Identifier
Created
Classification
Origin
09NASSAU316
2009-05-18 12:11:00
UNCLASSIFIED
Embassy Nassau
Cable title:
FOUR SEASONS RESORT IN EXUMA CLOSING IN TWO WEEKS
how-toVZCZCXRO6857 RR RUEHGR DE RUEHBH #0316 1381211 ZNR UUUUU ZZH R 181211Z MAY 09 FM AMEMBASSY NASSAU TO RUEHC/SECSTATE WASHDC 6379 INFO RUCNCOM/EC CARICOM COLLECTIVE
UNCLAS NASSAU 000316
SIPDIS
STATE FOR WHA/CAR AND EB
SANTO DOMINGO FOR USFCS
E.O. 12958: N/A
TAGS: BEXP ETRD ECON BF
SUBJECT: FOUR SEASONS RESORT IN EXUMA CLOSING IN TWO WEEKS
UNCLAS NASSAU 000316
SIPDIS
STATE FOR WHA/CAR AND EB
SANTO DOMINGO FOR USFCS
E.O. 12958: N/A
TAGS: BEXP ETRD ECON BF
SUBJECT: FOUR SEASONS RESORT IN EXUMA CLOSING IN TWO WEEKS
1. (U) SUMMARY: The Four Seasons Resort in Exuma will close on May
26, leaving at least 500 workers unemployed. The Four Seasons is
Exuma's largest employer and is a part of the Emerald Bay
development, a government dubbed anchor project for the island of
Exuma. The resort went into foreclosure in June 2007; since then
the receivers, PricewaterhouseCoopers (PwC),have not been able to
find a buyer and have announced the decision to close. The closure
of Four Seasons will have a detrimental impact on the island's
tourism-based economy. End Summary.
--------------
THE BOTTOM LINE
--------------
2. (U) The Four Seasons Emerald Bay has been the key driver of
Exuma's economy since opening in 2003. In addition to creating
direct jobs the resort was a catalyst for the opening of other
businesses to service the needs of the hotel's growing emigrant
workforce. The resort went into receivership in 2007 with the
expectation that there would be a quick sale given the high level of
interest in the property. However, PwC was unable to conclude a
sale, despite signing a letter of intent with one party and entering
into formal contract with two others, citing a weakened global
economy and reduced investor confidence as the reason for lack of
sale. Throughout 2008 Mitsui, the resort's main creditor, incurred
$5 million in losses from keeping the Four Seasons operational.
3. (U) The decision to discontinue operations was taken by Mitsui
after the agreement to sell the Four Seasons Emerald Bay to a
consortium, including developer Barry Silverton and accounting firm
Cushman and Wakefield, fell through at the end of March. According
to representatives at PwC it was a reluctant but necessary move to
temper future losses from the property. PwC said they expect the
closure to be temporary and hope to have the resort reopened under
new management. They also noted that the potential buyers were
informed of the decision and it has not affected interest.
--------------
THE UNCERTAIN WINTER
--------------
4. (U) Employees at Four Seasons Emerald Bay are upset at the news
of the shut down. Many of them travelled from Nassau and other
islands and were provided accommodations on the resort campus,
leaving them one month to make alternative living arrangements. PwC
has promised to pay full severance packages and to fund the
repatriation of those who emigrated from other islands.
Nevertheless, employees are unconvinced that these promises will be
kept. They are also worried about future employment prospects in an
economy already dealing with record high unemployment rates and a
decrease in tourism rates.
UNCLASSIFIED
DEA 05/15/09
DEA: D. DOWNING
USCG: L. SERBER
NONE
OPBAT
AMEMBASSY NASSAU
COGARD SECTOR KEY WEST FL
INFO CCGDSEVEN MIAMI FL
COGARD INTSUPRTCOM MIAMI FL
FOUO
DEPT. FOR INL/LP-BROWN
E.O. 12958:N/A
TAGS: BEXP ETRD ECON BF
SUBJECT: ENTRY APPROVAL FOR LTJG ELIEZER GONZALEZ, USCG
A. YOUR 151425Z MAY 09
B. USCG PERSONNEL MANUAL, COMDTINST M1000.6A, ART 4-H
1. ENTRY APPROVAL FOR MBR, DEPNS, HHG AND POV ARE GRANTED.
2. MBR CURRENTLY HOLDS SECRET CLEARANCE. NACLC DATE: 20070821.
SF-312 SIGNED: 20080109.
