All Talk and No Action: Beach Erosion on Seven Mile Beach and the Impact on Real Estate, Tourism and Government Revenue – Part 1

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Back in October 2022 I wrote an article entitled “The impact of the coastal erosion of Seven Mile Beach and potential solutions”. As a year has gone by and no official plan from the government has been announced I thought it was important to revisit this subject.

I started writing this article several months ago but then Tropical Storm Helene hit back in October which has worsened and expanded erosion along Seven Mile Beach. We are now at a critical point to save Seven Mile Beach.

As this is an expansive subject, I’ve decided to split this article into two portions. The first will discuss some of the history of what has happened or should I say not happened in this regard, as well as the direct impact to tourism.

The second article will focus on how the erosion of Seven Mile Beach is impacting real estate and more importantly every single aspect of our country, potential solutions and a review of the recent report conducted by Dart.

The talking

In January 2020, a $1.25 million government-led project was proposed to counter erosion at the southern end of Seven Mile Beach. Then, in November, several tropical storms and hurricanes accelerated the erosion. In December, the Marriott called for a solution to the beach erosion amidst talks of a potential border reopening.[i]

In August 2021, the Cayman Compass posted a quote from then Premier Wayne Panton stating “we are looking at the erosion issue and our action plan through a lens of sustainability,” Panton wrote in a Facebook post. “A meeting is planned for Monday to address the issue, and we will develop an action plan that will include short, medium and long-term proposals to address the myriad issues surrounding this ongoing environmental problem.”[ii]

In March 2024, the Cayman Compass reported on the comprehensive review of the DHI’s beach erosion report. They reported that “if the present trend in meteomarine conditions continues, then the observed erosion along the southern part of SMB will get worse and gradually spread towards north. If no measures are taken, then chronic erosion along the entire SMB is likely to occur the coming years/decades.”[iii]

“The best way to mitigate the erosion along SMB is through artificial beach nourishment. It is recommended to feed the sand to the beach in two designated spots in the southern part of SMB. These so-called sand engines will gradually feed the neighboring beaches. A major advantage of the use of sand engines is that the establishment of the nourishment does not require the use of heavy machinery on the beach. The sand engines can be created using floating pipelines where sand is pumped directly from the dredger to the beach.”[iv]

In my article in October 2022, I stated “government plans to allocate $21 million over the next two years for a project to restore a large stretch of lost sand at the southern end of Seven Mile Beach. Many of the technical details remain to be worked out and the $1 million allocated for 2022 is expected to cover a business case and feasibility study for the work. An additional $20 million has been allocated for 2023 when the project, if approved, is expected to get under way.” This information was taken from an article in the Cayman Compass in 2021.

So far, none of this has happened and in fact it’s been over a year since the DHI’s report and as far as I know nothing has been announced with respect to a beach replenishment project.

The latest developments

The bad news is that in late September Tropical Storm Helene “worsened and expanded to the point where only a few slivers of sand remain along a mile-long stretch of once prime beachfront.”[v]

The impact on tourism

The erosion of Seven Mile Beach on tourism has already begun and as more time goes on and on, it will continue to get worse. When marketing our islands to the world, Seven Mile Beach has become synonymous with Grand Cayman. The Department of Tourism page on Grand Cayman showcases a stunning video of Seven Mile Beach and touts that visitors should “begin at the renowned Seven Mile Beach on the west side, an endless stretch of award-winning sand for relaxation and fun.”

Two of the biggest weeks for stayover tourists in the Cayman Islands are the weeks between Christmas and New Year’s. Here are some rates at various Seven Mile Beach hotels from Saturday, December 21, 2024, through Saturday, January 4, 2025, as currently quoted by their individual websites.[vi] Please note that these are lowest rates on each website.

The Ritz-Carlton – US $1,986 per night
Kimpton Seafire – US $1,778 per night
The Westin – US $1,697 per night
The Marriott – US $622 per night

The nightly rate at The Westin is 172% more than The Marriott. Both are considered 4.5 star hotels per Expedia.

Now, let’s do some math. Let’s assume with a full beach that The Marriott could charge a similar nightly rate to The Westin during this time. For sake of this analysis, let’s say that rate is US $1,400 per night.

There are 295 rooms at The Marriott and each room is charged a 13% tourist tax on accommodation.

$622 X 14 nights X 295 rooms X 13% tourism tax = $333,951 in revenue for the government.

In comparison, $1,400 per night X 14 nights X 295 rooms X 13% tourism tax = $751,600 in revenue for the government.

Just for talking purposes as there is no deduction for potential vacancies, in just 14 days the difference in revenue to the government for just this one hotel is $417,709.

Word of mouth is already having an impact on tourism. Grand Cayman is most known for Seven Mile Beach. It is the jewel in our crown. It is where most of the hotels are located and it is the most coveted and expensive place to stay in Grand Cayman. Nobody is going to spend thousands of dollars to visit Grand Cayman and not visit Seven Mile Beach.

Unfortunately, the word is getting out that Seven Mile Beach is disappearing. Quotes like the following are popping up on key reservation sites such as Expedia and Tripadvisor.

“Nice location, great staff. On the expensive side. If you are looking for a beach the beach is not accessible.” “There is virtually no beach at this location.” “There is no sandy beach, no beach at all actually.”

In conclusion

Tourism is the primarily revenue generating pillar for our country which has a substantial impact on the overall revenue generated for our government.

As you can see from just a couple of examples on how the lack of beachfront on Seven Mile Beach impacts revenue to the Cayman government, the numbers are staggering.

Seven Mile Beach is known for its stunning beauty and was named “The Caribbean’s Best Beach” in 2015 from Caribbean Travel and Life Magazine. It is the key to our tourism industry and its renourishment or replenishment should be a key priority to our government.

Beach erosion will continue along Seven Mile Beach and if we don’t start fixing this problem now not only will it get worse, but it will continue to become more expensive to fix.

The next part of this article will focus on how the erosion on Seven Mile Beach is affecting real estate as well as a look into the new report published at the end of October commissioned by Dart Enterprises, and potential erosions solutions.

If nothing is done, this will affect each and every one of us in the Cayman Islands. We all enjoy Seven Mile Beach – restaurants, walking the beach and amenities that come from the beach will all be impacted. But it’s more than that. If we don’t fix this problem, it will have an economic impact on our entire country to the tune of $1 billion annually.

[i] Cayman Compass, August 6, 2021
[ii] Cayman Compass, August 6, 2021
[iii] Cayman Compass, March 18, 2024
[iv] Cayman Compass, March 18, 2024
[v] Cayman Compass, October 4, 2024
[vi] Data pulled August 13, 2024