FREEPORT, Grand Bahama – Refusing to have the government be a victim of what he termed “corporate blackmail”, Tourism Minister Obie Wilchcombe on Wednesday criticized management of the Isle of Capri casino for going public with indications that the casino could soon close if concessions the operators have been asking for aren’t granted.
Isle of Capri’s General Manager Eddie Llambias held a meeting several days ago with casino staff, advising them that without the concessions, he doesn’t see the casino staying open past the end of the year.
Mr. Llambias, according to some employees and a source close to the company, also pleaded with employees who might be close to government officials to talk with them and help the casino get the concessions it needs to stay open.
Minister Wilchcombe, who said the casino’s management broke its pledge to confidentiality until talks with the government had ended, told The Journal, “[Management] would have been better off not to engage in that because by unveiling and encouraging hysteria it is totally wrong.
“There are other casino operators if Isle of Capri is not here-it’s always in my mind where some people believe that they can threaten you at any given time and they put our people out of jobs and that’s not what we want.”
According to Minister Wilchcombe, the casino operator, which has been struggling to turn a profit since its soft opening in December 2003, is asking for a change in the country’s casino taxation structure; and also wants marketing and promotional dollars from the government.
He stressed that while a review of the taxation structure has been carried out, the government cannot change a legislative regime to suit one investor, and must balance any promotional dollars it might give with the strength of a current investment.
Just last week, Isle Executive Vice President Allan Solomon, when questioned by The Bahama Journal on the viability of the fledgling gaming venture at the Our Lucaya Resort, said the company was hoping to work out a formula with the government so that it could continue operations here.
Isle of Capri recently laid off 45 of its staff members in what management said was a last-ditch, but nonetheless essential move to cut operational costs and give the operation a better chance at turning a profit.
Approximately 240 employees remained at the property, including part-time staff.
In its fourth-quarter 2004 report the casino posted $2 million in losses. These losses were part of double-digit corporate losses posted during that period.
By: Sharon Williams, The Bahama Journal
