Bahamas Prime Minister Hubert Ingraham said Monday the looming shutdown of a sprawling luxury resort poses a "tremendous challenge" to the tourism-dependent economy of Exuma, a central Bahamian district made up of scores of small islands.

The Atlantic archipelago's cabinet office announced last week that the Four Seasons Resort Great Exuma at Emerald Bay, which opened in 2003, will close May 26. Most of its 500-strong work force will be dismissed in coming days.

On Monday, Ingraham told legislators the closure "presents a tremendous challenge for the economy of Exuma," and that the government is helping "identify the best investor group to acquire and reopen the hotel, golf course and marina."

The islands' economy is reeling from a steep decline in visitors from the United States, and other big Bahamas resorts have recently announced layoffs or reduced workers' hours as the world economic crisis slashes tourism.

The Four Seasons resort is part of a 500-acre (202-hectare) development that includes a marina and Greg Norman-designed golf course.

In June 2007, the owner of the master development, EBR Holdings Limited was unable to meet its debt obligations and it was placed into receivership.

Receivers have notified the government that talks with various investors which previously signalled an interest in taking over the development were under way, but far from complete.

- AP