The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

FINANCE Minister Michael Halkitis yesterday said Grand Bahama is poised to benefit from surging tourism arrivals, reduced electricity costs and new infrastructure investments, including a cruise ship pier complex, airport management services and a new high school.

Delivering the 2026/2027 Budget Communication in the House of Assembly, Mr Halkitis said Grand Bahama recorded more than one million visitor arrivals in 2025, a 91.2 percent increase over the previous year, driven mainly by sea traffic after the July 2025 opening of Carnival Cruise Line’s Celebration Key destination.

He said the momentum continued into 2026, with approximately 438,000 visitors recorded as of March, nearly triple the number recorded during the same period last year.

Mr Halkitis presented the increase as evidence of growing confidence in Grand Bahama as a tourism destination, but Opposition Leader Michael Pintard said the rise in cruise arrivals has not produced meaningful benefits across the island’s economy.

“The Minister of Finance talked about record increases in arrival. What he does not say is that you have an increase in cruise passengers who are coming in, but few of them are leaving Celebration Key, and even few of them are spending any money once they have exited the gate,” he said.

“So, apart from the direct benefit of employment in Grand Bahama for those people who are hired at the key, for the most part, the impact is negligible many of the citizens,” Mr Pintard stressed.

Mr Halkitis also announced that approval was granted for a new cruise ship pier complex and berthing facility at Billy Cay, Freeport Harbour, to be developed by Freeport Cruise Terminal Ltd and MSC Cruises S.A.

The project is expected to include retail outlets, entertainment facilities and transportation infrastructure, which the government says will strengthen Grand Bahama’s tourism product and broaden its visitor offerings.

He said MAG Grand Bahama Ltd was also approved to provide management services for Grand Bahama International Airport, including operational improvements, infrastructure support and training for Bahamian personnel.

The airport has remained a critical issue for Grand Bahama’s economy since it suffered extensive damage during Hurricane Dorian in 2019.

Mr Pintard criticised the pace of progress, saying the government failed to advance the airport’s redevelopment after coming to office in 2021, despite plans left in place by the former administration. He blamed the delay on internal conflicts over the redevelopment.

He also pointed to the closure of the Grand Lucayan resort as evidence that major tourism concerns remain unresolved.

“The Grand Lucayan is now closed. Persons are out of work, and we’re not sure they have even settled all of their obligations to the employees,” he said.

On energy, Mr Halkitis confirmed that the government acquired all outstanding shares of Grand Bahama Power Company, with the transaction taking effect on May 12, 2026.

He said Grand Bahama Power will adopt Bahamas Power and Light’s tariff structure, which is expected to reduce electricity bills by an estimated average of 37 percent for a typical household.

Mr Halkitis described the acquisition as “a major policy accomplishment” that would ease the financial burden on residents, strengthen investor confidence and improve Grand Bahama’s competitiveness as an investment destination.

He said the acquisition would also strengthen the national electricity sector by bringing additional skilled Bahamian workers into the system.

Mr Halkitis also addressed the government’s dispute with the Grand Bahama Port Authority over administrative cost recovery following a recent arbitration ruling.

He said the tribunal confirmed that the government’s cost recovery rights remain enforceable, prompting officials to invoke review rights and issue a formal demand for reimbursement of administrative costs incurred in the Port Area.

The government also committed to continuing road paving works in Hudson Estates as part of wider infrastructure upgrades on Grand Bahama.

Mr Halkitis further announced that a new high school will be constructed on the island through funding from the Caribbean Development Bank. The project is expected to address longstanding education infrastructure needs.

Mr Pintard, however, accused the government of promoting an economic narrative that does not reflect the experiences of many Bahamians.