LOCAL DEVELOPMENT

It is anticipated that, when open, forecast resort occupancy levels can be achieved by capitalizing on the historic upward trend in visitor numbers to The Bahamas coupled with the above benefits under the Franchise Agreement and other guests seeking out the resort. These increased visitor numbers to Exuma will be enabled and accommodated by increasing the size of aircraft and the number of flights to Exuma, as required, and that will also be facilitated by the planned expansion and development of Exuma International Airport that will add significant additional capacity.

 

Since 2009, The Bahamas has seen a steady increase in air and sea arrivals with a 52% increase over 10 years. In 2019 (pre-pandemic) a record 7.2 million people visited The Bahamas, a 9% increase from 2018 despite the impact of Hurricane Dorian. In the same year, Exuma exceeded the Bahamian average by experiencing a 13% increase in visitors throughout 2019 compared to 2018 figures.

 

In 2019, Exuma recorded 72,311 arrivals (as a first port of entry), up from 62,885 in 2018. Exuma also benefits from visitors transferring from Nassau Lynden Pindling International Airport – the largest airport in The Bahamas located in western New Providence island near the capital city of Nassau – which is a major hub for many international flights and only a 40-minute flight to Exuma. New Providence recorded 4.2m arrivals in 2019 with many of these visitors transferring to Exuma as a final destination. The Bahamian Government is expressing confidence that the tourism sector will recover quickly from the pandemic and that the historic upward trend in visitors to The Bahamas will return.

 

It should also be recognized that given the estimated design and construction period for the resort and on the assumption that the worldwide vaccine rollout continues as planned, the negative impacts from the pandemic on tourism are expected to be ‘historic’ at the time the resort opens.

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PLANNED EXPANSION & IMPROVEMENT OF EXUMA INTERNATIONAL AIRPORT

 

Exuma International Airport (IATA: GGT, ICAO: MYEF) is a public airport located on the island of Great Exuma. Pre-pandemic airlift to the airport included 50 to 80 seat regional jets to/from Miami, Atlanta and Toronto and 34 to 68 seat turboprop flights to/from Nassau and Fort Lauderdale, with direct connections to many major cities in North America and Europe. The airport has undergone several upgrade projects over recent years. The facility upgrades were made to accommodate growth in tourism to the island, especially since the opening of the Sandals Hotel at Emerald Bay. The Government’s strategy for Exuma International is for it to become a hub airport for the Out Islands in particular, with direct flights from Florida, North Carolina, Georgia, Toronto and internal flights from Nassau.

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It is expected that airlines will add more services to meet demand in the event that the current airlift is not sufficient to meet anticipated increases in tourism following the opening of the resort and the general increase in tourism to the island of Great Exuma and nearby islands. In that context, three carriers added flights to Exuma from various destinations across the United States and Canada following the opening of the nearby Sandals resort in 2010. Similarly, it is expected that additional flights and/or the substitution of larger aircraft can be made available to cater for the additional tourist numbers that will be created as a result of the resort opening. Most or all of the increase required to the airlift can be satisfied by more/larger internal flights from Nassau to the extent that aircraft seats on direct international flights do not satisfy the increase in demand consequent upon the opening of the resort. 

 

Exuma is expected to play a key role in the recovery of the Bahamian tourism sector following Hurricane Dorian and has been included within a $200m program of airport development activity across The Bahamas. Its location away from the northern Bahamas – which are more at risk from hurricanes – makes the expansion and improvement of Exuma International Airport a logical strategy for the Bahamian Government. In May 2021, contracts were signed for a $65m air side and land side expansion and improvement project at Exuma International Airport. The project will be undertaken over a 20-month period and will see the island become a mini-hub for the southern Bahamas, further increasing airport capacity to meet anticipated increases in visitors to the island. The planned expansion of the airport capacity will allow aircraft to fly directly to Exuma rather than having to stop in Nassau, as many airlines currently do. 

 

The airport expansion project will increase the size of the existing terminal from 2,000 square feet to some 60,000 square feet. Improvement works to the runway and a new fire crash rescue station and control tower are also part of the project.

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The $65m development costs will be funded in part by a loan from the Inter-American Development Bank (IDB) and, for the remainder, through a public/private partnership. As such, the airport expansion and improvement is not reliant on Government funding.

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“The Government’s top aviation official yesterday said we “definitely want to break ground” on Exuma’s $65m airport redevelopment early next month as part of a wider $165m Family Island upgrade. “It will bring a lot of strategic advantages in terms of the tourism market as it will allow jets to fly in directly to Exuma rather than have to stop in Nassau. The mid-range strategic plan is to have the Exuma airport act as a hub for the southern Bahamas, so instead of stopping in Nassau planes can stop in Exuma and Eleuthera. We’re creating support for travel from those places to other islands in The Bahamas.” The Tribune – November 9th 2020

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