By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
A leading businessman yesterday warned that the controversy surrounding China’s purchase of the British Colonial Hilton gave the impression the Bahamas was ‘a banana republic”.
Describing criticism of China State Construction’s acquisition of downtown Nassau’s ‘anchor property’ as “myopic”, Franklyn Wilson told Tribune Business: “If the Chinese can buy in New York and London, why the hell can’t they invest in the Bahamas?”
The Arawak Homes chairman said the Bahamas’ strong relations with Beijing gave it a “huge opportunity” to attract badly needed foreign direct investment (FDI), with Chinese officials estimating that their outbound capital flows may total $120 billion this year.
Responding to those suggesting there was “something wrong” with a Chinese state-owned firm buying the British Colonial Hilton, Mr Wilson questioned why London and New York were taking the opposite stance.
He added that Chinese interests had just acquired New York’s landmark Waldorf Astoria hotel, while 62.7 per cent of all Chinese money in Europe was currently invested in London.
“If they can buy up assets in London and New York, how myopic can we be to say that they can’t buy in Nassau,” Mr Wilson told Tribune Business. “It makes absolutely no sense. It’s crazy.”
With China’s projected $120 billion outward investment flows forecast by Beijing’s assistant minister of commerce to grow by 10 per cent, year-over-year, for the next five years, Mr Wilson said the Bahamas should seek to attract those funds.
“The Chinese are the bankers to the world. They have the largest foreign reserves in the world,” the Arawak Homes chief told Tribune Business.
“Why go through this and create controversy over the Chinese buying the Hilton? It’s so myopic.... It puts the country in a bad light, with people thinking: ‘They’re too small-minded, myopic’.
“If it’s good for London and New York, why the hell can’t they bring some money to Nassau? It absolutely makes no sense.”
Suggesting that the situation also might give some observers the perception that the Bahamas was “a banana republic”, Mr Wilson said the Hilton purchase controversy was unlikely to deter further Chinese investment in this nation.
The Sunshine Holdings chairman was speaking after his wife, Senate president Sharon Wilson, delivered a report on the October 21-29 visit she and Senate vice-president, Joseph Curry, made to China.
Hinting at future investment possibilities for the Bahamas, Mrs Wilson said China’s commerce ministry and insurance regulator had both relaxed restrictions on overseas investments by Chinese firms.
As the world’s second largest economy seeks to put its surplus capital and foreign currency reserves to good use, Mrs Wilson said: “I am advised that there is a growing number of citizens of the Bahamas now residing in the People’s Republic of China.
“While in China, the vice-president and I accepted an invitation from one such citizen to attend a meeting with the chief executive of an enterprise which we understand is evaluating a possible investment which, if it were to happen, would be quite significant for the Bahamas.”
Chinese media reported that relations between the Bahamas and China were “at the best level in history”, following Mrs Wilson’s meeting with a top Chinese government adviser.
“This is a huge opportunity,” her husband told Tribune Business yesterday. “These kind of relations between the Bahamas and China speaks to the fact there is a real opportunity here. To me, it’s a pretty significant thing.”
The concerns surrounding China State Construction’s Hilton purchase have largely focused on the uncertainty surrounding its wider plans for downtown Nassau’s redevelopment,and the masterplan it has supposedly presented to the Government.
And K P Turnquest, the Opposition’s Finance spokesman, previously said the Hilton deal had to be set alongside all other Chinese investments in the Bahamas, and whether this collectively gave Beijing too much economic dominance and leverage.
China State Construction, apart from being the main contractor for the $2.6 billion Baha Mar project, also has a $150 million equity stake in the project. And the Beijing-controlled China Export-Import Bank is Baha Mar’s main debt financier, having provided at least $1.9 billion to the development.
This effectively makes China owner, financier and contractor for the Bahamas’ second mega resort/casino development, which is being counted on to play the lead role in turning around this nation’s moribund economy and high unemployment rate.
Along with China State Construction’s interest in the British Colonial Hilton, it is also one of the remaining bidders on the Bahamas Electricity Corporation (BEC) restructuring. If successful, it would be a major player in the utilities and hotel industries - two of the major sectors of the Bahamian economy.
Other Chinese interests include China Harbour and Engineering Company’s role as the contractor for the $39 million Abaco port and, on the private sector side, Hutchison Whampoa’s investments in Freeport.
Comments
The_Oracle 9 years, 12 months ago
What other reaction would you expect from the Bay street property owners? VAT, real property taxes, Income taxes, and now Non Bahamian ownership on Bay street? Mercantile entrenchment and prominence is under perceived attack, Slowly awaking from their mistaken belief that their world will never change! Sad only due to the fact that the current administration is such a cluster bomb in most respects. We are now rolling down the WTO/IMF road in multiple directions and no administration will be able to stop or reverse it, nor will they want to. "The power to tax involves the power to destroy" U.S. Chief Justice John Marshal.
