• ‘Not enough’ to attract solely property buyers
• Accountant says more must ‘do real business’
• Adds that ‘Joe Public’ must feel greater effect
By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Bahamas “needs a little more than residency” from the multiple millionaires and billionaires that reside within its borders, an accounting firm’s principal is urging.
Craig A. ‘Tony’ Gomez, the Baker Tilly Gomez managing partner, told Tribune Business that The Bahamas must find a way to encourage more of its high net worth investors to “do real business” in this nation so that “Joe Public” feels a greater impact from their presence.
Unlocking such investment would drive a faster, and greater, post-COVID recovery, he added, while calling on The Bahamas to better exploit the luxury real estate boom by realising “it’s not enough” to simply attract such persons to these shores.
“We need a little more than residency,” Mr Gomez told this newspaper. “We need residents who find The Bahamas a good place to reside but, at the same time, do business in a very regulated and market driven way.
“It is not enough for us to say we have eight, nine, ten new billionaires coming to The Bahamas and, at the same time, Joe Public cannot feel the impact of these residents. We’d like to see them do real business here.
“Granted that’s not for everybody; some people just need a residence. But the Government must find opportunities to realise the impact of such residents in The Bahamas. The real estate industry at the high end seems to be booming, and while we want to sell our land inventory, the Government must be keen to gain the collection of its taxes and duties especially with high net individuals who are coming to The Bahamas,” he added.
“We are extremely pleased that they found The Bahamas attractive for not only a place to own a residence, but because of other factors like a well-regulated society and sound economic environment.”
Mr Gomez spoke to Tribune Business just days after Michael Halkitis, minister of economic affairs, voiced similar sentiments to attendees at the Long Island Business Outlook conference. He said the Government was exploring how it could link to the economic permanent residency programme to create joint venture partnerships with Bahamian investors.
While high net worth real estate purchasers contribute significantly to industries such as real estate, construction, landscaping/gardening, retail and restaurants via their acquisitions and subsequent spending, as well as government taxes, there is a perception among many Bahamians - real or not - that the economic impact of their investments is limited.
However, several have made high profile, multi-billion investments in The Bahamas, especially the likes of Joe Lewis and the Izmirlian family. The billionaires, both of whom reside at Lyford Cay, have ultimately invested billions in the domestic economy, and created thousands of local jobs, via Albany and Baha Mar respectively (ignoring the latter’s Chapter 11 saga).
Multiple suggestions have been made previously on how to extract more value from the presence of such investors. Sean McWeeney QC, ex-prime minister Perry Christie’s main adviser, in 2014 floated the idea of creating a limited Investor Citizenship programme, targeted at just a few high net worth billionaires and their families, in return for setting up real businesses in The Bahamas.
He told the Society of Trust and Estate Practitioners (STEP) Caribbean conference that the Bahamas needed to “join the bandwagon” by introducing an Investor Citizenship programme to target the world’s wealthiest individuals, something that could have “the most transformative effect” on the economy.
Mr McWeeney said the Bahamas needed to take “a quality over quantity” approach when it came to attracting financial services business and investors - a strategy an Investor Citizenship initiative would facilitate. He added that 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.
Mr McWeeney emphasised, though, that an Investor Citizenship programme would not be “mass marketed” to the world, and Bahamian citizenship never sold en masse to persons who did not set foot in the country.
Mr Gomez, meanwhile, told Tribune Business that last week’s downgrade of The Bahamas’ sovereign creditworthiness by Standard & Poor’s (S&P) meant the country “must get this economy moving again” if it is to head off a growing fiscal crisis.
“The trend seems to be too negative, which will have an impact on confidence in our economy,” he added. “I think the Government’s fresh eyes on our financial affairs will allow for appropriate measures to turn this economy back on track.
“This is extremely important as not only The Bahamas but the region and the world continues to be challenged by the downturn in economic prospects as a result of COVID-19, which has been heightened by the world’s food supply chain being curtailed and threatened over the past 18 months. It continues to be challenged, which by itself has a devastating impact on economic recovery.”
Mr Gomez continued: “It is imperative that the brightest minds that sit around the table get to work to position, and reposition, The Bahamas as a tourism economy that is prepared for rebound and must rebound in the short-term. The short-term in this instance is defined as six months to 12-18 months.
“This not only speaks to actual returns but the perception of a rebound and the confidence that emanates from the good feeling of a rebound. The news at an economic level appears to be good in so much as tourism and the tourism professionals have indicated the tourism outlook looks good.”
Comments
lobsta 3 years, 1 month ago
It's simple. Let them hire freely and they will do business in the Bahamas. The truth is that any business is better than no business and this will create jobs for Bahamians and bring revenue.
C2B 3 years, 1 month ago
Ah, you hit upon one of my favourite Bahamian myths; that there is a Bahamian who can do every conceivable job. What a joke. Find me a data scientist, programmer, martech specialists, actuary. How about a Doctor who didn't graduate from a Caribbean community college. I agree; let them hire the best people, not the best of what's around.
tribanon 3 years, 1 month ago
Problem is, we already don't have enough land for lower-income Bahamians, let alone what would quickly become a flood of highly paid billionaire-employed foreign nationals, all of whom would need housing, mainly in the Western District of New Providence which is already rapidly becoming overcrowded.
