The Tribune

EDITOR, The Tribune

Rip Van Winkle is awake. Like a new born babe, he is screaming and kicking in excitement at the joy of finding a place in University of the Bahamas, National Health Insurance scheme and a real plan to complete the Baha Mar construction and open the hotel that was closed during his long, deep sleep.

He knew these were all good occurrences for the continued growth and development of his village.

Of course, I am being cynical with equating Prime Minister Christie to the fictional Rip Van Winkle. Elements of the media derisively talk about the PM falling asleep. Well, like the storied Rip Van Winkle, he must have woken up as the PM and his government have moved at a furious pace to make things happen and the crowning achievement was delivering a long needed financial solution for the many Bahamians who have “skin in the game” at Baha Mar.

One small Bahamian contractor who is owed a low six-figure amount said, “I am elated for me and my family with the government’s announcement for full or partial compensation. The naysayers and second guessers who have nothing to lose, could kiss my furry foot.”

The recent announcement by the PM on Baha Mar created a “shock and awe” effect in the community. Some felt, and perhaps even wished, that the PM could and would accomplish nothing in his tireless, late night, discussions with the Chinese Exim Bank. When he did achieve a solution, the “success” goalposts shifted. Everybody and their Ma had an opinion. One self-promoted comedian who moonlights as a know-it-all political pundit, injected his ill informed views on the wisdom of parties to the Baha Mar agreement sealing legal documents.

A legal opinion from Wayne Munroe, a respected member of the Bahamas Bar did not mean a thing. What a spectacle! The Nassau Guardian was not to be left out. They had a screaming editorial headline, “Not believing in Bahamians”. We have learnt from our preachers that the greatest testimony comes from those who have walked through the fire and survived. Well, those parties who are owed plenty money were beaming with excitement at the prospects of financial recovery from the PM’s efforts.

From my choice seat in front of my TV, they all looked and sounded like Bahamians to me; black, white, PLPs, FNMs and maybe even some DNAs. It was indeed a glorious day for these creditors, and by extension the entire Bahamian economic community.

Apart from the weak and negative responses from the media, who obviously find it very difficult to compliment PM Christie on anything, the response from former Baha Mar director Dionisio D’Aguilar was biased and foolish. He castigated PM Christie over the last year, for wasting his time and government resources in pursuing the China Exim Bank to pay Bahamian creditors. Then on the PM’s announcement of a resolution, he quickly and effortlessly shifted to the demerits of The Bahamas Government doing a deal with the Communist Chinese saying “They are not culturally the same as us”.

It was a shocking and prejudiced statement, considering it was his principal, Mr Izmirlian, who successfully encouraged the Chinese to invest billions in the Baha Mar project. Other statements from this gentleman who purports to be a seasoned businessman were downright absurd things to say - “They (Chinese) can reduce prices and drive down the quality of the tourist product and threaten the commercial viability of Atlantis. This agreement that Christie and his group has put together is a bad deal for The Bahamas. They can run on about it all they want, but it’s a bad, bad deal.”

The Chinese interest is investment in name brand real estate. Hotels in particular have become increasingly attractive given the increase in Chinese tourists visiting the US and Europe. According to a recent report by China Luxury Advisors Inc, the number of Chinese tourists travelling outside the country is expected to double to 234 million by 2020, accounting for $422 billion in spending. In 2014, Chinese investment in US real estate opportunities was less than $4 billon. In 2015, it was greater than $10 billon. The Chinese Insurance company, Anbang, bought the Chicago based Strategic Hotel & Resorts for $6.5 billion. Strategic operates luxury hotel flags like Four Seasons, Ritz Carlton, Intercontinental.

Anbang also owns the prestigious JW Marriott Essex House in Manhattan and the venerable Waldorf Astoria. They made a $14 billion bid for Starwood Hotels, which was eventually withdrawn.

My point is that Chinese investors seek stable, long term returns in the hotel sector. They ensure satisfactory performance by having management contracts with iconic hotel companies. In the Bahamas, China Construction, the current owner of the British Colonial Hotel development, has a management contract with Hilton and the boutique hotel they plan for The Pointe development will be under the Hard Rock brand. It’s a stupid suggestion that such reputable hotel management entities would engage in deliberate programmes to hurt Atlantis or the Bahamas tourism product.

In fact, in reviewing the acquisition strategy of the Chinese in the US hotel sector, it is obvious that they seek value in high end, luxury brands. This can only be a positive development for the Bahamas and further Chinese investment in the Baha Mar project

The country does not care if the media and misguided souls are not “cheerleaders” for PM Christie successfully negotiating a Baha Mar transaction that will yield direct financial benefit to long suffering Bahamian stakeholders. But for Christ’s sake, be sensible, fair and responsible in your commentary. Chinese investment in Bahamas hotels that can attract Chinese tourists are beneficial to The Bahamas.

I admonish the “doubters and haters”. In the words of Leviticus 19:16, “Thou shalt not go up and down as a talebearer among thy people”.

LAWRENCE HARRISON

September 2 ,2016.