Bahia Principe’s Managing Director, Jonay Guerra, has revealed that the resort’s year-long shutdown and redundancy plans were already in motion weeks before Hurricane Melissa struck. The storm did not trigger the closure but exacerbated an ongoing restructuring effort. In an interview with the Jamaica Observer, Guerra disclosed that consultations with the Ministry of Labour and the Bustamante Industrial Trade Union (BITU) began in September, outlining plans to temporarily close the Bahia Principe Grand for a full renovation cycle. The Luxury hotel, opened in 2015, was expected to remain partially operational during this period. The decision to close the Grand was driven by the property’s age and the need for significant upgrades to remain competitive. The planned renovation budget was $15 billion, approved before the hurricane. However, Hurricane Melissa caused extensive damage to both properties, adding $815 million in repair costs. Guerra emphasized that the resort aims to reopen with a significantly upgraded product but faces delays due to unstable utilities in St Ann. Despite the challenges, Bahia Principe sheltered 900 staff and their families during the storm and provided $80 million in assistance to employees with damaged homes. The resort is proceeding with redundancies to ensure staff receive financial benefits during the extended closure. Reconstruction will create over 1,000 temporary jobs, with opportunities for current staff with construction skills. Additionally, Bahia Principe plans to build a 350-room luxury villa-style hotel in Runaway Bay, a $30 billion investment expected to create 1,000 jobs once reconstruction stabilizes.
