A threat to the Bahamas' tourism industry
tribune242 editorial
IN A recent article in The Tribune John Issa of Breezes warned that "the Bahamas, and more particularly Nassau and Freeport, will have to put more effort into developing and promoting our other resort attractions because gambling will be less of a draw than it was in years past". Also, he said, the cost of doing business in the Bahamas would have to come down, if this country hoped to compete internationally.
On Friday, Kerzner International's Bahamas Managing Director George Markantonis also warned the Bahamas to expect a big hit on its tourism product if the three massive casinos proposed for Miami-Dade and Broward counties are built next year.
As Mr Issa wrote: "Since the birth of Las Vegas over 60 years ago, casinos were considered, during the earlier decades, a sufficient attraction to be the main draw for a resort or destination."
When gambling was legalised in the Bahamas - over the loud objection of the Baptists - the fact that these islands were only a 30-minute flight from Miami set the gambling addict's heart aflutter. Regular charter flights from the US were provided weekly by the Lucayan casino to fill its gambling tables. It proved a good business and was certainly a revenue spinner for the Public Treasury.
It eventually spread to Nassau and fairly recent legislation provided that any hotel with a certain number of rooms constructed on any of the Family Islands could include a gaming room as a part of its attractions.
While it lasted, it brought in good business. In those days, committed gamblers - and there were many -- had to travel many thousands of miles to find a casino. There were the casinos of Las Vegas, Monte Carlo, Maçau, Baden Baden, Havana and Nassau. These were the areas that rolled the dice.
Today, there is such a proliferation of casinos that one no longer has to travel any distance. A player can even stay at home and indulge in online betting. That indeed is the rub for the Bahamas. No one has to book a charter any more to get to the gaming tables.
Baha Mar's 1,000-acre, $3.5 billion Cable Beach resort, which aims for a 2014 opening, boasts that with a 100,000sq ft space it will have the largest casino in the Caribbean. It says that it will be twice the size of Atlantis, which when it was opened on Paradise Island by Resorts International boasted that it was the largest casino complex in the Bahamas. In those days, that was indeed a proud boast -- it had put Freeport in the shadows.
And now comes Florida -- just a half hour away -- threatening all of them with the world's largest casinos.
The obvious difference between Atlantis and Baha Mar is that the Cable Beach venture - misreading the market trend -- is banking on attracting the convention and gambling crowd. Atlantis - although it too went for conventions in a big way just before conventions were being curtailed in the US, and nurtured its casino business - decided to create a family-oriented resort. In the end, it might find itself -- with its magnificent display of marine life and water attractions -- in the best position to weather the resort storm when the need for offshore gambling starts to fade.
Tempting Florida, which was hard hit by the collapse of the housing market, and high employment, is an offer by Genting Corporation, a Malaysian company, to build three lavish $2 billion casinos in South Florida.
"And with the promise of tens of thousands of sorely needed jobs and many millions of dollars in tax revenue, Florida politicians are recalibrating their positions," reported Lizette Alvarez of the New York Times on Friday. The artist's drawings of the three casinos are indeed surreal as they point skyward on what appears to be layer upon layer of large saucers. Obviously, they have not been designed with hurricanes in mind.
Already Genting, according to The New York Times, has paid $236 million cash for The Miami Herald's headquarters on Biscayne Bay. It has also bought neighbouring properties to make up 30 acres for one of the casinos.
In addition, Genting has promised Florida the world and more besides to get its commercial heart beating again. It is an offer -- considering the economic times - that will be hard to refuse.
In January, a casino bill will be debated in the Tallahassee legislature. It will have to change Florida's position on gambling if the Genting project is to get off the ground. And this is where the future of the Bahamas' tourism hangs in the balance.
Although there is a strong lobby supporting the Genting proposal, Disney, Florida's most powerful corporation, is totally against. Disney claims that casinos - certainly casinos on such a large scale - will destroy Florida's theme park image. Disney is backed by the Chamber of Commerce.
"Expanding casino gambling in Florida would never make sense in a good economy," said Mark A Wilson, the president and chief executive of the Florida Chamber of Commerce. "And the only reason they are even targeting Florida is that they are hoping that desperate people will reach for desperate measures. There is never a good time to push a bad idea."
