The Tribune

The island of Grand Bahama has the potential to play a pivotal role in the social and economic development of The Bahamas. For the past few years, governments have laid out their plans to ensure that Grand Bahama rebounds, yet none has achieved a measurable improvement for the island. Grand Bahamians have endured economic fall-outs because of natural disasters, business closures, large scale lay-offs and numerous failures in its tourism industry. There is no one-stop solution or one entity/company responsible for the island’s current state. The problem with Grand Bahama is complex and, therefore, the solution to reviving the island must be innovative, strategic and requires deliberate leadership. In this segment, we will explore some of the major issues the island faces and what can be done to create a better future for its residents.

Grand Bahama is lost

I have often heard the phrase “Freeport is dead” being thrown around. In my opinion, this is not the case. Lost implies that direction is needed, while dead implies there is no hope left. I would disagree here. In a recent visit to Freeport, it quickly became a disheartening experience to see the slow economic activity that plagues the island. What was once referred to as the ‘Magic City’ did not seem that way, given the number of abandoned and decrepit buildings. The downtown area, which was once a thriving family spot for commerce during weekends and weekdays, looked like a spotty business centre with only essential services offered. Yet the state of the buildings that offer essential services requires major upgrades. Despite all the noticeable things wrong with Grand Bahama, it has always been a planned city. This gives it the ability to host multiple economic opportunities once the right people, policies and infrastructure are in place. But the same things needed to improve Grand Bahama appear to be what stunts its growth.

Failures

It is best practice to start with the good before the bad, but understanding the failures of Grand Bahama will allow for a better realisation as to why opportunities for the island are either ever only talked about or take several years to come to fruition. A good starting point is the year 2004. The focus and angle of that year has always been the inability to fully recover from hurricanes Frances and Jeanne, which resulted in the closure of the former Princess Resort and Royal Casino (then called the Royal Oasis). Indeed, it is hard to sell to investors an island that has a history of repeated devastation. Does this mean Grand Bahama is bad for business? In some respects, yes. All investors seek to ensure their shareholders get a return for their money. Similar to commercial banks, there is no loyalty when business gets bad. But the failures of Grand Bahama are not to be pinned on natural disasters. If that was the case, climate change would be the reason we give up on generating future economic growth. However, unlike the Grand Bahama Port Authority (GPBA) and government entities responsible for the island, climate change policymakers are working diligently to provide world leaders with a road map on how to prepare their citizens for the inevitable.

Poor leadership and a lack of commitment have been, and still are, the real reasons why Grand Bahama has not achieved the level of growth needed to spark the island’s revitalisation. This is not to say there have not been any attempts or new opportunities over the past years. Diversifying Grand Bahama’s economy has always been a priority for Bahamian governments, but more on a campaign basis. Grand Bahama requires strategic planning and deliberate efforts that will cut off agreements, obligations and policies that do not contribute to the island’s real growth. We know that Grand Bahama has the potential to be a leading technology hub. We have heard deals come and go, such as the Ginn sur mer and Oban Energies. We often hear about the plans for better healthcare on the island; investing in eco-tourism; welcoming more cruise ships, investing in the rental or second home space; supporting entrepreneurs; building a new airport; and the need for foreign direct investment (FDIs) to help diversify the economy. Underlying all these plans, there is also the need to improve fundamental ‘push factors’ for local and foreign investments. These push factors are a lower cost of consumables, lower energy and utility prices, and a fair and affordable work-to-labour ratio. This requires the GBPA and government to work together to ensure that utilities are regulated, and that the ease of doing business for Grand Bahama removes as much red tape as possible.

Companies such as Buckeye, Pharmachem, Polymers, the Grand Bahama Shipyard, Bahama Rock and the Freeport Container Port are also important. These companies provide employment for residents by the thousands, and they help to put Grand Bahama on the map for potential investments in the industrial fields. The success of these companies proves that Grand Bahama has the potential to expand its industrial sector. Therefore, strong leadership is needed for Grand Bahama. Sitting at the table is not an easy job and, rightfully, investors want to make the best moves to achieve their strategic goals, whether that is to make profitable revenue or enter an untapped market. Striking a balance is important so that investors are happy while ensuring that the Bahamian economy benefits.

Having a Plan

An important tool that builds confidence among local and international investors, and helps diversify the economy, is a plan. The National Development Plan (NDP) for Grand Bahama is a good starting point that can build on various opportunities. The island’s tourism product, second home market, marina industry, eco-tourism and technology potential are all pillars of revenue. But it does require advances in policy and direction to ensure Grand Bahamians see long-term benefits. Another great tool that can be leveraged is the Commercial Enterprises Act, which seeks to improve the ease of doing business and attract new and diverse industries to The Bahamas.

In more recent years, the Revitalisation and Economic Expansion of Freeport committee (REEF) was formed with the intent to “change the way we think today”, and acts a collaborative link between the GBPA, Freeport’s major businesses and anyone who has an interest in the city’s success. Similar committees are formed for revitalisation projects such as rebuilding Detroit, Michigan. But the key to success for Freeport requires producing measurable outcomes from these types of committees. Measurable outcomes, in some instances, may require national policy/law changes.

Meanwhile, the Davis administration has appointed Ginger Moxey as its minister for Grand Bahama. A former vice-president at the GBPA, she has stated the Government does have a plan to revitalise the nation’s second-largest city. While such statements have been made before by previous governments, there is no time left for Grand Bahamians to live in the past. Mrs Moxey appears to be confident and passionate about Grand Bahama, which is exactly what the island needs in a leader. Under the former Minnis administration, plans were underway for a new hospital, airport and the full re-opening of the Grand Lucayan. These are still important commitments that the current government should consider fulfilling. In addition to ensuring that previous commitments are fulfilled, the Davis’ administration’s plan for Grand Bahama should also consider what it will take to keep the economy thriving in the long-term.

Conclusion

For years we have played the ‘blame game’ over Grand Bahama. Multiple governments, organisations and companies are being held responsible for the island’s failure. But what stands out the most from Grand Bahama’s series of bad events is poor leadership. It appears that government has focused its attention on ensuring that one engine of revenue is secured before thinking of economic sustainability for Grand Bahama and other Family Islands. But what happens if it were New Providence that was hit by a Category 4 or 5 hurricane? What if it were Baha Mar, Atlantis or Sandals that could not reopen or recover from their losses because investors pulled out? What if the airport was never repaired? Where would we ask our tourists to visit? Would we send them to one of the three hotels with limited room capacity on Grand Bahama? Through this lens, maybe we would not only worry about food shortages on one island, as perhaps it would force us to invest in a sustainable way to feed ourselves as a country. These are ideas that would allow us to use technology and to invest in Grand Bahama.

We should have picked up the island’s broken pieces after Hurricane Frances. We should have allowed more business opportunities to come into fruition to help diversify the economy, and we should have listened to the public’s cry for changes in regulations/policies for better business practices. It is 2021, and we owe Grand Bahamians an apology.