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TUESDAY, JULY 31, 2018
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Govt buying Grand Lucayan?: ‘No fear’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
H
OTEL workers “have no fear” over the government’s potential Grand Lucayan acquisition, a union leader yesterday saying it will “never allow” the resort’s closure. Michelle Dorsett, president of the Commonwealth Union of Hotel Services and Allied Workers, told Tribune Business that she “never doubted one bit” that the Minnis administration will do whatever it takes to safeguard the resort’s employees and businesses that rely on the property. Describing Freeport’s “anchor” property and the surrounding Lucayan strip as “the heart of the island”, Ms Dorsett expressed confidence that the government “knows how to deal with business” and will hire the necessary resort brands/ management companies to operate the hotel profitably.
* Union chief ‘never doubted’ Minnis ‘one bit’ * Says ‘heart of island’ cannot close down * And resort can ‘boom’ with right manager
GRAND Lucayan Hotel in Freeport.
The union chief, whose organisation represents Grand Lucayan line staff, added that she was unaware of any plans by Cheung Kong (CK) Property Holdings, the resort’s owner, to completely close the resort by September 2018 if no buyer is found. Reacting to the prime minister’s pledge that the government will never allow that to happen, even
if it has to acquire the Grand Lucayan itself, Mr Dorsett said: “Honestly, my message never changed about the government. “I was always optimistic that would happen, as they’re in good faith with the workers. I never doubted them; not one bit. We knew they were working in the workers’ best interests. The workers have no fear. I always had confidence in
the government no matter what.” Expressing similar sentiments to those used by Dr Hubert Minnis in his weekend address, Ms Dorsett argued that the Grand Lucayan’s economic importance - and that of the surrounding strip area - meant it could never be allowed to fully close. “The government will never allow that to happen,” she told Tribune Business. “The Lucayan Strip is a strip for the whole island. This is the people’s eat and drink. This is what people live on; the key for the island. It’s the heart of the island. This is the major strip, the major hotel in Grand Bahama. “With this administration, they know how to deal with business. Hopefully they’re going to bring in people to manage the property
properly. We need business people to manage it properly and professionally. It’s a beautiful establishment. Once they get the right people in the place will be booming.” Not all Freeport residents were as enthused yesterday about the prime minister’s confirmation that the government will, if necessary, effectively act as the Grand Lucayan’s “purchaser of last resort” if all other options fail. One executive, speaking on condition of anonymity, said the Minnis administration was “talking in riddles” and not revealing any details about what a government acquisition might involve. “This is what worries me,” they told Tribune Business. “They keep saying the hotel won’t close and jobs will be saved. Are they talking about the main hotel or just the Lighthouse Point? I feel they’re talking about Lighthouse Point. “That does nothing for Freeport. It doesn’t do a damn thing for this town,
and doesn’t help affect the turnaround. Our tourism’s at zero. There’s no record of a hotel making money in this town for the last 15 years.” Should the government have to acquire the Grand Lucayan by itself, it will need to find considerably more financing that the $25m set aside in the 2018-2019 budget to fund its acquisition of a minority equity stake believed to be 20 percent - in Wynn’s majority purchase of the property. The Torontobased developer’s deal is said to be in difficulty, and unlikely to proceed. Apart from likely having to match Wynn’s $70m offer, Tribune Business sources said the government will need a further $25-$30m to fund the necessary renovations so the property can re-open. That will take its total outlay to near $100m, quadruple what is allocated in the budget, and creating a sizeable fiscal hole in its plans that will have to be filled by extra borrowing or re-purposing monies from other areas.
