Whither Baha Mar? After Harrah’s Last Hurrah

by Richard Coulson

(The author is principal of R C Capital and a frequent contributor to the Tribune's business section. In this interview with Joe Rackrate, a (fictional) hotel-casino consultant, he explores the recent unravelling of the $2 billion Baha Mar development.)

RC: Wow – our country sure took a hit when Harrah’s pulled out and left Baha Mar holding the bag: GDP down couple of percentage points, maybe 5,000 construction jobs lost, Cable Beach stuck with its same old tired face. What went wrong?

Joe: Oh, lots of things. You could pin it on Perry, who dilly-dallied too long. Or on Hubert, who shot his mouth off. Or the U.S. recession – tight money and fewer tourists everywhere. Or the private buy-out of Harrah’s, when the new owners loaded the company with a mountain of debt. Or the usual fate of a minnow like Baha Mar swimming with a shark like Harrah’s.

RC: Tell me more.