 6.21 13.00 6.31 3.65 13.01

CLOSE 4.01 17.43 9.09 4.45 1.01 0.18 2.55 9.17 6.15 3.60 12.42 2.81 1.75 7.68 6.21 13.06 6.31 3.65 13.01

CHANGE 0.06 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 -0.02 0.00 0.07 0.00 0.06 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

107.57 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 107.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME 3,500

375 40,000 4,000

1,650

VOLUME

EPS$ 0.268 0.932 -0.306 0.317 0.059 0.000 -0.996 0.700 0.441 0.171 0.627 0.102 0.231 0.000 0.670 0.679 0.719 0.277 0.631

DIV$ 0.100 1.130 0.000 0.230 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.070 0.084 0.280 0.500 0.200 0.120 0.590

P/E 15.0 18.7 N/M 14.0 N/M N/M -2.6 13.1 13.9 21.1 19.8 27.5 7.6 N/M 9.3 19.2 8.8 13.2 20.6

YIELD 2.49% 6.48% 0.00% 5.17% 0.00% 5.56% 0.00% 7.74% 3.58% 3.33% 4.99% 2.14% 4.00% 1.09% 4.51% 3.83% 3.17% 3.29% 4.53%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

MATURITY 19-Oct-2022 ############### 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

MUTUAL FUNDS 52WK HI 2.17 4.16 2.01 180.30 157.58 1.57 1.70 1.65 1.10 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.45 11.20

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.51 1.62 1.59 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.17 4.14 2.01 180.30 155.10 1.57 1.68 1.65 1.09 7.36 8.53 6.50 11.41 11.66 10.41 9.93 8.45 11.20

YTD% 12 MTH% 2.24% 4.15% 0.03% 4.59% 1.23% 2.26% 0.90% 3.44% 1.11% 6.05% 2.50% 4.38% -0.75% 3.51% 1.75% 4.07% -0.52% 1.03% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.61% 0.75% 1.13% N/A 2.95% N/A

NAV Date 31-Jul-2018 31-Jul-2018 27-Jul-2018 30-Jun-2018 30-Jun-2018 31-Jul-2018 31-Jul-2018 31-Jul-2018 31-Jul-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 31-Aug-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

To advertise in The Tribune, contact 502-2394

NOTICE Notice is hereby given that LENO GUERRIER of Pinedale, Eight Mile Rock Freeport, Grand Bahama, Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written signed statement of the facts within twenty-eight days from the 13th September, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.

PAGE 12, Thursday, September 13, 2018

THE TRIBUNE

Months of deadly unrest devastate Nicaragua’s economy LEON, NICARAGUA Associated Press TWO days after protests began in Nicaragua in April, a foreign auto components company was meeting at a hotel in the city of Leon when smoke from a burning university building just a block away billowed above the hotel’s colonnaded courtyard. The visitors quickly cut short their event and began changing their travel plans to exit Nicaragua. Within three months, the El Convento hotel itself was forced to close for lack of business, as a sister hotel in the same city had in June. Nicaragua’s economy

has been devastated by the nearly five months of unrest sparked by cuts to social security benefits that quickly evolved into calls for President Daniel Ortega to step down. In June, the country’s economic activity was down 12.1 percent compared to a year earlier, according to the central bank. Economists estimate 200,000 jobs have been shed, including as many as 70,000 in the tourism sector, which has become Nicaragua’s top source of foreign currency in the past two years. Revenue at hotels and restaurants plunged 45 percent in June compared to 2017, according to

Nicaragua’s central bank. Similarly, construction suffered a 35 percent drop and retail 27 percent. Some $900m in deposits fled Nicaragua’s banks. They responded by tightening their lending to preserve liquidity, thus also contributed to the economic slowdown. Nicaraguan Union of Agricultural Producers says more than 12,000 acres of private land have been occupied by government supporters in what business leaders have called confiscations in revenge for their support of the protesters. The producers say 91 percent of the land occupied by squatters was used for