‘Nothing but great benefits’ for output gap Deficit $100m below * Hope Productivity Council law ready for Sept target one month out * Will show ‘need to work full eight-hour day’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A LABOUR specialist yesterday expressed hope that legislation for a National Productivity Council will be ready by Parliament’s September return, with the initiative bringing “nothing but great benefits for The Bahamas”. Peter Goudie, one of the private sector’s representatives on the National Tripartite Council, told Tribune Business he expected progress “very shortly” with the draft legislation having already been forwarded to Dion Foulkes,
minister of labour. With Bahamian companies experiencing productivity levels 17 percent lower than the Caribbean average, according to a 2017 competitiveness survey by the Inter-American Development Bank (IDB), Mr Goudie said the Productivity Council is “one more pillar” to bolster the Bahamian labour force’s skill set and output. “It’s my understanding that the legislation has gone to the Minister, and
Airbnb bookings soar 37% in June By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
AIRBNB bookings in the Bahamas soared by 37.3 percent for June 2018, with occupancy rates exceeding comparable hotel listings as the sector’s popularity continued to grow. The Central Bank of the Bahamas report on June’s economic developments
disclosed that bookings through the vacation rental website grew by between 24 percent and 52 percent for this nation’s four most popular islands compared to the same period in 2017. Using data supplied by AirDNA, a company that analyses Airbnb data, the Central Bank said: “Conditions remained positive in June, as the number of bookings increased by
probably gone on to the Attorney General’s Office,” Mr Goudie told this newspaper. “The actual legislation is going forward, and we expect to see that very shortly. We’re very positive about it, as we want to see all these initiatives get moving.” He explained that the National Productivity Council’s creation is directly linked to two IDB-funded projects, the $20m Citizen Security and Justice initiative and the $25m Skills for Current and Future Jobs, the latter of
which was signed-off by the government last week. Collectively, all three are designed to tackle skills shortages and mismatches within the Bahamian workforce - a frequent complaint of private sector employers, who say they are unable to find the qualified workers they need in sufficient quantities to take their businesses forward. This, in turn, retards both business development and the Bahamian
37.3 percent when compared to the same period of 2017. “This was underpinned by an increase in bookings for the key markets of Abaco, Grand Bahama, Exuma and New Providence, which rose by 38.5 percent, 52.1 percent, 48.5 percent and 23.9 percent, respectively. Additionally, the total number of room nights sold increased for both entire homes and hotel comparable listings by 50.1 percent and 38 percent, respectively. “Similarly, gains were also noted for the average daily rate for entire homes, by 11.7 percent to $360.63, and hotel comparable listings by 4.8 percent to $141.86.”
The Bahamas was shown to have 2,646 active Airbnb listings, with occupancy rates for “entire place listings” standing at 50.3 percent compared to 44.9 percent for comparable hotels. New Providence was shown to have 927 active listings, with “entire place” occupancy rates standing at 51.6 percent compared to 49.9 percent for “comparable hotels”. This pattern was repeated across most main vacation rental markets, with Abaco’s 282 listings producing 54.6 percent occupancies compared to 47.8 percent for hotels.
SEE PAGE 3
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE government’s fiscal deficit was more than $100m below the full-year 2017-2018 target with just one month to go, the Central Bank of The Bahamas revealed yesterday. The regulator’s June economic developments report disclosed that the deficit for the 11 months to end-May 2018 was some $211.9m, an $87.5m or 29.2 percent decline compared to prior year figures that were impacted by the fall-out from Hurricane Matthew. The Central Bank noted that, with just over four weeks left in the fiscal year, the deficit - which measures how much government spending exceeds its income on an annual basis - was equivalent to 65.9 percent, or two-thirds, of the full-year’s $321.3m projection. KP Turnquest, deputy prime minister, announced in the 2018-2019 budget communication that while the prior year’s deficit was likely to be less than forecast it was set to come in at around $310m. That represents a much smaller improvement than that indicated over the first 11 months, and suggests - based on Central Bank
figures - that the deficit increased by almost $100m during the last month of the 2017-2018 fiscal year. The $100m gulf between the 11-month position shown by the Central Bank and Mr Turnquest’s year-end deficit estimate is likely to fuel further opposition charges that the government is switching between cash-based and accrual accounting methods to suit its own interests. This is something the deputy prime minister has denied. “During the [first] 11 months of fiscal year 2017-2018, the deficit on the government’s operations narrowed by $87.5m (29.2 percent) to $211.9m in comparison to the prior year, underpinned by a $59.8m (2.8 percent) decline in expenditure to $2.059bn and a $27.7m (1.5 percent) rise in revenue to $1.847bn,” the Central Bank said. “As at end May, the deficit represented approximately 65.9 percent of the projected budgetary gap of $321.3m for fiscal year 2017-2018. Underlying this development, expenditure was 83.7 percent of the forecasted $2.46bn, with 85.3 percent of budgeted recurrent outflows expended, while only 67.3 percent of the amount allotted for capital spending was disbursed.
