Despite November being set to "end on a high note" and Christmas likely to be the strongest in "many years", Brookfield Hospitality's President and Managing Director yesterday said the resort will need "all the help we can get" to offset new costs it is set to face in 2014.
While expressing great enthusiasm for the outlook for the upcoming tourism season, George Markantonis told Guardian Business that the uptick in tourism for Thanksgiving, Christmas and heading into early next year will be much needed in light of "numerous looming expenses" set to impact Atlantis - including Value Added Tax.
The Atlantis Paradise Island Resort resort has expectations of a "completely sold out" Thanksgiving period, thanks to the Battle 4 Atlantis college basketball event, which is "the strongest ever."
And just around the corner, there are signs that Atlantis will also be fully booked from December 20th until early January for "the first time in many years" in what has been described as an "extremely strong" turnout for December at the resort.
Markantonis said he is "very pleased" about the prospects so far, with bookings and room revenue "ahead of pace to meet our budget projections, which are normally quite optimistic."
"We think it's due to an improved US economy and the fact that people are seeing and responding to all of our marketing, media and special offers which are paying off. In the winter, January and March are looking very strong, we still have some opportunity in February and we are working on some exciting plans to stimulate business in that month as we speak; so the year 2014 looks like it will get off to a very good start."
However, the hotel executive said this positive outlook was tempered by the fact that the hotel is expecting to add significant new costs to its bottom line in 2014.
"In the end we are going to need all the help we can get because we have numerous expenses looming on the horizon that we are still reviewing, increases in the business license fees, we're still uncertain about the impact of the VAT, and so on and so forth, but we're doing our best to make sure that we are prepared for a very good year next year."
Declining to comment on the precise impact of the increased business license fee for the resort, Markantonis said it would be "quite a significant impact."
Meanwhile, Markantonis said more "clarification" is needed with respect to how VAT will be applied to the Atlantis Paradise Island Resort.
In draft VAT regulations obtained by Guardian Business on Monday, it is suggested that a 10 percent rate of VAT be applied to hotels or "similar establishments" licensed by the Hotel Licensing Authority.
This 10 percent rate is said to apply to the supply of accommodations, services included in the room rate for accommodations, or food and beverages rendered within the hotel or "similar establishment."
"The special rate does not apply to a supply of services rendered outside the room or suite comprising the accommodation being supplied other than a supply of food and beverages," states the VAT regulations.
Markantonis said that Atlantis is hoping for further clarification on whether this would mean that the government intends to tax food and beverage supplies sold to hotel guests in the Marina Village, or other Atlantis activities such as marine mammal interactions, at the regular 15 percent rate. He added that the hotel's systems could not accumulate such additional complexity in accounting for VAT if it were to occur.
The hotel executive said the resort has a team of advisors working on the matter and is in discussions with the government.

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