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Baha Mar Delay: ‘We’Re All Losers’

A leading businessman yesterday rounded on the “despicable critics” of Baha Mar’s principals, and said of the $3.5 billion project’s delayed opening: “We are all losers.”

Franklyn Wilson, the Arawak Homes and Sunshine Holdings chairman, slammed hotel union chief, Nicole Martin, for her “reckless and irresponsible” suggestion that Baha Mar had been ‘selling a dream’ it could not deliver.

He instead praised Baha Mar’s chairman and chief executive, Sarkis Izmirlian, for “an exceptional degree of entrepreneurship” to bring the mammoth Cable Beach project to the verge of completion.

Arguing that it “must be heart-wrenching” for Mr Izmirlian to be so close to fulfilling his vision, Mr Wilson called on Bahamians to “not be oblivious” to the financial and emotional impact this was having on his family.

He also pointed out that many Bahamian-owned retail and restaurant owners were now “in the same boat” as Mr Izmirlian, having already obtained financing and made other arrangements for concessions at Baha Mar that will also not open on the planned date.

Suggesting that the plight of these Bahamian entrepreneurs had been forgotten amid the dispute between Baha Mar and its Chinese state-owned contractor, Mr Wilson still expressed optimism that the impasse had yet to do long-term damage to the Bahamas’ tourism brand.

He based this on the fact there had been no public “screams” or demands by Baha Mar’s high-end hotel brand partners threatening to pull-out if certain deadlines and requirements were not met.

Emphasising that there were “no winners” from the current stand-off at Cable Beach, Mr Wilson told Tribune Business: “Clearly, the delay is not positive for anyone involved with it, whether as an investor, potential employee - any of those roles.

“It’s not a good thing. It’s unfortunate that it has happened. Looking at the various stakeholders, my first thought is for Mr Izmirlian, because he has demonstrated such an exceptional degree of entrepreneurship to bring that project to this stage.

“It must be heart-wrenching to go through this in human terms. All of us should not be totally selfish about this, and be oblivious to what he and his family are going through.”

Mr Wilson then turned on Bahamas Hotel, Catering and Allied Workers Union (BHCAWU) president, Nicole Martin, for her recent criticisms of Baha Mar and its principals in the media.

“I caution, in the strongest possible terms, the critics who are piling on Mr Izmirlian,” Mr Wilson said, referring specifically to Ms Martin.

“It’s just so despicable that any leader in any role would issue a statement such as that. It’s just so reckless and irresponsible.”

His comments echo those of BEC executive chairman, Leslie Miller, who also hammered Ms Martin for the anti-Baha Mar comments made as she nominated again for the union presidency. The union is currently embroiled in a bitter court battle with Baha Mar over the gratuities paid to employees and the latter’s Melia Nassau Beach Hotel.

Acknowledging that Baha Mar’s delayed opening was “a negative” for the economy, and would cause growth forecasts for 2015 (and possibly 2016) to be downgraded, Mr Wilson said Bahamians were also “oblivious” to the impact on their own entrepreneurs.

“There are entrepreneurs with concessions at Baha Mar that have made financial arrangements on the premise that the resort would be open by now, so they’re incurring costs that they didn’t anticipate,” Mr Wilson told Tribune Business.

“Really, there are no winners, and the contractor’s reputation is also taking a hit. Whatever the reasons are, no contractor wants to stay on the job indefinitely.”

That is a reference to China Construction America, which has wanted to use Baha Mar as an example of what it can do to ‘win’ similar contracts in the Western Hemisphere. It, too, has much at stake and much to lose if the situation is not resolved.

“We are all losers,” Mr Wilson said of the Baha Mar delays. “There are no winners. We must hope and pray we get all this behind us.”

Looking for positives, he added that Baha Mar was still paying hundreds of Bahamian workers.

And, having lunched at the resort’s golf shop within the past week, Mr Wilson said the “spectatcular” scenery showed the resort was “almost worth the wait”.