farming and livestock. Victor Hugo Sevilla, the general manager of both Leon hotels, continues checking email, but said “I haven’t gotten any requests from foreigners for reservations. We have received five, maybe eight, rate inquiries from domestic (travelers), but no firm reservations.” Leon, Nicaragua’s second-largest city, was among the places where protests and roadblocks were most intense. From the beginning, those protests were met with violence from riot police and civilian government supporters. In July, they violently cleared the roadblocks and ran protesting students off occupied university campuses. More than 300 people have been killed in the unrest, according to human rights groups. The government calls the protesters “terrorists” and says it defeated an attempt to drive Ortega from office that was sponsored by the US government and domestic opposition, including some in the private sector. Ortega conceded this month that the roadblocks and unrest have cost the country jobs. In an interview with Spanish news agency EFE, he said domestic tourism was starting to return, but “where there has been more of a problem is in attracting international tourism, because this situation tends to repel the tourists”. A major factor has been that the countries that send Nicaragua’s big-spending foreign tourists, including the US, Canada, Spain and England, issued travel warnings urging their citizens to avoid travel to Nicaragua. Major airlines such as American and United cut their flights to Managua from three per day to one. Spirit, Delta and other carriers trimmed their flights

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as well, said Jose Adan Aguerri, president of the Superior Council for Private Enterprise. The council, which is Nicaragua’s main business chamber, joined the call for a national strike Sept 7. The Civic Alliance, formed to represent a broad swath of Nicaraguan society in a stalled dialogue with the government, said the strike aimed to push the government back to dialogue and to protest the arrest of alliance members and other political prisoners. The country’s primary tourist destinations like the colonial gem Granada and the Pacific coast surfer paradise San Juan del Sur began feeling the consequences of the unrest almost immediately. Hotels and restaurants cut back hours, then days and eventually closed completely. For years, Ortega enjoyed a relatively stable relationship with private business. Since returning to power in 2007, the one-time Marxist rebel commander had softened his views and largely left Nicaragua’s private sector to do what it wanted. The relationship was criticised by some as a tacit agreement to keep the country’s business elites out of politics. In an interview in July with Venezuela’s Telesur network, Ortega said his understanding with Nicaragua’s private sector had been strictly economic and not political. In April, however, the country’s business interests, caught off guard by the social security system changes, quickly joined the opposition. As the social and political crisis deepened, the private sector became increasingly outspoken in calling for Ortega to move up elections. Mario Arana, director of the Nicaragua Association of Producers and Exporters and a former head of the central bank, said the private sector decided to get more involved when student protesters were killed. “When there was an overreaction here to a civil, peaceful protest by the students, where people began to lose their lives, society suffered a social explosion where the private sector aligned with the people,” he said. “The private sector is committed to trying to find a negotiated exit from the crisis.” Juan Sebastian Chamorro, who leads the Nicaraguan Foundation for Economic and Social Development, said the

government has shown signs that it recognises the severity of the economic impact. It has issued new debt, adjusted rules to tighten the selling of dollars and cut public spending as it forecasts a ten percent drop in tax revenue. Whether any of that will be enough to stop the economy’s slide is doubtful unless it’s accompanied by a political solution that restores stability, experts said. Yesterday in Washington, the Organization of American States called on Nicaragua’s government to co-operate with teams investigating human rights abuses and a working group created by the body to support a national dialogue. Nicaragua’s ambassador to the body, Luis Alvarado, responded that the government does not recognise the existence of the working group and therefore had nothing to answer to. For years Leon had been at best a day trip for foreign tourists beginning to explore better-known Granada or San Juan del Sur. But the city had worked hard to get attention and Art Collection Hotels had bet on its prospects by opening its second hotel, La Recoleccion, in 2017. “We had high expectations for this year,” said Sevilla, the manager of the closed hotels. He had 113 employees between the two properties. They were able to suspend 67, which will enable them to come back without losing any benefits of seniority, but the rest were laid off. He has remained in touch with some of the workers. Those still around are taking whatever work they can find, but he estimated at least half left the country, with most of those seeking tourism sector jobs in Costa Rica. The hotels have 190 reservations for November — the start of the high season — but that’s less than half what they had in November last year. Still, he hopes they can start working their way back again in October. Even if that works out, he predicts a slow climb back to normalcy. Cafes and shops selling handicrafts around Leon’s historic center were open this week, but a number of hotels and hostels in the area were shuttered. “I think it will take at least 12 months, maybe more, to be able to restart the tourism engine,” he said.