A drastic decrease in net profit between the 2004 and 2005 fiscal year at the Isle of Capri Casino has resulted in the casino making the “tough decision” of having to downsize its staff by 13 per cent.
Isle of Capri Casino Vice-president and General Manager Eddie Llambias said yesterday that the decision to cut 45 of the casino’s 337 employees boiled down to two things: Hurricanes Frances and Jeanne. The storms, Mr. Llambias said, has left the island in limbo, with the casino suffering a $2.4-million loss last fiscal year as a result.
But Mr. Llambias sincerely stressed that all avenues had been exhausted before it was concluded that employee percentage would have to be downsized.
“We’re noticing that there are a lot of differences year over year in terms of island visitation, in terms of the number of bodies we’re getting through the casino door,” Mr. Llambias said. “The hurricanes are still playing an impact. Last year we had two, and that really offset our momentum from a marketing standpoint.”
Other factors would have also made the downsize inevitable, though, Mr. Llambias said.
Those factors include another active hurricane season, less island hotel room inventory, the loss of a competitor that helped funnel persons to the island, and “a hip-hop demographic” that is scheduled to be staying at the Westin and Sheraton in September.
“That does nothing for the Casino revenue because the demographic doesn’t work for our casino play,” Mr. Llambias said. “So what it does, it actually minimizes the number of rooms that we have available to put our customers in, in fact. So even though it appears that there are a lot of bodies on the island, it’s all about your targeted audience.”
Furthermore, he said that a vast majority of the casino’s customers are travelling to Northeastern America around this time of year.
Nonetheless, Mr. Llambias noted that the dilemma which the casino is being faced with is in the process of being rectified.
“Part of this process has been the negotiations we have been involved in with the Ministry of Tourism, Hotel Corporation, Hutchison Whampoa, and the Port Authority,” he said. “These negotiations were centred on creating a collaborative win-win situation for everyone with regard to reducing the Isle of Capri Lucaya’s external operating expenses associated with running our business, while continuing to be a vital player in the Freeport/Grand Bahama community.”
If all goes well, there will be a supply and demand, Mr. Llambias said.
Consequently, staff would eventually have to be re-hired.
“In the meantime, we must operate in an objective fashion that focuses on a successful business outcome, which hopefully will translate to a successful personal outcome for us all,” he stated in a notice that was posted in various areas of the casino for all employees to view.
“It is even more incumbent upon us now to win the repeated patronage of visitors so that they become loyal customers and help our business grow while we wait with anticipation on the successful outcome of our discussions with government, the Port Authority, and Hutchison Whampoa.”
The notice concluded with Mr. Llambias asking that all employees remain positive during this time.
By JEREMY FRANCIS, Freeport News Reporter
