Long Bay Beach Resort will begin a significant “restructuring” of its operations next month, transitioning from a year-round facility with with more than 100 units to a seasonal 42-room hotel, its general manager said.
An undisclosed number of employees will lose their jobs.
Hugh Robertson, the resort’s general manager, said on July 9 that Long Bay’s parent company, the Antigua-based Elite Resorts, felt that it had no choice but to change its business model given low visitor traffic into the Virgin Islands and the state of the economy.
“We’ve been sustaining losses for some time and we’ve made concerted efforts to turn things around, employing expensive salespeople here, there and everywhere in the world,” he said. “It’s simply not happening. There’s no indications in the marketplace that things are going to improve to bring tourists to Tortola.”
Business models
Mr. Robertson said that although many people see the resort as one unit, Long Bay in its current form consists of several different business models, including a time-share programme and rental-and-management services for the owners of its villas and estates. Under the restructuring — the new slimmed-down entity is scheduled to re-launch on Oct. 15 — the private owners will be completely responsible for renting and maintaining their properties.
In two e-mails sent to owners July 4, Mr. Robertson explained how the restructuring will work and the reason behind it. The projected changes are various:
• The resort’s main reception building will be closed and relocated to the restaurant and bar area, which like the rest of the resort likely will be closed annually between June and October.
• The resort’s pool will be drained and fenced off, and its conference room closed. The spa and dive services currently being offered will also cease.
• The gift shop and rental car facility will be moved to the restaurant, which will also close some of its seating areas.
• The villa owners will be responsible for purchasing and providing their own utilities.
The e-mail added that Long Bay has lost more than $1 million each year since 2009 on top of the $6 million invested in the resort between 2004 and 2008.
Job losses
Mr. Robertson declined to give specifics about the job losses, but he added that the resort is complying with its obligations under the Labour Code and has notified its employees and the relevant government agencies.
“I’m not at liberty to say that now: We haven’t finalised the number,” he said of the expected job cuts, but added that the number was “substantial.”
Mr. Robertson added that when the resort narrows its focus, visitors are expected to benefit from a higher staff-to-guest ratio. Some of the affected employees, he added, may be able to create employment for themselves by offering services to the villa owners.
“There’s a 52-acre estate here. We’re retaining about 12 acres of it. The rest of the estate has to be maintained, so there’s a business opportunity for them to set up their own businesses and negotiate with the business,” he said.
Tourism troubles
Asked about the factors that contributed to the resort’s losses, Mr. Robertson cited insufficient and unreliable airlift, undependable ferry connections to St. Thomas, and potential visitors’ unfamiliarity with the territory.
With airlines connecting from the United States and Europe, he said, poorly timed connections are a major issue for the resort’s guests.
“Say a [British Airways] flight leaves at 2 o’clock. Why is the LIAT flight leaving at 1 o’clock? Why can’t it wait till 2 o’clock so that it can pick up those passengers and bring them here?” he said.
When travellers are forced to layover due to a missed ferry or delayed flight, “word gets around” about the “hidden costs” that VI visitors face, he explained. But more aggressive promotion of the destination is also needed, the general manager added.
“I’ve talked to a number of our guests that said, ‘We found [the VI] purely by accident. We talked to our friends about Tortola and they had no clue where it is,’” he said.
This article originally appeared in the July 11, 2013 edition.
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