MOF-BUDGET Jun. 2016 | Page 23

the next 12 months some 63 positions will be added. The hotel, which currently employs 657 employees, will add another 63 positions in 2017 and expects to achieve average hotel occupancy of 70%-80% over the next 12 months. GRAND BAHAMA GRAND LUCAYAN RESORT The Hutchison Group of Companies and primarily their land holding company CK Holdings, has initiated a bid process for the Grand Lucayan Resort on Grand Bahama Island and I shall speak to this more succinctly on these developments in my remarks on the Hawksbill Creek Agreement. MEMORIES Memories enjoyed a near 90% occupancy in 2014 and 2015, prior to feeling the impact of a much weakened Canadian economy compounded by its dollar being sharply devalued against the US dollar and by extension Bahamian dollar. This development dealt Memories a 30% decline in this past winter, i.e., December 2015 through April 2016. Sunwing Group’s strong focus on the US markets, through its Vacation Express subsidiary beginning late May, is already resulting in business rebounding to last year’s level and projected to exceed summer/fall of 2015. The Group expects to regain and maintain its 500 direct employees along with further indirect employment stimulation estimated as a further 100 jobs. Sunwing Vacations and Vacation Express is projected to generate some 350,000 visitor nights and some 150,000 room nights, with a significant share to other resorts on Grand Bahama Island. The company remains keen on expanding its operations in Grand Bahama in the very near term, which if plans are realized, will result in the expansion of its already strong air service network into Grand Bahama to include new USA, Canadian and mostly likely European gateways in 2017, along with increased direct and indirect employment their expansion would bring about. ABACO BAKER’S BAY GOLF & OCEAN CLUB Passerine at Abaco Holdings Limited, owners of the Baker’s Bay Golf and Ocean Club, recently completed its Phase I development of 28 employee housing units. Construction of the medical clinic, community centre and beach park is slated for completion in July 2016. Other amenities, including a new Club house and restaurant, are scheduled for completion in November 2016. Construction projects in excess of $250 million are currently underway on development of 51 new home sites, bringing the total home inventory to 130. Following a dramatic surge in construction of custom homes in 2014/5, Starfish Construction Limited retained almost 850 construction employees from 75 different sub-contractor companies, ninety-eight percent (98%) of which are Bahamian owned and operated. Starfish Specialties, an affiliate of Starfish Construction Company, has implemented an apprenticeship programme for 30-40 employees across all divisions by end of this year which will greatly enhance the education and training of local Bahamian entrepreneurs and produce at least 50 qualified mechanical, electrical and plumbing contractors. Over 1200 persons are now employed at Baker’s Bay with hotel operations supported by some 415 full-time employees and an additional 50 new hires coming on stream later in the year. The company is projecting construction of another 45 homes next year. Other projects on Abaco include the refurbishment of the Dolphin Beach Properties to provide for Baker’s Bay Resort employee housing and home rentals. Work steadily continues on the Abaco Club at Winding Bay, which is investing $225 million in phased home construction and infrastructure expansion and is expected to employ over 1300 construction employees over a 10 year period. ELEUTHERA FOUR SEASONS RESORT The Cotton Bay Holdings, developers of a $180 million resort at Cotton Bay, Eleuthera, successfully negotiated acquisition of lots in the Bayridge Subdivision of South Eleuthera and are now working closely with Four Seasons Hotels and Resorts on completion and execution of sixteen (16) agreements which will govern management and operation of the Hotel, Private Residences and the Golf Course. The planned development includes a 115room, 5-star boutique hotel, 40 private residences and renovation of the existing 18-hole Robert Trent Jones Golf Course, luxury spa and other amenities. Cotton Bay Holdings has now indicated that they will be ready to proceed with breaking ground on the development at the end of 2016 and will provide 200 jobs during construction and 300 permanent jobs when the hotel is completed. The company is in the final round selection process for professional developers and the design and the permitting process is expected to take 12 months, with opening of the resort expected in the summer of 2019. Cotton Bay Holdings is estimating a 7,000 increase in the number of visitors to Eleuthera annually. [23] 2016/2017 DRAFT ESTIMATES OF REVENUE & EXPENDITURE