By BARBARA WALKIN

Senior FN Reporter

barbara@nasguard.com

Eddie Llambias, general manager and vice-president of Isle of Capri, yesterday said that in order for the casino to continue to operate as a viable organization in Grand Bahama, two major components must be achieved.

Mr. Llambias' statement came following a meeting with the casino's staff Wednesday morning that triggered rumours that the casino was about to close.

Declining to comment on the rumours, Mr. Llambias said the meeting was held to explain the company's position regarding operations.

"Well over a year ago we brought it to Government's attention that we would need to have continued marketing support and that we would greatly appreciate the Government taking a look at a reduced tax rate, in order for us to run a viable operation," Mr. Llambias said.

To date, he added, after several deadlines were not met, the casino staff were appraised of the concerns.

"We've reached the point where the Board of Directors need to make a decision about our outcome," Mr. Llambias explained. "If I cannot provide the Board of Directors of our organization with deadlines and documents which will help to make the case, I cannot say what's going to occur in the short or distant future. All I know is our business will not survive unless we have a continued marketing subsidy and lowered tax rate. If that is not achieved, our business will not survive."

Noting that he did not want to "paint" a picture of gloom and doom, Mr. Llambias added, "I just want to be objective. We don't want to leave Grand Bahama! We want to operate here."

The Isle of Capri general manager said it is company policy to meet with employees on a quarterly basis.

The last meeting was postponed, added Mr. Llambias, because he was waiting on the outcome of a submission put in with the Government, explaining the conditions of the casino's business and some of the external implications surrounding our business — such as air arrivals and room inventory — and how that was impacting revenues and therefore impacting operations and employees.

"But I couldn't postpone it (the meeting) any longer because I felt it was my responsibility to communicate with the employees," Mr. Llambias said. "I couldn't have them to continue to wait and continue to wait."

During the meeting, he noted, he basically "gave them a very truthful account of the status of our operation and the communication we've been having with Government — mainly the Hotel Corporation and the Ministry of Tourism — regarding our situation."

He explained that following the initial meeting with the Government, Isle of Capri executives have been waiting for the wheels to turn. Mr. Llambias said that he understood that when dealing with Government "sometimes things take a little longer to come to light."

"But after we've been waiting for a year, we thought it was prudent to go back to the Government through the Hotel Corporation," he said.

That resulted in an investigation, said Mr. Llambias, but "from sources — including my attorney and a letter from the Hotel Corporation — I was led to believe that the outcome was looking favourable, in terms of what we were requesting."

With that in mind, there was a glimmer of hope, he added. However, the casino got nothing in writing and a decision did not mature in the time frame expected.

"So once again we went back to the Government with senior members of the company, who meet directly with Minister Obie Wilchcombe, Minister of Tourism, and Dr. Baltron Bethel of the Hotel Corporation," Mr. Llambias said, adding that again from that discussion all parties wanted to come out with a win-win solution.

"We left the table feeling optimistic, but the time frame again from our position has once again lapsed," Mr. Llambias said.

So, he added, there was nothing more to tell the staff other than the time has lapsed and executives are still waiting on an outcome.

"But in the meantime we still have to run our business," he said. "Where the issues are from an internal standpoint, the longer we wait, the more we're placed in the position of operating from a point of profit and loss, resulting in lay-offs."

This, he added, was demonstrated in July when some 30-plus employees were laid-off.

"I'm sure there are employees wondering if they are next," Mr. Llambias said. "My overall feeling is of optimism that the Government will come through for us, but I needed to explain to the employees because they had a lot of questions."

Mr. Llambias said encouraging words on the situation have been pouring in, including from Isle of Capri landlord, the Gaming Board, the Ministry of Tourism and the Hotel Corporation.

"I am encouraged by those words, but we've reached the point where the Board of Directors need to make a decision about our outcome," he stressed.

EDDIE LLAMBIAS