The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Royal Caribbean says Bay Street merchants have reported “a decline” in business volumes amid assertions it has “not sufficiently analysed” the economic impact from its $100m Paradise Island beach club project.

The cruise line disclosed the revelations about reduced business for downtown Nassau retailers and others in responding to a question raised by Eric Carey, the former Bahamas National Trust (BNT) executive director, during the public consultation on the Environmental Impact Assessment (EIA) for its Royal Beach Club investment.

Mr Carey, who was hired by Atlantis to assess the EIA on its behalf, suggested that Bahamians should “be able to review a professional third-party analysis of the economic impact your project will have on your neighbours already struggling to operate their businesses and earn their livings across the harbour from your beach club”. Clearly referring to downtown Nassau, he queried if such a study will be included in the yet-to-be released Environmental Management Plan (EMP).

“We will continue to work with the Government of The Bahamas, the Downtown Revitalisation Committee and the Tourism Development Corporation (TDC) to support the continued efforts to revitalise downtown Nassau,” Royal Caribbean wrote in response.

“We’ve received comments from downtown businesses wanting to understand the impact our development may have and our commitment to significantly grow tourism beyond the Beach Club’s capacity, as some businesses report they have been seeing a decline in their current business.

“If, in fact, there is a decline, there are other socio-economic drivers contributing to that decline and impacting their businesses - as the Beach Club isn’t open yet - that need to be objectively evaluated outside of our development. Any assessment would require support from the Government and would hopefully influence future developments and initiatives that could potentially benefit downtown businesses.”

Royal Caribbean did not identify the businesses making such assertions, when they were made or quantify how big the “decline” is. Any recent fall-off, though, would be concerning given the much-touted impact of the $322.5m investment in upgrading Nassau Cruise Port, which is already said to be facilitating increased passenger numbers through the addition of an extra berth and ability to accommodate several of the world’s largest cruise vessels at any one time.

The cruise line, meanwhile, rolled out the exact same answer when Mr Carey tried again, this time asking whether it would agree to commission “a professional third-party analysis” of the economic impact on downtown Nassau businesses as a result of the Royal Beach Club beginning operations in summer 2025.

The former BNT chief also reiterated his concerns in a letter written subsequently on July 5, 2023, a week after the public consultation. “After a thorough review of your original and supplemental EIA, I still have serious concerns. I fear that even with the technology, monitoring and expense you are proposing, this fragile strip of Paradise Island does not have the capacity to support and survive the intensity of use you envision,” Mr Carey told Royal Caribbean.

“Missing from your EIA is any discussion of the anticipated effects of climate change on the site you wish to alter so dramatically. And you have not sufficiently analysed or addressed the economic impact of the daily diversion of 3,000 arriving passengers from Nassau’s restaurants, businesses and cultural attractions........

“It would also be helpful for Bahamians to be able to review a professional third-party analysis of the economic impact your project will have on your neighbours already struggling to operate their businesses and earn their livings across the harbour from your Beach Club,” he added.

“This was not included in your EIA, but can we expect to see such study in your EMP? Given the stakes of your proposal, no review would be adequate without an assessment of the economic projections you have offered without independent support or evidence.”

Royal Caribbean, in response to a question by Azaleta Ishmael-Newry, confirmed the Royal Beach Club’s planned capacity. It said: “By 2027, we expect between 900,000 and one million guests will visit the Royal Beach Club each year. As a result, we would expect an annualised maximum daily capacity of 2,750 guests per day. This translates to 171 guests per acre (assuming one acre is removed for back of house needs).”

The cruise line also disclosed details on its plans for a ferry service to transport cruise passengers and Beach Club staff between the Paradise Island and the Nassau Cruise Port, and what the layout of its $100m project will ultimately look like.

“The proposed 17-acre beach club would include: two beaches, three to four pools and water experiences, five food venues, seven bar experiences, two guest arrival piers (on the southern shore), two new provisioning piers/ramps (on the southern shore), seven to eight back of house facilities, two artisan/retail pavilions (each pavilion may house multiple vendors) and multiple other small buildings (a towel station, concierge booth, first aid station),” Royal Caribbean said.

“The site plan for the Beach Club has been submitted to and reviewed by the DEPP and is posted on our website. While the site plan has largely remained the same, some limited modifications have been made [such as] adjusting the location of the guest arrival piers based on the coral reports.”

Turning to the water taxi operation, Royal Caribbean added: “We expect to need between four to six passenger vessels for guests and between two to three vessels for employees, provisioning and/or specialised transport. Depending on the configuration a single vessel may be able to perform multiple functions.

“The final specifications (number of vessels, size, configuration, power, trip schedule) will be determined in conjunction with our Bahamian partner. Given the harbour is already a high traffic boating corridor and main shipping channel, the incremental addition of six to nine vessels will likely have little impact. Our construction and operating Environmental Management Plans (EMP) will address strategies to follow to minimise the potential impact of vessels that will access the site.”