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Hotelier Richard Salm, who died recently, was a naturalised Jamaican who envisioned the development of a landmark integrated resort which offered casino gaming on the expansive acreages of Drax Hall in St Ann.
He and partners were behind Casino Royale Limited, one of four entities which applied for Approved Integrated Resort Development (AIRD) status when the Jamaican Government opened and accepted bids for the project, a gateway to casino operations, in 2013.
The Jamaican Casino gaming law, in its first form, offered three casino licences under legislation passed in 2010 and regulations passed in 2012. Investors had to first qualify for AIRD status, which was a development order issued by the Ministry of Finance and Planning.
The AIRD would then qualify the candidates to apply to the Casino Gaming Commission for a casino licence, but it was not a guarantee that a licence would be issued.
Like the other applicants, Salm paid the US$150,000-application fee from Casino Royale Limited, one of four bidders aiming to develop casino resorts under the Integrated Resort Development (IRD) project.
Casino Royale, backed by Salm’s by Drax Hall Limited, was planned for the Drax Hall property in St Ann. Salm was in partnership with American investor Phillip Reynolds.
Salm said, in a disclosure in 2013, that he and his partner had secured a commitment for US$500 million of the estimated US$1.5 billion required for the development and were in negotiations for the remainder.
The development for Drax Hall, he said then, would include a large casino hotel, 16 acres for a shopping complex, and areas designated for timeshare, individual villa lots, middle-income housing and a possible marina.
Other bidders were Amaterra Jamaica Limited, proposed by Jamaican developer Keith Russell and American partner Charles Murphy III of Arkansas; Celebration Jamaica Development Limited and the Government’s own bidder, Harmony Cove Limited, which was a partnership between Harmonisation (a partnership of the Development Bank of Jamaica Limited and the National Housing Trust) and Tavistock International Investment Group.
Two years later, when the review process was completed in 2015, applicants Harmony Cove Limited and Celebration Jamaica Development Limited were the entities which secured approval to develop Jamaica’s first two casino resorts.
Celebration Jamaica, led by developer Robert Trotta (also now deceased), involved plans to invest US$450 million in the first phase to develop 1,000 hotel rooms, a 75,000-square foot Casino & Sports Book complex; bars, restaurants, health club, spa and kids’ club, retail space and an artisan village. The resort was to be located in Montego Bay.
Harmony Cove, the venture between investors Tavistock Group and Harmonisation, was slated to be developed on 2,200 acres of land in Trelawny. The first phase of Harmony Cove was to include development of a 1,000-room hotel, a championship golf course and casino facilities. The cost for that phase was last estimated at US$900 million.
Both companies, however, failed to move forward with the project.
In 2021, the Government of Jamaica enacted new amendments to casino legislation which reduced the room capacity requirement for AIRD from 2,000 hotel rooms to 1,000 and introduced a minimum capital investment of US$500 million.
The new provisions are expected to make it easier for the investors who, in over a decade of negotiations with the Government, have not started operations. In a presentation earlier in 2021, Senator Don Wehby said four entities were interested in securing the casino licence. Their names were not disclosed, so it is not known if these are the same entities which are now expressing interest.
In March of this year, Minister of Finance and the Public Service Dr Nigel Clarke said the Government is looking to identify resources to fund its US$25-million equity contribution to the Harmony Cove tourism development project in Trelawny, in order to facilitate the project’s commencement.
Speaking during a standing finance committee, Clarke said, “To the extent that Tavistock is ready to go, we will find a way for our portion to be met. We believe that we have an avenue through which it can be achieved… but we want it to be done transparently. So, we are reviewing how the Government can meet its contribution,” the finance minister said.
Clarke said the Harmony Cove project is a 50-50 venture that will see each partner injecting US$25 million or approximately J$3.5 billion.
“On top of that [there will be] investments of equities from other institutional investors and loans… from those proceeds, the project will be built,” he said.
Harmony Cove is a 2,300-acre property located 23 miles east of Montego Bay, St James, and 44 miles west of Ocho Rios, St Ann. It is set to include world-class golf courses, a luxury spa, marina facilities, commercial developments, luxury hotels, private residences, and other amenities.
It is also projected to include a hotel, casino, convention and entertainment centres, restaurants, and retail assets, and is expected to cost some US$7.5 billion.
The Jamaica Observer reached out to Harmonisation CEO Dr Lorna Simmonds for comment, but received none. Minister of Finance Dr Nigel Clarke was also asked for an update.
The global casino gaming industry was valued at US$457.5 billion in 2019. The largest portion of the industry goes to casinos which account for US$144.6 billion.
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