The purchase and renovation of the former Sammy’s Inn for use as Cayman Airway’s headquarters is saving the airline more than $100,000 annually, Minster of Tourism Charles Clifford said in the Legislative Assembly Monday.
Mr. Clifford made the statement in response to a Parliamentary Question asked by Leader of the Opposition McKeeva Bush.
The three-part question was submitted in April, 2007 and sought to ascertain the amount paid to date for the renovation of Sammy’s Inn; the balance to be paid on completion; and the timeframe for occupancy by the Cayman Airways staff.
While most of Mr. Clifford’s response had been reported previously in the Caymanian Compass, the cost effectiveness of the Sammy’s Inn purchase had not.
‘By owning its own offices, Cayman Airways is saving some CI$339,620 in annual leasing and related costs,’ he said. ‘Even when insurance and direct operating costs associated with owning the new CAL headquarters are factored, the net result is an annual savings of approximately CI$100,000.
‘This does not take into consideration the significant indirect savings realised by the greater efficiencies and increased productivity as a result of having [the] 10 departments operating under one roof.’
Cayman Airways began occupying the renovated Sammy’s Inn property in June, Mr. Clifford said. The building serves as the offices for 10 CAL departments, including administration, finance, operations, IT, reservations, cargo, human resources, commercial, Cayman Airway’s Express and the city ticket office.
There are just less than 20,000 square feet of office space in the building, Mr. Clifford said.
Sammy’s Inn was purchased by Cayman Airways for US$2.85 million. An additional CI$2.43 million (US$2.96 million) was spent to renovate the property, including CI$257,000 to fill and pave the new car park on the adjacent property.
Mr. Clifford said a valuation done by Deloitte put a value on the property of US$6.76 million.
All of the renovations have been paid for, with the exception of CI$48,540 in retention funds, Mr. Clifford reported.