Dolphin Cove's expansion to bring more jobs

Steven Jackson, Gleaner Writer

DOLPHIN COVE shows that even in challenging times tourist attractions can generate jobs and pay hundreds of millions in salaries to Jamaicans.

Stafford Burrowes, chief executive officer and chairman of the dolphin tourist attraction, plans to increase his staff by roughly 15 per cent this year to 340, despite operating in the challenging town of Ocho Rios, St Ann. This is based on satisfying plans to double the venue's offering following an imminent land purchase from Government.

"This purchase (of land) will see significant expansion to the Ocho Rios facility and the employment of over 70 short-term workers and at least 40 long-term staff," said Burrowes as he told The Gleaner about the plan to purchase three acres of land to the adjoining seven-acre property in Ocho Rios.

The increased workforce should result in salaries totalling some $265 million this year, or one-third more over last year, he estimated. Most of this money will be circulated within Ocho Rios and the remainder within Negril at the group's other venue. The increased salaries are expected to have a multiplier effect in the towns.

Improving our efficiency

"Staff spend supports taxi/bus operators, rent providers, agricultural production, children's education, and so on," he reasoned. "We continue to add new jobs while improving our efficiency."

The group's ongoing training programmes, according to Burrowes, has transformed unskilled labour into trained personnel and resulted in "many of these persons accepting skilled jobs in Honduras, Venezuela, St Kitts, Cayman and as far as Turkey in the Mediterranean".

A major challenge, however, relates to uncertainty in the US economy and its likely negative impact on visitor arrivals. Burrowes continues to watch these developments, but such challenges are not new for the company which started in 2001. That year, US tourist arrivals dipped due to the impact of the US terror attacks.

Burrowes invested up to US$10 million in capital expenditure since its operations began a decade ago, he told The Gleaner. The group's founders, Stafford and wife Marilyn, spent many years educating themselves and staff about Atlantic Bottlenose dolphins before opening the first marine park. The company now owns about 17 dolphins with an additional six leased from an overseas owner, according to its listing prospectus.

However, another challenge relates to the decline in cruise passenger arrivals in Ocho Rios, down 40 per cent to some 145,000 passengers between April and September 2011, latest data from the Port Authority indicates. Ocho Rios was hurt by the relocation of the biggest cruise line, Royal Caribbean, to the new Falmouth Pier. Dolphin Cove relies heavily on cruise ship passengers for revenues. Burrowes, however, told The Gleaner that this challenge counter-intuitively created an opportunity for new cruise lines to enter Ocho Rios, while still allowing Dolphin Cove to attract those passengers docking at Falmouth.

Already, stakeholders announced that a Norwegian cruise line would return to Ocho Rios after a six-year absence.

"The berthing spaces vacated by Royal Caribbean in Ocho Rios have been filled by other ships from Norwegian Cruise Lines and Carnival. The combined ships docking at the Falmouth and Ocho Rios piers are providing very good numbers for the Ocho Rios attraction, and it is projected to increase," he said.

The relocation has shown little effect on Dolphin Cove's profitability, which jumped 87 per cent to $147.7 million over six months ending June 2011. Indeed, it received a full tax waiver based on its listing on the Junior Stock Exchange, regardless that its core revenues jumped some 30 per cent over the period to $410 million, according to latest data posted to the Jamaica Stock Exchange indicated.

"We have been fortunate to have a good year," he told The Gleaner.

Burrowes stated that despite the appeal of Falmouth, the group would refrain from investing in that town.

"We will not invest in an attraction in Falmouth as the pier is a beautiful 45-minute drive from Ocho Rios, which is an added feature to our tour. We are currently receiving more visitors from the same Royal Caribbean ships that used to visit Ocho Rios, now that they are docking in Falmouth,"he said.

Main contribution

Burrowes said he is close to finalising the land purchase in Ocho Rios, but remained tight-lipped on the spend and actual plans. The company raised some $280 million from its listing on the junior market last year in a bid to buy land, develop its operations and pay down on debt. Dolphin Cove spent just $4.4 million on capital expenditure since the start of the year on Ocho Rios property, and $1.4 million on its Hanover operations. However, last year that figure stood at $13.3 million and $137 million, respectively.

Burrowes concluded that Dolphin Cove's main contribution to Jamaica relates to its pioneering use of dolphins and its job contribution.

"It helped to maintain the position of Ocho Rios as the main cruise ship port in the Caribbean. It wasn't due to the docks. It was the attractions," he said. "We also have contributed by providing employment and development."

steven.jackson@gleanerjm.com