By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
More Bahamians must “invest in tourism big-scale”, the deputy prime minister is urging, challenging why this is not occurring given how “bullish” the country is on the industry.
Chester Cooper, addressing the Harbour Island Business Outlook, questioned why Bahamian entrepreneurs are not exploiting the industry’s “growth potential” to invest in larger resorts and other tourism-related projects as he pointed out that virtually all such assets are foreign-owned.
And, asserting that the Ministry of Tourism is “bringing the numbers”, with visitor arrivals for 2024 year-to-date some 13 percent ahead of last year’s record-breaking nine million-plus, he urged Bahamians to develop more attractive tours and activities that will - particularly for cruise ship passengers - “that will make our guests want to leave the island with their pockets empty”.
Mr Cooper, who is also minister of tourism, investments and aviation, acknowledged the need to increase per capita spending by cruise ship passengers if The Bahamas is to maximise the economic benefits from this tourism segment but placed the onus on the private sector and its innovation, ingenuity and creativity to achieve this.
Praising Jack’s Bay, the Eleuthera resort development headed by Sir Franklyn Wilson and former Cabinet minister, Tommy Turnquest, the deputy prime minister hailed it as a project that “truly speaks wonders for Bahamian entrepreneurs and Bahamian entrepreneurship”.
“This is something where, if there was one area we could improve improve in our overall investment landscape, it’s Bahamian investment in tourism big-scale,” Mr Cooper said. “If you think of all the resorts in Eleuthera, if you think of all the resorts in New Providence and Exuma for that matter, we will find that most of them are owned by foreigners.
“If we are so bullish and we are so optimistic and enthusiastic about the growth and potential we are seeing in tourism, why aren’t we investing more in tourism?” He also praised Bahamians who have invested in Airbnbs and other vacation rental-type products for “enjoying some of the wealth tourism is bringing”.
The lack of Bahamian ownership and investment in tourism, beyond boutique hotels, tour and excursion providers (supposedly reserved for 100 percent local ownership under the National Investment Policy), and vacation rentals has been a concern voiced frequently over the years as it means the largest assets in the country’s number one industry are chiefly owned and controlled by foreigners.
Bahamian entrepreneurs, though, will likely counter by pointing to an unequal playing field with their overseas counterparts. Foreigners are able to access capital at cheaper interest rates for “big scale” tourism projects in The Bahamas, while many local commercial banks and risk averse and do not lend to the resort sector. There also complaints that Bahamians are not given access to the same investment incentives.
Mr Cooper, meanwhile, branded The Bahamas’ investment market as “very vibrant and robust” with Eleuthera said to be “playing a pivotal role”. He added that regardless of where investment is occurring on the island, “we know a rising tide for Eleuthera will float all boats”.
“The Briland Club right here has already put $130m in the ground,” the deputy prime minister said. “It’s a beautiful marina from what I have seen at night, and we expect an additional $150m investment in this development. Utopia is $75m, and this is in the Governor’s Harbour area.” The Briland Club’s developer is Michael Wiener’s 4M Harbour Island, with Sterling Global Advisors the development manager.
Elsewhere on Eleuthera, Mr Cooper said the Davis marina is “continuing its development with 24 slips” while the French Leave marina now includes a fixed mega yacht slip to attract this market. The $200m Ritz-Carlton project in south Eleuthera was said to be “progressing well, while Cape Eleuthera is adding 20 new cottages.
“We are bringing the numbers,” Mr Cooper said of his ministry. “We want and need more experiences to get persons out of the hotels or off the ships and spending money. We want to ensure we are increasing the level of spend of visitors who come to Eleuthera or any island of The Bahamas by cruise ship.”
With “the empowerment of Bahamians” through entrepreneurial opportunities a key focus of his ministry, Mr Cooper added: “We can enrich the visitor experience and they can spend more money. So the Ministry of Tourism will bring the numbers, as you have been hearing, and last year we brought almost ten million.
“The trouble with breaking records is you have got to do it again, but I am happy to tell you so far, so good. This year we are about 13 percent [ahead] so far. We can bring the numbers, but we cannot extract the money out of their pockets. This is where you come in as stakeholders in the tourism industry.
“We have, and you have, to make our guests want to leave the islands of The Bahamas with their pockets empty by creating the experiences and customer care that will continue to make us the delight of the world.”
Comments
sheeprunner12 1 week, 3 days ago
Which present national leader has real skin in the Bahamian tourism/hotel business????
Wonder why???????
joeblow 1 week, 3 days ago
... covid should have taught us the importance of diversifying the economy! These people will never learn!
ThisIsOurs 1 week, 3 days ago
"the Ministry of Tourism is “bringing the numbers”
No they're not. Every single tourist market in the world is benefiting from the post COVID travel boom. In fact the other markets are doing better than us to the point where they're begging people to stay away. Stop taking credit for what God gave us, "location". In the other story the exit interviews speak of garbage, derelict vehicles and blighted areas... the things we can do aren't being done. Seems like the story of GB and Abaco.