Govt’s Grand Lucayan purchase ‘only option’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net PURCHASING the Grand Lucayan resort is the “only option” available to the government, a former Port Authority (GBPA) attorney argued yesterday, as its closure has “gone on way too long”. Carey Leonard, the former GBPA in-house counsel, told Tribune Business that while it was “regrettable” the hotel’s fate now rested in the Minnis administration’s hands, it was “the right decision” to make in the circumstances. Speaking after the prime minister confirmed at the weekend that the government “will intervene and, if necessary, purchase the Grand Lucayan”, Mr Leonard said his comments had provided Port Lucaya Marketplace merchants - and
* Ex-GBPA attorney: ‘Regrettable but right move’ * Winter re-opening to save tourist economy key * ‘Much better’ than Wynn deal, as others lurk
CAREY LEONARD other businesses that rely on the resort - with some certainty that the property will not be allowed to close. He added that government action was “much better than waffling around with Wynn”, amid ongoing doubts that the Torontobased developer’s $70m
deal to purchase the Grand Lucayan will move ahead. “Quite frankly, I think that if they buy it then they are in a position to at least be able to negotiate with somebody else,” Mr Leonard said of the government. “The fact they’re buying it means Wynn is out, which is a good thing. “I think it’s the only option anyway, and I’m not surprised because Wynn did not strike me as someone who knows what they’re doing. It puts the government in the driving seat for negotiating further down the road. It’s regrettable they have to do it. Let’s hope they open up a bit more of the hotel, and that others [potential buyers]
come forward and say they’d like to take a look.” Mr Leonard said he was aware of other interest in the Grand Lucayan besides Wynn, adding: “I have heard of one, and that one is quite credible.” Tribune Business revealed on July 12 that the government was scrambling to find potential alternative solutions for the Grand Lucayan’s near 22-month closure amid fears that the Wynn Group’s purchase may not work out. The prime minister’s remarks at a meeting of Free National Movement (FNM) Grand Bahama branches at the
SEE PAGE 4
PAGE 2, Tuesday, July 31, 2018
THE TRIBUNE
REALTORS TURN OUT FOR $100M DEVELOPMENT THE Bahamian real estate industry turned out in force last week for Palm Cay’s reception for its $100m One Marina project, which features 84 luxury condos overlooking a marina. “Inventory is always a major concern for real estate agents and brokers, so when we learn of a major development project like this, especially with waterfront and at the right price point, it’s exciting. It’s hot; it’s very good news for the industry and for our members,” said Christine Wallace-Whitfield, the Bahamas Real Estate Association’s (BREA) president. One Marina’s price points range from $800,000 to $1.9m for the penthouse. Palm Cay’s sales and marketing director, Myles Newell, said realtor participation was vital to the developer’s ability to sell this inventory. “We could not do this without you, that is why are doing everything to partner with you,” Mr Newell told agents gathered for the reception. “There is a vibe and atmosphere at Palm Cay that is unlike anywhere else. And we wanted you to experience that feeling as we introduce our most impressive product
yet, One Marina, with its modern style architecture, fine finishes and location right on the marina that has been voted the most popular marina in the Bahamas for four consecutive years.” Mr Newell promised agents and brokers full payment of commissions upon closure of contracts, rather than waiting until units that could be two years under construction were ready for occupancy. He added that on a previous project he handled on Paradise Island, some 93 percent of the sales under his direction were in conjunction with real estate agents or brokers. “This is really impressive,” said Monica Knowles, Bahamas Realty’s top-producing agent in 2016. “I like the looks of the project,” sdded broker John Christie, who heads HG Christie, one of the country’s largest real estate firms. Danny Lowe, Timothy Smith and Ashley Bethel, all with Better Homes & Gardens MCR Bahamas Group, gave the project a thumbs-up, and Helen Dupuch from ERA Dupuch Bahamas added: “It’s exciting to have offerings in this price point that look so attractive.” With 40 percent of the first One Marina building
DOZENS of real estate agents and brokers recently turned out for a reception at Palm Cay, the residential community on New Providence’s southeastern shore. Developers unveiled plans for the new $100m One Marina residential project. sold, developers hope to break ground by late fall. Units range in size from 2,100 square feet to 3,000 square feet, and the complex includes a private pool, concierge service, high-end finishes, storm-rated glass doors and windows, and 24-hour security. > MYLES NEWELL, Palm Cay’s director of sales and marketing, invites brokers and agents to partner with developers in sales of the $100m One Marina project that is expected to break ground by late fall.
