This is a historic day in the life of the Cap Juluca Hotel. Because it is the first time in its existence — that it is without any ownership or legal disputes. I consider this the fulfillment of our Government’s campaign promise: “to bring resolution to the Cap Juluca saga and other lingering disputes that have plagued this property for more than thirty years.”
Let me therefore pause to ask you to give the principals of Belmond as in Belmond Cap Juluca a round of applause.
I must now, however, crave your indulgence and your forgiveness as I divert for a short time to put this moment in historical context.
The origins of the Cap Juluca Hotel development can be traced back to the 1972 “Shankland Cox Report: “An Outline Development Plan for Tourism in Anguilla.” The report included recommendations for hotel expansion at Maunday’s Bay. And so, in 1978, Mr. James Frankel, owner of the La Samana Hotel in French St. Martin, made the first proposal for a tourism development at the Maunday’s Bay site.
Coopers and Lybrand, with funding from the British Government, completed a feasibility study of hotel development at Maunday’s Bay in 1979. The study pointedly suggested that Anguilla needed a showplace as a prime requirement for promoting the development of the tourism sector. It recommended that the Government of Anguilla should acquire the lands required for hotel development at Maunday’s Bay. And in obedience to that recommendation the British Government provided the funds (£155,000.00); which enabled the Government of the late Sir Emile R. Gumbs, Chief Minister and Minister of Tourism, to make that purchase.
Sir Emile’s Government subsequently made an agreement with Mr. James Frankel in October 1979 for a major hotel development at Maunday’s Bay. And so from the very beginning of development at Maunday’s Bay, the Anguilla Government considered this site to be one with tremendous potential for the development of our island.
The actual development comprising the 98-room Cap Juluca Hotel is the result of efforts by Mr. Robin & Mrs. Sue Ricketts in 1986 to promote the property, in the face of the failure of Mr. James Frankel to complete the project detailed in the agreed lease. Leeward Isles Resorts Limited (LIR) was the company formed by The Ricketts Group through which they sought to take over the lease of the Maunday’s Bay and Cove Bay properties and to attract a suitable investor to participate in the project.
As result of these efforts a lease was signed between the Government and Leeward Isles Resorts on November 1st, 1986, which provided for the development of Crown lands at Maunday’s Bay and Cove Bay, including Cove Pond in ten (10) phases. That was the beginning of the romance between the Cap Juluca Hotel Project; its several owners; and the Government and people of Anguilla.
Upon assuming office in April 2015, our Government immediately set about its pledge to fix Cap Juluca. Our plan was very simple: attract a well-financed investor who was prepared to unite the property; make the necessary investments to rehabilitate the facilities so as to restore it to at least a five-star rating; put in place a reputable operator; and make some provision for public enjoyment of space in the Cove Bay area.
The negotiations were long and challenging. The Government had to make a number of difficult decisions that required both courageous leadership as well as some sacrifice by the people of Anguilla. In order to arrive at a timely resolution in keeping with the urgent needs of the island, and in the face of prolonged litigation including the haunting specter of compulsory acquisition and forfeiture — Government decided to negotiate with the owners in an atmosphere of mutual respect and good faith. While this came at a cost, my colleagues and I all agreed with the axiom: “You cannot have your cake and eat it to!.”
Let me at this juncture therefore, take this occasion to thank Mr. Charles and Mrs. Linda Hickox the principal owners of Leeward Isles Resorts; Mr. Eric Prevette, the agent for the Hickox Group; and the late Mr. Howard Michaels of Carlton Strategic Ventures for their participation in more than twelve months of grueling negotiations. Even though those negotiations failed at the eleventh hour — they did indeed set the stage for the dramatic entrance of Belmond Ltd.
I am a strong believer in the adage that everything happens for a reason. The time; the energy; and the frustrations that attended our negotiations with the Hickox and Carlton Groups were well worth it in the end. The outcome was our good fortune to meet the Belmond organization which shared our vision for Cap Juluca. And because of the work we did in the previous negotiations it was a proverbial “walk in the park” when compared to our earlier experience. That statement is in no way intended to detract from the professional and thorough approach of the Belmond Group. They were indeed tough negotiators — but their positions were always reasonable and in good faith. The result I truly believe is an agreement that is fair to all concerned.
This is a new beginning for Cap Juluca and Anguilla — but this is not why we are here. We are here because despite the disputes and the legal battles — owners and investors believed in this property and the loyal staff at Cap Juluca is the glue that kept it all together. Julucans as they called themselves could not wait to come back to be a part of this legacy resort — the hallmark of Anguilla’s tourism industry.
You can build the most beautiful property on the best site in the world — but it will fail without the performance of satisfied; committed; and dedicated employees at all levels.
This comes at a cost. Employees are not running back to Cap Juluca because it is brand new — but rather because they enjoyed their experience here. They were not on one-year contracts and they were not arbitrarily placed on reduced shifts. They understood that the better the services they provided — the better the experience for their guests — and as a further consequence the better patronage for Cap Juluca, their employer.
I believe that this is also an important message for all investors in Anguilla both local and expatriate. But it is also the reason why this Government has ensured that the new Labour Relations Act is finally enacted so as to clearly enshrine these principles in the employment sector. Thankfully, Anguilla is fortunate to have a number of employers who exceed the requirements for best practices in the workplace. We sincerely hope that employees continue to recognize their responsibility to be both productive and honest in the workplace as well.
Let me also thank the repeat guests who over the years have made Cap Juluca their premier destination away from home. We could not do it without you — and we welcome you back even one year after the most devastating weather event to hit our region in recorded history. We apologize for our appearance but we promise to make up for that with beyond extraordinary service and a most memorable stay experience.
The Government of Anguilla gets blamed for everything — so we will not complain for being blamed for fixing Cap Juluca through our engagement with Belmond as a brilliant partner in this extraordinary development. The truth is that success has many parents and believe it or not in social media — a number of earlier skeptics and detractors are claiming credit for the successful outcome of Belmond Cap Juluca.
I love it when a plan comes together — but I must confess that God was in the midst of all of this. Belmond came in and united this property at a purchase price of approximately US$75 million with an expected rehabilitation cost of around US$35 million. To date the estimated cost for the redevelopment is north of US$100 million. This investment has resulted in over 500 jobs directly and indirectly in the construction phase. The operational phase will require just as many workers.
We appreciate the confidence Belmond has placed in our island by virtue of this huge investment. Let me take this opportunity to thank them yet another time on behalf of the Government and People of Anguilla. And let us all work with them to guarantee an encouraging return on their investment in our island.
It gives me great pleasure to be a part of this event and to have played some small part along with my colleagues in Government and the public service in fixing Cap Juluca in the interest of our island and the people we serve. To our partners at Belmond let me take this opportunity as well to wish you all the best for Christmas and the New Year when it rolls around.
I thank you all for your kind attention.
