The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A major Freeport hotel is on track for its "worst Christmas ever" despite enjoying a strong fall, with occupancy rates set to plunge from "the high 80s" to around 30-40 percent.

Magnus Alnebeck, Pelican Bay's general manager, yesterday told Tribune Business that the drop-off was due to non-governmental organisations (NGOs) and persons associated with post-Hurricane Dorian relief heading home for the Christmas and New Year period.

Predicting that some were unlikely to return, he added that there were too few new arrivals to replace them given that Grand Bahama International Airport had only just re-opened to international flights this past weekend.

Emphasising that "you cannot rely on a hurricane every year to fill your hotel", Mr Alnebeck said rebuilding airlift was vital to Freeport's tourism industry and wider economy given that the peak winter visitor season has now arrived.

He lamented the lack of information being provided to the hotel sector, and wider industry, on progress in this area and in restoring Grand Bahama International Airport despite both its owners - Hutchison Whampoa and the Grand Bahama Port Authority (GBPA) - being represented on the island's Tourist Board.

"For Pelican Bay we had the best September, October and November we've ever had, but we're going to have the worst Christmas we've ever had," Mr Alnebeck told Tribune Business. "That's because all the people here; the NGOs, the loss adjusters and relief people are leaving. Some will come back in January, but we will not see the same volumes we saw in autumn.

"Over the Christmas period, at the most, we'll be between 30-40 percent occupancy. In the fall, we were in the high 80 percents. Without airlift, you cannot create a sustainable model. You cannot rely on a hurricane every year to fill your hotel afterwards. That would be a pretty bad model."

Mr Alnebeck's comments came as Dionisio D'Aguilar, minister of tourism, revealed that American Airlines and other major carriers vital to providing Grand Bahama with air transport connectivity are demanding more airport upgrades than were necessary to satisfy the US Transportation Safety Administration (TSA) before they will resume flying to the island.

While Bahamasair and Sunwing resumed international flights over the weekend, coinciding with the TSA all-clear, and Silver Airways restarted its service from Fort Lauderdale yesterday, Freeport's business model depends heavily on the major US carriers returning.

"The big problem is the lack of information," the Pelican Bay chief told Tribune Business. "That Sunwing was coming in was something that became known to us at the hotel when we saw it on social media.

"We never heard it [the airport] was not going to come back. But we kept on asking if it's open, if it's open, were told wait and see, and then it's back.... I have yet to see an official statement from the Airport Company in Grand Bahama after the storm about what their plan is.

"I've seen various comments and interviews from Sarah St George, but we were first told there was going to be a mid-November resumption of international flights. Maybe that's what was meant by a few challenges, but we wanted to hear if Sunwing and American were coming back with regular flights as we didn't know what to tell our guests," Mr Alnebeck continued.

"It is good to say to a guest who has made a hotel Christmas booking some four to five months ago how they are going to get here."

Mr Alnebeck nevertheless hailed the return of Silver Airways, and the restart of international flights, as "great news" for Grand Bahama's tourism industry and wider economy. Yet he questioned why more information was not forthcoming sooner given that the airport's two owners were both represented on the Grand Bahama Tourist Board by Ian Rolle, the GBPA's president, and Godfrey Smith, head of Hutchison Port Holdings (Bahamas).

Urging the Government to "finalise" the Grand Lucayan's sale to the Royal Caribbean/ITM Group joint venture as rapidly as possible, the Pelican Bay general manager added that Freeport Harbour's redevelopment represented "a pretty big" investment for Freeport's economy.

"Number one is to get the empty hotel redeveloped, and the port opened up," Mr Alnebeck said. "It's absolutely critical to show there are new investments coming into Freeport, and doing things in Freeport proper. There is a lot of talk about the Carnival cruise port, but it's something outside Freeport and not really a mainstay investment."

While the Grand Lucayan's redevelopment will take 21-24 months, Mr Alnebeck said the construction work would still inject money and spending into Freeport's economy. "Any economic activity is needed at this moment to rebuild our local economy," he added.