Cape Eleuthera enters 'state of transition'

Mon, Jun 18th 2012, 10:21 AM

Cape Eleuthera has shut its doors to resort guests and entered a "state of transition" whereby all units in the development will be sold off to private homeowners.
Stephen Kappeler, the president of the Marine Organization of The Bahamas (MOB), resigned his post as general manager. While the marina remains open, Cape Eleuthera's website (www.capeeleuthera.com) has been shut down, and patrons are asked to simply contact Dan Oliver, the property manager.
The news comes weeks after Cape Eleuthera was removed from the list of locations for the Bahamas Billfish Tournament due to insufficient interest. Fuel prices have proven to be a major deterrent for yacht owners in recent years. Cape Eleuthera lost up to $500,000 in fuel sales by not participating in the recent fishing tournament.
Oliver told Guardian Business that the development's "state of transition" does not have a set timeline, as it slowly returns to the "original plan" of offering only vacation homes.
"We don't operate as a resort," he said. "The resort was never part of the original plan. That just evolved over time. There is no closure."
With 22 units on the property, Oliver explained that many of them will need to be closed for updates and repairs before going on the market. He said there is still lingering damage from when Hurricane Irene rocked Cape Eleuthera last year. The property sustained damages estimated to cost up to $250,000, according to Kappeler.
The original developer has also expressed interest in retaining some of the units.
"They aren't telling me how many will go up for sale exactly. The market is not what it was when they were first built. Real estate prices have dropped somewhat. I have no idea where we'll be in terms of pricing," according to the property manager.
Oliver added that the marina is full service, and "there are quite a few boats out there right now". Cape Eleuthera is now coming into hurricane season, however, when marine business tends to slow down considerably.
The development's recent difficulties are indeed being felt throughout the island, Guardian Business understands.
High fuel prices and a rough economy are taking its roll on Eleuthera, and in particular Harbour Island.
Anne Ward, international client manager at Romora Bay Resort and Marina, reported that operations are still running at about 50 percent compared to pre-recession levels.
Thus far, 2012 has been even slower than 2010, she said. Ward explained that the business Harbour Island could count on has dried up, leaving only a handful of tourists that can still afford the experience.
"Ticket prices are a serious issue," Ward told Guardian Business. "And when you get here, it's too expensive. It seems to have reached a critical level. I think Harbour Island thought it had it good for a while, and it wasn't really hurt like the other islands."

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