On the other side of the bustling Nassau Bahama Cruise Terminal, it's not uncommon to see four or five passenger ships docked at once, but a slice of tropical paradise with miles of white sandy beaches and turquoise waters.
Dotted with mansions, the 17-acre spread on the western edge of Paradise Island in the Bahamas was acquired by the unlikely developer, Royal Caribbean Cruise Line.
Following the success of Cocothee, a private island in the Bahamas, the company is expanding its land-based products at its beach club, which is scheduled to open in December. The projected $165 million project will include three swimming pools in the world's largest swim-up bar and a themed beach zone.
“We are creating the ultimate beach day with the authentic atmosphere, colours and flavors of a lost Bahamian beach club,” said Jay Schneider, chief product innovation officer at Royal Caribbean, during a tour of the construction site. “It balances local art, music and locally inspired cuisine with American comfort.”
While many cruise lines own Caribbean islands, the exclusive beach club concept is part of a new trend amid record demand for cruises and the seemingly unstoppable megaship development. The Carnival is also building a beach club called Celebration Key, which is scheduled to open in July on Grand Bahama Island. Royal Caribbean is developing two beach destinations in Mexico, opening in 2026 and 2027.
Not everyone is keen on the cruise line real estate portfolio. Some Bahamians say they are tired of being priced from their land by foreign investors and are concerned that new attractions will divert tourist dollars from field trips run by local vendors.
“Tourists will return from the cruise ship to the private club and return to the ship without spending a dime in actual Nassau,” said market bender and boat captain Ray Jacobs.
To alleviate these complaints, Royal Caribbean worked with the Bahamian government for the Beach Club Project in a partnership that would grant Bahamians a 49% share ownership. The company said an additional 1% of total profit will be directed towards improving local attractions.
“We want to connect locals to big projects so that daily Bahamians can access tourism opportunities,” said Latia Duncom, director of the Ministry of Tourism, Bahamas.
Among those opportunities are about 400 jobs that will be filled by Bahamians at the Beach Club, Royal Caribbean said. Local businesses will be awarded lucrative contracts for food, drink, excursions, security, entertainment and other services.
Cruise Line also said it will work with Bahamian companies on recycling, waste reduction programs and environmental protection to comply with its company-wide sustainability principles.
“They were just wiped out.”
Despite the potential to boost tourism, some Bahamians believe the government is overreacting outsiders. Local entrepreneur Toby Smith applied for a lease of public land on the western edge of Paradise Island in 2012 for a beach club project, including the restoration of the Hog Island Lighthouse, which had been devastated since the 1980s.
After the process that was drawn out, Smith finally received approval in January 2020. A month later, after hearing rumors that the Royal Caribbean had expressed interest in the same land, Smith clearly approached the government, but received no response. In March 2020, most of the land promised to Mr. Smith was awarded to the Royal Caribbean.
“I have been negotiating and waiting for a lease for my sustainable, scaled, cultural beach club project. “It's a disgrace.”
Dionicio Dagguilar, then Minister of Tourism, confirmed that Mr. Smith had been sent a lease of the land before Royal Caribbean applied for the same plot.
“The Royal Caribbean has brought appealing suggestions to the Bahamas, a deal that seeks to create many entrepreneurs in many areas of service,” D'Aguilar said in a 2021 television interview with Eyewitness News Bahamas.
“It's a tough environment and you need to have long dollars,” he added.
Smith began a legal battle with the government and was granted his right to take his case last year to London's Privy Council, the former British colony of Bahamas.
In the meantime, Royal Caribbean revised its lease with the government in April 2024, not including the overlapping land promised to Mr Smith, and built a wall at the construction site to separate the two plots.
Lounge like 1%
The enthusiastic Royal Caribbean Cruiser is excited about the beach club and barely notices the local tension it has created.
“We probably went to Nassau more than 20 times, so we did all the excursions, so when we stop there we stay on a regular boat,” said Alan Rivera, a car salesman in Tampa, Florida, who recently celebrated his anniversary in the Utopian waters with his wife.
“The beach club is a great idea because when you've done all your field trips, all you really want to do is lie on the beach,” Rivera said. “We're coming back to try it.”
A day ago, Utopia of the Sea docked on the Royal Caribbean private island for “the perfect day at Cococay.” This experience gives you a taste of what Beach Club offers. When the gangway hit the pier at 8am, we crossed the island and arrived at a themed section that seemed to offer something to everyone.
Many of the attractions are included in fares such as untouched beaches, freshwater pools and restaurants. There is an adult-only hideaway beach for an extra charge. Coco Beach Club, underwater cabanas and private butlers. A water park with the largest water slides in the area.
“Private islands are usually reserved for 1%,” said 33-year-old Priscilla McKenzie, sipping a margarita while sitting in the crystallization waters of Hideaway Beach.
While Cocosy feels like an extension of the Royal Caribbean ship, the company says the new Paradise Beach Club will feel Bahamians and focus solely on the beach club experience. Capacity closes at 40% of the cruise ship's volume, with tickets being offered on a first-come, first-served basis. According to Cruise Line, the restrictions ensure that field trips and local attractions continue to attract passengers.
Royal Caribbean's Schneider said he devised the itinerary and looked at two core metrics when investing in destinations. “High appeal and high satisfaction.”
For example, Santorini in Greece has a very high appeal, but it is too long and less satisfying.
Nassau is a strategically important destination for the Royal Caribbean, with its generally low satisfaction and appeal rates among passengers. A recent company survey found that Nassau had lost the appeal of cruisers, which had already experienced major sights and activities. Those who gave low satisfaction ratings were looking for a wider range of activities.
“We believe that beach clubs and revenue will play a role in increasing guest appeal and satisfaction by increasing broader tourism investments in Nassau,” Schneider said.
But many ordinary Bahamians who work in ports, local markets and restaurants are not convinced.
“The only chance you have to sell tours is when cruise passengers come out of port,” said independent tour guide and driver Doug Nance. “When the beach club opens, they just get on another boat and go in the opposite direction.”
Boat captain Jacobs recently visited the construction site on a boat and said he was shocked to see the land had been destroyed and the trees had been torn. The Royal Caribbean said it removed 75% of plants considered invasive species by the government and preserved 30% of native trees during construction. The company said all these plants and trees will be replanted along with new native species.
John McPhee, president of the transport company Ryde Bahamas, said driving across the coast, the fact that despite government efforts to team up with the Royal Caribbean, Smith is not allowed to carry out his vision indicates a systematic failure in the country's tourism model, which tends to cater to foreign investment.
“As a boy, I learned that every time the land thrusts into the ocean, there is a conflict,” McPhee said. “The little fish are trapped and the bigger fish come and feed them.”
“The Royal Caribbean is taking advantage of this,” he added.
But some are optimistic. Derek Scofield, 55, who works for logistics for several field trip companies, said the creation of new jobs would be beneficial to the growth of the tourism industry.
“Some of us may go home at the end of the day with few dollars in our wallets,” he said. However, he added, “If you look at the big picture, this project will boost the tourism economy, open opportunities for many Bahamians and put more food on the table for Bahamian families.”
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