In the wake of multimillion-dollar losses and financial constraints, Grand Bahamaﾴs only operating casino laid off 45 workers on Tuesday in what Isle of Capriﾴs general manager said is a tough economic dilemma that will require government intervention.
Eddie Llambias told The Bahama Journal that the casino ﾖ which owes close to $6 million in casino taxes and has yet to become a profitable venture since opening in December 2003 ﾖ is seeking to negotiate a new taxation structure.
“We lost $2.4 million last fiscal year,” he said. “Obviously, we have issues internally and externally. We have been in negotiations with government to help mitigate some of our expenses. Weﾴve been talking about a reduced tax rate structure that would really help us out tremendously and I am hopeful that at the end of the day the government will come through for us.”
He said the decision to lay off staff came after the company had exhausted all other feasible options.
The layoffs come at a time when thousands of workers remain unemployed prior to and after last yearﾴs hurricanes.
Mr. Llambias indicated that there could be further cutbacks with business expected to be significantly low in August through October.
The layoffs represent 13 percent of the casinoﾴs workforce and affected a broad cross section of departments, including managerial posts, according to the general manager.
Mr. Llambias said the layoffs were a shock to many employees, but stressed that they were all carried out in accordance with the countryﾴs labour laws regarding severance and other remunerations.
In its fiscal year ending April 24, Isle of Capri corporate said its income dropped by $9.7 million compared to the previous fiscal year. The Mississippi-based chain also said its earnings were $25.6 million less than its previous fiscal year.
Isle of Capri became the islandﾴs sole gaming facility following the closure of the Royal Oasis Resort and Casino last September.
Many of the propertyﾴs former employees were hired at Isle of Capri, and had been expressing concerns recently about what they said was a slow rate of business at the facility.
Gaming Board Chairman Kenyatta Gibson recently told the Journal that the government was launching a review of the system of casino taxation in The Bahamas, to ensure that it is fair to all concerned.
He said although Isle of Capri owes nearly $7 million in casino taxes the government does not consider the facility to be in default since it is now in negotiations with the casinoﾴs principals regarding their tax obligations.
Mr. Llambias said a number of factors are contributing to the casinoﾴs lack of profitability, particularly the islandﾴs falloff in tourist arrivals due to the over 1,000 hotel rooms that remain offline since last September.
“What weﾴre going to have to do,” he indicated, “is to contract and expand, maybe [in] hours of operation. but we are going to have to be creative in how we do that.”
He said the casino is now down to playing four table games per day on day shifts and might have to make the decision to shut down daily table games if business volume does not improve.
Sharon Williams, The Bahama Journal