“Rather than use this opportunity to wallow in his tears, he’s using this opportunity to inculcate service among the staff,” he added of Mr Izmirlian.

“The service level of the place, when it opens, may cause people to forget all this.”

Mr Wilson also refuted suggestions that the delayed Baha Mar opening, and hundreds of guest reservation calculations, had inflicted irreparable, long-term harm on the Bahamas’ tourism brand.

“I think these things happen all the time in the hotel business, and people are used to it,” Mr Wilson told Tribune Business.

“One of the most encouraging things through this process is you are not hearing any screams from people like Rosewood, from people like Grand Hyatt.

“If there’s a real issue, you would be hearing from people like them. It’s good and positive so far that we’ve heard nothing like Hyatt saying: ‘This is the deadline, and if you don’t finish by then.....’

“ Companies of that ilk are not pushing any demands or impositions. That’s a good sign.”

China Construction America has admitted ‘slowing down’ the work pace in the key weeks leading up to the planned March 27 opening, due to a payment dispute with Baha Mar.

There are also suggestions that Baha Mar may have exhausted its construction financing credit, and now has to find new funding lines to complete the development.

The impasse has developed into a ‘high stakes’ battle, where the Bahamas and its people rank alongside the Izmirlian family as the greatest losers if a solution is not found quickly. Chinese-Bahamian relations will also likely be impacted.

Comments

Well_mudda_take_sic 2 years, 4 months ago

Many of us suspected it would only be a matter of time before Christie fell victim to opening the door for Franky Wilson aka Snake to be engaged by the PM's Office to advise on matters pertaining to the government's contractual commitments involving Baha Mar. Christie's circle is now too small and much too predictable - he calls on the same people time and time again to try dig himself out of any serious mess he has created for himself and the country. Not too long ago Christie had Snake "bully" his way into negotiating a 'smoke and mirrors' change to the previously agreed terms of the Ingraham government's agreement for the sale of control of BTC to a subsidiary of Cable & Wireless. It was quite an ordeal that offended many and, despite all the mouthing off by Snake, accomplished little. Over the years Snake has been able to get away with his very aggressive bullying style of conducting business because of his willingness to make use of connections with government officials willing to provide him with political leverage and/or cover in order for him to gain an unfair advantage whenever possible. His foray into the hotel sector while seeking to develop his resort interests in South Eleuthera certainly left a bad taste in the mouths of many foreigners as he attempted to bully or coerce them into arrangements all too good for him but not for them. If Christie is indeed now bringing Snake into the picture when it comes to the PLP government's relationship with Baha Mar's developers, this does not bode well at all for the project at this precarious time and shows just how desperate Christie is to find anyone to try take the heat off of his government's failings and shortcomings viz a viz Baha Mar.

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asiseeit 2 years, 4 months ago

How does Mr. Wilson expect a hotel union fluncky to understand the big picture? This is a person that only cares about her and hers (the union). They have been taught well by our political system. This selfish behavior is what is so wrong with the Bahamas. It is just like the person that litters, it hurts the entire nation. Not educating our children, it hurts the entire nation. Corruption, it hurts the entire nation. UNDERSTAND?

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John 2 years, 4 months ago

Maybe Franky Wilson can advance the Bah Mar owner a soft loan of $100 million to complete the project that everyone was betting on. Is this another case of the Finlaysons and City Market and Solomons, where the investors had capital but no experience. The problem is that even if and when the project is completed no one knows how long it will be operating before it can turn a profit. It is a very huge project in a very hostile economy. The unexpected delays in opening did not win Bah Mar any favors in the marketplace Franky Wilson is correct that many Bahamians have lost and continue to lose the shirts of their back as many businesses that were a part of the Bahamian Landscape for years are closing their doors. The eight years of recession has taken its toll but Bah Mar got many advices that its project was too ambitious and should be scaled down or done in phases. A completed building that sits mostly empty is still of no benefit to the Bahamas economy.

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