NORWEGIAN CRUISE LINES
NCL Bahamas Ltd will commence Phase II
expansion of its cruise destination at Great
Stirrup Cay, The Berry Islands, comprising
an additional twenty-two (22) ocean villas, several new food & beverage outlets,
day spa complex, new employee housing,
expanded attractions and utilities allowing
for an additional 40 ship calls per annum
of 100,000 passengers. The current 180
calls per annum deliver a guest count of
550,000. The project is expected to be
completed in early 2018. Construction
employment is estimated at forty persons,
with an additional 10 permanent staff added to the current 55 employees and 25
straw vendors at the location.
ROYAL CARIBBEAN CRUISE LINES
[26]
2016/2017
DRAFT
ESTIMATES
OF REVENUE &
EXPENDITURE
Coco Cay has been used by Royal Caribbean Cruise Lines (RCCL) since 1988 for
day visits by its cruise passengers. RCCL
has announced plans for installation by
April 2016 of a fixed pier at a cost of $47
million for passenger disembarkation at the
private RCI cruise ship destination. This is
expected to circumvent the frequent ship
cancellations which occur due to berthing inability during inclement weather and
to provide for stops by Oasis class ships
carrying 5,400 passengers. RCCL expects
to increase its staff complement from 180
to 214 when the 12 month development
timeline is completed and estimates that
20 construction employees will be hired
for completion of the project.
DISNEY CRUISE LINES
Disney Cruise Line is expected to make
more than 375 calls in The Bahamas to
Nassau and Castaway Cay in 2017, which
is expected to bring more than 1.25 million guests to the country. Disney also
expects to make significant investments
on Castaway Cay. In addition to ongoing
operations, new projects on the island include crew housing and crew mess (dining and galley) a warehouse, expansion
of wastewater treatment plant and fiber
optic replacement, among other projects.
Disney has indicated that it will continue
to explore other projects with The Bahamas that could ultimately result in further
significant benefit.
CK Property Holdings Ltd. and the Port
Group, namely GBPA, Freeport Harbour
Company Ltd., Grand Bahama Development Company Ltd., and Freeport Industrial & Commercial Ltd.
(2) executed a Waiver of Exclusivity
Agreement with Freeport Harbour Company Ltd. with respect to the operation of
cruise ports on Grand Bahama.
Mr. Speaker,
Of particular significance for the two
largest centres of population are major
strategic initiatives relat ing to the review
of the expired tax concessions under the
Hawksbill Creek Agreement as well as related matters to revitalize the economy of
Grand Bahama and the Baha Mar project
in New Providence.
The MOU sets the stage for specific agreements which must be entered into with
licensees with the aim of fundamentally
shifting the investment climate and economic prospects in Grand Bahama in a dynamic and positive way for all concerned.
Through our negotiations, we have sought
to create a new economic development
framework that can jumpstart and sustain
growth in Grand Bahama. The result is an
MOU that sets the parameters for the development of a framework which will enable the Government to engage with the
private sector on delivery of a wide range
of economic and social gains for the residents of Grand Bahama and The Bahamas
as a whole.
In my recent Communication to this
House on 9th May, 2016, I indicated that
the review of the expiring concessions under the Hawksbill Creek Agreement has
afforded my Government the opportunity
to conclude arrangements, after extensive
negotiations with the Grand Bahama Port
Authority and key investor/stakeholders,
aimed at strengthening and expanding the
economy of Grand Bahama. These arrangements follow upon an in depth and
comprehensive study carried out by The
Hawksbill Creek Review Committee, the
first of its kind in 60 years, which involved
wide consultation.
Mr. Speaker,
I feel it necessary to reiterate and re-emphasize for purposes of clarity the actions
taken by my Government as it relates to
the expiring concessions.
Mr. Speaker, as an outcome, the Government has
(1) entered into a Memorandum of Understanding (“MOU”) with the Grand Bahama Port Authority Limited, and key entities controlled by GBPA, Hutchison Ports,
Specific opportunities that will emerge
from the MOU include:
- immediate investments in strategically
important industries;
- the commitment of the GBPA to seek
an injection of new equity capital into its
Group of Companies through new globally respected shareholders or equity partners and project specific investors who
will further the development of Freeport
and Grand Bahama;
- historic changes in the governance, transparency, and regulatory framework that
governs Freeport;
- Government ownership stakes in prime
landholding companies which will allow for
enhanced public/private commercial and
residential real estate development;
- a commitment to social and infrastructure
improvements to enhance quality of life;