NOTICE
NOTICE
Notice is hereby given that FRITHZSON KERSAINT of #19 Regency Center, Freeport, Grand Bahama, The Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written signed statement of the facts within twenty-eight days from the 31st July, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.
Notice is hereby given that TRACY DIGAS LEUNG of #15B West Minster Dr. Freeport, Grand Bahama, The Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written signed statement of the facts within twenty-eight days from the 31st July, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147, Nassau, The Bahamas.
NOTICE
NOTICE
Notice is hereby given that SHAVANTAY DESTINEY DYAOR BRAYNEN of King Street off Baillou Hill Rd., New Providence, The Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/ Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written signed statement of the facts within twenty-eight days from the 31st July, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147 Nassau, The Bahamas.
NOTICE is hereby given that KERBY THERGELUS of Joe Farrington Road, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 24th day of July, 2018 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
TRAVIS BODIE ON THE SAX.
NOTICE Notice is hereby given that ST-VAL PATRICIA of Fowler Street off Market Street, New Providence, The Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/ Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written signed statement of the facts within twenty-eight days from the 31st July, 2018 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147 Nassau, The Bahamas.
THE TRIBUNE
Tuesday, July 31, 2018, PAGE 3
‘Nothing but great benefits’ for output gap FROM PAGE ONE economy’s growth. “All these are very positive things to try and move our labour market forward, and get the kids employed,” Mr Goudie said of the three initiatives. “The National Productivity Council is going to be one more pillar to all this stuff. We really want to see it. By September we should be having progress; let’s get moving with it. It’s really important.” He added that once the National Productivity Council was created in law, visits to Barbados and Jamaica would be undertaken so that The Bahamas could learn from other Caribbean territories where such institutions have been in place much longer. Mr Goudie said this would ensure The Bahamas has “a template rather than reinvents the wheel”, with the International Labour Organisation (ILO) having already pledged to assist with the National Productivity Council’s implementation. “I can see nothing but great benefits for the country from it. I believe it will happen,” Mr Goudie told Tribune Business of the National Productivity Council. “We hope, at the end of the day, it creates better service quality, and gets people more aware of why they should be working a full eight-hour day. “It’s increasing the level of service and awareness of what productivity means. There’s a whole driving force behind this. This new government wants to empower the country to do better, and I can’t see this being anything but positive for what the government wants to do. They want to increase productivity, increase employment, and I can’t help but think the National Productivity Council will be a help to this thrust.” Mr Goudie said the Productivity Council was being pushed by the National Tripartite Council, the body
with three-way union, private sector and government representation that addresses workplace/labour issues, with “everything we agreed on” having been presented to the government. A National Productivity Council will oversee mechanisms that measure progress, or regression, in workplace productivity, addressing all related issues as they come up. The Bahamas currently lacks such benchmarking capacity, despite the issue continually vexing many private sector employers. An IDB report, released earlier this year, said of The Bahamas: “Private sector firms also experience low productivity (17 percent lower than the Caribbean average); low complexity (existing industries are not closely connected and face challenges in upgrading goods or moving to other industries); and insufficient innovative activity (only 22 percent of firms innovate, and innovation is more prevalent in the manufacturing sector, while 56 percent of Bahamian firms are potentially innovative).” Edison Sumner, the Chamber of Commerce’s chief executive, told Tribune Business that he expected the National Productivity Council, together with the two IDB-funded projects, to now move forward “at a very rapid pace”. Also a private sector representative on the National Tripartite Council, Mr Sumner said the initiative had “been a long time coming” amid negotiations between the government and IDB, and in partnership with the Chamber all three needed to ensure funding was quickly available to implement a skills improvement framework “set up some time ago”. “We expect to see some forward movement on this at a very rapid pace; not only with skills, productivity development and training,” he added. “There’s also a move to establish a National Productivity Council.
