By VERNON CLEMENT JONES,Guardian Business Editor,vernon@nasguard.com

Baha Mar's plans to shut its casino operation down for eight weeks this year may further strengthen the long-term appeal of its chief competitor, that Paradise Island gaming house already enticing a growing number of guests away from the Cable Beach property.

Yesterday, Baha Mar announced that it would in an effort to control costs close the Wyndham Nassau Resort along with its Crystal Palace Casino for the eight slowest weeks of the year. Specifically, that's from August 17 to October 5, 2009.

It's a limited closure that could nonetheless further impact declines at that casino, even as takings at the competing Atlantis gaming house grow.

According to the latest numbers from the Gaming Board obtained by Guardian Business, gross winnings for Atlantis grew nearly $5m between January 1 and October 3, compared to the corresponding 2007 period. In contrast, the Cable Beach property saw gross winnings dip $5m in that time.

Part of that story, say tour operators and cab drivers, is the growing number of Baha Mar guests going across the bridge for their entertainment given the closure of Cable Beach restaurants and nightclubs as part of its botched Baha Mar redevelopment.

That phenomenon, coupled with the decline in occupancies, has likely contributed to Crystal Palace declines. Falling revenue through slot machines likely bears most of the blame, with the number of recreational gamblers to drive house winnings having fallen off.

The problem with the planned closing is that guests staying at Baha Mar's Sheraton property will have absolutely no choice but to head to PI. Moreover, it's an experience they'll likely share with their friends and family. That word of mouth endorsement could enrich future demand for Atlantis gaming even after Cable Beach reopens its own facility.

Still, the short-term cost savings may ultimately outweigh any longer-term consequences, especially if the developer proves successful in moving to complete its redevelopment of the strip. Integral to that $2.3b project is creation of the Caribbean's largest and glitziest casino.