Not only does Florida's future hang in the balance, but come January so does the Bahamas'. As Mr Issa and Mr Markantonis have said, it is now up to the Bahamas to improve its product. Mr Markantonis pointed out that the advantage that Florida has over the Bahamas is that it has "drive traffic and we have airlift".
Airlift is another sad story for another day.
October 31, 2011
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.
Showing posts with label Bahamian tourism. Show all posts
Showing posts with label Bahamian tourism. Show all posts
Tuesday, November 1, 2011
Monday, January 24, 2011
Great frustration expressed at the Bahamian Government's delay in implementing reforms to The Bahamas' gaming regulations
Atlantis: Get a move on with gaming reforms
By ALISON LOWE
Business Reporter
alowe@tribunemedia.net
Branding announcements that Jamaica is set to grant three casino licenses this year as "a big problem" for Bahamian tourism, Kerzner International (Bahamas) top executive has expressed great frustration at the Government's delay in implementing reforms to this nation's gaming regulations.
Speaking to Tribune Business about the wait for the Government to move ahead with reforms proposed by the Bahamas Hotel Association and the Casino Association, George Markantonis, the company's managing director and president, told Tribune Business he finds the entire situation "very frustrating" and warned of the implications for Bahamian tourism.
"It's been over a year. It's very frustrating. This isn't, to me, that difficult. You're only talking about two major casinos and, frankly, every day we are losing ground in the gaming world. We just have some regulations that are annoying to the consumer. It's way easier to go and gamble elsewhere," said Mr Markantonis.
He noted that many of the recommendations "were procedural (and) not sensitive", providing all the more reason why their consideration and implementation could have moved ahead more swiftly.
Meanwhile, Vincent Vanderpool-Wallace, minister of tourism and aviation, told Tribune Business he was now in possession of the final recommendations for reform of the Bahamas' gaming laws and regulations, and hoped to present them to the industry next month.
In an e-mailed response to this newspaper, he said: "I had the final review of the recommendations from the Gaming group with me, and hope to present it for consideration next month. I am not sure how long it will take to change regulations to effect whatever is agreed, but we will advance it as quickly as possible."
Mr Markantonis and other industry chiefs say the changes are necessary to keep the Bahamas competitive as a destination for gamblers.
Mr Markantonis' comments come after Jamaica's minister of tourism, Edmund Bartlett, spoke to the world's media at the recent Caribbean Marketplace tourism trade show, which took place in Montego Bay last week, about his government's "casino dream".
He revealed that Jamaica intends to grant three casino licenses this year and is taking applications for others, with the expectation that each casino could bring in $40 million in revenue to the Government annually.
Mr Markantonis said he sees this development as a "big problem" for the Bahamas, and a "bigger issue" than the fact that the Jamaican government has also just opened a state-of-the-art convention centre - the Caribbean's largest - in Montego Bay in the hopes of gaining a greater share of this lucrative tourism market that the Bahamas, and Atlantis especially, has traditionally benefited from.
"I do think that will be a problem for us - I am not going to hide it. If they do approve all these mega-resort casino licenses there, it's just more casinos coming right on our doorstep.
"We have to keep working on the gaming regulations we have here, make sure they are friendly to the casinos we have here and, at the same time, we have to work on our marketing programs like anything else. You can't just roll over; you learn how to compete in a tougher market," said Mr Markantonis.
Casinos in the Bahamas have suffered significant year-over-year declines in revenue in recent times. Atlantis reported an 8 per cent decline in 2010, while Crystal Palace saw an 18.5 per cent drop. While this is in part because of sluggish tourism levels overall, industry stakeholders have consistently pointed to out-dated gaming regulations as a contributing factor in a narrowing of this nation's competitive advantage.
In March 2009, Robert Sands, then Bahamas Hotel Association president, told this newspaper he believed "radical change" would be needed to gaming regulations if the Bahamas is to maintain a competitive edge against other popular destinations.
