MOF-BUDGET Jun. 2016 | Page 25

sion, and a commercial retail and entertainment district. The developer has implemented a training programme for Bahamians in specialized skills for the construction industry in the areas of masonry, electrical works, plumbing, carpentry and the installation of the renewable/alternative energy systems. THE STOCKING ISLAND CLUB Stocking Island Development Ltd, was approved in September 2015 to develop the Stocking Island Club, a luxury $600 million residential resort boutique hotel and villas on Stocking Island. The project, which already has 110 full and contracted employees, will be completed by 2018 and will consist of a 40-room, luxury, 5-star boutique hotel and 85 villas, a lifestyle spa and wellness centre, resort club, restaurant and bar, sailing school, swimming academy, boat, helipad and seaplane facilities. Mr. Speaker, the sailing school will provide Bahamians with instructions for mono hull sailing and dinghy sailing, both Olympic class crafts, and graduating to larger sailboats. During construction, the resort will utilize approximately 250 to 300 full time construction and associated skilled construction workers. Upon opening, the resort will be operated with approximately 250 employees. With all funding and brands currently in place, Mr. Speaker, the initial average daily rate (ADR) is projected to be around $1250 per night with occupancies of 55% to 65% expected to be achieved. SOUTH CAT CAY A Heads of Agreement signed on December 24, 2015 has enabled mobilization of Phase 1 of the South Cat Cay resort project in February this year comprising a 53-room, five-star boutiq ue hotel, 29 marina condos, 37 estate lots, 137-slip ma- rina, restaurants, beach club, and employee housing; helipad & seaplane facilities. Phase 1, at a cost of $28 million, remains on schedule with completion within three years. There are currently 6 Bahamian workers on site working six days per week to establish a man’s camp and install the spine road. A Bahamian ‘utility crew’ will be mobilized on completion of the spine road and at peak of construction next year an estimated 40 full-time Bahamian construction workers will be on site for vertical construction of the initial phase of the hotel, Back of House and Accommodation facilities. With an expenditure of $16 million to date Phase 1 is estimated to be completed by December 2018. CRUISE PRODUCT Mr. Speaker, 2016 is proving to be a watershed year for the Bahamas with the establishment of new cruise ports by Carnival and Mediterranean Shipping Company and expanded cruise port operations by Norwegian Cruise Lines at Great Stirrup Cay and by Royal Caribbean Cruise Lines at Coco Cay. Mediterranean Shipping Company The Bahamas’ share of the cruise market will increase by 3% or by 96,000 additional passengers annually with the establishment of the new cruise port at Sandy Cay. Mediterranean Shipping Company (MSC), the world’s second largest global shipping company and fastest growing cruise Line Company headquartered in Geneva, Switzerland, has developed a fleet of twelve cruise ships now carrying 1.7 million passengers to 45 countries on its global itineraries. MSC recently placed an order for seven (7) new ships capable of carrying 5,300 passengers and 1,600 crew and has committed to an investment of $50-$100 million over a two year period in the con- struction and environmental management of a private Cruise Port and Marine Park at Sandy Cay for its 369,000 annual guests on Bahamas itineraries. The Company has committed to the establishment of a MSC Seafarers Technical School on Grand Bahama. This will lead to the training of future employees of MSC Cruises. MSC also envisions forging a strong and mutually rewarding partnership with the Northern Campus of the College of The Bahamas. Additionally, MSC has agreed to recruit and train Bahamians as mariners on their cargo ships. The targeted date for complete project build out is November 2017, with Phase I dredging and utilities infrastructure works slated to begin in August 2016. It is projected that 542 Bahamians will be employed for construction works and 200 Bahamians will be hired for operations of the cruise port, and, Mr. Speaker, some 100 young Bahamian seafarers will be hired on board MSC’s cruise ships by mid -January 2017. The cruise port at Ocean Cay will comprise a cruise ship berth, a 10 – 15 slip mega yacht marina, with future plans based on demand, for a 45-slip marina.The development will include heliport, small harbor, welcome centre and Bahamian village as well as numerous retail and food and beverage outlines, amphitheater, land and water sport activities. Other project to come on stream include staff housing, safety, security and emergency medical stations, Bahamas customs, immigration and police offices. I will be joining the Chairman of MSC at Ocean Cay next month for an official ground breaking which will be filmed by the BBC for a BBC documentary of the development process. [25] 2016/2017 DRAFT ESTIMATES OF REVENUE & EXPENDITURE