Baha Mar project still needs consideration
tribune242 editorial
THE BAHA MAR development is not one of easy solution -- politically it is a hot potato. The only reason it is being considered is that many Bahamians believe that in these economic hard times a big project is needed to get Bahamians back to work -- and Baha Mar happens to be that big project.
Prime Minister Hubert Ingraham does not necessarily agree. One day the Bahamas is going to run out of big projects -- certainly the need for them in New Providence. There are still the Family Islands to develop, but as time moves forward the Bahamas will have to find something other than "big projects" to sustain growth.
Nor does the Prime Minister believe that Baha Mar, even at this time, is the "saviour for the Bahamas."
However, what appears to many Bahamians to be an answer to prayers could present enormous problems in the future. Certainly enormous political problems.
For example, if government agrees to allow the Chinese to employ over the period of the $2.6 billion contract, 8,100 of their countrymen with Bahamians only on the periphery of construction, then future investors can expect the same. Certainly Kerzner International, which has preferred investor status, has every right in future to ask for the same concessions. And don't forget local business people, who should be entitled to employ the best talent for their businesses, will also expect to have more freedom to go abroad if the required talent cannot be found here. This is something that Bahamians should ponder very seriously. At the pace at which this country is developing -- especially with the unlimited vistas being opened by new technology -- there will be no place for D grade students. Of course, this is something for students and their parents to come to grips with now. They have to settle down to reality -- government can no longer protect them. They have not had to make the effort because their mediocrity has been protected by Immigration restrictions for too long.
But there are other worries. As Mr Ingraham pointed out, if Baha Mar is completed as planned will the investors be able to fill the added 3,500 rooms when many hotel rooms already here are empty?
"We will be building the largest single resort development in the country with exclusively foreign labour, foreign labour where there is no transfer of any knowledge to locals," Mr Ingraham said. "At the same time be putting a number of rooms that is larger than any we've got in the country, without any major hotelier being involved to date."
"Well if I have difficulty dealing with less than 1,800 rooms what is it likely to be the case if I put 3,500 rooms there? What makes me feel and what gives me the level of confidence that all of a sudden I've become a magician in terms of the management of a hotel and I'm going to have a very successful operation with high levels of occupancy and good levels of revenue to repay the loan of $2.4 billion?"
Added to which the Chinese now have a hotel in Freeport which they cannot fill.
"And if I am having discussions about the question of repaying a loan of $200 million that is dragging on and on, does that raise any question that I ought to be concerned with? These are all matters that the government has to be concerned with," Mr Ingraham said.
What is now exercising the minds of many Bahamians is what happens to the large resort and the land on which it sits if the land is transferred in fee simple to Baha Mar, which in future might default on the loan to the China Export-Import Bank. Does the bank, and eventually the Beijing government become landlords of 1,000 acres of Cable Beach? This is of great concern to many Bahamians.
Mr Ingraham said he would feel more confident about the development, if like Atlantis, it were brought on stream in stages, opening only 1,000 rooms to start with. Atlantis developed its mega project in three stages. The fourth stage is being held until the Baha Mar resort is resolved. Obviously, the Kerzners -- experts in the resort business --also believe that the Bahamas cannot fill the rooms of two mega resorts operating on one island at the same time.
However, Mr Ingraham believes the Baha Mar project and Atlantis can co-exist without one being detrimental to the other if the phased approach to development is taken.
If one kills off the other by over reaching it is the Bahamas and its people who will suffer. As each resort fights for guests, room rates will fall and so will local employment.
Mr Ingraham and his government -- and the Opposition if it will take its responsibilities seriously -- have a lot to think about as they do their best to protect the future of the country and its people.
October 01, 2010
tribune242 editorial
A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
