Government of Jamaica
Source: The Jamaica Observer
JAMAICA’S already booming tourism industry is on the verge of moving to a higher level with the introduction of major casinos to the island’s attractions.
Minister of Finance and the Public Sector Dr Nigel Clarke on Tuesday declared that he is excited about the materialisation of the first integrated resort development (IRD) project for Jamaica which will see the first major casino opening in Hanover, with others to come shortly after.
Dr Clarke told Parliament’s Standing Finance Committee that one of the two bids received after an IRD request for proposals was sent out has progressed all the way to a licence being awarded, which is for the Princess Hotel in Hanover.
He said that development meets all the criteria in terms of the size of the development — $450 million or more being spent, and more than 1,000 rooms, with 500 of those being luxury rooms.
“It’s quite exciting…Notwithstanding the fact that we’ve had this law on the books for the past 12 years, this will be the first integrated resort development in Jamaica and that licence has been awarded and the building is near completion,” said Clarke as he responded to questions on the status of bids for other casinos and hotel developments from Julian Robinson, the Opposition spokesman’s on finance, planning and the public service.
An IRD is expected to cater to heavy spending visitors and will consists of a mix of various tourism amenities and facilities in the same precinct, including, but not limited to, hotel rooms, villas, casinos, attractions, sporting facilities, entertainment facilities, service centres and shopping centres. The designation enables the developer to then make an application to the Casino Gaming Commission for a licence to be issued under the Act to operate a casino within that resort development.
The minister of finance has the authority to approve the IRD orders under the Casino Gaming Act. Robinson had also asked whether the Government has satisfied all the requirements to have the Harmonisation project started and implemented. Harmonisation, is a tourism development project in Trelawny, conceptualised more than 20 years ago. It is managed by Harmonization Limited, which is a unit at the Development Bank of Jamaica (DBJ), and was incorporated in April 2003 to execute a master plan for the 2,300-acre mega resort called Harmony Cove.
The development is slated to include a resort with world-class golf courses, luxury spa, marina facilities, commercial developments, luxury hotels, private residencies, and other amenities. It will also include a hotel, casino, convention and entertainment centres, restaurants and retail assets.
Harmony Cove and Celebration Jamaica were the first two projects approved in Jamaica for the integrated resort development with casinos at their centre, but the projects failed to materialise.
Subsequently, application for the operation of approved integrated resort developments was reopened in October 2021 as the Government shored up its strategies to attract casino gaming investment in Jamaica.
Dr Clarke said that with respect to Harmony Cove project, “We are at the most optimistic point that I have seen since 2016, with respect to the readiness of our partners in that they have made the representation to us in no uncertain terms, that they have the resources to undertake their end of the joint venture agreement.
“What remains outstanding on our side is to finalise the restating of the joint venture agreement. Time has passed and [the agreement has to] be restated to reflect current realities while honouring principles and we have to perfect the integrated resort development licence for the territory that we have agreed with them”.
Dr Clarke said the most important thing that remains outstanding is to honour the principles behind the tax incentives that were granted to this project at its inception, which was then a different environment.
“In today’s Jamaica, there’s no project that would get those kinds of incentives. So we are in the process of finalising that aspect of it on the incentives and I…hope that when we come with a finalisation and we remind what those incentives are and what they mean and so forth, we’ll have the support of the whole House that what we’re simply doing is honouring commitments made by prior administrations, by prime ministers, by prior finance ministers in the interest of Jamaica, in bringing to Jamaica a project that will be very different in size in scope,” said Dr Clarke.
He said he is working towards finalising those tax incentives by April, noting that once the joint venture agreement is signed off on, the project is going to have to go and get approvals, local permits, building permits and so on, which is outside of the domain of the minister of finance and public service.
Dr Clarke said that another application is working its way through the process, but there are matters that are outstanding.
“Once those matters are [dealt with], you know we’ll be able to move forward but we have one definitely on the ground and up and coming. And then if this application is successful, it would be the third integrated resort development project,” said Dr Clarke.
