In a bid to keep the operators of the Isle of Capri Casino in Freeport from pulling out, Minister of Tourism Obie Wilchcombe, who is also responsible for gaming, has revealed that the government has agreed to offer the operators further concessions. However, he did not specify exactly what those concessions are. Several months ago, Isle of Capri’s General Manager Eddie Llambias said that without the concessions, he did not see the casino staying open past the end of 2005.
The company also laid off 45 employees in what management had said was a last-ditch, but nonetheless essential move to cut operational costs and give the operation a better chance at turning a profit.Up to September, approximately 240 employees were still working at the casino, including part-time staff.Minister Wilchcombe told The Bahama Journal that when he spoke with Mr. Llambias several weeks ago, he appeared to be “optimistic” about the future of Grand Bahama’s only operating casino.
“I spoke with him about what the government was considering,” the minister said.
“We wanted to ensure a couple of things: one that they’re going to be here. I’m aware of other interests in the casino, but they’re here now and we’ve got to work with them, and because it involves Bahamian jobs, we need the casino and amenities of the hotel and so they are here and we have to provide some assistance as they had requested.
“We are taking a look at the taxes as well because we [have been advised by experts] that the tax structure in New Providence has to de different than [that of] Grand Bahama.”
Because it was facing financial challenges last year, Isle of Capri had asked the government to re-think the casino taxation system and had requested marketing and promotional dollars to keep the operation afloat.
In early December, Minister Wilchcombe said that the government was doing all that it could to prevent the Isle of Capri casino at the Our Lucaya Resort from going under, but there were investors interested in stepping in should that happen.
At the time, he said, “We have sought to be a partner. We have sought to provide the incentives required as we did in the past to ensure that there is airlift, to ensure that there is marketing promotions and we’re going to continue.”
The government is trying to keep the casino operational given the unemployment challenges already faced by Grand Bahama.
Unemployment rose from 9.3 percent in 2004 to 11 percent in 2005, the Department of Statistics said in its last report. In his more recent interview with The Bahama Journal, Minister Wilchcombe said the government needs to move with the times and make sure it is attracting businesses and not chasing them away.
“In the first instance we delivered on everything we promised when they first came. They made subsequent requests to us, among those was to look at our tax structure. Because of them we looked at it,” he said.
“It was not an overnight job, but it takes a period of time to do that. We had to weigh all the circumstances. We are finished with that now and we’re looking at certain things and we’re hoping to sit with them soon and discuss the new Heads of Agreement, but it’s going to be their call.”
The minister added that he wanted to be sure that Grand Bahama, which suffered devastating blows with two back- to-back hurricanes in 2004 and Wilma, a category three hurricane in 2005, will face happier economic times. He insisted that the island had “turned the corner”, leaving the tough years behind.
The government’s negotiator, Dr. Baltron Bethel, will be meeting with Isle of Capri executives sometime this week to begin discussions on the specifics of the concessions, Minister Wilchcombe indicated.
The government, meanwhile, continues to face other challenges as they relate to Grand Bahama’s economy. They include trying to get the Royal Oasis Resort reopened and sold.
The property has been closed for more than a year now. The owners shut it down after it was extensively damaged during Hurricane Frances in September 2004.
Minister Wilchcombe told The Bahama Journal that an announcement regarding the sale of the hotel was expected within days.
By: Courtnee Romer, The Bahama Journal
