Concerns Over Fairmont Southampton SDO in Bermuda: New Environmental and Economic Impact Explored

Published on December 19, 2025

Bermudians are being asked to accept one of the largest and potentially most contentious developments in the modern era on the island—a major development at the Fairmont Southampton hotel with a planned additional 250 residential and tourism units. While this new development promises jobs, investment, and a new hotel, a review of the information reveals a litany of problems that stretch far into the future and will be paid for by taxpayers rather than the developers.

The SDO, which has been approved for consideration, has substantial information which warrants additional examination, especially with regards to the possible effects on the environment, the economy, and the future for tourism on the island. With the Senate about to proceed with consideration of this development, there are quite a few persons wondering whether this is what is best for Bermuda.

The Details of the Proposed Fairmont Southampton SDO

The proposal involves the construction of 250 new residential and tourism units across the Fairmont Southampton property. This ambitious project is expected to drastically alter the landscape, with some of the units planned on protected land. The developers have emphasized promises of job creation and investment, yet the supporting documents raise several concerns, particularly the lack of hard data to support these claims.

The SDO outlines two primary phases: Phase 1A (the “Turtle Hill” section) and Phase 1B (the “Golf Units” section). However, critical details, such as the exact number of units in Phase 1A, are missing. Furthermore, Phase 1B allows for 159 tourism units, despite the overall limit for tourism units set at 159. These discrepancies and drafting errors raise questions about the integrity of the proposal and its long-term sustainability.

Lack of Transparency and the Absence of Public Scrutiny

One of the most troubling aspects of the Fairmont Southampton SDO is the lack of thorough public scrutiny. The draft legislation, which has passed through the House of Assembly, has not been adequately questioned or reviewed. Despite its significant impact on both the environment and the local community, no objections were raised during the legislative process. This oversight suggests that the proposal has not been given the careful consideration it deserves before being tabled for approval.

Additionally, the proposal includes a significant change not presented during the public consultation in 2023: the subdivision of the property into nine lots with no special conditions. This move would allow the developer to sell the parcels before or after construction, potentially undermining any long-term commitment to the hotel’s operation. Once the property is sold, the developer would have no further obligation to maintain the hotel, leaving Bermuda with a development but no guarantee of its sustainability or continued contribution to the local economy.

Unsubstantiated Claims of Job Creation and Economic Benefits

The proposal claims that the project will generate jobs for Bermudians, but these assertions lack solid evidence. While the closure of the hotel led to the loss of approximately 500 jobs, the economic assessment provided with the proposal does not substantiate claims of significant new job creation. In fact, the proposed development’s path to profitability includes “shedding jobs,” a practice that would further strain the local workforce.

The Economic Impact Assessment (EIA) on the project admits that its findings are based on unverified data provided by the developer and relies on over 120 assumptions in place of actual evidence. This raises serious concerns about the credibility of the analysis, as it fails to address the long-term economic and social implications for Bermuda.

Environmental and Cultural Costs: A Threat to Bermuda’s Heritage

One of the most significant concerns raised by the Fairmont Southampton SDO is its impact on Bermuda’s environment. The Asterousia Mountains and surrounding areas are home to over 118 bird species, including Eastern Bluebirds, whose habitats will be destroyed by the construction of high-rise buildings and years of development. This disruption to local wildlife, migration corridors, and natural landscapes is irreparable. Even the installation of bird boxes cannot compensate for the long-term ecological damage.

In addition to the destruction of valuable wildlife habitats, the development would result in the loss of open space and recreational areas that are vital for the physical and mental wellbeing of Bermudians. The importance of green spaces cannot be understated, as they provide opportunities for outdoor activities, contribute to the island’s aesthetic value, and offer much-needed respite from the demands of daily life. Removing these spaces would diminish Bermuda’s beauty and negatively affect both residents and tourists.

Furthermore, the proposed development threatens to disturb historically significant areas that are crucial to understanding Bermuda’s early settlement and the African Diaspora. These archaeological sites are an essential part of Bermuda’s cultural heritage, and any disturbance could permanently alter the historical landscape.

Impact on Tourism: Can More Units Revive the Fairmont Southampton?

The core of the proposal is the revival of the Fairmont Southampton hotel, which has been closed for several years. The developers argue that the addition of 250 luxury residential units will make the hotel profitable again. However, this claim is not supported by evidence. If the hotel struggled with 593 rooms previously, how will it succeed with even more units? Additionally, the suggestion that the residential units will ease Bermuda’s housing shortage is misleading, as these units are not intended for Bermudians.

Tourism is one of Bermuda’s most important economic sectors, and the loss of its most iconic hotel would have significant repercussions. However, building luxury units for wealthy buyers—who may never even reside on the island—does not solve the housing crisis or address the broader challenges facing Bermuda’s tourism sector.

Why the Senate Should Reject the SDO Proposal

Although the re-opening of the Fairmont Southampton Hotel may be a positive event for the community, it should not happen at the expense of the environmental and cultural resources of Bermuda. This project has been poorly examined, has flawed economics, and may result in irreversible harm to the environment.

Bermuda needs development that will enhance its economic base without compromising its heritage and natural resources. In this respect, it is important for the Senate to fulfill its task of voiding this Special Development Order and calling for a thorough review of this development, taking into consideration both the positive and negative effects that this development could bring in the future. In this way, Bermuda can ensure that future developments within the region work for the benefit of Bermudians.