By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The $2.3 billion Atlantis debt refinancing will reduce leverage on the hotel and replace the existing short-term credit facility with a seven-year loan, Prime Minister Perry Christie revealed yesterday.
Closing the 2014-2015 Budget debate in the House of Assembly, Mr Christie said: “As a result of working tirelessly around the clock, we have provided all the necessary approvals for the Atlantis refinancing transactions, which Brookfield [the owner] is in the final stages of negotiating.
“The refinancing, when shortly completed, will involve significant further investment by Brookfield, reducing leverage on the property and putting in place the seven-year loan package.”
Illustrating how much Atlantis means to the Bahamian economy, Mr Christie said the resort’s total salary and gratuity package was set to increase this year to $274 million, up from $265.6 million in 2013.
Services purchased from outside Bahamian companies were forecast to rise slightly year-over-year to $45.5 million from $44.2 million, while goods purchases are projected to jump from $81.2 million to $83.6 million.
Total tax, BEC and NIB contributions are also forecast to rise in 2014 at Atlantis, hitting $179.4 million as compared to $171.6 million in 2013.
Elsewhere, in the resort industry, Mr Christie said: “Sandals is this year spending $32 million on upgrades to the Royal Bahamian, Sandals Emerald Bay, Exuma and Fowl Cay, with an economic impact of some $79.6 million in our local economy. They have created scores of construction and permanent jobs.”
He also pointed to the boutique 30-room Island House being constructed by the Holowesko family next to their Mahogany restaurant, which is scheduled to open in February 2015.
“The Island House will provide a significant economic boost to the Bahamian economy over the next 12 months. The main areas impacted will be construction, employment and Government revenue,” Mr Christie said.
“The project has already injected $10 million in the construction industry. The initial construction contract awarded to Osprey Construction was over $23 million. Osprey currently has 100 direct employees and approximately 30 sub-contractors working on the project.”
Some four persons are currently directly employed by the Island House, with another 46 set to be hired in the next 12 months, creating a $2 million annual wage bill.
“The Government will receive a boost in its revenue as the hotel is expected to inject over $1 million annually in the Public Treasury. This injection will be as a result of direct taxes on wages, custom duty on imports and hotel occupancy tax,” Mr Christie said.
“The economy will also be expanded as a result of domestic purchases and services, which are estimated to be approximately $2.6 million.”
Comments
Well_mudda_take_sic 9 years, 10 months ago
If all of these investments over the years that Christie is always only too eager to speak about were truly beneficial to our economy, then why is our country in dire financial straits today? We are up the proverbial creek because of all the mega-millions in CONCESSIONS he so willingly grants the developers for side deals involving his business cronies in the private sector like Snake and the pocket change thrown to the PLP to fund their election campaigns. Christie just gave away millions in stamp duty that Atlantis/Brookfield should have paid to our Public Treasury on their $2.3 billion debt refinancing. Christie will no doubt get something in return for this very generous concession to wealthy foreigners, but what about our poor country!
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