Consolidated Water Sees Return of Tourism in the Cayman Islands as COVID-19 Travel Restrictions Ease

Rhea-AI Summary

Consolidated Water Co. Ltd. (CWCO) reports a surge in water demand in the Cayman Islands, driven by the easing of COVID-19 restrictions under the Phase 5 reopening plan. The company, which operates seven seawater desalination plants, anticipates a return to normal retail water sales as tourism resumes with hotels and restaurants reopening. Major airlines have resumed flights, and bookings for the winter holiday season are promising, with predictions of 80% occupancy by summer. Increased tourism is expected to boost the company's sales.

Positive

• Increased water demand due to eased COVID-19 restrictions.
• Anticipation of returning to normal retail water sales as tourism resumes.
• Major airlines, including American Airlines and United, have resumed flights to Cayman.
• Hotels report over 50% bookings for the upcoming winter holiday season.

Negative

• None.

GEORGE TOWN, Cayman Islands, Feb. 28, 2022 (GLOBE NEWSWIRE) -- Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a leading developer and operator of advanced water supply and treatment plants, has noted a recent increase in water demand in the Cayman Islands as the country’s Phase 5 reopening plan continues.

The company operates seven seawater desalination plants that produce all the piped drinking water on Grand Cayman, which is home to about 95% of the nation’s population.

“The easing of COVID-19 restrictions and the return of tourism to the Cayman Islands is very encouraging to see after many months of lockdowns and travel bans,” stated Rick McTaggart, CEO of Consolidated Water. “The removal of certain restrictions sets the stage for our retail water sales to return to normal levels in the coming months as hotels, restaurants and other tourism-based businesses begin servicing vacationers. In particular, we were very happy to see that the government raised the limits on gatherings which facilitates the return of conferences and conventions to the Islands.”

On February 18, the Cayman Islands government dropped all on-island COVID testing for vaccinated travelers, citing a decline in local infection cases. The Islands also no longer require post-arrival COVID-19 tests for fully vaccinated travelers, and has reduced the quarantine period for partially vaccinated and unvaccinated individuals from 10 to seven days.

Major airlines, including American Airlines and United Airlines, resumed their flight routes to Cayman earlier this month. Tourism minister, Kenneth Bryan, said that next month Delta and Southwest will also resume their flights, and Cayman Airways will resume its service to Denver, Colorado.

Marc Langevin, president of the Cayman Islands Tourism Association, reported in a recent interview that many of the major hotels on Grand Cayman, including The Ritz-Carlton, Kimpton Seafire Resort, Marriott and Westin, are already more than 50% booked for the upcoming winter holiday season.

Langevin predicts that by this summer, Cayman hotels will reach 80% of pre-pandemic occupancy levels and every hotel will be full come December.

About Grand Cayman
Located 480 miles south of Miami, Florida, Grand Cayman is one of the largest financial centers in the world with over $1.8 trillion on deposit in more than 250 banks. A British Overseas Territory, the Cayman Islands are comprised of three islands: Grand Cayman, the country’s capital and commercial center with approximately 56,000 residents, and the more sparsely populated sister islands of Cayman Brac and Little Cayman, located 80 miles to the northeast. The other major economic engine of the islands is tourism, which attracted more than 2.3 million visitors in 2019 to Cayman’s beautiful beaches, botanical gardens and wildlife.

About Consolidated Water Co. Ltd.
Consolidated Water Co. Ltd. develops and operates advanced water supply and treatment plants and water distribution systems. The company operates water production facilities in the Cayman Islands, The Bahamas and the British Virgin Islands and operates water treatment facilities in the United States. The company also manufactures and services a wide range of products and provides design, engineering, management, operating and other services applicable to commercial and municipal water production, supply and treatment, and industrial water and wastewater treatment. For more information, visit www.cwco.com.

Cautionary Note Regarding Forward-Looking Statements
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "intend", "expect", "should", "will" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to (i) continued acceptance of the company's products and services in the marketplace; (ii) changes in its relationships with the governments of the jurisdictions in which it operates; (iii) the outcome of its negotiations with the Cayman government regarding a new retail license agreement; (iv) the collection of its delinquent accounts receivable in the Bahamas; (v) the possible adverse impact of the COVID-19 virus on the company’s business; and (vi) various other risks, as detailed in the company's periodic report filings with the Securities and Exchange Commission (“SEC”). For more information about risks and uncertainties associated with the company’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the company’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting the company’s Secretary at the company’s executive offices or at the “Investors – SEC Filings” page of the company’s website at http://ir.cwco.com/docs. Except as otherwise required by law, the company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Company Contact:
David W. Sasnett
Executive Vice President and CFO
Tel (954) 509-8200
dsasnett@cwco.com

Investor Relations Contact
Ron Both or Justin Lumley
CMA
Tel (949) 432-7566
Email Contact

Media Contact:
Tim Randall
CMA
Tel (949) 432-7572
Email Contact

FAQ

What is driving the increase in water demand for Consolidated Water Co. (CWCO) in February 2022?

The increase is primarily due to the easing of COVID-19 restrictions and the reopening of tourism in the Cayman Islands.

How many desalination plants does Consolidated Water Co. operate?

Consolidated Water Co. operates seven seawater desalination plants that supply drinking water to Grand Cayman.

What occupancy rates are anticipated for Cayman hotels this summer?

Cayman hotels are expected to reach 80% occupancy by summer 2022.

Have airlines resumed flights to the Cayman Islands?

Yes, major airlines like American Airlines and United have resumed their flight routes to the Cayman Islands.

What is the stock symbol for Consolidated Water Co.?

The stock symbol for Consolidated Water Co. is CWCO.