ATLANTIS BRACES FOR $17M ELECTRICITY COSTS INCREASE

FROM PAGE A24 charge hike, Mr Roberts replied: “I think it’s $17m over the course of the year. It’s a significant increase.

“The focus has got to be on how we put more renewables in place based on the environment at BPL. There is not much we can do as a single property, but maybe together we can put more focus on renewables, how we finance them and how we get them in place.”

Atlantis’ projections give an insight into the likely stress and pain many Bahamian businesses and households will feel through summer 2023, and well into the fall and winter months, as a result of BPL’s so-called “glide path” to recoup under-recovered fuel costs.

BPL’s previouslyunveiled projections for the fuel charge, which typically accounts for between 50-60 percent of customer bills, is forecast to peak at 27.6 cents per kilowatt hour (kWh) over the threemonths between June 1 and August 31, 2023.

That is the period when consumption it at its highest due to summer air conditioning demand. It will then fall slightly to 25 cents between September and November for consumers using more than 800 kWh, before falling further to 18 cents between December 1, 2023, and February 28, 2024. Yet BPL itself has admitted that these movements and figures are not guaranteed due to global oil price volatility, with prices spiking again last week after output cuts by producer nations.

With the worst yet to come, and BPL’s fuel charge now rising steadily through a rolling series of increases every three months, the issue has already been embroiled in political controversy with the Opposition Free National Movement (FNM) alleging that the situation has resulted from the Davis administration’s decision we’re here, April 4 is real.

IHOP is real.”

William Urrego, Dine Brands Global’s regional vice-president of franchise operations, added that IHOP has more than 1,700 restaurants spread across the US and in nations such as Canada, Mexico, Puerto Rico, Peru, Ecuador, the UAE and Egypt.

He added: “We are here to provide jobs, to push the economy in The Bahamas. By opening this restaurant, just one, we have generated over 100 direct jobs and more than 350 indirect jobs, which is fantastic.”

“We’ve been waiting for this moment for quite a while and, unfortunately, because of the pandemic we had to delay, but it’s really exciting to be here in the community of Nassau and we’re looking to open more restaurants in the future. So it’s a really exciting moment for us. This is the first one right here in The Bahamas in the English-speaking Caribbean islands. So we’re going to be starting here in The Bahamas and continue expansion throughout the Caribbean.” not to execute trades that would have secured more cut-price fuel to support the existing hedge when it had the opportunity to do so in late 2021.’

Atlantis and other Bahamian resorts, which alongside food stores are BPL’s biggest energy users and customers, must hope that continued pent-up travel demand continues to drive top-line revenues such that this growth offsets - either in full or partially - the erosion of profits and cash flow caused by skyrocketing electricity prices. Atlantis and Baha Mar combined account for 15 percent of BPL’s revenues, or almost one out of every $7 of its income.

Mr Roberts yesterday said the Paradise Island mega resort’s outlook remains “very strong” throughout 2023. “This weekend going into Easter we’re full, which is above 85 percent occupancy,” he explained. “The first three months of the year have been really strong, and it’s shaping up to be a really strong Easter and beyond.”

Adding that the June and July period, when Atlantis hosts numerous families during the school vacation, were equally robust, Mr Roberts told Tribune Business: “The business over the next three to six months looks really strong. The first three months have exceeded our budget significantly.

“It’s largely been driven by ADR (average daily room rate) and spending per occupied room. We’re excited about how we’ve performed. It’s still looking good for the balance of the rest of the year.” While 2023 first quarter numbers are still being finalised, he added that all business areas - rooms, food and beverage, the casino and water park - had performed “beyond budget” during the peak winter season.

“We’re seeing excellent gains beyond budget,” Mr Roberts said. “We expect to see a really strong summer that will go into the September/October timeframe. Last year was better than pre-pandemic in terms of pattern; we didn’t see the slowdown in business we normally see in September/ October, so we’re seeing a strong performance through the balance of the year.”

Despite continued pessimism in some quarters about the possibility of a US recession and downturn in other major economies, which has resurfaced following recent bank collapses and rescues, no signs of a slowdown are yet being detected in the Bahamian resort and tourism industry’s booking numbers.

“People are spending more for vacations, and spending more on food and beverage and activities,” Mr Roberts said. “Spending per occupied room is up, ADR is up. We’re seeing in trend patterns that it’s holding even in periods where we normally see a drop.

“It’s just strong in general with pent-up demand. People are looking for experiences and more than buying goods and services, or shopping and purchasing a car. They want experiences, which has been good for The Bahamas. We’re still setting records with our business in terms of revenue.” Mr Roberts acknowledged that some of this increase was driven by inflation, but added that high travel demand remained the primary factor driving revenues.

Atlantis currently employs around 5,700 full-time staff, he added, along with numerous parttime workers. “The Beach Towers are still off-line but we’re on all cylinders and having trouble finding entry-level folks for cooking and some of the areas,” Mr Roberts disclosed.

“Every year there’s hundreds of people who graduate from high school. We just need to develop a pipeline and spend time with the students in high school and have them consider Atlantis as a career and develop them as they start. We’re trying to make sure we retain the best people as well.”

GRAND Bahama was well represented at the 2023 Seatrade Cruise Global event in Fort Lauderdale last week. Leading a delegation of executives from Grand Bahama was Grand Bahama Port Authority (GBPA) vice-chair, Sarah St. George. Pictured from L to R: Dr Kenneth Romer, deputy directorgeneral at the Ministry of Tourism, Investments and Aviation; Alan Dixon, chief executive of Freeport Container Port; Giora Israel, former senior vice-president of global port and destination development at Carnival Corporation; Chester Cooper, deputy prime minister and minister of tourism, aviation, and investments; Sarah St George, GBPA vice-chair; Mike Maura, chief executive and director of Nassau Cruise Port; John Pinder, parliamentary secretary at the Ministry of Tourism, Investments and Aviation; and James Carey, president of Grand Bahama Chamber of Commerce.

THE INVEST Grand Bahama team meets with Chester Cooper, deputy prime minister and minister of tourism, investments and aviation. Pictured from L to R: Glenda Johnson, director and chief licensing officer for the Ministry of Tourism, Investments and Aviation; Trevor Simmons, GBPA business development officer; Della Bridgewater, general manager of Pelican Bay Hotel; Dr Kenneth Romer, deputy director-general of tourism; Derek Newbold, GBPA chief investment officer; Chester Cooper, deputy prime minister; Hadley Forbes senior, president of H. Forbes Private Charter; John Pinder II, parliamentary secretary in the Ministry of Tourism, Investments and Aviation; Hadley Forbes Jnr; H. Forbes Private Charter; and James Carey, president, Grand Bahama Chamber of Commerce.