NASSAU, BAHAMAS — Baha Mar’s president yesterday revealed that the resort’s utility costs have increased by 48 percent, noting that its Bahamas Power & Light (BPL) expenses were having a significant impact on the resort’s profitability.
Graeme Davis while addressing a BHTA Board of Directors meeting yesterday said: “From a utility standpoint we are up 48 percent in our utility costs. Right now up to this part of the year and forecasting the rest we will be up about $8.5 million in utility expenses for the year. That is certainly having a significant impact on us. We certainly hope there is relief in BPL expenses as we get to later on in Q3 and Q4 but it is having a significant impact on our profitability.”
Bahamas Out Island Promotion Board (BOIPB) executive director Kerry Fountain also expressed concerns regarding BPL, particularly blackouts, stating “we’re paying more and we’re getting less.”
He noted blackouts are not only impacting the overall visitor experience, but also creating an additional cost burden for resort operators due to the need to replace damaged equipment.
Nevertheless, tourism stakeholders yesterday reported a robust performance for the first half of the year.
“We had a very strong first quarter over the prior year,” Davis said. “COVID significantly impacted our business in 2022. We are looking at about a 10 percent increase in Q2. As we go into July we are looking to be up justly slightly above last year by about two percent.”
He further remarked that the demolition of the Melia Hotel is moving forward and is expected to be completed this Fall.
Jackson Weech, VP at Atlantis and general manager of operations noted that the first half of the year for the Paradise Island resort has been ‘robust’. He noted that revenues and occupancy levels have been in line with projections and room rates continue to be higher than pre-COVID levels.
For Out Island resorts, Fountain said the report was fairly positive, indicating that Abaco is up 11 percent in terms of room nights sold for January to May, with Acklins up 26 percent for the period.
In terms of room revenue, Fountain noted that room revenue for Abaco resorts is up 110 percent, with properties on Acklins seeing a 150 percent increase and Andros properties reporting a 70 percent increase.
