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TUESDAY, APRIL 23, 2024
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FROM left are Director of Investments Phylicia Woods Hanna, Royal Caribbean International Chief Product Innovation Officer Jay Schneider, Minister of Health and Wellness Dr. Michael Darville, Royal Caribbean Group CEO Jason Liberty, Prime Minister Philip “Brave” Davis, Royal Caribbean International President & CEO Michael Bayley, Deputy Prime Minister and Minister of Tourism Investments and Aviation Chester Cooper, Minister of Energy and Transport JoBeth Coleby-Davis, President and General Manager of Royal Beach Club and Royal Caribbean International Bahamas Philip Simon and Royal Caribbean Group Vice President of Government Relations Russell Benford during the groundbreaking ceremony for the Royal Beach Club on western Paradise Island at the site on April 22, 2024. Photo:Dante Carrer
Bahamian ownership in RCL project alters
PI entrepreneur hits at Crown Land ‘black hole’
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE 49 percent Bahamian ownership in Royal Caribbean’s $165m Royal Beach Club project no longer appears to involve an initial public offering (IPO) to local investors, it was revealed yesterday. Prime Minister Philip Davis KC, speaking at the Heads of Agreement signing for the cruise line’s latest Bahamian destination, revealed that the minority equity stake will now be held by the Government through the National Investment Fund that was legislated in 2022 to replace the sovereign wealth fund. Confirming that PDI Paradise Ltd, a Royal Caribbean subsidiary, will own the majority 51 percent equity interest, he said: “This project is a partnership between the
Turning the tide hope on Moody’s deficit analysis By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net MOODY’S upbeat analysis of The Bahamas’ fiscal consolidation efforts could mark the turning of the tide in easing the debt burden on taxpayers, a governance reformer argued yesterday. HUBERT EDWARDS Hubert Edwards, the Organisation for Responsible Governance’s (ORG) economic development committee head, voiced optimism to Tribune Business that the rating agency’s forecast of just a $44m overshoot for the 2023-2024 fiscal deficit will boost The Bahamas’ creditworthiness and improve its access to lower-cost financing on the international capital markets. Describing the Government’s access to reasonably-priced financing as one of its greatest fiscal challenges post-COVID, he added that any stabilisation or reduction in interest costs associated with foreign currency borrowing will lower the pressure on Bahamian taxpayers to service this debt. Acknowledging that Moody’s prediction of a $174.67m deficit for this fiscal year, equal to 1.2 percent of gross domestic product (GDP), marks a major change from previous estimates by the likes of the International Monetary Fund (IMF), Mr Edwards told this newspaper that Bahamians have to trust that the rating agency’s analysts have done their “homework”. “When Moody’s puts out information you obviously have to take it as they have given it,” he said. “In this instance we have to give respect to that. They have clearly received information from the Government which suggests there has been a moving of that projection compared to what was previously said by the IMF and other parties.
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• Still 49%, but no IPO to investors • National Investment Fund to hold • 200 jobs in $165m PI Beach Club Bahamian government, the Bahamian people and Royal Caribbean Cruise Lines. “And that partnership is 51 percent Royal Caribbean Cruise Lines and 49 percent Bahamian government. A new vehicle has been formed, the National Investment Fund, and that will own the business. So
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A BAHAMIAN entrepreneur yesterday asserted “it’s easier to navigate a black hole” than the Government’s Crown Land policies as he demanded that Royal Caribbean’s Paradise Island deal be fully disclosed. Toby Smith, who is still battling the Government in the courts over his own Paradise Island project, told Tribune Business that the Davis administration must unveil both the Heads of Agreement as well as the revised Crown Land lease for the cruise line’s $165m Royal Beach Club so Bahamians can decide if the outcome “is best for The Bahamas”. Tribune Business understands that Royal Caribbean’s revised Crown Land lease is for four acres, rather than the
• Urges Royal Caribbean lease disclosure • And Heads of Agreement’s public release • Asks Gov’t: ‘What do you have to hide?’ original seven, thus extracting the cruise line from a three-acre parcel that is boundup in Mr Smith’s legal action against the Government.
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Bahamas ‘will fail’ if growth outpaces local communities By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ELEUTHERA’S Chamber of Commerce president yesterday warned “we will fail” unless community-based businesses and the societies they support match the product offered by “high-end” resort investments. Thomas Sands, who renewed his pleas to Cabinet ministers at the island’s recent two Business Outlook conferences for a package of tax breaks and investment incentives specifically targeted at existing businesses, told Tribune Business that this was vital to ensuring Family
Island communisome areas that are “falling apart”. ties keep pace with “I would say that rapid growth and just as important as development. it is to rejuvenate Otherwise, he downtown Nassau, warned, The Bahaand support the mas will be in investment that’s danger of creating taken place at the a two-speed sociport, Eleuthera ety where many needs the same type residents and comTHOMAS SANDS of incentives and munities are left concessions to make behind and unable sure that the product as to benefit from major invest- people walk out the gate into ment inflows. He added that the community is up to par,” signs of such marginalisation Mr Sands told this newspaper are already emerging with of his call for a concessions “disgruntled communities”, package. “It’s needed for Nassau, it’s Bahamians unable to afford to needed for here. Given the live on their home islands, and
investment that’s taking place, we need the experience in the communities that people engage with to meet the same service levels and attention levels, otherwise we will not be able to deliver to the client base that is going to come as a result of the rapid growth. We won’t meet the expectations and will fall short in the product offering.” While the Government, and agencies such as the Small Business Development Centre (SBDC), Bahamas Development Bank (BDB) and Bahamas Agricultural and Industrial Corporation (BAIC)
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Nassau Cruise Port beats ‘blow the socks off’ year By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net NASSAU Cruise Port’s top executive yesterday said early 2024 performance is already beating prior year comparatives that “blew the socks off” pre-COVID records set in 2019. Michael Maura, the Prince George Wharf operator’s chief executive, said the $300m investment in the port’s facilities has created more “opportunity” and activities for cruise ship passengers. “Our numbers are exceeding 2023, same period, which obviously has blown the socks off the record year 2019. Nassau has returned to being in a very strong demand position, and we see it both in hotel but also cruise,” he said. “Obviously, when you invest in infrastructure, no different than building a new runway, it creates opportunity for more airlift coming in. For us, more sealift coming in
when we built the new pier, as well as extending.” Speaking to MICHAEL MAURA reporters at the groundbreaking of Royal Caribbean’s Paradise Island Royal Beach Club, Mr Maura said the cruise port is seeing “very strong” commitments. Royal Caribbean is expected to surpass its 2.5m passenger target for 2024 “We’ve got very strong commitments. Talking with Royal today, they had been speaking about the 2.5m that they’re going to climb to, and they’re going to surpass that number. So we’re thrilled to death,” Mr Maura added. He said the cruise giant will have to advertise its new Royal Beach Club destination in The Bahamas to recover its $165m investment, which is a “win-win” for everyone.
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