The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Chamber’s chairman yesterday warned the Government it is sending a “dangerous message” by continuing to focus solely on Baha Mar, which was used as “the whipping stick” for the ‘junk’ downgrade.

Gowon Bowe told Tribune Business that by continuing to emphasise the $3.5 billion project, the Christie administration was effectively reinforcing the perception held by Standard & Poor’s (S&P) that the Bahamas’ economic and fiscal rebound was totally dependent on Baha Mar.

He implied that this was effectively undermining the message that the Chamber has tried to convey to S&P and its fellow rating agency, Moody’s, which is that Baha Mar is not the Bahamas’ sole growth engine.

However, the Government’s response to the S&P downgrade continued to perpetuate the opposite, as the only foreign direct investment (FDI) project it mentioned was Baha Mar, and its sale and phased opening beginning in April 2017.

Pointing out that S&P had been “very bearish”on Baha Mar, especially in comparison to Moody’s, which has maintained the Bahamas at ‘investment grade’, Mr Bowe said the former rating agency had used the project as its “whipping stick” in the run-up to the ‘junk’ downgrade.

“We, the Chamber, have been saying Baha Mar should not be seen as the saving grace,” the Chamber of Commerce chairman told this newspaper.

“As the project ramps up, hopefully that will be given high praise by S&P, who have been overly pessimistic over its delay and, hopefully, will be overly-optimistic on its opening.”

The Government, though, continued to highlight Baha Mar and give the impression that all the Bahamas’ ‘economic eggs are in one basket’, its response to S&P emphasising the Chow Tai Fook Enterprises (CTFE) purchase and the hiring of 1,500 Bahamians early in 2017.

“That one is dangerous,” Mr Bowe acknowledged. “That is not a message we should be sending.”

Edison Sumner, the Chamber’s chief executive, backed his chairman and confirmed that the private sector organisation had urged the rating agencies not to “over-emphasise” Baha Mar, and the impact its near two-year stall had on the Bahamian economy.

“While we asked them not to place emphasis on a single development, the fact is the Baha Mar situation has been given a breath of fresh air, a new lease of life, and is scheduled to come on stream shortly,” Mr Sumner said of the CTFE purchase.

“The spin-off effects are going to be enormous. While there should not be over-emphasis on a single development, the fact is the Baha Mar project is back on track.”

Mr Sumner said the Chamber had been given an insight into CTFE’s plans and was “very pleased” with them, adding: “I think S&P ought to take that [the impending opening] into consideration.

“The revenue coming in is not costing the Government anything, and this is one of the new drivers of the economy.”

Mr Bowe, meanwhile, said that apart from Baha Mar there were numerous other FDI projects that had, or were poised, to bear fruit, such as the recent openings of the Warwick resort on Paradise Island and the former Nassau Palm on West Bay Street.

He added that The Pointe adjacent to the British Colonial Hilton was also progressing, while there continued to be development activity at the likes of Albany and Baker’s Bay.

“When you look at it, the tourism base, which is a big contributor to foreign exchange earnings, is expanding the best quality of its plant,” Mr Bowe said.

Pointing to the new tourism markets being opened up by airlift from the likes of British Airways and the German carrier, Condor, he added: “There are fortuitous elements not seen by the downgrade that are going to benefit the Bahamas.”