Identifier
Created
Classification
Origin
09NASSAU13
2009-01-08 15:07:00
CONFIDENTIAL
Embassy Nassau
Cable title:  

NASSAU-WYNDHAM TO CLOSE FOR TWO MONTHS AND HOTEL

Tags:  ECON EFIN ELAB BF 
pdf how-to read a cable
VZCZCXYZ0009
RR RUEHWEB

DE RUEHBH #0013 0081507
ZNY CCCCC ZZH
R 081507Z JAN 09
FM AMEMBASSY NASSAU
TO SECSTATE WASHDC 6020
C O N F I D E N T I A L NASSAU 000013 

SIPDIS

STATE FOR WHA/CAR

E.O. 12958: DECL: 01/08/2019
TAGS: ECON EFIN ELAB BF
SUBJECT: NASSAU-WYNDHAM TO CLOSE FOR TWO MONTHS AND HOTEL
LAYOFFS CONTINUE

REF: A. 07 NASSAU 765

B. 07 NASSAU 796

C. 07 NASSAU 832

Classified By: DCM Tim Zuniga-Brown for reasons 1.4(b) and (d).

C O N F I D E N T I A L NASSAU 000013

SIPDIS

STATE FOR WHA/CAR

E.O. 12958: DECL: 01/08/2019
TAGS: ECON EFIN ELAB BF
SUBJECT: NASSAU-WYNDHAM TO CLOSE FOR TWO MONTHS AND HOTEL
LAYOFFS CONTINUE

REF: A. 07 NASSAU 765

B. 07 NASSAU 796

C. 07 NASSAU 832

Classified By: DCM Tim Zuniga-Brown for reasons 1.4(b) and (d).


1. (U) On January 6 the Wyndham Nassau Resort and Crystal
Palace Casino announced they will close from August 17 -
October 5 (the bottom of the slow season) in order to cut
costs during the economic crisis. Tourist arrival numbers
and hotel occupancy rates dropped during the last three
months of 2008 following the economic downturn in the U.S.
Nearly 1000 employees were laid off from hotels throughout
The Bahamas in late 2008 (reftels B and C) and another 21
employees were laid off from the Comfort Suites Hotel on
Paradise Island on January 5. The Bahamas Hotel Association
reported a 37.7% drop in total room revenues and a 6.3% drop
in night room rates in September 2008, adding that such a
sustained occupancy drop has not been seen before.

2. (C) Baha Mar Senior Vice President and Bahamas Hotel
Association President Robert Sands told econoff the decision
to close the Wyndham Resort for two months was based on
analysis conducted in 2008 to minimize losses and prevent
further layoffs. Sands noted that plans may need to be
changed if tourism levels continue to decline and that the
"forecast is showing shortfalls already." Sands indicated
the drop in group reservations at the Wyndham has had a
significant negative impact on business. He reported a 25 to
30 percent drop in groups during the last three months of

2008. Although resorts throughout the island nation were at
near full occupancy levels during the Christmas and New Year
holidays, Sands noted that "one week is not enough to make up
for one year."
SIEGEL