By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Downtown Nassau Partnership’s (DNP) co-chair hopes “acceptable” plans for the proposed Nassau harbourfront boardwalk can be finalised before year-end, as he backed duty-free to revive a shrinking retail sector.
Charles Klonaris questioned whether the Government wanted retail to be “a growth industry” in the Bahamas, arguing that it could not survive and create jobs under the present tax system.
Obie Wilchcombe, minister of tourism, recently called for Bay Street and downtown Nassau to be designated as a duty-free shopping zone, and Mr Klonaris - reiterating his support - called for this to be implemented “ASAP”.
He added that Nassau’s city centre needed to be “as exciting and competitive” as any global rival when it came to its retail offering, as this was vital to inducing greater tourist spend.
However, Mr Klonaris argued that the combined Value-Added Tax (VAT)/duty system, even with ‘refunds’ of the former for tourists, was deterring investment in high-end retail outlets.
The DNP co-chair, though, indicated that talks between the private sector and the Government were making progress in finalising the long-awaited waterfront boardwalk stretching from Woodes Rogers Wharf to Potter’s Cay.
“The planners have come down, and we’ve had discussions with the Government,” Mr Klonaris told Tribune Business. “Although the plans are not 100 per cent finalised, the Government is pleased with where we are at this stage.
“The plans have been drawn up, and hopefully by the end of the years, we will have a completely finalised plan acceptable to both the stakeholders and the Government.”
The much-debated boardwalk is widely viewed as key infrastructure that would enable the Bahamas to leverage the attractive scenery created by one of the world’s largest natural harbours.
And, in turn, it will help disperse disembarking cruise ship passengers down the length of Nassau harbour, all the way to Potter’s Cay.
This, in turn, would ensure Bahamian merchants and businesses gained a more equal share of the cruise tourism ‘pie’, while also helping to spur the redevelopment of the former shipping properties ‘east of East Street’.
But, despite being seen a key component of downtown Nassau’s revival, many stakeholders - including ex-deputy prime minister, Brent Symonette, have expressed unhappiness with what they perceive as protracted delays in getting the boardwalk project ‘off the ground’.
Mr Klonaris, meanwhile, reiterated his support for Mr Wilchcombe’s duty-free shopping zone call, arguing that this initiative was also vital to downtown Nassau’s rebirth.
“The other thing that is so important for the city is the fact that the Minister of Tourism, Obie Wilchcombe, mentioned duty-free shopping,” he told Tribune Business.
“That is another critical component that should be implemented ASAP. The tourists need proper shopping. We need the City of Nassau to be as exciting and competitive as any city worldwide.
“That’s not going to happen with VAT and the duty system we have now. People are not going to get into high-end retail, world-standard stores,” Mr Klonaris added.
“The Government is going to have to decide if they want retailing to be a growth industry. Right now, it’s not a growth industry.
“Bahamians are either shopping online or going out of the country. The majority of shopping is done in those two ways, and it is not beneficial in terms of creating jobs.”
Retailers have long worried that many Bahamians have been driven to make their purchases abroad, as this nation’s high-cost operating environment - coupled with an increasingly burdensome tax system - have made them ever-more uncompetitive on price.
And the sudden increase in Bahamas-based freight forwarding companies suggests that online shopping is a trend on the rise.
Mr Klonaris, who together with his brothers developed the Elizabeth on Bay plaza at the junction of Bay Street and Elizabeth Avenue, said: “We need to keep up with what’s happening worldwide, and we’re not.
“The current system is a failure. I would recommend duty-free implementation downtown. That’s the best way to revive the stores downtown. It’s a key component of a living city.”
Mr Klonaris added that Bay Street’s re-emergence could not be built just on marinas, restaurants and hotels.
Comments
asiseeit 9 years, 2 months ago
Funny how all shipping was moved except for the concrete and rock mess that is on Mosko's property. I wonder how they will put a board walk going through there?
juju 9 years, 1 month ago
"The plans have been drawn up, and hopefully by the end of the yearS, we will have a finalized plan..." Freudian slip there... Yes, I'm sure that if gov't has anything to do with it, it will take YEARS.
sealice 9 years, 1 month ago
the Moskos know our weak ars government couldn't plan redeveloping downtown so why should they move their crap? The only reason all the other big land holders did was because they had containerized shipping. As well it is their main Concrete Cartel landing site so god only know's how much they kick back to the gov't for the ecological and environmental nightmare that is the shipping of bulk concrete.
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