“We expect that to be a follow-on from it [the IDB initiatives]. We can’t talk about skills and productivity without productivity measures being in place. A Working Group is working aggressively to put in place the framework for the Productivity Council. We’re expecting all this will work in tandem.” Praising the government for signing-off on the latest IDB programme, Mr Sumner said: “We’ve been dealing with the issue of skills, productivity and training for a long time, recognising there are still some skills deficiencies in the country. “We are hoping we will see some good emphasis put in the programme as far as the apprenticeship component is concerned, and the on-thejob training aspects.” The $10m apprenticeship initiative, part of the $25m Skills for Current and Future Jobs loan, will include some 1,100 participants by expanding the former administration’s National Training Agency (NTA) strategy. A one-year training programme will feature a further 1,350 persons. Mr Sumner said the apprenticeship initiative is targeted at the maritime, information and communications technology (ICT) and allied medical services sectors - all identified as new industries with growth potential for The Bahamas. “It’s really targeted at those areas where there are growth prospects, new industries and being able to get people trained at the outset,” he told Tribune Business. “We think that represents a tremendous amount of growth for businesses and persons operating in these industries. You’re talking about getting into new skill sets that do not reside in the country. “We are looking to move ahead and identity where the real skill shortages are, and putting in training programmes to ensure people are upskilled and take advantage of jobs for the future.”
Minister targets hotel investment THE MINISTER of Tourism has told attendees at a major resort industry conference that “when it comes to investing, it’s ‘Better in The Bahamas’”. Dionisio D’Aguilar was addressing a luncheon during the 22nd annual International African-American Hotel Ownership and Investment Summit and Trade Show, where he was presented with an Apex award for Distinguished Service. Speaking at the conference’s Annual Scholarship Awards luncheon, Mr D’Aguilar said that in the last 12 months The Bahamas has overhauled procedures and protocols to create an environment where the ease of doing business is much improved. “This morning, no doubt, there are many of you here who have been looking for the right opportunity to invest,” the Minister said, adding: “We need to talk. My recommendation to you is that you take a hard, serious look at The Bahamas.” He touted the Commercial Enterprises Act, “which is a package of legislation specifically designed to improve the ease of doing business and attract new and diverse businesses. Implementation of the policies attached to this legislation will streamline and fast-track the start-up businesses in a number of areas.” The National Association of Black Hotel Owners, Operators and Developers (NABHOOD) hosts the Summit annually, together with the Black Meetings and Tourism Magazine and Horizons International Group. Now in its 22nd year, the annual summit is designed to educate attendees on becoming a hotel owner or investor; share minority investment trends; explore supplier opportunities; learn how to market to minorities; and discuss diversity issues affecting the industry. NABHOOD’s goal is to
increase the number of African-Americans developing, manMINISTER of aging, operating Tourism Dionisio and owning hotels; D’Aguilar. and increase vendor opportunities and executive level jobs for minorities, thereby creating wealth within the African-American community.