3. POC: LT L. SERBER, OPBAT DEPUTY DIRECTOR, AT 301-985-9404 OR
LYLE.R.SERBER2(AT)USCG.MIL
ZUNIGA BROWN
SIPDIS
STATE FOR WHA/CAR AND EB
SANTO DOMINGO FOR USFCS
E.O. 12958: N/A
TAGS: BEXP ETRD ECON BF
SUBJECT: FOUR SEASONS RESORT IN EXUMA CLOSING IN TWO WEEKS
1. (U) SUMMARY: The Four Seasons Resort in Exuma will close on May
26, leaving at least 500 workers unemployed. The Four Seasons is
Exuma's largest employer and is a part of the Emerald Bay
development, a government dubbed anchor project for the island of
Exuma. The resort went into foreclosure in June 2007; since then
the receivers, PricewaterhouseCoopers (PwC),have not been able to
find a buyer and have announced the decision to close. The closure
of Four Seasons will have a detrimental impact on the island's
tourism-based economy. End Summary.
--------------
THE BOTTOM LINE
--------------
2. (U) The Four Seasons Emerald Bay has been the key driver of
Exuma's economy since opening in 2003. In addition to creating
direct jobs the resort was a catalyst for the opening of other
businesses to service the needs of the hotel's growing emigrant
workforce. The resort went into receivership in 2007 with the
expectation that there would be a quick sale given the high level of
interest in the property. However, PwC was unable to conclude a
sale, despite signing a letter of intent with one party and entering
into formal contract with two others, citing a weakened global
economy and reduced investor confidence as the reason for lack of
sale. Throughout 2008 Mitsui, the resort's main creditor, incurred
$5 million in losses from keeping the Four Seasons operational.
3. (U) The decision to discontinue operations was taken by Mitsui
after the agreement to sell the Four Seasons Emerald Bay to a
consortium, including developer Barry Silverton and accounting firm
Cushman and Wakefield, fell through at the end of March. According
to representatives at PwC it was a reluctant but necessary move to
temper future losses from the property. PwC said they expect the
closure to be temporary and hope to have the resort reopened under
new management. They also noted that the potential buyers were
informed of the decision and it has not affected interest.
--------------
THE UNCERTAIN WINTER
--------------
4. (U) Employees at Four Seasons Emerald Bay are upset at the news
of the shut down. Many of them travelled from Nassau and other
islands and were provided accommodations on the resort campus,
leaving them one month to make alternative living arrangements. PwC
has promised to pay full severance packages and to fund the
repatriation of those who emigrated from other islands.
Nevertheless, employees are unconvinced that these promises will be
kept. They are also worried about future employment prospects in an
economy already dealing with record high unemployment rates and a
decrease in tourism rates.
UNCLASSIFIED
DEA 05/15/09
DEA: D. DOWNING
USCG: L. SERBER
NONE
OPBAT
AMEMBASSY NASSAU
COGARD SECTOR KEY WEST FL
INFO CCGDSEVEN MIAMI FL
COGARD INTSUPRTCOM MIAMI FL
FOUO
DEPT. FOR INL/LP-BROWN
E.O. 12958:N/A
TAGS: BEXP ETRD ECON BF
SUBJECT: ENTRY APPROVAL FOR LTJG ELIEZER GONZALEZ, USCG
A. YOUR 151425Z MAY 09
B. USCG PERSONNEL MANUAL, COMDTINST M1000.6A, ART 4-H
1. ENTRY APPROVAL FOR MBR, DEPNS, HHG AND POV ARE GRANTED.
2. MBR CURRENTLY HOLDS SECRET CLEARANCE. NACLC DATE: 20070821.
SF-312 SIGNED: 20080109.
3. POC: LT L. SERBER, OPBAT DEPUTY DIRECTOR, AT 301-985-9404 OR
LYLE.R.SERBER2(AT)USCG.MIL
ZUNIGA BROWN