Kerzner International CEO, Mr. Paul O’Neil revealed that although Atlantis employees are doing a superb job at the prominent resort, cutbacks in staff could be made in the event of a war between the United States and Iraq.
At the Crystal Awards held on Monday night at Atlantis, where almost 100 of their employees were recognized for their exemplary service to the company, Mr. O’Neil told the Guardian that the tourism industry faces uncertainty.
“We don’t know what is going to happen with the prospective war with Iraq. We don’t know what is going to happen with the US economy. It still hasn’t bounced back,” he said.
“If the US economy isn’t good, then it hurts us. They say when the US gets a cold, we get pneumonia. In 2003, we’re hoping that things are going to be okay, but we really don’t know,” continued O’Neil.
“So we’re a bit unsure of where we’re going. We are a little behind than where we were the same time last year, for this year. So we’re very cautious about what’s going to happen over the next twelve months,” he said.
Mr. O’Neil said that Kerzner International is investing a lot of funds in advertising and marketing and it is envisioned that thing would hopefully go well this year, and that there would not be any cutbacks in staff.
“The Ministry of Tourism is also putting a lot of money behind their advertisements and promotions, and we are hoping that that is going to work and bring the people, who are from our major markets, here to The Bahamas,” he said.
Mr. O’Neil said he remains optimistic that cut- backs would not have to be taken, as he places an extremely high value on his staff.
“But 9/11 happened and we never expected it. We’re thinking that we are going to be okay, but you never know.”
Minister of State in the Ministry of Finance, Senator James Smith reported at the 12th Annual Business Outlook on Monday that the economic prospect for The Bahamas is highly dependent on the possibility of a Mideast war.
But he was optimistic about the overall prognosis of an impending war as the repercussions relate to The Bahamas. Adding that even if a US-Iraq war occurs, The Bahamas has developed institutions and international arrangements, which could in some areas, cushion the adverse effects engendered by a war.
However, he said, an Iraqi-US war is likely to produce severe economic disruptions in the short term for the Bahamian economy.
Mr. Smith added that there is also a strong possibility of a reduction in travel by U.S. citizens to The Bahamas and elsewhere because of travel advisories issued by the U.S. Government in times of war.
He also noted that any increases in international oil prices would lead to increases in energy costs at home in the form of: higher electricity bills; increases in the price of gas at the pumps; higher operating costs at hotels and guest houses; and higher costs to financial services providers.
Minister Smith further noted that the reduction in overall demand for travel by U.S. citizens would translate into less tourist arrivals in The Bahamas, which would ultimately lead to less national income, and decreases in employment opportunities and a general contraction in the economy.
In such circumstances, he said, all sectors of the economy would be required to make serious adjustments, with the Government having to revise fiscal policies by curbing expenditure and intensifying revenue measures.
By Vanessa Rolle, The Nassau Guardian
