by Brian Major
Last updated: 12:31 PM ET, Fri September 25, 2020
The owners of one of Bermuda's largest hotels announced this week the property will temporarily close this week for a "complete renovation" to "elevate and reposition" the property. The closure includes the dismissal of approximately 700 employees.
The Fairmont Southampton, whose capacity company officials say represents 25 percent of hotel rooms in Bermuda and up 30 percent of total air visitors to the island, will close on October 23. In a Bermews.com report, officials said the iconic Bermuda property has not been fully operational since March due to the global pandemic and closure of L.F. Wade International Airport.
"During the past few months ownership and property management have been monitoring the situation closely to explore all viable options for the best outcome for the hotel's future and all key stakeholders including staff," said Fairmont Southampton officials in a statement.
"After careful consideration, a decision was made to use this time now when there is a downturn in tourism to look at starting the much-needed renovations to the iconic property, "the statement reads, "which has been a much-loved tourist destination and local events venue for almost 50 years."
Officials did not minimize the impact the closure will have on Bermuda's tourism economy. "The resort's relevance to the island of Bermuda cannot be understated," said Kiaran MacDonald, regional vice president and general manager for Fairmont Hotels & Resorts.
He said the renovated "will position [Fairmont Southampton] to thrive as an even greater contributor to Bermuda's travel and tourism industry, which is central to the island's long-term economic recovery."
Premier David Burt, Bermuda's premier, who earlier this year added tourism minister duties to his portfolio, said the property's redevelopment "demonstrates great confidence in Bermuda and the next phase of our tourism," and "will signal to investors and our valued tourism stakeholders Bermuda is determined to emerge stronger following this pandemic."
The employee dismissals are "[the] largest redundancy to date in Bermuda," said Chris Furbert, president of the Bermuda Industrial Union. While "some 700 plus people are now unemployed," said Furbert, "the union is encouraged [ownership] is committed to significantly renovate the resort."
Furbert said an upgrade of the 50 year-old property "is definitely needed," and added, "Once the hotel reopens we look forward to employment opportunities for Bermudians."
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