Despite Tavistock Group's lead principal Joe Lewis losing close to US$1 billion on the sale of US investment house Bear Stearns to JP Morgan Chase, the Harmony Cove tourism project in Jamaica will still go ahead as planned.

Speaking with Caribbean Business Report at the Tavistock Golf Cup Gala in Orlando's Isleworth, earlier this week, Tavistock Group's Managing Director Douglas McMahon said: "Despite the fact that Bear Stearns has been sold and we all know the circumstances there, the Harmony Cove project is on track and we as the developer, our private sector partners and the Jamaican government are all committed to see the project break ground sometime next year.

"There has been a change of government in Jamaica and the 'getting to know you phase' has gone well."

The private investment firm (51 per cent) has partnered with the Jamaican government (49 per cent) to develop a tourism resort on 2,300 acres of land on Trelawny's Harmony Cove.

In 2006, the then Prime Minister Portia Simpson Miller signed a joint venture agreement between Harmonisation Limited (a government entity created to partner with the Tavistock Group on the project, comprising the Development Bank of Jamaica and the National Housing Trust) and the Tavistock Group for the development of the resort, which is one of the largest and most ambitious projects undertaken by a Jamaican government.

The project, to be completed in two phases, is estimated to come in at around US$5 billion with a number of hotels on the property housing over 2,000 rooms. The property will also contain championship golf courses, an equestrian centre, a water park, a conference centre, marinas, retail shops selling the world's top brands, restaurants, nightclubs and local attractions showcasing the best of Jamaica. The timeline is as follows: 2008-09 - Complete design work and finalise partners; 2009-10 - Begin construction of all Phase 1 components; 2012 - Harmony Cove Grand Opening.

The Tavistock Group is a private investment company founded by Joe Lewis. The company has grown to encompass a broad portfolio around the world including life sciences, sport teams (Tottenham Hotspur Football Club) and sporting events (The Tavistock Cup), manufacturing (Bristol Motor Cars) and distribution (Puma, Gottex, Vans), oil and gas, financial services, restaurants (California Café, Napa Valley Grille), private luxury residential properties and master-planned real estate development.

Tavistock Group's portfolio of interests includes more than 170 companies in 15 countries. The company has offices in Argentina, The Bahamas, China, Europe, Mexico, the UK and the US.

Lewis, who dropped out of school at 15 to work in his father's pub in London's East End, is one of Britain's richest men. He made most of his estimated fortune of over US$5 billion from foreign exchange trading, taking bets that shook some of the world's biggest currencies.

The British billionaire currency trader, now in his 70s, last year held a 10 per cent stake in Bear Stearns, the US investment house weakened by the sub-prime mortgage crisis.

The Tavistock Group boss paid more than US$100 a share for most of his 11 million shares, according to US regulatory filings.

"Robert Stern will be the chief architect on the Harmony Cove project, and its design will celebrate Jamaica. It will deliberately depart from European and American concepts. The design and development phase has been earmarked for 2009.

"We will employ a transformative concept, making it the most ambitious project of its kind in the Caribbean," said McMahon.

Commenting on the Jamaican government's involvement in the project, Tavistock's managing director declared that it had been innovative and entrepreneurial and that it had the foresight to aggregate the land. "The government wants to have a clearly defined high-end component to its tourism product and is determined to make it happen. For this initiative it must be commended."

He went on to add that among the reasons that Tavistock opted for Jamaica was its collaborative business culture, the potency of brand Jamaica and its location, particularly as it relates to cruise ship routes.

Many tourism observers have posed the question: Will Harmony Cove have a high-end casino? Minister of Tourism Ed Bartlett has indicated that gaming and casinos could play a vitalising role in Jamaica's tourism product, but the local clergy vehemently maintains that gaming is morally reprehensible and should not be entertained in Jamaica.

"Casinos and gaming have become popular with some resorts, one only has to look at Atlantis. We could develop an airport for high rollers to fly into Jamaica for casino gaming at Harmony Cove. However, we will not go that route if the government is adamant in its refusal to countenance casinos and gaming lounges," said McMahon.

