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The Street
The Street
Daniel Kline

Royal Caribbean's Big News Gives It an Edge Over Carnival, Other Rivals

Most Caribbean cruises stop in Nassau, Bahamas.

Carnival Cruise Line (CCL) and Royal Caribbean (RCL) have multiple ships that sail three- and four-day itineraries that regularly stop in Nassau. That means many regular cruisers have been to the port many times. And in turn that's made Nassau a less special port because it's familiar to so many cruisers.

DON'T MISS: A Look at Royal Caribbean Cruise Line's Food and Service Cuts

That's not to say Nassau doesn't have its charms. The island has a beautiful beach walking distance from the cruise port, which hosts all sorts of shopping. The downtown area also has a famed straw market as well as a mix of local and chain restaurants.

Nassau also has no shortage of paid destinations. Visitors can spend a day at the Atlantis resort's massive water park, visiting the new Margaritaville resort, or booking short boat trips to beautiful private islands. And that's where Royal Caribbean wants to get in on the action.

The cruise line has shared its plans for Nassau Beach Club, a sort of extension of its Perfect Day private-island concept that will be private but not an island.

Image source: Daniel Kline/TheStreet

A Look at Royal Caribbean's Nassau Beach Club  

Royal Caribbean sort of one-upped rivals including Carnival and MSC when it revamped its CocoCay private island into Perfect Day at CocoCay. That investment turned what was mostly a beach experience into more of a destination resort while adding significant revenue opportunities for the company.

CocoCay still offers multiple beaches and has added the largest pool in the Caribbean. It will soon add an adults-only area, Hideaway Beach, and it already offers an added-fee Beach Club as well as an extra-charge waterpark along with a variety of mostly included dining options.

Now, the cruise line has confirmed that it's going to be building a private-island-like experience, the Royal Beach Club, after it received approval from the Bahamas government.

The 17-acre destination experience will be built on the western end of Paradise Island, a short car or boat ride from the cruise port.

"Alongside private cabanas, stunning pools and more, the vibrant Bahamian spirit and culture will come to life throughout the world-class destination experience," the cruise line said in a news release. 

"Vacationers will be welcomed by local architecture that complements the exceptional views of the Bahamas’ turquoise-blue waters and white sand beaches, along with experiences that feature Bahamian fare, island-style barbecues, live music and local artisans." 

Royal Caribbean Working with the Bahamas

Royal Caribbean has been very careful to share how it's working on the Royal Beach Club at Paradise Island with the government of the Bahamas.

"Crafted in close collaboration with the Bahamian government, the new project will feature a public-private partnership in which Bahamians can own up to 49% equity in the beach club," the cruise line said. 

'Local businesses and entrepreneurs will also have the opportunity to manage the vast majority of the experience. Overall, the new venture will generate hundreds of jobs across its construction and long-term operation." 

Not all Bahamians agree that the Royal Caribbean project should move forward. The Nassau Guardian, a newspaper that covers the island nation, wrote an editorial opposing the deal.

"This move will no doubt increase the fortunes of RCI and contribute to the coffers of the treasury," the paper wrote. 

"[However,] we are extremely doubtful that it will not impact business downtown and that Bahamians beyond those employed there and the elite investor class will reap any real rewards." 

The key for Royal Caribbean -- and another point of contention for the newspaper -- is that the Beach Club will be exclusive to the cruise line. That gives it a massive edge over chief rival Carnival Cruise Line (CCL), MSC, or even Walt Disney (DIS), which won't be able to offer passengers a similar experience in Nassau. 

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