Divi ceases trading at Tiara Beach

As part of a strategic plan to refocus its resources
on potential growth markets in the Caribbean, Divi Resorts has decided to
cease
business operations at Divi Tiara Beach Resort in Cayman Brac effective
September
23, 2006.Divi Resorts will continue to serve
its dive customers at its resort in Bonaire,
the Divi Flamingo Beach Resort & Casino.


As
part of the company’s plan earlier this year Divi Resorts broke ground on
a new development at Divi Aruba Phoenix Beach Resort in Aruba that will more
than double the size of the resort, adding 140 suites to the existing 101
units.  This project is expected to be
complete in March 2008.  Additionally in
August 2006 Divi Resorts announced that it will open a second hotel in
Bonaire in 2008, an all inclusive
four-star resort with a
full service dive center.

“While
the decision to close Divi Tiara was a hard one, it was one that will
benefit the company in the long run and will allow us to concentrate our
efforts
on expanding the Divi Resorts brand in Caribbean destinations with greater
opportunities for development,” said Mark Steward, Vice President of Sales
and
Marketing for Divi Resorts.  “Certain economic
realities of continuing a dive-oriented resort on Cayman Brac also influenced
our decision.  Factors included airlift
issues, which have affected Divi Tiara’s dive guests in particular as they
need
to bring additional gear for their sport; increased competition from the
growing number of niche market dive destinations throughout the Caribbean; and
weather which in the past years has
pushed
up insurance costs.”
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