This week, the government announced plans to purchase the Grand Lucayan Resort on Grand Bahama Island.
Once the deal is done, the government will likely spend somewhere in the vicinity of 100 million dollars to acquire, renovate, and market the property and get it back to its "fighting weight".
For Grand Bahamians, many of whom have already lived through a major hotel closure and felt the very REAL LIFE impact of that reality on the island and on their lives: this news was WELCOMED! Every resident of Freeport who remembers the vibrancy of the International Bazaar, which thrived when the Princess Towers (later renamed the Royal Oasis) was open, are understandably terrified that the Port Lucaya Marketplace which depends heavily on the Grand Lucayan property, could suffer a similar fate. In days of boom, the Port Lucaya marketplace was flooded with tourists and as a result, all of the nearby businesses flourished. Restaurants and Bars, Jewelry Stores, Clothing Stores, and of course Straw Vendors. In recent years, and in the wake of devastating hurricanes, the property has suffered and by extension so have the businesses, families and individuals who depend on it. For those persons, the government's announcement represents a glimmer of hope.
Not everyone sees it that way though. In fact, there has been so much opposition to the idea of the purchase. Government officials, opposition politicians, business people, everyone says the government has no business being in the hotel business; and perhaps they're right. But the question is: can the residents of Grand Bahama Island survive if history were to repeat itself? What are the alternatives?
At the heart of many of the issues surrounding the property has been contentions with the owners who seem unwilling to let the property go, while at the same time refusing to do what is necessary to make it a viable tourist attraction again. In fact, the country recently became aware of the dissolution of months and months of negotiations which fell apart with the Wynn Group because Hutchison refused to budge on some key issues. Clearly, investors need an owner they can play ball with.
Now, while he has yet to make his promised speech detailing the plan, the PM says the government intends to acquire it and then resell it to another buyer as soon as it can, which if done right, solves the big issue by hopefully putting the property in the hands of experienced hoteliers with a vested interest in seeing the property thrive.
That's the ideal situation, the proposed purchase could pose other issues. If mishandled, the government could very well plunge the national economy into a tailspin by increasing its expenses.
As the country waits to hear the full scope of the government's plans, I, like my friends and family in Freeport, can't help but feel hopeful. I'm optimistic that there is light at the end of this dark economic tunnel, and I'm praying that Grand Bahama comes out on the other side drenched in the magic which once gave the island its nickname!
