In his first address to the nation, Bahamas Prime Minister Dr. Hubert Minnis announced his government is negotiating with the owners of Grand Lucayan Resort in Grand Bahama regarding becoming temporary owners of the property in partnership with several investors. Minnis said the government intended to help reopen and boost business at the casino resort, which has been closed for 10 months since Hurricane Matthew hit last year. Then the government would sell its equity in the property to an existing partner or investors.
Opposition Leader Philip “Brave” Davis said, regarding Minnis, “He sadly failed to deliver on the principle of transparency, on which he so heavily campaigned. He mentioned, almost in passing, that the government will go into partnership over the ownership of the Grand Lucayan Resort in Grand Bahama, but his silence over any significant element of the arrangement raises a lot of questions. Who are the partners? What are the terms? How long will the arrangement last? What is the financial return to Bahamians? We look forward to a much more detailed account from the prime minister regarding this proposed partnership.”
Minnis said renovations would begin at the resort within the next month, to prepare the facility to reopen for the winter season. However, he did not give specifics about the plan, including the government’s investment. This concerned former Bahamas Chamber of Commerce and Employers Confederation Chairman Gowon Bowe, who said, “Based on what I’ve been told about the cost of renovations required, if the government is prepared to inject that amount of money into it, that is a major investment and there must be a very clear exit and entry strategy. It shouldn’t just be a reaction to the current circumstances on the island but should be methodical and well thought out.”
Bowe added, “When we look at history in terms of the Bahamas Hotel Corporation and properties they purchased back in the day, the Nassau Beach, the Wyndham, they didn’t turn out to be success stories because the unfortunate element is government-owned assets are perceived to be able to lose money without consequence. When you look at running hotels, it is a costly venture and one that requires having a finger on the pulse.”
