Bryan warns of risks if cruise berth rejected, as opponents critique absence of details

Deputy Premier Kenneth Bryan has warned that not building a cruise berth in the Cayman Islands could lead to a decline in business revenues, a rise in unemployment and an increase in crime.

Bryan made the remarks while taking part in a panel discussion on the costs and benefits of the cruise industry at the RF Cayman Economic Outlook conference at the Kimpton Seafire Resort on Friday.

Meanwhile, fellow panelist Johann Moxam, representing campaign group CPR Cayman stated that a major issue with the upcoming cruise referendum was the lack of concrete information. 

Bryan told the audience, “One of my biggest concerns for the [cruise] industry right now is the continued decline that we’re seeing, and the make-up of the industry and business owners and employees that are in the industry. If the decline continues, based on trends and where the industry is going, what would that then mean to businesses’ income, revenue for government and more importantly, the lives of the Caymanian people?”

He warned, “I am telling you, if we do not build cruise infrastructure, there’s going to be hundreds, if not thousands, of people unemployed, and they’re going to be what you call your generational Caymanians … and when they don’t have work, the state is going to have to be what deals with them, if they go to the state for help, [but] most likely it’s going to be an increase in crime. And then this is not what we want.”

Also taking part in the panel discussion was Moxam, partner at Lainston International Management, who stressed that voters were being asked “the wrong question”.

“Details and information are more important than anything else,” he said, “because if you don’t have the right data, if you don’t have the information, how can anybody realistically expect voters to go to the polls on April 30 and say, do you support cruise berthing infrastructure?’

He emphasised that information was essential “as a country, as voters, in order to understand what this looks like”. 

Short-term thinking

Moxam pointed out that a report recently published by the Office of the Auditor General highlighted the problem of unsustainable spending and short-term thinking by government.

“We forecast for three years, but then we take on projects that end up lasting 25 years with debt that isn’t forecasted for,” he said. “So, before we jump into the enthusiasm, let’s understand what we’re dealing with. The government of the Cayman Islands does not have a positive track record. It doesn’t bring in any project on time, on budget and to a satisfactory level.”

In the intense but occasionally light-hearted debate, Bryan and Moxam said that they were close friends but that it wouldn’t stop them from clashing due to their very different views on the cruise debate.

One particular source of contention was the potential cost of the project. Moxam pointed out that the cruise berth project that was supported by the PPM back in 2019 was estimated to cost between $200 million and $250 million. “If you go four or five years on with inflation and everything, you’re now looking at potentially a $400 million to $500 million project,” he said, a figure which was disputed by Bryan.

Continued Moxam, “This will be potentially the largest, most environmentally impactful, largest capital works project in the history of the Cayman Islands. So before we get to the stage of, do you support something, we need to know what that thing is, what it looks like, what it will potentially cost. Details matter.”

Said Bryan, “Nobody has been able to refute the fact that the decline [in cruise visitors] is happening and it’s going to continue to happen. I don’t think the country can afford that.”

Public consultation

If there was a yes vote in the referendum, Bryan said there could then be a public consultation on the details.

“I’m hoping that I’m a part of the next administration that comes into a government with a successful vote yes, in favour,” he said.

“[Then] the first six months, we do the analysis about where the best location is, what’s the best engineering, what funding model we’re going to use, and deliver it. I don’t think, personally, that we should move it from the current location, but we can ask the public with a public consultation on that,” he proposed.

Also on the panel was Joseph Gaskins Jr., regional affairs director of Disney Cruise Line, who helped create ‘Lighthouse Point’ as an exclusive Disney destination in the Bahamas. 

“As an industry, we have recognised that around the world, there are cities and places that are finding it difficult to contend with [cruise ships],” he said, adding that Disney worked hard to get the inhabitants of Lighthouse Point to support the project by investing in Bahamian businesses and culture and using environmental practices such as building a trestle pier without dredging, the only one of its kind in the Bahamas.

“The question was, how do we strike the balance between the very real concerns of people who oppose the project, and the very real opportunities that can be made for local inhabitants,’’ he said, describing how Disney spent months engaging with the locals, “so when it came time for the government to engage with the local community there, they were supportive.”

Referendum question

From the audience, Desmond Kinch of fund manager OAM asked the panel, “Is it too late to call off the referendum? … My sense is that 80% of people that are voting on a referendum question like that are not going to vote in an informed way.”

Kinch received a round of applause when he suggested that instead of a referendum, “it would be much more productive for each of the candidates and parties to say on the political platform, this is our manifesto, this is what we propose, and the voters vote on which plan they think is best.”

In response, Bryan said that the government “wants to make sure that it at least has the spirit and support of the people, to make sure it’s financially feasible, make sure it’s environmentally friendly, what location needs to be at, [but] you have to trust your government in some capacity to do those things and follow up later. Right now, the decision is about whether you want to be in the cruise industry or not.”

Panel moderator Marla Dukharan, an economist and Caribbean expert, rounded off the debate by saying that there needed to be a consensus on this “very divisive” topic which was so important to the territory’s future.

She added, “There has to be accountability for whatever decision is made, for doing it right for the people of the Cayman Islands, and holding government to account. From my experience and what I’ve seen across the Caribbean, holding your government to account for what it says it’s going to do, and doing it right, is the best way to make positive change for your country.”

The government recently launched its new referendum information portal containing information about the three votes which are taking place on 30 April, the same day as the General Election.