The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Royal Caribbean has pledged that “at no point” will foreign crew from its ships be working at the $100m Royal Beach Club after being challenged over whether such practices occur at its Coco Cay ‘Perfect Day’ destination.

The cruise giant, responding to questions from Bahamian entrepreneur Toby Smith, whom it competed with for the same three-acre Crown Land parcel, asserted that “the vast majority” of its western Paradise Island investment “will be operated by Bahamian businesses and partners”.

What was meant by “vast majority” was not defined in the answers Royal Caribbean provided to Mr Smith’s questions as part of the Environmental Impact Assessment (EIA) public consultation for the Royal Beach Club. Challenged by the Bahamian entrepreneur over whether cruise ship crew were allowed to work on land at Coco Cay, its private island destination in the Berry Islands, the cruise line merely said it complied with Bahamian labour laws and regulations.

“At no point will crew from our ships work at the Royal Beach Club at Paradise Island,” Royal Caribbean pledged in its answer to Mr Smith. “Our goal is that the vast majority of the Royal Beach Club at Paradise Island will be operated by Bahamian businesses and partners. In addition, the management of the Beach Club will be Bahamian starting with the president of the joint venture, Philip Simon.

“The Beach Club’s Bahamian management team will be responsible for the eventual procurement process to vet and select those partners that can fulfill the bespoke parts of the operation. Each of those businesses will have to evaluate how they leverage their existing workforce or hire incremental employees to fulfill their contractual requirements.”

As an example, Royal Caribbean said a “Bahamian laundry business may need to scale their workforce to accommodate the incremental demand of our business to their existing facility in New Providence”. And, asked point blank by Mr Smith whether “you bring foreign crew from your ships to work on Coco Cay”, the cruise giant retorted that its private island is in line with general industry practice.

“At Perfect Day at Coco Cay, our labour practices are consistent with the rest of the cruise industry and all permanent workers meet all appropriate Bahamian labour and Immigration requirements,” Royal Caribbean responded.

“Bahamians make up the majority of the workforce and in roles at all levels of the operation - director of operations, food and beverage venue manager, head of human resources, island experience manager, operations manager, cabana attendant and more.”

Mr Smith, who is still pursing approvals for his Paradise Island Lighthouse and Beach Club project, and is appealing the Supreme Court verdict that he does not possess and valid and binding Crown Land lease on Paradise Island, told Tribune Business he was far from convinced by Royal Caribbean’s answers.

Challenging the cruise line to “come clean”, he urged it to publicly release its Heads of Agreement with the Government for Coco Cay so that Bahamians can judge for themselves. “If they’re really transparent, lay the Heads of Agreement for Coco Cay. Let the Bahamian people decide,” Mr Smith argued. “Let Royal Caribbean be as transparent as they portray themselves as, and let Bahamians see the Heads of Agreement they have for Coco Cay so we can see their track record.”

Meanwhile, replying to other questions posed by Mr Smith, the cruise line promised that there will be no restrictions imposed on when Bahamians can visit and utilise the 17-acre Royal Beach Club. “The Royal Beach Club at Paradise Island will be available exclusively to cruise tourists from Royal Caribbean group cruise lines and local Bahamian residents,” it added.

“There are no planned restrictions on the days and/or times Bahamian residents will be able to visit the Beach Club.” Royal Caribbean added that the project, one fully operational following its planned launch in summer 2025, will create “hundreds of jobs” for locals in a variety of areas and roles.

“The proposed Beach Club is an unprecedented public-private partnership, crafted in close collaboration with the Government of The Bahamas, where Bahamians will be invited to own up to 49 percent equity in the Royal Beach Club,” the cruise giant reiterated.

“Bahamian equity will consist of two parts: Equity granted to The Bahamas National Investments Fund for the fair market value of the four acres of Crown Land, and equity raised through a Bahamian investment fund available to Bahamian investors.

“Bahamian businesses and entrepreneurs will also have the opportunity to manage the vast majority of the experience with a focus on sourcing goods and services directly from New Providence - everything from environmental management and monitoring, waste management, logistics, supply chain, energy, storage and warehousing, laundry, security, medical, landscaping, beach management, food service, beverage service, entertainment, retail, curated experiences, water sports, beach sports and more,” Royal Caribbean continued.

“Overall, the new venture will generate hundreds of jobs from its construction through long-term operation. We expect to pay market competitive salaries for all roles, both direct and indirect employment with partners managing the vast majority of the operation.”

Pointing to 1 percent of the Royal Beach Club’s gross revenues being used to fund improved attractions and experiences, via the tourism development levy, the cruise line concluded: “We are hopeful that this type of public-private partnership and the new tourism levy will be a model for all future land development on Paradise Island, New Providence, and throughout The Bahamas.”