By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Central Bank of the Bahamas yesterday said the tourism industry’s output “softened” during the 2016 first half, with the growth rate for stopover arrivals tapering off to 2.7 per cent compared to 2015’s 5 per cent.
“Indications are that tourism output trends softened during the first half of 2016, in comparison to the previous year,” the regulator’s monthly economic update for July said.
“The latest official data from the Ministry of Tourism suggests that the increase in the high value-added stopover visitor segment (air arrivals) slowed to 2.7 per cent from last year’s 5 per cent gain, for a total of 0.8 million tourists.
“The overall visitor count firmed by 1.7 per cent to 3.3 million, a reversal from a 1.1 per cent decline in the prior year, as the dominant sea component expanded by 1.5 per cent to 2.5 million, vis-à-vis 2015’s 2.8 per cent contraction.”
Despite the increase in tourist arrivals (volumes), the Central Bank conceded that the industry’s earnings were “tempered”.
“Data through April showed that room revenues at large resort properties in the capital trended lower than in 2015,” it added.
“In addition, commercial banks’ foreign currency transactions through July - which include inflows from tourism and investment-related activities - registered a modest decline in such gross receipts relative to the same period last year.
“That said, the comparative outlook is improving for the remainder of 2016, given the stimulus from the restoration of some room capacity on New Providence and the pending boost to construction output from the resumption of work on the Baha Mar project.”
The Central Bank continued to place a “mildly positive” outlook on the Bahamian economy’s near-term prospects, with construction activities related to foreign direct investment (FDI) activities the main driver.
“The inflation rate narrowed during the 12 months to June, reflecting the sustained impact of low global oil prices,” it added.
“Meanwhile, liquidity in the banking system firmed, buoyed by the Government’s financing activities, while the lowered import pressures, also from abated fuel prices, contributed to a modest gain in external reserves.”
Comments
banker 8 years, 1 month ago
Here are some necessary translations to cut through the obsfucations:
1) replace the word "softened" with "fell". - tourism industry’s output “fell” during the 2016 first half
2) replace the phrase "tapering off" with "sliced down by almost half" - the growth rate for stopover arrivals sliced by almost half to 2.7 per cent compared to 2015’s 5 per cent.
3) The overall visitor count firmed by 1.7 per cent to 3.3 million, a reversal from a 1.1 per cent decline in the prior year - This means that we have made up for the 1.1 percent fall from last year, and the two year overall growth is only 6 tenths of one percent. Yay!
4) replace the phrase "trended lower" with "sunk lower" - room revenues at large resort properties in the capital sunk lower than in 2015,
5) replace the phrase "registered a moderate decline" with "tanked" - foreign currency transactions through July - which include inflows from tourism and investment-related activities - tanked in such gross receipts
6) Don't worry, looks good though because Baha Mar is maybe starting up again to save us. And everything is good, because FDI is driver (no mention of the 78% freefall in Foreign Direct Investment -- don't ask questions, just believe!)
7) Here is the big lie translated: What they said was " liquidity in the banking system firmed, buoyed by the Government’s financing activities, while the lowered import pressures". What they meant was: "Foreign reserves increased because government had to borrow American dollars to finance its spending orgy. And imports are lower because Bahamians cannot afford tings any longer."
Sighhhhh!
John 8 years, 1 month ago
Many local businesses have seen sales reductions by as much as 40% since the early part of the year. While a lot of this may be a corresponding decrease due to the fall off in tourism some of it is also due to high unemployment and the increases in taxes, more specifically VAT. Your government got the 'wise' notion to continue to charge VAT along with other taxes instead of replacing the designated taxes with VAT. This is drawing every single loose penny out of the economy and, along with other factors, like the decline in Tourism and the failure of Bah Mar to open, leading to the biggest shrinkage and loss of businesses the country has ever seen, even before 2008. Just watch the back-to-school shoppers as they struggle to purchase bare necssities for their children to go back to school and forgo buying some things because they have no funds. this will mean that many businesses will have a great struggle between now and Christmas and many may have to downsize staff or close.
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