World's biggest resort $600-million Atlantis Phase III will add 2,500 jobs
By TAMARA McKENZIE Guardian Staff Reporter
After months of negotiations and attempts to shroud it with unprecedented secrecy for the final 48 hours, the largest tourism development project ever undertaken in The Bahamas was announced Monday evening.
The largest single resort development in the world was unveiled with a contract signed between the government and Kerzner International for the $600-million Phase III of Atlantis. The expansion will constitute an increase in Kerzner International's investment in The Bahamas to $1.7 billion.
At the official contract signing with Kerzner International chiefs at the Cabinet Office, Prime Minister Perry Christie, who made the announcement live on television, said work on the project is expected to start before the end of the year and all phases are projected for substantial completion before 2007.
According to the Prime Minister, it is anticipated that more than 1,500 will be employed during the construction period, and a minimum of 2,000 additional permanent jobs will be created for Bahamians once the new facilities are complete. He said the impact on the economy is expected to be enormous and far-reaching.
The expansion on Paradise Island will include
* A new 1,200 room hotel at Pirates Cove adjoining one of the premier beach sites in the world
* Three new luxury villas at the Ocean Club
* 20,000 square foot of additional restaurant and retail facilities around the Atlantis marina
* Extension of water-theme attractions, including (subject to environmental safeguards) a dolphin-encounter attraction
* 120 two-bedroom time-share units fronting on Nassau Harbour
* 50,000 square feet of additional convention facilities
* A world-class ecologically sensitive golf course
* A fire and ambulance station
Prime Minister Christie said that in consideration of the capital investment that Kerzner International will be making in the expansion, the government has extended investment incentives available to developers under the Hotels Encouragement Act and other legislation, and that special casino incentives are being extended for a further 11 years.
Recognizing it will be a world-class tourist destination, Prime Minister Christie said that its development must be supported by sound and dependable infrastructure. He said the government is committed to a number of improvements, including road networks, Nassau International Airport, provision of necessary water, electricity and telecommunication facilities, continuing negotiations with the United States for tax deductions for businesses holding conventions in The Bahamas and the joint marketing of programmes between the Ministry of Tourism and Kerzner International. The joint marketing, he said, will involve up to $4 million per year for a period of five years with Kerzner International matching government contributions dollar for dollar.
President of Kerzner International, Butch Kerzner, who wouldn't say what the overall theme will be, said at the Cabinet Office that the $600-million project is a very "bold step" for the company.
"When we are complete with this project, Atlantis will have between 3,500 and 3,600 rooms employing on the property, at least a minimum of 8,000 Bahamians. I think the scale of what we have agreed today and what we have been negotiating over the last several months to achieve, for our company is extraordinarily historic and clearly demonstrates the enormous confidence in The Bahamas, in its government and in the prospects of where we are going to head from here."
Mr. Kerzner said construction will begin "quite shortly."
"Our objective is to open a fair amount of the projects in 2005 with the entire project coming on stream by Christmas, 2006, and we are enormously excited about it."
Minister of Tourism, Obie Wilchcombe, said the Atlantis Phase III expansion will catapult The Bahamas to an unprecedented level and will move The Bahamas to being among the best in tourism.
"We have to now match what Kerzner is doing over at Paradise Island. We have to ensure that the product of The Bahamas corresponds with what he does and so we have a lot of work to do. They have lifted this country to an unprecedented level and we are very grateful," he said.
At a later press conference and cocktail party at the Atlantis Resort, Minister of Financial Service and Investments Allyson Maynard Gibson told The Guardian that Phase III is one of the most important investments in the next five years.
"When you see an investor of this quality and calibre increasing its investment in The Bahamas with confidence, we feel that this is bound to attract unprecedented amounts of investments to The Bahamas," she said.
She said negotiations were "stressful" at times, but all matters were discussed with mutual respect.
POSTED TUESDAY MAY 27, 2003
