BAHA Mar’s transformation into a sustainable mega-resort is an “absolute imperative” for the Bahamas and its economy, the Chamber of Commerce’s chief executive says.
Edison Sumner told Tribune Business that every Bahamian should get behind the $4.2 billion development, following the completion of its acquisition by Hong Kong-based Chow Tai Fook Enterprises (CTFE).
He added that the Bahamas could not afford for Baha Mar to fail, given its reliance on the project to contribute up to 12 per cent of annual gross domestic product (GDP) and create 5,000 direct jobs, plus spin-off employment and entrepreneurial activities.
Mr Sumner said CTFE’s deal close had removed “all the uncertainty looming” over Baha Mar for the past three years, and would enable both the developer - and the Bahamas in general - to put the project’s past behind them and move forward.
“It’s an imperative on us as a country - an absolute imperative on us as a country - to ensure Baha Mar is a success story, and a sustainable success story,” he told Tribune Business, “meaning we’re looking forward to having this project being a success and around for many years to come.
“Given the level of capital investment in this project, and reliance the Government has on it bringing foreign currency into the country through trade in services, it’s imperative this project succeeds. This project should get support from all around.”
Recalling how just over 2,000 Baha Mar employees were terminated after the project was placed into Chapter 11 bankruptcy protection, then provisional liquidation, Mr Sumner said the Bahamas must never again endure such a shock to its psyche and economy.
“We cannot go through another episode of having such a large number of people displaced if a major project fails,” the Chamber chief executive told Tribune Business.
“The Government and private sector have to do whatever they can to make sure this project is successful, that there is the level of employment the developer has committed to, to see other jobs and opportunities created by this project, and real improvement in the tourism product so persons not only experience what Atlantis has to offer but also this equally impressive property on the other side of the island.”
CTFE, in confirming completion of Baha Mar’s purchase from the China Export-Import Bank’s Perfect Luck vehicle, said it had achieved all milestones committed to.
These included the opening of the Grand Hyatt, Baha Mar casino and associated facilities on April 28, plus the opening of the SLS LuX Hotel before the December 1, 2017, deadline stipulated in its Heads of Agreement.
The developer, owned by the Cheng family, added that it planned to expand Baha Mar’s existing 3,500-strong workforce to 5,000 by end-2018, with the Rosewood hotel on track to open in March/April 2018.
Many Bahamians, though, have been cool or ambivalent towards CTFE as Baha Mar’s ‘saviour’, given the widespread impression that the project’s original developer, Sarkis Izmirlian, was unfairly removed by the Chinese state-owned financier and contractor, and poorly treated by the former Christie administration.
The past three years of opening deadline misses, Chapter 11 bankruptcy protection and hotly-contested litigation, followed by provisional liquidation and the receivership that culminated in CTFE’s arrival, have also made it difficult for some to trust Baha Mar and believe the project is ‘for real’.
Mr Sumner, though, said CTFE’s purchase completion should “put to bed all the speculation” and negativity that has surrounded Baha Mar since late 2014.
Pointing out that the Bahamas could not afford for the development to be shut down again, he added: “The prudent thing is for us to support this project.
“It’s had its challenges trying to get to this stage, but now this is done all the speculation about the deal being signed, whether the transfer was made properly, the fact they’ve got it done and the property is open is cause for celebration. With this milestone being achieved, we expect to see the support coming from the private sector as well as the Government.”
The Minnis administration has released no official statement on the Baha Mar sale’s completion, while the Progressive Liberal Party (PLP) used the occasion to slam it for opposing the former administration and the CTFE deal when the political roles were reversed.
“With the official close of the sale of Baha Mar, the Bahamas tourism product is measurably strengthened with the addition of a world-class hotel operator and developer, and Bahamians have good reasons for optimism moving forward,” the PLP said in a statement.
“The PLP congratulates the new owners, CTFE, and thank them for their focus, determination and confidence in the Bahamas economy in the face of unwarranted and unnecessary hostility driven mainly by the FNM in its quest to derail this project.
“The PLP supports this project and stands ready to work to ensure that Baha Mar realises its full economic potential for the Bahamian people and the investors.”
Mr Sumner, meanwhile, described CTFE’s purchase as “a tremendous accomplishment”, and added: “It puts to bed all of the waiting, the speculation and the anxiety over the last several years.
“We’re in a position where a deal has been signed. It signifies a significant achievement for them, and is going to bring a level of closure to the Bahamas and the Baha Mar project where the international community, and those of us in the Bahamas, the private sector and the Government, can move on and move ahead.
“We can start promoting this property, and are done with all the uncertainty looming over it. The fact CTFE were able to close this means they’re on with fully promoting the property and, hopefully with it, we will be seeing a significant improvement in occupancies, increased interest from guests and visitors coming to see the property, and an improving economy. We’re looking to see some great things coming out of that property.”
Mr Sumner said the private sector was waiting to feel the “spin-off” benefits from a completed Baha Mar in terms of increased business activity, new entrepreneurial opportunities and indirect job creation.
“As we’ve said before, and have maintained, as great a project as Baha Mar is - and it’s very significant to the economy of the country - it’s not the only thing happening,” the Chamber chief told Tribune Business.
“We’re looking to see other projects in the pipeline advance and make it to the development stage, and complement Baha Mar.”
Comments
johnmcntsh 6 years, 4 months ago
Baha Mar's business plan and financials will determine whether it is successful or not and that is as it should be. The government and it's citizens should stay out of it. If it is meant to be successful it will be. If not the investors have made a mistake.
John2 6 years, 4 months ago
It is going to be imperative for Chow Tai Fook Enterprises and the various brands at Baha mar to tap into the growing chinese and far east afluent middle class and produce innovative travel packages and itinearies for those citizens to travel here.and stay at Baha mar. Boeing has forcasted that china will become the worlds first trillion dollar aviation market by purchasing over 6.810 new aircraft over the next 20 years. Travel packages should include stops to cities in the united states .to spice up the packages and entice more customers. With the united states economy booming and china's economy set to continue its rapid expansion and eventually surpassing the USA before 2030,the recent implementation of new travel visa policies by china should bode well for Baha mar and Atlantis does not have to cannabilized for the present tourist market and they both can co-exist and be profitable !
John 6 years, 4 months ago
While Bah Mar may be the second feather in the Bahamas' Tourism cap, next to Bah Mar, it is also important that attention be given to the smaller hotels and tourist properties, especially the ones that are Bahamian owned and operated. The fact is the Bahamian economy is too shallow and money does not circulate enough in the economy for the multiplier effect to be effective. If a farmer grows tomatoes on the island and ships them to Nassau to be sold that creates wealth. But if he ships them to canning factory (in the Bahamas) to be processed into tomato paste and ketchup and other products that are sold locally and exported, then that creates even more wealth. Fast Food restaurants, most of them have gone to doing hardly any cooking in their restaurants. Almost everything is precooked and tossed in the microwave for a minute or two. But they constitute the majority of restaurants in the country. And since everything they sell is imported, most of their purchases are made outside the country..little or no benefit to the Bahamian economy.
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