NASSAU, Bahamas — The Government last night said it has approved Royal Caribbean’s $110 million Paradise Island beach club project after negotiating greater Bahamian ownership and entrepreneurial participation in the development, The Tribune reported on Wednesday, March 8, in an article written by Business Editor Neil Hartnell.
Chester Cooper, deputy prime minister who also has responsibility for tourism, investments and aviation, said in a statement that the Davis administration believes it has resolved all “previous objections” to the cruise giant’s plans by ensuring more Bahamian involvement “at all phases” of its construction and operation.
Stating that specific activities at the Royal Beach Club, including water sports, entertainment and food and beverage, will be reserved for local businesses and entrepreneurs, he pledged that Bahamians will also be able to invest in the project and collectively take a 49 percent equity ownership stake. This would leave Royal Caribbean owning the majority interest.
As for the Crown Land being leased to the cruise giant, Mr Cooper said the Government planned to also convert this asset into an ownership stake in the development that would be held by the country’s sovereign wealth fund, now known as the National Investment Fund.
It is unclear how much Crown Land will be leased to Royal Caribbean as the Government’s statement did not specify the quantity. Both the cruise line and the Government had been embroiled in a long-running battle, including in the Supreme Court, with Bahamian entrepreneur, Toby Smith, who has asserted he has a binding lease for at least two Crown Land acres that Royal Caribbean is seeking to use in its project.
Mr Smith declined to comment when reached by Tribune Business last night, but the go-ahead for the cruise giant – likely formalised at yesterday’s full Cabinet meeting – comes less than three weeks after the February 16, 2023, ruling by Sir Ian Winder, the Chief Justice, which rejected the entrepreneur’s claim that his lease agreement is valid.
That ruling likely paved the way for the Royal Caribbean deal to proceed, although Mr Smith still has time to appeal and tie-up those acres in litigation once again. There were unconfirmed suggestions last night, though, that Royal Caribbean’s beach club boundaries may have been revised so that it does not include the Crown Land also claimed by the Bahamian entrepreneur who is seeking to renovate the lighthouse on Paradise Island’s western tip.
Mr Cooper, in his statement, said: “The project when completed will offer guests beach and water sport activities, as well as Bahamian entertainment and retail experiences. The Government is satisfied that it has addressed previous objections to the project by ensuring much greater Bahamian participation at all phases of the construction and in the ongoing operations.
“Royal Caribbean will not have equity ownership in any ferry business from Prince George Wharf to the site. Several key activities at the site, including water sports, entertainment, tours, food and beverage, retail, security, environmental monitoring and landscaping, will be reserved principally for Bahamian entrepreneurs and businesses.”
Mr Cooper said the Government will impose a Tourism Development Fund levy equivalent to 1 percent of the annual gross revenue generated by the Royal Beach Club. Based on the cruise line’s previous projections that the development will generate an extra $26m in visitor spending per annum, this could amount to $260,000 annually, which would be paid into a fund created under the Tourism Development Corporation Bill that has been tabled in Parliament. See complete article in The Tribune at http://www.tribune242.com/news/2023/mar/08/bahamians-gain-49-stake-royal-caribbean-pi-project/
