American Indian tribe’s joint venture gambling cruise abruptly ends

Sunday, June 4, 2000 | 3:04 a.m.

The Enchanted Sun, a joint venture between the Viejas Indian tribe of Alpine and Commodore Cruise Line of Hollywood, Fla., suspended operations Friday after about two months of operation.

"We have been talking for some time about dissolving this partnership based primarily on the economic viability of this project," Lou Phillips, chief executive officer of Viejas Enterprises, said Sunday. "The demand hasn't been there."

The Enchanted Sun shoved off on its maiden voyage April 14 from San Diego to Rosarito, Mexico. Its capacity of 850 passengers was never reached, with the largest voyage carrying about 500 passengers, Phillips said.

The original plan called for offering cruises six days a week for between $58 and $68, but the ship had only reached four cruises a week, Friday through Sunday, with an average ridership of 250 passengers.

The Enchanted Sun ran into problems in Rosarito, where the pier lacked a sea wall, making it difficult for passengers to disembark as offered in the cruise brochure. Sea wall construction would have cost between $7 million to $8 million, Phillips said.

The phone at Commodore Cruise Line's headquarters rang unanswered Sunday. In a statement released late Saturday, Jeffrey Binder, chairman of Commodore Holdings, said "logistical problems in Rosarito" prompted the cruise line to suspend operations.

Additionally, the cruise's potential popularity was likely hampered by California's Proposition 1A, which allows Nevada-style gambling on Indian reservations.

"There are competitors all over San Diego County," Phillips said, including the Viejas tribe, which runs a casino its the reservation. "The issue is we sort of are competing with ourselves. When this venture was put together (Proposition 1A) had not been approved by the voters."

The 433-foot Enchanted Sun was refurbished at a cost of more than $27 million, offering Nevada-style roulette and craps, which were previously prohibited in California. The ship will likely to be sold.

The Viejas Indians invested $8 million in the project and it was unclear if the tribe would recoup that amount, Phillips said, adding that the tribe's chairman, Anthony Pico was philosophical about the failed gambling cruise venture.

"We talked about sometimes you win and sometimes you don't, and you move on," Phillips said.