VACANCY NOTICE
DIRECTOR OF ENTERPRISE SOLUTIONS Cable Bahamas Limited is seeking to employ a Director of Enterprise Solutions. Interested persons may apply by forwarding a resume stating their interest, relevant skills, and experience to humanresouces@cablebahamas.com on or before Tuesday, August 14, 2018. JOB SUMMARY The Director of Enterprise Solutions will be the lead in driving the development of technical solutions in both the Commercial and Residential markets within The Bahamas. This role’s primary responsibility is to generate revenue by developing and rolling out products on the fibre and Ethernet networks to enable the increase of sales, using market research, pricing, product communications, advertising and public relations. This position will also be responsible for new business development, product development and distribution channel management. JOB DESCRIPTION Duties will include but are not limited to: •Creating a clear enterprise solution strategy that encompasses all segments incorporating the Company’s mid to long-term strategic and annual business plans; •Maintaining and executing the strategic plan to research, identify and propose commercial and residential solutions and applications, while determining the prioritization and investment across companies; •Developing in depth understanding of networks and plan to maximize the capabilities within product sets. Develops, rationalizes, and aligns product roadmaps for enhancing capabilities; •Monitoring industry trends and evaluate new technologies for potential deployment and/or use to support emerging business needs; •Leading or supports the development of strategic directions and business roadmaps for the current state and the evolution of product deliver; •Initiates and manages engagement with external vendors and internal crossfunctional teams; •Developing strategy to obtain and maintain executive sponsorship/direction and communication. Communicate planning and strategy to executive sponsors, champions, and vendor partners; •Establishing strategic partnership with Sales, Network Operations, Engineering and IT; •Conducting industry analysis and research, develop and present business cases to grow revenue. Identify and develop business cases across companies to drive value such as operational efficiency, organizational effectiveness, cost reduction and revenue growth; •Providing oversight and tracking of financials by product. Completing budgets, forecasts and actuals to ensure alignment; •Leveraging the data and Ethernet communications capabilities with dedicated, high-performance connectivity; •Driving innovative solutions comprising but not limited to the following service offerings; •Ethernet Network Services: • Metro Ethernet Services • SDN-WAN • Hybrid WAN SKILLS, EXPERIENCE & QUALIFICATIONS REQUIRED •Requires BS/BA in a related discipline and 8 plus years of experience in related field (Telecommunications product development) and 5 plus years of experience in developing and implementing business and technology strategies for a telecommunications service provider; •Demonstrated experience in developing and executing product management; •Confident presence in client facing situations, polished verbal and written presentations, effective interpersonal skills, and strong collaboration skills, to partner effectively with teams throughout organization; •Must demonstrate strong people leadership skills, project management and communication skills; •Candidate should possess an understanding of program management; •Knowledge of telecommunications service offerings: Video, Voice, High Speed Data; •Experience in the Caribbean (specifically The Bahamas) and the United States preferred. Qualified applicants should submit Resumes on or before Tuesday, August 14, 2018, to the Director of Human Resources, PO BOX CB-13050, Nassau, Bahamas or send electronically with Ref: Director of Enterprise Solutions to humanresources@cablebahamas.com.
