Royal Caribbean, ITM Group Launch Sustainable Destination Company

The $65 million, all-cash deal is one that will no longer be made on behalf of Grand Bahama's taxpayers.
The company's first venture will be the redevelopment of the Grand Lucayan resort in Freeport, the Bahamas.

Royal Caribbean Cruises Ltd. and ITM Group have partnered to form a new destination development company called Holistica. The two companies say that Holistica will aim to create an inclusive model for destination development to meet the need of coastal communicates, local governments, and land, sea and air travelers.

"The continuing growth and rising popularity of cruise vacations make it clear that the sustainable development of coastal destinations, including the thoughtful evolution of existing ones, is in the travel industry's best interest," said Royal Caribbean International President and CEO Michael Bayley in a written statement.

Holistica will be a 50 – 50 partnership between Royal Caribbean and ITM Group, who have begun a search for a CEO for the new company. Holistica will be headquartered in Miami.

Holistica’s first project will be a $275 million development in Freeport, The Bahamas, which was originated by Royal Caribbean and ITM and is currently under review by the Bahamian government. Centered on the regeneration of the Grand Lucayan resort, Royal Caribbean says that the project includes plans for local ownership, employment, job training, community investment and sustainable construction practices.

In addition to the Freeport project, the companies said the new venture will own and operate destinations in Costa Maya, Mexico; Roatan, Honduras; and Kumamoto, Japan. These projects, among others, will serve 8 million visitors annually, and be accessible to all travelers, including land and air vacationers and guests of multiple cruise lines. Holistica is also engaged in discussions regarding multiple existing and proposed destinations around the world, the two companies said.

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