When Mr Vanderpool-Wallace last spoke to Tribune Business in October 2010 on the subject of the reforms proposed by the hotel and gaming industry to the sector's regulatory framework, he suggested the proposals were "in front of (him) right now" and under active consideration.
The Minister suggested the Government is looking to marry its own recommendations that it believes will be "even more beneficial" to Bahamian casino gaming with those proposed by the private sector, as it moves to "enhance and hold on to the significant competitive advantages" this nation has.
January 24, 2011
tribune242
By ALISON LOWE
Business Reporter
alowe@tribunemedia.net
Branding announcements that Jamaica is set to grant three casino licenses this year as "a big problem" for Bahamian tourism, Kerzner International (Bahamas) top executive has expressed great frustration at the Government's delay in implementing reforms to this nation's gaming regulations.
Speaking to Tribune Business about the wait for the Government to move ahead with reforms proposed by the Bahamas Hotel Association and the Casino Association, George Markantonis, the company's managing director and president, told Tribune Business he finds the entire situation "very frustrating" and warned of the implications for Bahamian tourism.
"It's been over a year. It's very frustrating. This isn't, to me, that difficult. You're only talking about two major casinos and, frankly, every day we are losing ground in the gaming world. We just have some regulations that are annoying to the consumer. It's way easier to go and gamble elsewhere," said Mr Markantonis.
He noted that many of the recommendations "were procedural (and) not sensitive", providing all the more reason why their consideration and implementation could have moved ahead more swiftly.
Meanwhile, Vincent Vanderpool-Wallace, minister of tourism and aviation, told Tribune Business he was now in possession of the final recommendations for reform of the Bahamas' gaming laws and regulations, and hoped to present them to the industry next month.
In an e-mailed response to this newspaper, he said: "I had the final review of the recommendations from the Gaming group with me, and hope to present it for consideration next month. I am not sure how long it will take to change regulations to effect whatever is agreed, but we will advance it as quickly as possible."
Mr Markantonis and other industry chiefs say the changes are necessary to keep the Bahamas competitive as a destination for gamblers.
Mr Markantonis' comments come after Jamaica's minister of tourism, Edmund Bartlett, spoke to the world's media at the recent Caribbean Marketplace tourism trade show, which took place in Montego Bay last week, about his government's "casino dream".
He revealed that Jamaica intends to grant three casino licenses this year and is taking applications for others, with the expectation that each casino could bring in $40 million in revenue to the Government annually.
Mr Markantonis said he sees this development as a "big problem" for the Bahamas, and a "bigger issue" than the fact that the Jamaican government has also just opened a state-of-the-art convention centre - the Caribbean's largest - in Montego Bay in the hopes of gaining a greater share of this lucrative tourism market that the Bahamas, and Atlantis especially, has traditionally benefited from.
"I do think that will be a problem for us - I am not going to hide it. If they do approve all these mega-resort casino licenses there, it's just more casinos coming right on our doorstep.
"We have to keep working on the gaming regulations we have here, make sure they are friendly to the casinos we have here and, at the same time, we have to work on our marketing programs like anything else. You can't just roll over; you learn how to compete in a tougher market," said Mr Markantonis.
Casinos in the Bahamas have suffered significant year-over-year declines in revenue in recent times. Atlantis reported an 8 per cent decline in 2010, while Crystal Palace saw an 18.5 per cent drop. While this is in part because of sluggish tourism levels overall, industry stakeholders have consistently pointed to out-dated gaming regulations as a contributing factor in a narrowing of this nation's competitive advantage.
In March 2009, Robert Sands, then Bahamas Hotel Association president, told this newspaper he believed "radical change" would be needed to gaming regulations if the Bahamas is to maintain a competitive edge against other popular destinations.
When Mr Vanderpool-Wallace last spoke to Tribune Business in October 2010 on the subject of the reforms proposed by the hotel and gaming industry to the sector's regulatory framework, he suggested the proposals were "in front of (him) right now" and under active consideration.
The Minister suggested the Government is looking to marry its own recommendations that it believes will be "even more beneficial" to Bahamian casino gaming with those proposed by the private sector, as it moves to "enhance and hold on to the significant competitive advantages" this nation has.
January 24, 2011
tribune242
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