Baha Mar, the largest tourism project under development in the Western Hemisphere, is due to be completed at the end of this year.. but its success is still something of a gamble.
Topic: Baha Mar
Dionisio D’Aguilar warns that “whatever positive effects we get from Baha Mar are going to be somewhat outweighed by the negative effects of VAT.”
Despite government plans to implement value added tax (VAT) and the planned opening of Baha Mar, Wall Street continues to see the “risks tilted to the downside” for the Bahamian economy.
With an extensive background in both hotel management and casino operations, Paul V. Pusateri has been named chief operating officer of Baha Mar.
Serious concerns arise over skill-gaps, and the lack of qualified workers, able to take advantage of employment opportunities at Baha Mar and Grand Bahama’s Reef Village.
The present Government’s efforts to unilaterally and in a very public way revisit terms contained in the Heads of Agreement between the Government and Baha Mar are especially worrisome.
With 17 months until opening, Baha Mar still has just over 50 percent of the proceeds of its $2.6 billion Chinese-financed loan to date, and has procured 90 per cent of all materials needed to complete the $3.5 billion project.
Baha Mar marks another milestone in a year of substantial progress by announcing its senior operating executives for Rosewood at Baha Mar, Grand Hyatt at Baha Mar and Mondrian at Baha Mar.
Arbitration may be necessary if Baha Mar and the government fail to reach an agreement on the amount of money the government will pay the developer for road works associated with the resort.