TalRussell 9 years, 12 months ago
To those Comrade Bahamalander's who daring in describing themselves as fast experiencing discomfort becoming ‘economic refugees’ to the Chinese, don't you realize' ya's is nothing but bunch 'myopic's?' The late PLP's Milo B. Butler and Clarence A. Bain read this hereto Tribune story, they's got's be turning over in they's grave muttering each others - Great God Almighty, did a top of the heap PLP influence heap, just call Bahamaland's people, a bunch 'myopic's?
Regardless 9 years, 12 months ago
There is a vast difference between the Bahamian economy and those of the US and UK. It can be described as "myopic" in comparison and therefore China's influence will be far more considerable in this country than the others!
duppyVAT 9 years, 12 months ago
Amen.............. you dont expect anything else from Snake. He's been walking on Bahamians from Pinewood days. Its about his pockets........... to hell with the small man.
ThisIsOurs 9 years, 12 months ago
Politicians robbing us blind and scandal after scandal makes us seem like a banana republic
SP 9 years, 12 months ago
AMEN!.........Where is Frankie Wilson the snake voice on all these scandals perpetrated by the PLP and FNM?
greenflag 9 years, 12 months ago
Keep it up, boys. Next thing you know, ya'll be working in their rice patties. You let them get a foot hold, and they will replace Junkanoo with Chinese New Year with dragons in the street.
http://tribune242.com/users/photos/2014…
CFG 9 years, 12 months ago
I agree we need FDI but the nature and scale of foreign investment must be considered with caution. What we need is Sustainable Development - development that meets the needs of the present without comprising the ability of future generations to meet their own needs. We have laws in place but enforcement of these laws, in particular environmental laws, is extremely poor. How can we trust the governments' judgement of what constitutes safe and sustainable development when the law is undermined? The port being built in Abaco by Chinese investors is an example of a totally unnecessary investment which is destroying a beautiful part of the island and causing environmental damage while offering no substantial benefit to the Bahamian people - I struggle to see how this can be considered "progress" in the true sense of the word.
There are other alternative means to progress and development, especially if you interpret the meaning of the word 'development' to include factors other than building infrastructure and creating jobs. The mindset of young bahamians, the protection of the environment and the preservation of culture are all factors to be considered in the development process and each warrant 'investment' in their own right. Look at our education system for example. Its in shambles. Do you believe the increase in crime and poverty of late is because we lack foreign investment and jobs? Or is it because an increasing number of young Bahamians are uneducated and have no sense of direction in life? Or is it a combination of the two? The road to a progressive Bahamian society does not rest solely on FDI, and definitely not the the kind of foreign investment that is currently being permitted in our country.
countryfirst 9 years, 12 months ago
Sorry but this country is now a banana republic and Mr.Wilson is one of the benefactors so he is not going to complain he is part of the problem.Too many backdoor secret deals. FOIA please.
Well_mudda_take_sic 9 years, 12 months ago
Franky Wilson aka Snake is nothing but a con man and swindler who has spent most of life trying to glorify himself with the persona of a successful self-made businessman, all the while lining his pockets on the backs of poor Bahamians with one corrupt deal after another. To achieve his alter ego public facade he has gone to great lengths to manipulate organizations like JA and COB. He is drooling at the prospects of the Chinese coming to our shores with a fat wallet that he can pillage and plunder with the aid of his equally corrupt friends in government. Just ask anyone of the Bahamians fleeced by Snake in Pinewood Gardens or the many Americans he has fleeced in South Eleuthera and Grand Bahama. Just look at your outrageously high electricity bill each month or the grossly inflated price you pay at the pump each time your vehicle needs gasoline or your generator needs diesel fuel. Snake is the quintessential "Banana" in the term "Banana Republic". He is an insidious "all for me" loud mouthed bully who will never find it in himself to do good for anyone but himself.
ChaosObserver 9 years, 12 months ago
People who opposed development by outside investors are either ignorant or stupid. I can't decide. EVERY country regardless of their GNP or size, has some (If not a lot) of investment by outside countries. Look at the cutting economic growth countries such as Dominican Republic (and now even Haiti) that have and are actively recruiting outside investors to shore up their economy, give jobs to their citizens and raise them out of the "banana republic" mentality...keep thinking narrow-minded and you'll end up left behind folks......plus grow up...it's 2014, not 1967 anymore....the world is a different place.....
Reality_Check 9 years, 11 months ago
You can now go collect your pay cheque or bonus from Snake!
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