BASSETERRE, St. Kitts – THE notice of closure at the Four Seasons Resort in Nevis has not only resulted in job losses of over 600 persons, but has lost the Nevis Island Administration EC $20 million in direct revenues.
The five-star hotel provided jobs for over 1000 individuals, whether directly or indirectly, and generated much-needed economic activity on that island.
In October of last year, the resort suffered major damages during the passage of Hurricane Omar. Although earlier projections indicated that the resort would have been refurbished and ready for reopening by November 2009, management eventually resorted to mass layoffs and the cessation of the coastal hotel’s operations.
According to Minister of Finance Hon. Dr. Timothy Harris, the International Monetary Fund (IMF) predicted a negative growth rate of 1.2% for St. Kitts-Nevis in 2009, identifying the closure of the resort as one of the main reasons for the reduction.
“This slide is attributed to the financial crisis and economic recession, plus the devastating impact of Hurricane Omar on Nevis’ tourism industry,” Harris revealed during his April 8 Ministerial press conference. “Omar has caused the prolonged closure of the Four Seasons Hotel and job losses. The estimated loss of direct revenues from the Four Seasons closure is $20 million.”
Harris explained that although the NIA is autonomous, the Federal Government provides guarantees where there is a need for fund raising. He noted that Nevis can seek funding from the IMF for loss associated with the passage of the hurricane.
“The NIA, in the context of the Four Seasons, has looked at the possibility of getting some special funding from the IMF.
“They are to deal with the displacement and the balance of payment challenges which arise in an emergency situation. We are working with the NIA to ensure that they can benefit in the context of the significant impact the Four Seasons closure is having on the economy there, and in particular, the direct loss of government revenues,” Harris informed.
During an April 6 press conference, Nevis Premier Hon. Joseph Parry informed that the resort is now in the hands of its receivers, headed by Wachovia Bank. He added that they are proceeding with the foreclosure, which is anticipated to be completed by August.
“My understanding is that there are a number of potential buyers, but I’m not told of anybody who is committed to buying at this time,” Parry said.
THE NIA remains optimistic however that the resort will reopen by the end of this year under the ownership of another investor.