PRESS RELEASE JULY 2018 Marlin Marine appreciates your patronage and we know that the 4.5% increase in VAT is going to hurt. We are offering to pay the additional VAT to all of our valued customers for the ENTIRE MONTH OF JULY when you purchase a NEW GENERAC GENERATOR, EZ GO GOLF CART, and/or CUSHMAN GOLF CART. Contact our sales department today for this tremendous savings! Marlin Marine Sales Team Office: 242-393-7873 Email: bayshoremarina@hotmail.com Address: #64 East Bay Street Nassau, Bahamas
PAGE 4, Tuesday, July 31, 2018
THE TRIBUNE
Govt’s Grand Lucayan purchase ‘only option’ FROM PAGE ONE weekend, coupled with KP Turnquest, deputy prime minister, revealing that the resort’s fate will be determined “30 days from
now”, merely confirm the growing uncertainty over whether a private sector buyer will emerge before time runs out. The Grand Lucayan’s
fate has effectively come full circle in 12 months, for it was last August when Dr Hubert Minnis suggested the government may take an equity stake in any
acquisition of the resort. That arrangement, based on his remarks, is now squarely back on the table with the clock set firmly against the government. Unless an acquisition is completed imminently, Freeport’s “anchor” property - and, by extension, the city’s entire stopover visitor industry - run the considerable risk of missing out on a third peak winter tourism season. And Mr Leonard confirmed he had “heard too” that CK Property Holdings, the entity into which all Hutchison Whampoa’s real estate assets were placed, plans to close the one Grand Lucayan property still open by endSeptember and walk away if no buyer is found. “Hutchison has not done a good job running the hotel anyway,” he added. “I don’t think the government can do any worse than Hutchison has done, and with a bit of luck they can do better. “The fact the government is stepping in, making a decision that they’re going to do something about it, is much better than waffling around with Wynn who don’t have a plan. At least it’s positive in the fact there’s some action rather than no action at all.” Mr Leonard said he was “really hoping it’s come in time”, acknowledging that the “main thing” was to renovate and re-open the Grand Lucayan in time for the winter 2018-2019 season. “We’ve spent a year at least on this,” he told Tribune Business. “Let’s get on with running the hotel ourselves, and find someone else in the process. This thing with ‘no motion’ has gone on for way too long. “At least people in Port
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MARKET REPORT MONDAY, 30 JULY 2018
t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com
BISX ALL SHARE INDEX: CLOSE 1,935.36 | CHG 0.07 | %CHG 0.00 | YTD -128.21 | YTD% -6.21 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 19.17 7.50 4.02 1.39 0.19 4.00 9.16 6.60 5.30 11.93 2.71 1.77 8.21 6.21 11.50 7.29 13.67 13.00
52WK LOW 3.50 19.17 7.50 3.32 0.90 0.12 3.00 8.50 6.00 3.15 9.00 2.30 1.40 7.25 6.00 9.50 5.67 3.25 12.50
SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson
1050.00 1000.00 1000.00 1000.00
1000.00 1000.00 1000.00 1000.00
Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B
PREFERENCE SHARES
1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01
1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00
SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ
E J K L M N
CORPORATE DEBT - (percentage pricing) 52WK HI 100.00
52WK LOW 100.00
CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB
SECURITY Fidelity Bank Note 22 (Series B) +
SYMBOL FBB22
Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y
BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407
BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
LAST CLOSE 4.45 17.43 9.09 4.02 1.01 0.18 3.00 9.13 6.15 3.70 11.42 2.73 1.75 7.93 6.10 11.25 6.35 3.69 13.00
CLOSE 4.45 17.43 9.09 4.02 1.01 0.18 3.00 9.13 6.15 3.70 11.42 2.79 1.75 7.94 6.10 11.25 6.35 3.69 13.00
CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.06 0.00 0.01 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00
1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
LAST SALE 100.00
CLOSE 100.00
CHANGE 0.00
108.42 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
-0.07 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
108.49 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
VOLUME 50
830 562
700
VOLUME
EPS$ 0.268 0.932 -0.306 0.283 -0.973 0.000 -0.996 0.638 0.573 0.171 0.627 0.102 0.231 0.000 0.545 0.679 0.719 0.277 0.631
DIV$ 0.100 1.130 0.000 0.230 0.000 0.010 0.000 0.710 0.220 0.120 0.620 0.060 0.070 0.084 0.320 0.500 0.200 0.120 0.580
P/E 16.6 18.7 N/M 14.2 N/M N/M -3.0 14.3 10.7 21.6 18.2 27.4 7.6 N/M 11.2 16.6 8.8 13.3 20.6
YIELD 2.25% 6.48% 0.00% 5.72% 0.00% 5.56% 0.00% 7.78% 3.58% 3.24% 5.43% 2.15% 4.00% 1.06% 5.25% 4.44% 3.15% 3.25% 4.46%
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%
INTEREST Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%
