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TUESDAY, OCTOBER 13, 2020
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pays Compass Point owner Bahamas high price over ‘torn’ over 2020 close $600m offering By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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OMPASS Point’s owner has warned staff he is torn over whether to close the resort “permanently” by year-end 2020 due to his ongoing stand-off with the government and COVID-19’s fall-out. Leigh Rodney told his 50-plus workforce in a recent employee message, which has been seen by Tribune Business, that while his brain was urging him to shutter the iconic West Bay Street property his heart was telling him “no” due to the impact this would have on workers. Acknowledging that COVID-19 was set to remain a threat through summer 2021, Mr Rodney added that the “arbitrary” measures employed by the Minnis administration to contain it - including lockdowns, travel restrictions and curfews - meant it would be “impossible” for Compass Point’s hotel operations to make a profit.
• Mulls ‘permanent’ shuttering by year-end • Tells staff: ‘My brain says yes, but heart no’ • Blames govt stand-off, COVID measures
And, having already threatened to close the resort come the likely 2022 general election unless the government addresses his concerns over hotel industry regulation, he warned that it “seemed pointless” to continue incurring losses until that point due to the pandemic’s impact on business volumes. “The virus is likely going to continue through next summer,” Mr Rodney told staff. “Since a politician, and certainly Bahamian politicians, are never wrong, your government will continue their arbitrary restrictions of some sort or another that make it impossible for our hotel to make a profit and tough for our restaurant to make a profit. “This is going to continue for the foreseeable future. To re-open the hotel finally next summer, suffer through the slow months of 2021,
Lockdowns ‘behind us’ for November 1
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A CABINET minister has voiced optimism that New Providence will have “put these lockdowns behind us” in time for tourism’s planned return on November 1 with the 14-day quarantine elimination. Dionisio D’Aguilar, pictured, minister of tourism and aviation, admitted to Tribune Business that the latest COVID-19 restrictions were “not ideal” given that the re-opening of The
Bahamas’ largest industry is less than three weeks away. However, he added that the country had little choice but to “flatten the curve” on the surging infection rate in New Providence which is now reporting between 500-600 new cases per week, including a further 76 yesterday. Arguing that “buy in” from all residents was essential if COVID-19 was to be contained, Mr D’Aguilar said lockdowns such as this
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‘Material impact’: COVID-19 curbs delay cruise port By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net NASSAU Cruise Port’s top executive is urging the government to establish COVID-19 policies for essential personnel as existing restrictions create “a material impact” on its $250m redevelopment project. Michael Maura, its chief executive, told Tribune Business that Prince George Wharf’s redevelopment has lost “a week or two’s” worth of construction because
high-level expatriate personnel are presently required to undergo the mandatory 14-day quarantine upon arriving in The Bahamas. That requirement is set to be eliminated on November 1 in favour of more rapid and frequent testing, but Mr Maura said clarity and an easing of the restrictions was required now - especially if these persons were able to produce a negative PCR test within the allowed time restrictions and complied with the health visa condition.
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and then close on election day 2022 seems pointless. “For this reason, I wanted to convey that I have had the first thought towards closing permanently, perhaps by the end of this year. I have my heart committed to keeping Compass Point open. My brain is telling me to close. As I hope you have already observed, I have consideration for you very much on my mind and will continue to think of you as I wrestle with this decision.” Mr Rodney said he hoped staff felt he had “done much” to support them through the COVID-19 crisis, adding: “I did not do this as a charitable act. I did this because I recognise that our employees are what makes Compass Point a great property. “I wanted to preserve this chemistry for when The Bahamas re-opened. As you have seen, we continue to
make improvements to the property to make us better then ever in the future. Unfortunately, the clock is ticking towards the closure that I stated would occur by election day if the leader of your tourism industry did not discuss with me eliminating some regulations of hotels. “He has not spoken to me. Obviously the draconian regulation of your lives the FNM has imposed since the virus crisis started is huge compared to my relatively minor issues, but I am committed to keeping my promise to close in two years even if the FNM keeps none of their promises.” The tourism industry “leader” referred to by Mr Rodney is Dionisio D’Aguilar, minister of tourism and aviation. He declined to comment when
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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Bahamas and its taxpayers have paid a higher price “than we would like” in raising $600m from overseas investors to fill the government’s financial holes, the deputy prime minister has conceded. K Peter Turnquest told Tribune Business that the government’s just-closed international bond offering had achieved “the best rate we can get at the moment” given the fall-out from the COVID-19 pandemic, near-total shutdown of the tourism industry and The Bahamas’ “junk” creditworthiness standing with both Moody’s and Standard & Poor’s (S&P). The 8.95 percent interest coupon attached to The Bahamas’ $600m offering, which the government said was effectively oversubscribed by 83.3 percent based on the $1.1bn worth of investor “indications” received, is almost three percentage points higher than
K PETER TURNQUEST the six percent rate obtained the last time it placed such a sizeable foreign currency bond issue in late 2017. This represents a near50 percent increase in the interest rate that Bahamian taxpayers, via the Public Treasury, will have to service compared to what the government would likely have been required to pay in pre-COVID and “junk” downgrade times. Both Mr Turnquest and Marlon Johnson, the Ministry of Finance’s acting financial secretary, told this newspaper that market reaction - and the $600m
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