Michael Halkitis
By RASHAD ROLLE
Tribune Staff Reporter
rrolle@tribunmedia.net
IN its monthly report released yesterday, the Central Bank revealed that hotel room revenue declined by an estimated seven per cent during the first four months of this year compared to the same period last year.
This, the Central Bank said, reflects a “1.4 percentage point reduction in the average occupancy rate to 75.6 per cent, along with a 5.8 per cent decrease in the average daily room rate to $270.91.”
The news comes as the country grapples with the possibility of having its credit rating reduced by Moody’s amid poor economic growth and high levels of government debt.
“Domestic economic conditions remained relatively subdued over the review period, amid signs of the softness in tourist output, while a number of varied-scale foreign investment projects provided support to the construction sector,” the bank’s May 2016 report said.
Nonetheless, the bank said the economy is expected to stabilise during this year “as several foreign investment projects in both New Providence and the Family Islands support construction sector activity.”
The Central Bank also showed some confidence that the stalled Baha Mar project will be restarted this year.
“Tourism sector output should show signs of improvement in the coming months, benefitting from modest gains in both hotel and airlift capacity, while positive developments, such as the restart of the Baha Mar project, could boost the economic forecasts,” the bank’s report said.
Reacting to the report, Free National Movement Deputy Leader Peter Turnquest said yesterday that it shows why the Christie administration should stop misleading Bahamians about the state of the economy.
“Tourism came up during the budget debate and they acted like everything was going swimmingly well,” Mr Turnquest, shadow minister of finance, said. “The reality is that while we are having pockets of good taking place, overall there has been a decline. This has been confirmed by the IMF, by Standard & Poor’s, by Moody’s and now by the Central Bank.”
“We have some serious challenges and we’ve got to figure out how to do better.”
Mr Turnquest said despite the “rosy” picture the Christie administration sometimes paints of the country’s economic trajectory, he believes they themselves don’t believe in the image.
“I think (State Minister for Finance Michael) Halkitis said something interesting in an article (recently), saying something about how they will be able to convince (Moody’s not to downgrade the country’s credit rating),” he said. “Well, if you have the facts, you don’t have to convince them of anything. They’ll show what the story is. I think they know where we are but like to believe they could swing the Bahamian people and all these rating agencies as well. The truth catches up with you eventually.”
Comments
alfalfa 8 years, 5 months ago
The Bahamas has priced itself out of the tourist market. The average family can not afford the ridiculous prices being charged for rooms and food at the major resorts, which have all been pushed up by room taxes, union intervention, automatic gratuity, vat, and customs duties. Our main attraction of sun, sand and sea has become stale, and activities related to these are off the chart in price. Couple this with a high crime rate and the fact that the same things are offered at other destinations at a fraction of the price, and we can expect further decline unless steps are taken to make us competitive again
ThisIsOurs 8 years, 5 months ago
WTH.?? They've been lying straight through. Someone just made a statement about three weeks ago about hotel rooms being full. They need to stop this deception. They're shooting us in the foot. Which rating agency will believe anything you say?
alfalfa 8 years, 5 months ago
No average family can afford to visit the Bahamas anymore. The prices for rooms and food at our major resorts are ridiculous. Depending on who you believe, these are due to room taxes, union intervention, mandatory gratuities, vat, and high customs duties. Our main tourism draw is "sun, sand and sea", which is a stale product, and to participate in any other form of watersport activities, such as parasailing, jet skiing, and swimming with the dolphins, costs an arm and leg. Couple all of this with the fact that other destinations offer the same product at a fraction of the cost, and our very high crime rate, and you will continue to see worrisome numbers unless we make drastic changes in our approach.
TorontoGal 8 years, 5 months ago
Years back, when I was young and working a friend and I visited Nassau four times a year. Our favourite hotel was the B.C. or one of the smaller ones at cable beach if we couldn't get into our first choice. Because the rates were good we would each take an adjoining room so we'd have one to party in and the other to sleep in. Over about 10 years the prices crawled higher and higher so we shared a room because the single supplement became astronomical . Eventually Nassau price itself right out of our plans and now we go to Cuba.
I am of the group of gals from 1964 that made Nassau famous and a place where all young women wanted to visit. Basil Cooper even made reference to me in one of his first novels.
I have not been back in this century because your prices are incredible, the Bahamian culture is almost lost, the majority of Bahamian young people became abusive to white women and now your young men are killing each other or robbing each other.
Who would want to visit an island like that. My fear is now, the out islands are about to be ruined the same way Nassau was. Paradise Island is a total waste of time as I see it. if I wanted Vegas I'd visit Vegas not a want to be Vegas.
So much has been lost and the Fat Cats don't give a damn!
Tarzan 8 years, 5 months ago
Fire Moody's. All critics, Black or White are racists. Nothing to see here, move on. A little soft corruption is just part of our national character. Don't like the news, kill the messenger. I will table a full report in Parliament soon.
gonadsx2 8 years, 5 months ago
taxing into disparity not prosperity
Sign in to comment
OpenID