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Once constructed, the expanded Grand Palladium Hotel is projected to add 1,900 more hotel jobs.
The project, which will mark the second phase of the Lucea, Hanover-based property’s buildout, is still going through the approval process, including a public consultation of the expected impact on the community where it is to be developed, on Wednesday night, allowing residents to confront the developer, Spanish-owned Fiesta Jamaica Limited.
Grand Palladium II is projected to add 949 new hotel rooms, but a few elements are still to be finalised, namely, whether to add 14, 16 or 20 overwater bungalows to the property to attract luxury travellers.
It’s projected that the overall Grand Palladium workforce will rise to 3,500 employees: 1,600 in phase one and 1,900 in phase two. Additionally, it’s estimated that the hotel will ‘induce’ another 2,200 jobs, that is, new employment by non-affiliated ventures, such as restaurants, bars and attractions, whose business operations benefit from the presence of the hotel.
Grand Palladium II will take up to two years to construct. It will adjoin the Grand Palladium Jamaica Resort & Spa, to its south, in Lucea.
The expansion will encompass 475 family rooms and 474 adult-only rooms in a six-storey hotel.
The environmental impact assessment for the hotel development touts the economic benefits of the hotel, but also warns that the Grand Palladium II project poses environmental risks, “including the degradation and loss of natural habitats, as well as adverse effects on noise levels, air quality, and solid waste facilities”.
The environmental impact report incorporates the results of community surveys, showing that most viewed the development as positive: 94 per cent felt the hotel expansion would provide jobs, 18 per cent felt it would foster national development, 1.5 per cent felt it would improve infrastructure, and 4.0 per cent felt it would attract more tourists. The proportions exceed 100 per cent due to multiple responses offered to single queries.
More than one-third of respondents felt the expansion would negatively affect the environment. The concerns related to pollution, loss of marine life, improper sewage discharge, loss of vegetation and overall damage to the ecosystem. Also, about 1.0 per cent of community members interviewed felt the project would result in a negative economic impact for the community. Half of these concerns related to expectations of “increased crime and an influx of criminal elements in the community”. Others felt it would result in more traffic congestion.
The Jamaican government, in its most recent update on pipeline investments, expects investors to pump up to US$2.4 billion into new hotel room construction in the medium term, adding 7,000 rooms. Grand Palladium was not included in that filing.
Amid an employed labour force of 1.42 million, the Statistical Institute of Jamaica counted 121,000 hospitality jobs, grouped under ‘accommodation and food service activities’, as of the second quarter of this year.
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