Harmony Cove will push Jamaica's tourism product back into the high-end bracket

Al Edwards
Friday, May 18, 2007

The Harmony Cove resort project, a joint venture between the Government of Jamaica and the Tavistock Group, will once again make Jamaica a high-end destination. Over the last 50 years, Jamaica has lost its pre-eminence as a high-end Caribbean destination and settled for the mid-market sector.

In the 50s and 60s the likes of the late John Pringle (Round Hill) and Heinz Simonitsch (Half Moon) positioned Jamaica as a high-end destination and their properties reflected that. In the 70s and 80s the all-inclusive concept took hold with John Issa and Gordon 'Butch' Stewart attracting more visitors to Jamaica, albeit in the mid-market range.

The new millennium has seen the influx of the Spanish hotels such as Riu and the Pinero Group with properties that have mass appeal. In short, Jamaica is becoming the total tourism product, catering for any kind of visitor.

Harmony Cove will again spell a quantum leap for Jamaican tourism. Firstly, this US$2-billion luxury resort village sitting on 2,200 oceanfront acres will make the island the envy of the Caribbean and secondly, it should go some way in dispelling the perception created by the Sandals Whitehouse debacle that private /public sector hotel collaborations are disastrous and fraught with difficulties.

Earlier this week, the managing director of the Tavistock Group (the government's partner in the Harmony Cove project) Christopher Anand, speaking at an American Chamber of Commerce (Jamaica chapter) luncheon held at the Hilton Kingston Hotel in New Kingston, said that construction of the first phase of Harmony Cove resort will commence in the next 18 to 24 months and take two years to be completed. The first phase will include a 1,500-room boutique hotel, a mega yacht marina, two golf courses, attractions and other amenities. The first phase is expected to come in at a cost of US$1 billion. The entire project is expected to be completed in 10 years' time and will cost over US$2 billion and employ over 5,000 people.

At the luncheon, Anand said: "We are an incredibly choosy partner. We do not spread our wings too wide and we generally don't use debt because we are fortunate to be capitalised by one of the world's wealthiest men, Joe Lewis. This will be the biggest tourism project ever built in Jamaica."

Speaking with Caribbean Business Report from the Hilton Hotel on Wednesday, Anand said the Tavistock Group is looking to build the top luxury resort destination in the Caribbean. "We are focussed on getting this project right. If we do so the money it generates will be a by-product. We liked the macro-climate in Jamaica and the government was resolute in its commitment and so we signed on to this project in Jamaica. The prime minister likes to say that Jamaica is open for business and I tell you what, she's right! As an outsider coming into Jamaica I have been nothing but impressed by the way the government has treated us. I'd give them 10 out of 10 for their efforts with this project. We won't be replicating Harmony Cove in other Caribbean islands."

Anand said that Tavistock saw a country in growth mode with a commitment to putting in first-class infrastructure. He said to construct a project of the size of Harmony Cove in other islands would prove more expensive. "I looked at places in The Dominican Republic and Turks & Caicos but it was not our scene. To date, the government here has done its part and so have we.

A fantastic relationship has been formed which augurs well for the project. One of the things we felt was very important was airlift. In that respect Jamaica and more particularly the refurbished airport in Montego Bay is the best in the region."

The president of the American Chamber of Commerce (Jamaica) and Chairperson of TPDCo, Audrey Marks, was instrumental in bringing both the government and the Tavistock Group together for the Harmony Cove project.

Speaking at the luncheon, Minister of Information and Development Donald Buchanan said the original idea was for the development to be done exclusively as a private sector venture. Anand urged the government to retain an interest in the project as a partner.

Anand added that the aim at Harmony Cove is to attract the world's top brands and that in order to do so credibility and capital are needed. "I can't stress enough how important it is for us to demonstrate our commitment to Harmony Cove if we are to attract the world's top brands," said Anand.

A professional international golf tournament at Harmony Cove

The aim now is to bring a professional golf tournament to Harmony Cove. Tavistock already owns prestigious golf facilities including Lake Nona and Isleworth in Florida and Albany Country & Golf Club in the Bahamas. The Tavistock Cup is already a major event on the golfing calendar.

A recurring criticism of Jamaica's tourism product is that there are not enough attractions. Tavistock intends to change that and is inviting people with ideas to come and talk to them. "Sandals has helped to establish Jamaica as a great place to visit and hopefully guests at the leading all-inclusives will visit Harmony Cove to enjoy the attractions, do some shopping and have a look around. We are willing to partner with other hotels to our mutual benefit.

"We want to create an entertainment marina with nightclubs and bars and great retail outlets. Music will play a big part of our attractions and we will be looking to host concerts," declared Anand.

Who is Joe Lewis

The Tavistock Group was founded over 30 years ago by its chief principal Joe Lewis. Joe Lewis is ranked by Forbes magazine as the 486th richest person in the world with a personal fortune estimated to be around US$2 billion. He is the 16th richest British person according to the Sunday Times Rich List 2007. The Tavistock Group owns more than 100 companies around the world, including the world's most expensive automobile marque Bristol. Lewis left school at 15 to work in his father's London catering business. Lewis built that business, located in Hanover Street into the Beefeater chain, one of London's most successful themed restaurants.

Robert Earl, who founded Planet Hollywood, once worked for Lewis as the pair built a restaurant empire. Lewis became renown as a very successful foreign exchange trader, rather like Jamaica's David Smith. He recently sold his FX currency trading business HotSpot for US$77 million. Over the last 10 years he has branched out into many businesses including property development, football clubs tourism projects and energy-related businesses. His is a diverse portfolio.

Christopher Anand

Christopher Anand was born and raised in England. He was an aspiring golfer who won a golf scholarship to the US. Realising that his abilities would prevent him from making a decent living on the tour, he pursued an MBA in Finance. He then went to work on New York's Wall Street for Morgan Stanley. Imbued with confidence, he then ran the Mergers and Acquisition department for a company in Seattle for three years. He joined Tavistock five years ago, his first job being to turnaround a foreign exchange trading business. He subsequently was promoted to managing director of the group.

"One of the things we did with our foreign exchange trading business, Hotspot, was to change from a voice broker business to an electronic one. By making the trading platform more efficient it has meant that the banks are making a little less money than before but it has made things more transparent. This guy in Jamaica, David Smith, is probably using an electronic platform and is able to do more because he is not having to pay out huge commissions. Therefore, he is making more money and having success. It is pretty unusual for someone to have the consistent streak that he has, but what I can tell you is that FX trading is a pretty risky business."