The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The $80m expansion of a cruise line’s private island will create 200 construction jobs, and an extra 80 full-time posts, through growing annual visitor arrivals by 48 percent compared to pre-COVID volumes.

The Environmental Impact Assessment (EIA) conducted for Carnival Cruise Lines and its HAL (Holland America) Properties Ltd subsidiary, released ahead of public consultation on the project, reveals plans to bring close to 1m passengers per annum to Half Moon Cay by 2025.

The increase from 640,000 passengers in 2019, the last pre-COVID year, is billed as expanding full-time employment at Half Moon Cay by 55 percent to 225 posts. While some will have reservations about expanding a cruise line’s private island, amid suspicions that the industry - rather than The Bahamas and Bahamians - will maximise the economic benefits, the deal was agreed by the former Minnis administration.

The EIA, which refers to a September 28, 2019, Heads of Agreement with the Government that has never before been publicly disclosed, says Carnival/Holland plan to construct a pier capable of handling their largest 6,500 passenger ships, the XL or Excellence Class. The project comes after Carnival has come under increasing fire from environmental activists for several pollution incidents in Bahamian waters, for which it has been fined in the Florida courts.

“Half Moon Cay is a destination formerly known as Little San Salvador,” the EIA, performed by Bahamian firm, Islands By Design, and Applied Technology and Management (ATM), said. “A Heads of Agreement was entered with the Government of The Bahamas to undertake an $80m development of the private island.

“The additional development will add a main open pile supported pier; an excursion dock which will be used by local vendors to sell their waterborne shore excursions; and new amenities to enhance the guest experience. The intent is to create more beach offerings, food and beverage options and additional recreational activities. The island currently offers luxury beachside cabanas, a nature trail, bird watching, and an opportunity to swim and pet tame stingrays.

Noting that Half Moon Cay is located midway between Bannerman Town, south Eleuthera, and Arthur’s Town, north Cat Island, the EIA said Eleuthera residents will likely be the main beneficiaries of the extra jobs created. “Half Moon Cay currently employees 145 line staff, mostly residents of the neighbouring island of Eleuthera,” it added.

“The expansion project expects to require approximately 200 hires during the construction phase, and increase in daily labour by approximately 80 employees post-construction to sustain the increased operations of the destination. Most of this labour will be supplied by Eleuthera. With the national unemployment rate at 9.5 percent, this level of increased permanent jobs is not expected to have an impact on the population density of the neighbouring islands, only reduce unemployment.”

Besides jobs, the EIA said the other major benefit from Half Moon Cay’s expansion will be increased government revenues via departure taxes, Business Licence fees and Customs duty paid on operational items that are imported.

“With the open pile supported pier, in addition to existing tender capacity, the total volume of cruise passengers arriving to Half Moon Cay is expected to increase. In 2019, the island welcomed just over 640,000 passengers and plans include to gradually increase volumes to 950,000 by 2025,” the EIA said.

“Half Moon Cay has been operating as a cruise ship destination for the past two decades, and the additional development will expand the operations to moor ships at the open pile supported pier and accommodate more passengers. The additional development will provide more opportunities for employment of Bahamians on Eleuthera and other islands in The Bahamas.

“Prior to being owned by HAL Properties, Little San Salvador Island was the private island of Norwegian Cruise Line. Current land use consists of upland guest services and amenities, including food and beverage and recreational opportunities including waterfront experiences. Additionally, the back of house includes staff facilities, accommodations and infrastructural support.”

Setting out its plans, Carnival/Holland said: “It is the intent of HAL Properties, as outlined in the Heads of Agreement, to further develop Little San Salvador as a premier cruise destination, which will result in further economic and socio-economic benefits to the region. This intent cannot be accomplished without the additional construction. A ‘no action’ alternative would preclude the additional development.

“No action would limit the long-term growth of the area in comparison with similar places in The Bahamas and elsewhere in the Caribbean that are larger and have a greater range of amenities. It would also not eliminate or reduce impacts from current land-based and vessel operations associated with the current island development and use.

“Employment levels would likely remain static, and may act as a potential deterrent of regional and local development that would certainly take advantage of the Half Moon Cay improvements and any expanded facilities offered at the Half Moon Cay operations.... The ‘no action’ alternative would not provide the economic stimulus of the further development Half Moon Cay.”