The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A prominent realtor has urged the Bahamas to again consider implementing an ‘Investor Citizenship’ programme, arguing that it will be “really beneficial” to the economy and local jobs.

Mario Carey, president and chief executive at Better Homes & Gardens MCR (Bahamas), told Tribune Business he was seeking to bring such an initiative “to the forefront” of the Minnis administration’s thinking.

“I still think there should be consideration for economic passports at a very high level,” Mr Carey said. “I’ve been really trying to figure out how to lobby for that, and bring it to the forefront of this administration and show the benefits of economic citizenship.

“We know the demand is there as realtors. The demand for economic residency is there; very strong. The Bahamas can attract clientele.”

He emphasised that an ‘economic citizenship’ initiative would not be an ‘Open Sesame’, throwing out Bahamian passports to all-comers, but a narrowly-focused programme targeting as few as 30-50 ultra high-end investors with the means and desire to start businesses in this nation.

Mr Carey said the criteria to qualify for ‘Investor’ or ‘economic’ citizenship could involve the purchase of property worth a minimum of $5 million, something that would generate immediate, significant Stamp Duty and VAT flows for the cash-strapped Public Treasury.

He added that qualifying investors would also have to live in the Bahamas as their primary domicile, invest a minimum sum here, and establish a business or businesses employing a specific number of Bahamians.

As a result, Mr Carey said the benefits from an ‘economic citizenship’ programme would extend far beyond just the initial real estate purchase, helping to grow GDP plus generating local employment and recurring tax revenues.

“The US is number one in the world [for economic citizenship],” he added. “It shows they’re smart enough to attract people, but why aren’t we?”

Investor and economic citizenship programmes are nothing new, but the idea frequently runs into high-level political resistance due to fears of a backlash from the Bahamian public over fears that their birthright is being given away.

The idea was floated as recently as 2014 by Sean McWeeney, a key adviser to then-prime minister Perry Christie, who urged the Bahamas to “join the bandwagon” and target the world’s wealthiest individuals, something that could have “the most transformative effect” on the economy.

Addressing the 2014 Society of Trust and Estate Practitioners (STEP) Caribbean conference, Mr McWeeney said the programme would offer select investors permanent residency with a “guarantee” of Bahamian citizenship once strict criteria were met.

These conditions included fulfilling commitments to take up residence in the Bahamas, and invest in its economy, with a ‘high bar’ set for the investment dollar value that would be required.

“Any country that sells citizenship without extracting commitments for residency and investment is likely to be shot down,” the noted QC added. “We’re not going to be mass marketing to anybody. We’re not interested in getting thousands and thousands of people under such a programme.”

This mirrors Mr Carey’s suggestion, but Mr McWeeney’s suggestion was never taken up by the Christie Cabinet, with ministers at the time seeking to distance themselves from the idea.

Ryan Pinder, former minister of financial services, said the Bahamas lacks the “social maturity” to accept an Investor Citizen programme that would aim to attract the world’s wealthiest individuals to this nation and supply a major economic boost.

He added that the Bahamas’ politically-charged environment, where many persons were swayed by emotions and nationalism, rather than pragmatism, were major obstacles to the initiatives embraced by many other nations.

“The social maturity in some jurisdictions might be challenged by this concept,” Mr Pinder said.

Some in the private sector also argued that Bahamian citizenship was a privilege, not a right, and not something that could or should be bought. They added that the Bahamas’ current permanent residency products, when married with certainty over the process and timelines, provided sufficient options to attract high net worth individuals and families to these shores.

Mr Carey recalled for Tribune Business how he was informed by Fred Mitchell, former minister for foreign affairs and immigration, that an Investor Citizenship programe would never happen under the Christie administration.

“I was in a meeting with Fred Mitchell with some Asian clients, and he looked at me and said it would never happen,” the realtor told Tribune Business. “That it would never happen under this administration.”

Mr Carey said the Bahamas should not target the same market as St Kitts and Nevis, which had set the bar and investment threshold too low, and instead focus on the “ultra high-end” investor capable of making an economic difference.

The ultimate goal would be to attract investors of the same calibre as the Izmirlian family and Joe Lewis, and become major investors in the domestic economy, creating hundreds of jobs for Bahamians.

“That’s the market the Bahamas should target,” Mr Carey told Tribune Business. “Ultra high-end. Not St Kitts and Nevis, where you sell yourself short. It’s really beneficial to the Bahamas.

“What are you really giving up? Think about it. A lot of Bahamians say us realtors are selling out the country to foreigners, but without foreign dollars what else would we have? What else do we want? You can’t survive just on tourism; it’s not going to happen.”