MATURITY 19-Oct-2022 20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022
MUTUAL FUNDS 52WK HI 2.16 4.16 2.00 180.30 157.58 1.56 1.70 1.64 1.10 6.99 8.54 6.15 10.52 11.46 10.46
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.50 1.62 1.58 1.08 6.41 7.62 5.66 8.65 10.54 9.57
FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund
NAV 2.16 4.12 2.00 180.30 155.10 1.56 1.70 1.65 1.09 7.24 8.28 6.46 11.16 11.65 10.26
YTD% 12 MTH% 1.87% 3.98% -0.44% 4.28% 1.05% 2.26% 0.90% 3.44% 1.11% 6.05% 2.14% 4.33% 0.17% 4.01% 1.67% 4.18% -0.96% 0.73% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%
NAV Date 30-Jun-2018 30-Jun-2018 29-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018 30-Jun-2018
MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings
YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful
TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225
Lucaya Marketplace now know they have some certainty the hotel is staying open for a while longer. At least now they have a much clearer picture and can plan better. Business likes certainty. I’m sorry it had to come to this, but I think they’ve made the right decision.” For many Bahamians, government involvement in the Grand Lucayan’s acquisition is likely to recall dark memories of Hotel Corporation ownership during the Pindling administration, when millions of taxpayer dollars were squandered on financing loss-making government resorts. The government, though, has always presented its plan as akin to the US auto and UK banking industry bail-outs in the aftermath of the 2008-2009 recession, with the intention being to exit its ownership investment as rapidly as possible. It had already earmarked $25m in the 2018-2019 budget for financing an equity stake, believed to be 20 percent, in the Grand Lucayan’s acquisition, plus subsequent marketing and airlift support. The strategy for re-opening and revitalising the Grand Lucayan has always seen Wynn solely as the “real estate owner”, with a variety of hotel and casino brands operating the property on its behalf as part of the government’s drive to convert the area into a true destination that is no longer reliant on taxpayer subsidies. However, well-placed sources yesterday revealed to Tribune Business earlier this month that the government is exploring alternative buyers to Wynn amid suspicions its deal as structured “is not going to work” and “doesn’t make sense” - especially given the added pressure from CK Property Holdings warning that it will walk away. “Wynn is expecting the government to pay for it, and they walk in as owner,” one contact, speaking on condition of anonymity, told Tribune Business. “I can tell you the government isn’t interested in that, and has no choice but to start to look for another buyer immediately. “Hutchison [CK Property Holdings] has said that come September that’s it for all of it. Hutchison has confirmed that, in very short order, it will close the entire plant down. The tower and 200 rooms in the
Lighthouse Point. “The government of The Bahamas is going to have no choice but to step in and quite literally take over operations of that hotel regardless of what the cost may be.” The source added that CK Property Holdings’ exit decision was being driven by the end of its Hurricane Matthewrelated insurance payouts, with the final one set to be released by end-August or early September. The Grand Lucayan’s post-Matthew closure has resulted in much of the property being shuttered for 21 months, causing the loss of over 1,000 jobs and 59 per cent of Grand Bahama’s hotel room inventory - effectively taking the island off the stopover tourism map. CK Property Holdings had been running a sales process for the Grand Lucayan when it was interrupted by Hurricane Matthew. Wynn then emerged as the potential buyer with a $110m offer just prior to the 2017 general election, but was unable to close the deal. It walked away, and the Minnis administration then revealed its plan to take an ownership stake in a purchasing group. This prompted Wynn to return with a $65m all-cash deal, which was accepted by CK Property Holdings. The Government suspended its plan, and the two companies signed a Letter of Intent (LoI) for the Grand Lucayan’s purchase just before Christmas 2017. Dr Minnis suggested then that the purchase would close by end-February 2018, but no deal was forthcoming and the Grand Lucayan’s fate has dragged on for five more months with no resolution seemingly in sight. In the meantime, Wynn has broken ground on its $120m Goodman’s Bay condo-hotel in New Providence. Paul Wynn, its principal, reassured that negotiations on the Grand Lucayan were making progress, but gave no specifics and was very vague. Tribune Business sources have previously suggested that the former Christie administration encouraged Wynn to look at the Freeport-based resort in returning for helping to sort out covenant and zoning restrictions that were then-impeding its Goodman’s Bay development.