‘Water heater sales are lucrative on GB’

• Pelican Bay suffering same water issues as Lucayan

• Island’s tourism ‘has no engine’ to drive destination

• Almost five years since Memories’ post-storm close


Tribune Business Editor


A Grand Bahama hotel operator says “it’s a lucrative business to be in hot water heater sales” as his property grapples with the same salt water issues that have afflicted the nearby Grand Lucayan.

Magnus Alnebeck, Pelican Bay’s general manager, told Tribune Business that the hotel has been “spending a lot of time, energy and money” on hot water heaters, showers maintenance, changing out equipment and other tasks due to the high salinity of the supply received from Grand Bahama Utility Company.

With Grand Lucayan guests still being transferred to Pelican Bay because of ongoing air conditioning (A/C) system problems, Mr Alnebeck said: “We’re having the same problems at Pelican Bay. We’re spending a lot of time, energy and money on maintenance and changing equipment, which is a lot more time consuming and expensive than it normally is.

“That is before we start considering hot water heaters, showers, fixtures and furnitures because we’re going through them a lot more quicker than normal because of the salt water. It’s not just a hotel problem; it’s a residential problem, too. It’s a lucrative business to be in hot water sales at the moment.”

Revealing that the Grand Lucayan’s difficulties are also continuing, Mr Alnebeck added: “Their A/C is working one week and is not working another week. This week they’re moving their guests to Pelican Bay, and we are trying to help them as much as we can, but a guest coming to a beachfront property where the A/C doesn’t work doesn’t do any good for the destination.

“It varies from week to week. Some weeks they [the Grand Lucayan] have it working, and the next they have another part going down. They’re in need of a major overhaul, and are suffering from salt water that is affecting their cooling parts.”

Michael Scott QC, the Grand Lucayan’s chairman, yesterday told Tribune Business that the Government-owned resort is moving to resolve its water and A/C woes with a new reverse osmosis plant installed at the hotel and “a new chiller on the way”.

Confirming that “a lot of time, energy and money” has been involved, he said: “That’s an enduring problem. We’re trying to get new equipment. It has its origins in the water sold to us by Grand Bahama Utility Company. 

“There’s another development in that saga. They’re denying liability or responsibility, so I read them the riot act and we’ll see where that takes us.” Mr Scott had previously blamed the resort’s woes, including closures to overnight guests, on an inferior water supply that “rotted our chillers” and left it without air conditioning.

Some $500,000 was to be invested in installing the reverse osmosis plant, with Mr Scott revealing that the Grand Lucayan was paying the Grand Bahama Port Authority (GBPA) owned GBUC some $40,000 per month for water with high salinity levels that was responsible for corroding the resort’s chillers and thus shutting down its A/C systems.

Mr Scott said at the time: “Very simply, the water supply we are getting from Grand Bahama Utility Company, courtesy of the Grand Bahama Port Authority, is so bad that it’s rotting our pipes, it’s rotting our chillers and its rotting our infrastructure systems.

“The water they are pumping out to consumers, for which we are paying $40,000 a month, has too high a chloride/salinity content. Is it a surprise that our pipes are being corroded? Our A/C chillers are water cooled, and that destroys them. It’s palpably a disgrace.

“If water is being delivered to us in accordance with a contract of service from the Grand Bahama Utility Company, which is a GBPA company, and that water is above the limit for chloride/salinity content, can you imagine what it is doing to other people’s properties?”

However, Ian Rolle, the GBPA’s president, subsequently responded by branding Mr Scott’s attack as “disingenuous”, adding that GBUC had been impacted by “an Act of God” in the shape of Hurricane Dorian’s storm surge that overwhelmed Grand Bahama’s wellfields and contaminated them with salt water intrusion.

Mr Rolle said GBUC’s $5m investment in a three million gallon reverse osmosis plant “will not only restore water potability to the remaining 30 percent of customers across Grand Bahama, but will also ensure that Grand Bahamians will never again be without potable water for a prolonged period”. The plant was being installed throughout the summer.

Mr Alnebeck, meanwhile, said Grand Bahama’s hotel and tourism industry continued to “lack an engine” to drive momentum as it continues to await the closure of the long-running Grand Lucayan sale to Royal Caribbean and ITM Group.

“Until we have some attractive hotel product, it’s going to be hard to impact on overnight tourism,” he said. “We really have no engine. Viva Fortuna is trying. They’re very much more of a middle market, beachfront, all-inclusive product but they cannot drive the destination.”

The Pelican Bay chief also questioned what the Royal Caribbean/ITM deal will look like when it ultimately does close, querying whether “it’s water park or a hotel”. He added: “Now we’re coming up on five years when Memories shut down after Hurricane Matthew in October. Let’s hope they get on with it as quick as they can.”

Pelican Bay’s occupancy rates presently stand at 30 percent, and Mr Alnebeck said the present 9pm curfew and high level of COVID cases was “having an impact” on the local market as fewer people ate out in restaurants during the evening.


thephoenix562 11 months ago

Have you ever heard of a water softener or a reverse osmosis system. You should have one anyway. Stop blaming the water company. The water company has never desalinated their water.


The_Oracle 11 months ago

A water softener does nothing to eliminate salt content. It can mitigate but not eliminate water hardness (limestone, mineral content) R.O. is expensive, and wastes up to 70% of the incoming water as a salty brine. Imagine paying the GBUC for 4 times as much volume just to get salt free water? Realize this is an privately owned essential infrastructure company owned by what is in effect the privately owned local municipal government, completely failing at their responsibility. Yes, and act of God destroyed the freshwater well fields but their responsibility remains to provide potable water for consumption.


rodentos 11 months ago

imagine power company feeding 1000V instead of 240V into the grid. Would you let them go away with that?


thephoenix562 11 months ago

The water company has never provided salt free water.


rodentos 11 months ago

maybe I should start throwing stones into people's windows and open a windows sales business?


FreeportFreddy 11 months ago

My water has 2300 ppm of salt in it....2 years plus after Dorion.

NOT acceptable that they are still charging for damaging our pipes and appliances.



DiverBelow 11 months ago

Wonder what it would be like if Freeport had the original 250,000 population instead of present 30,000 or so? What would be their excuses? GB well water is known to be hard & corrosive, but you are only paying for electricity to run a pump, salt content varies with weather. Municipal water quality & quantity are expensive and expected. PA failed once again, AquaDesign looking for new market?


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