Jamaica –

One local hotelier has expressed an interest in applying for a casino licence, the Business Observer has learnt. However the hotelier, tourism sources say, does not have the required 1,000 rooms, even though he has the US$1.5 billion which the government requires for investment.

President of the Jamaica Hotel and Tourist Association (JHTA) Wayne Cummings yesterday declined to name the hotelier. However he said the hotelier is hoping that the criteria is reviewed and that he be given special consideration.

“I know there is one other entity that has a hotel of almost that number of rooms that already exist that feels that maybe they would like to request some kind of revision and special consideration because they are an existing product,” Cummings told this newspaper yesterday.

Outside of the Fiesta hotel with its near 2,000 rooms currently under construction, the JHTA head said the hotels which come closest to the required amount only has between 700 to 750 rooms.

” We have always existed in Jamaica on a smaller scale but now a main avenue of investment may have been opened up and there are people who may want to consider it,” he said.

He explained, however that other hoteliers who do not currently meet the criteria are looking at the option of expanding their investments.
“If I had the land and the money and I wanted to increase to reach that threshold then here is an opportunity for investment which should be taken advantage of by Jamaicans and others,” he said.

Minister of Tourism Edmund Bartlett said when the legal framework is completed and licenses are ready to be granted by mid-year, there will be opportunities for all who meet the established criteria.

“The reason for those two stipulation is that Casino must not be more than 20 per cent of total investment and experience of the project,” he explained. He added that they are making casino gaming an entertainment value added because Jamaica can never become a Casino destination.

He said the market can only facilitate a limited number of casinos, because Jamaica has no track record in this. As such he said it is not likely that they will be receiving a flood of applications.

“We also have to determine how many of these we want in a small country like ours,” he said.

As for the eastern end of the island where it is being developed to reflect the top end of the Jamaican product, Bartlett said he would not rule out a license being granted for that area.

“We will see how that works because in terms of capital outlay for development, the criteria will maintain because 1500 rooms don’t have to be up but across the development to include villas as well,” Bartlett said.
In the meantime Cummings said what the JHTA is most interested in now, more than its members qualifying for a license, is to ensure that the coming legislation is coherent.

“What we want to make sure is that the regulation that governs casinos in Jamaica ,whether it be the size of the investment, the number of rooms, due diligence and legality that it is coherent and is abided by,” he said.

Meanwhile Bartlett said whatever legislation are to be enacted to govern the operation of casino gambling in Jamaica would not exclude the locals from participating. “We will make no legislation that our people would be unable to benefit or participate in and so we will not preclude our locals,” he said.

However the tourism minister said it is yet to be finalised whether a special commission will be put in place to vet the application process for casino applicants.

Cummings has also expressed optimism that the other hotels who do not receive a casino license will be able to benefit indirectly from Casino operations at the entities which are granted license.

“We have probably been the loudest voice in respect to the opening of this window and we have always supported the fact that casinos are not necessarily a means to an end they represent the linkage between entertainment, the free movement of people between hotels, products and restaurants,” he said.

Last week prime minister Bruce Golding announced that approval has been given to proposals from the developers of the Palmyra Resort and Spa operating under the company Celebration Jamaica Limited for a major new investment which is predicated on the granting of a casino license.

This he said involved the development of a 65 acre property consisting of 2,080 new hotel rooms and a total investment of US$1.8 billion.

Meanwhile the Tavistock Group, developers of the Harmony Cove resort project is to increase the size of the project from 4,500 rooms to 8,500 rooms with an additional investment of US$1-2 billion based on the undertaking that it will also be allowed to operate a casino.