Mr. Galanis, during his contribution to the 2004/2005 Budget debate said, “This is a project that is being undertaken by investors who are Bahamians – not only Mr. Myers and the other prominent Bahamian businessman, but it also includes a group from the Hotel Industry Pension fund and I think that this is a very positive thing.
Secondly, there is no hotel executive in the country with more extensive hotel experience than Mr. George Myers and for this reason I think that this is a wonderful aquisition.”
Mr. Galanis conveniently overlooks the fact that Mr. Myers has been the manager of the Radisson property for many years and is directly responsible for the failures the property has suffered. In fact, Mr. Myers has pretty much proven himself incapable of managing the hotel in a profitable fashion. The Radisson lost almost $13 million in 2002, under Mr. Myers management, leading to criticism of his management group from sources inside and outside the tourism industry. During that same time period the management fees paid to Mr. Myers’ group increased.
Another problem with the buyout is that the planned sale to Bahamian investors, while being touted for its all-Bahamian nature, would do nothing to alleviate the overstaffing and inefficiency of the hotel operations. There would still need to be wholesale layoffs to bring the staff numbers to a profitable level. At that point the government will have sold a valuable national asset without retaining the jobs it is striving to preserve.
Mr. Galanis’ enthusiasm for the sale of the Radisson to the Myers Group may be more political than economic in basis. Many feel it is difficult to trust an individual with a history as checkered as Mr. Galanis’. Further, hospitality executives are cautioning the government to base the decision for approval on economic realities rather than being clouded by the patriotism of an “all-Bahamian” investors consortium.
