by Brian Major
Last updated: 3:23 PM ET, Thu May 29, 2014
Photo by Brian Major
Bermuda's tourism future does not hinge solely on the government's recent announcement of an "exclusive negotiation" with hotel developer Desarrollos Hotelco Group to build a new resort in historic St. George's. But the news does represent a key juncture in tourism minister Shawn Crockwell's campaign to reverse the country's flagging tourism fortunes.
The new property, planned for the site of a former Club Med in the UNESCO World Heritage city of St. George's, calls for a 238-room hotel with an 18-hole golf course, 24 villas, 16 estate residences, a spa and fitness center, swimming pools and a casino, said Crockwell in a May 23 address to the country's parliament.
During the negotiation period, Bermuda's government and Desarrollos will "meet with internal and external stakeholders, negotiate terms" and finalize a construction and operation agreement, Crockwell said. Desarrollos was identified through a government request for proposals (RFP) launched by the Crockwell administration.
The announcement follows the recent re-opening of Bermuda's 106 year-old Elbow Beach Resort, which had been operated since 2000 by Mandarin Oriental Hotel Group. The 98-room resort is now operating under the management of the Burns Group, a New York based company. The historic property began operations as a guest cottage in 1908 and was reportedly the first lodging property built along the island's southern beaches.
Here are the top three takeaways from Bermuda's recent hotel development news:
1: Tourism minister Shawn Crockwell's initiatives are having an impact.
Bermuda has been conspicuous among warm-weather destinations in recent years for a lack of new hotel development and an accompanying slide in tourist arrivals. From a high of more than 500,000 annual arrivals in the 1980's the country last year attracted 263,343 arrivals according to Caribbean Tourism Organization (CTO) statistics.
Crockwell took office in 2013 vowing to reverse these trends and the May 23 announcement indicates some of his programs are beginning to show results. Crockwell promised initiatives to generate hotel and resort development in the territory. The St. George's project, as the product of a government RFP process, represents a step in that direction. He has this year established the country's first tourism authority to replace the former department of tourism as Bermuda's primary travel marketing and promotion organization.
2: Casino gaming remains a key to Bermuda's resurgence.
The St. George's resort project calls for a casino as Bermuda, under another initiative launched by Crockwell, prepares to introduce resort-based gaming. Previously banned on the island, gaming could stand as a means of reversing the nation's flagging tourist arrivals, according to Crockwell.
He says Bermuda can likely support three casinos based on current airline arrival numbers. Government officials had planned a public referendum on the gaming issue this summer, but later opted to simply implement approval, saying public polls indicated 70 percent of Bermuda residents favor the legalization of casino gaming as a means of generating local employment and revenues.
3: A St. George's development will bring new activity to a long-shuttered area.
The resort site has been vacant since the 1988 closure of the Club Med Hotel. The property was later leased to developer Carl Bazarian, who in 2008 announced plans to erect a Park Hyatt Resort. Although the project received planning approval, it was never built and the government terminated Bazarian's development contract in 2012.
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