NASSAU, Bahamas – The Hotel Corporation is narrowing down its decision as it relates to the Lighthouse Yacht Club and Marina in Andros and Winding Bay Club in Eleuthera, Deputy Prime Minister and Minister of Foreign Affairs the Hon. Brent Symonette said.
“We hope to make announcements shortly on that,” he noted.
Minister Symonette, who has portfolio responsibility for the Hotel Corporation, also indicated that several proposals for development on the Family Islands are before Cabinet for approval.
The Lighthouse Club and Marina at Fresh Creek is the last remaining operation within the Corporation’s hold. The 20-year-old property, which sits on 12 acres of land, has 20 rooms, a 20-slip marina and employs 25 people. It is pegged at about $3 million.
Financial statements show that the Light House Club suffered a net operating loss of $454,000 for the year ending December 31, 2005.
The losses were attributable primarily to continued low occupancy levels in guest rooms at 37 percent and use of the marina, 57 percent.
“Revenues commensurate with such low occupancy levels were inadequate to cover all aspects of operating costs,” Mr. Symonette said.
Financial statements also show that the 2005 operating loss resulted in a cumulative operating deficit of the Lighthouse property of $5.9 million. As in prior years, the operational shortfalls of the property were funded by the corporation.
Real estate properties held over the five-year period include land in Central Andros, Eleuthera and New Providence. Hotel properties held over the five-year period include the Lighthouse Yacht Club & Marina in Fresh Creek Andros, and the Radisson Cable Beach and Gulf Resort in New Providence (until it was sold on May 3, 2005).
Apart from marginal income from the sale and rental of real estate properties since January 1, 1999, the Corporation has not been a revenue generating entity, financial statements show. Prior to that date, casino fees were collected by and provided a source of revenue for the Corporation.
Collection of casino fees by the Corporation ceased effective January 1, 1999. Casino fee income of the corporation had averaged approximately $20.7 million annually, in the five years immediately preceding 1999.
Financial statements also show that the absence of material source revenue since 1999, accumulated losses of various hotel properties owned by the corporation over the years, losses realised upon privatisation and sales of various hotels over the years have resulted in the cumulative deficit of $323.4 million of the corporation as of December 21, 2005.
While tourism has benefited materially from the Corporation’s involvement in hotels and casinos over the years, the huge cumulative deficit over more than two decades of operation is a reality which is driving the government to complete the privatisation of the remaining Hotel Corporation assets in a manner that will best serve the public interest.
A summary of financial statements for Hotel Corporation of the Bahamas for the period ended December 31, 2005 was tabled in the House of Assembly on January 17, 2005 by Minister Symonette.