ThisIsOurs 1 week, 3 days ago
The Ministry of Tourism could take on Long Wharf to Arawak Cay, instead they continue to allow this uncoordinated mishmash of randomly constructed stalls to exist and grow with no end in sight. It's a mystery to me why we build a city to hide the beaches or sell them off. Right before our eyes they're destroying the beach at Long Wharf
Dawes 1 week, 3 days ago
Long Wharf looks worse and worse every time i see it. Soon it will extend to Arawak. It looks like people are just putting up stalls and know the Government won't enforce any rules. There is no master plan for the area so when they finally decide to do something there will be outrage as people will say they have been there for 20 years
ThisIsOurs 1 week, 2 days ago
Seems about right
IslandWarrior 1 week, 3 days ago
To Deputy Prime Minister Chester Cooper,
Your call for more Bahamian investment in large-scale tourism projects highlights a crucial issue facing our nation's economic landscape. While your sentiments echo the aspirations of many local entrepreneurs, underlying challenges hinder their ability to engage robustly in such ventures.
One fundamental obstacle lies in the lack of a transparent and equitable process for submitting project proposals to the government. Too often, these proposals fall victim to bureaucratic hurdles influenced by political affiliations, personal biases, or petty rivalries. To foster genuine participation from Bahamian investors, we must establish an open and accountable framework for project submission. This framework should include designated points of contact for proposal submission, a commitment to confidentiality, acknowledgement of receipt, and a structured system for progress updates.
Furthermore, the disparity in access to capital between local and foreign investors exacerbates the issue. Foreign entities often enjoy preferential treatment, accessing capital at more favourable interest rates for large-scale projects. Meanwhile, local banks exhibit risk aversion, particularly in lending to the resort sector, further limiting opportunities for Bahamian entrepreneurs. Addressing this inequity requires proactive measures to level the playing field, ensuring domestic investors receive comparable incentives and support.
Beyond rhetoric and headlines, the real challenge lies in fostering an environment conducive to Bahamian entrepreneurship. This demands a departure from politics-driven agendas and a genuine commitment to empowering our local business community. We can realise the vision of a thriving, locally-owned tourism sector through concerted efforts to eliminate barriers and provide equal opportunities.
Let us transcend political divides and collaborate in building a future where Bahamian investors can contribute meaningfully to the growth and prosperity of our nation's tourism industry.
Sincerely, Bahamian Investors
whogothere 1 week, 3 days ago
Why push big tourism on small islands? Particularly when the Gov have not addressed the infrastructures issue that these projects cause - fix water, power, trash, housing issues first, then nourish and encourage small boutique hotels that are more likely to buy local and employ locally second - What works in Nassau doesn't work everywhere. Most of the money these big projects is spent out side of the country - on materials and specialised labor during the construction process. Then when the project is complete they end up bringing foreign labor to run them because experience and labor resource of running 'big' business is limited in the out islands...Common sense dictates that development should be scaled to the infrastructure and labor resources available to an island....
Disappointing outlook from our tourism minister...
IslandWarrior 1 week, 3 days ago
The Bahamas is a major player in the tourism industry, with both perceptions and reality shaping the sector.
The Cruise Line Industry is navigating toward prosperous waters, with forecasts projecting a robust revenue of $25.4 billion by 2033, boasting a remarkable Compound Annual Growth Rate (CAGR) of 10.6%. This trajectory signals a buoyant future for cruise operators, underlining the enduring allure of sea-bound travel.
In 2023, the Global Cruise Market was valued at a substantial $9.2 billion, underscoring the industry’s significant economic impact on a global scale. This figure not only reflects the financial magnitude of cruising but also emphasizes its status as a vital component of the global tourism sector. Notably, between 2019 and 2023, a staggering 65% of cruise passengers hailed from the United States. This statistic reaffirms America’s status as a powerhouse in the cruise market.
Moreover, despite the challenges posed by the global pandemic, the Cruise Industry is witnessing a heartening trend: 85% of travelers who have previously embarked on a cruise express a willingness to set sail once more. This figure marks a resilient recovery, standing 6% higher than pre-pandemic levels. It underscores the enduring appeal of cruising, demonstrating the industry’s ability to bounce back and adapt to changing circumstances.
Bahamians should be aware of the economic dynamics in their own country, where billions of dollars in tourism revenue are sailing and flying into the Bahamas only to leave the next day. We are not capturing the opportunity. We need to focus on meeting the needs of our visitors, which is currently not happening. As a result, the cruise industry has taken the initiative to cater to the needs of tourists. While the Bahamas earns only $18 from each cruise passenger, the cruise islands earn an average of $500 from each visitor.
Economist 1 week, 3 days ago
Well said. Right on target. No real economic benefit to Bahamians.
pt_90 1 week, 3 days ago
You mean like Toby Smith on PI
bcitizen 1 week, 3 days ago
I was thinking the same thing but, you already typed it.
ThisIsOurs 1 week, 2 days ago
Someone had to have given RCI Toby's entire proposal.
And why lose all that revenue from the guests coming off the ship? Between the nastiness of Arawak Cay and the pristine presentation of the beach club, especially after the announcer tells me about fights, harassment and crime, I know which one I'd choose.
Just like the straw market vendors, I wait for the vendors at Arawak Cay to complain about losing all their revenue to the beach club only for Chestrr Cooper to tell them they should have done something to improve their product in 2024. Maybe theyll be able to capture some interest from the water ferried guests hurrying to get back to the ship after theyve spent all their budgeted money at the beach club
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