According to McMahon, the Tavistock Group is a dedicated equity company that doesn't rely on debt or leverage. It employs an investment strategy that seeks strong concepts that can be executed and where above-average returns can be made.

"We back strong ideas with strong people. There isn't a dollar of debt in our investment portfolio and we do not pledge one asset against another. That is why the fall in Bear Stearns' share price does not really matter. To us it was an anomaly," said McMahon.

The Tavistock Group recently acquired a Polish vodka company, and the US$1.3- billion Albany resort in the Bahamas remains on track to be opened in December of next year. The 565-acre resort project contains a luxury hotel, a marina and a championship 18-hole golf course.

"The project comes in two phases. Our goal at Harmony Cove is to create a luxury destination that will be internationally recognised for showcasing the best of Jamaica. As well as housing attractions it will be an attraction for both local and international visitors. It will be a state-of-the-art resort development, the best the Caribbean has ever seen," declared Tavistock Group's managing director.

Jamaica’s Prime Minister, the Hon. Bruce Golding, announced on April 22 that the government of Jamaica had decided to permit the licensing of casinos. The announcement came during the Budget Debate presentation to the members of the Cabinet and the Minister of State and Parliamentary Secretaries.

But despite the decision, Jamaica is not looking to become a casino destination.

During an exclusive pre-opening lunch for tour operators attending the recent Jamaica Product Exchange (JAPEX) in Kingston, Tourism Minister Edmund Bartlett said, “We are looking at the casinos as being a value-added element. Jamaica will never be a casino destination. You will never see stand-alone casinos dominating the landscape. We are being very careful in regard to the policy.”

He noted, “The qualifier for new projects will be either 1,000 rooms or $1.5 billion in investment, and gaming will be no more than 20 percent of the entire experience. The strategy is to increase the visitor spend.”

Bartlett said he has been to Dubai seeking investors for a project in Jamaica that will draw visitors.

“We believe Jamaica needs something iconic that makes visitors feel special when they come here,” he says. “I’ve gone to Dubai for investment because they have the Burj Al Arab tower and they are building the Palms, and then the World, and then the Universe.”

Agreements with two investors have been approved for major developments involving more than 6,000 new hotel rooms and $2.8 billion in investment.

Tavistock Group, already developing Harmony Cove (a large upscale project on 2,300 acres with a total investment of $4 billion to $5 billion and 4,500 rooms), will offer gaming and has agreed to increase the size of its project from 4,500 rooms to 8,500 rooms with an additional investment of $1 billion to $2 billion. These will be configured in a cluster of nine hotels with an array of facilities and amenities.

The government has also approved proposals from the developers of the Palmyra Resort and Spa, operating under a company known as Celebration Jamaica Ltd., for a major new investment predicated on the granting of a casino license. This investment involves the development of a 65-acre property adjoining the existing Palmyra Resort at Rose Hall and consisting of 2,080 new hotel rooms. The project will involve a total investment of $1.8 billion.

“Jamaica will ensure that best practices are observed and that only reputable companies with proven integrity will be allowed to operate in Jamaica,” says Director of Tourism Basil Smith. “It is the government’s intention to dedicate the revenues from casino operations to a special fund to finance capital development in health, education and security.”

When completed, Harmony Cove will feature several luxury resort hotels, with at least 2,000 rooms, a spa and fitness center, several championship golf courses, an equestrian center, a water park and a large-scale marina with shops, restaurants, nightclubs and a wide range of amenities.

Preliminary design work for Harmony Cove is already underway and Tavistock Group and Harmonisation Ltd. hope to break ground in 2009.

Time will tell what kind of an impact Jamaica’s new gambling laws will have on the destination, but one thing’s for sure: Islands without casinos may soon be something of the past.

“We believe Jamaica needs something iconic that makes visitors feel special when they come here,” he says. “I’ve gone to Dubai for investment because they have the Burj Al Arab tower and they are building the Palms, and then the World, and then the Universe.”