Opportunities for Bahamians to purchase up to 500,000 shares in Kerzner International was described as a "tremendous" investment opportunity by a leading financial analyst.
On Tuesday, Larry Gibson, a principal at Colina Financial Advisors hailed Kerzner International as a true success story. The "move" represents a controlled first step towards greater portfolio diversification for individual and institutional investors, he said.
Prime Minister Perry Christie said that the expansion of Atlantis creates the opportunity for Bahamians to invest in up to 500,000 shares in Kerzner International.
The proposed share offering also has the potential to bring improved liquidity to the Bahamas International Stock Exchange, according to Mr Gibson.
A committee appointed by Minister of State for Finance James Smith to produce a report on the financial viability of BISX is still being awaited, The Guardian was told.
Such an offering by the Kerzner group would be subject to regulatory clearances from the Central Bank of The Bahamas.
"Overall, this is a positive step in the right direction," Mr. Gibson said, noting that Bahamian equity investors have no access or exposure to the tourism sector with existing public companies.
"This is a tremendous opportunity for all Bahamians, not just employees of Kerzner International to participate via ownership," he said.
Expressing similar sentiments, Keith Davies, chief executive officer of BISX, described the suggestion as a first step in multi-national sharing of wealth in the country.
He said any time a country adds a new security to its market, it adds options that are needed locally.
Although endorsing the move, however, Mr Davies encouraged potential investors to conduct proper research.
On Monday, an agreement was signed between the Bahamas Government and Kerzner International for a $600 million "Phase III" expansion to the Atlantis resort on Paradise Island, which would take one of the world's leading tourism attractions to even greater heights.
And when completed, the country's largest private employer would have invested close to $2 billion into the vast and picturesque property. Phases I and II were completed during the Free National Movement administration.
Kerzner International's Paradise Island development is the largest tourism project ever to be effected in The Bahamas. Work on the project is expected to start before year-end, with all phases projected for completion by 2007.
It was anticipated that during the construction period, over 1,500 persons will be employed, with a minimum number of 2,000 additional permanent jobs created when the new facilities are completed.
The positive impact on the economy is expected to be enormous and far-reaching.
The new expansion on Paradise Island will include:
* A new 1,200 room hotel to be situated at Pirates Cove adjoining one of the premier beach sites in the world.
* Three new luxury villas at the world-renowned Ocean Club.
* 20,000 sq. ft of additional restaurant and retail facilities around the Atlantis marina and the attendant creation of a wide range of new entrepreneurial opportunities for Bahamians.
* Extension of the water-theme attractions, including, subject to environmental safeguards, a new and exciting dolphin encounter attraction second to none anywhere in the world.
* 120 new two-bedroom time share units fronting on picturesque Nassau Harbour.
* 50,000 sq. ft of additional convention facililies.
* Subject to environmental approval, and in conformity with protocols of an international standard, a world-class, ecologically sensitive, links golf course will be created at Athol Island in a joint venture with the Bahamas Government.
This new course will be accessible to the Bahamian golfing public. Further, the traditional beach rights enjoyed by Bahamians at Athol Island will continue undisturbed.
* A fire and ambulance station will be built and equipped by Kerzner International and operated by the government.
In consideration of the capital investment that Kerzner International will be making in the Phase III expansion, the government has extended the usual investment incentives available to developers under the Hotels Encouragement Act (HEA) and other legislation.
Also the special casino incentives are being extended for a further period of 11 years.
Prime Minister Christie underscored the soundness of the agreement in light of the massive economic benefits that will accrue to the Bahamian people and the stimulation of the flow of foreign investment capital into The Bahamas.
He also revealed that the government is in the process of concluding Heads of Agreements in connection with several other major projects that will be announced in the coming days.
And, that the government will work assiduously with interested developers for the further development, upgrading and expansion of the Cable Beach resort area into an attractive destination that will complement the Atlantis product.
These initiatives, together with the revitalization of the Grand Bahama tourism product and special attention to tourism development in the Family Islands, are expected to consolidate The Bahamas' position as the premier resort destination in the region.
By Lindsay Thompson, The Nassau Guardian