Flowing 3 years, 1 month ago
The Bahamas is underpopulated, there is plenty land available
tribanon 3 years, 1 month ago
You've obviously never experienced the killer mosquito infested swamp lands of Andros or the ferocious sand flies down in Mayaguana that eat even discarded KFC chicken bones in mere seconds. LOL
Emilio26 3 years, 1 month ago
tribanon well the average working class Bahamian cannot afford a piece of property nor a house in western new providence more particularly on west bay street. What do you suggest the government do to make land available for bahamians in the area?
tribanon 3 years, 1 month ago
Immediately halt all land sales to foreigners whether it be for commercial or residential development purposes.
FrustratedBusinessman 3 years, 1 month ago
I know several Bahamian developers and know of a young man who went away to study with the intention of becoming an actuary. The Bahamas might not be full of Einsteins or Newtons, but not all of us are intellectually disabled.
I am sorry, there is nothing wrong with having a degree from UWI. I have studied at UWI and abroad, and I can tell you that most programs at UWI are just as good as a public university in the US. Even better because you won't spend half your degree trying to figure out if you are a man or woman or learning about pedophilia.
ThisIsOurs 3 years, 1 month ago
lol. agree!
C2B 3 years, 1 month ago
You are right. There is nothing wrong with that degree but let's not pretend that it is World class. Every Bahamian I know with money, and. I know many, all go to the US for medical treatment.
ThisIsOurs 3 years, 1 month ago
You have the wrong friends. I know many technicians educated in the Caribbean, engineers, doctors, lawyers, actuaries, economists, programmers. What is true about the Bahamas, especially PMH, is too many bad ones are allowed to coexist with them. So on any single shift you could pull the short straw. Under those odds, Id prefer to go to a US hospital too, but make no mistake, there are quacks all over the world. Hence malpractice lawsuits
ThisIsOurs 3 years, 1 month ago
You have the wrong friends
donald 3 years, 1 month ago
Very true
C2B 3 years, 1 month ago
I like the way you gloss over the BahaMar debacle as if it wasn't a RED WARNING to all investors that this place is lawless and the government was complicit in Sarkis losing $900 million dollars. I recall loser ministers threatening to revoke his residency for speaking out as the economic rape was going on. No billionaires should invest in The Bahamas until the rule of law and economic norms are respected by the government. Period. Full stop.
DWW 3 years, 1 month ago
and sky bahamas, and many more.
tribanon 3 years, 1 month ago
Frankly, too many to list with our corrupt politicians always being involved.
stillwaters 3 years, 1 month ago
So, because they are in your yard, you think you have the right to milk them like cows?? Jesus, Mary, and Joseph......please keep fools away from these news outlets.
Flowing 3 years, 1 month ago
Why do you equate wealth to whiteness? That's a racist.
bahamianson 3 years, 1 month ago
Gomez, let me get this straight, the government squanders the people's funds, or the people's funds were stolen from each governmental agency, or the ministers gave contracts to their friends and lovers and there is no money left. So, the solution is to tell people that are already contributing to our society to CONTRIBUTE MORE...........right. I see your stupid point. That is the wrong way to do business. Before the government ran out of money, the government was content with these billionaires. Now, the money ran out ; they need to give more. if i were a billionaire , I would pack up and leave. What the government of the Bahamas needs to do is make its citizens more financially responsible. Stop giving people handouts. Teach people what priorities are. The government is not Robin Hood. They should not strong arm people with money to give to people with no money.
JokeyJack 3 years, 1 month ago
...and The Public Accounts Committee of which Dr Minnis as opposition leader is currently the head, needs to meet and publish a public report. It has not met since 2014.
KapunkleUp 3 years, 1 month ago
This guy fits the classic politician profile - engage the brain before opening your mouth.
Dawes 3 years, 1 month ago
Initially they say they don't provide much, then mention all the constructions , landscaping, etc that they use. Yes they can do more business here, but if it wasn't for them construction would have serious issues, so would landscaping, and all those high end restaurants out west. As one commentator mentioned, if you want them to set up more businesses here, make it easier for them to bring in who they want. Over time more and more Bahamians will rise through the ranks to get those higher jobs. But if they never bring them here initially they never will have the chance.
tribanon 3 years, 1 month ago
Begging Tony Gomez has spent enough time at the Lyford Cay Club to know that almost all of these billionaires detest and loathe nothing more than paying taxes, no matter in what form they may be packaged. And they have the means (and luxurious private jets) to live anywhere in our region of the world, or anywhere else for that matter, to escape being targeted for 'squeeze plays' by corrupt government officials.
tribanon 3 years, 1 month ago
More frankly put, most of these billionaires rightfully do not consider it their business to interfere with Bahamian voters getting the quality of life they purchase every five years or so with their vote at the polls. And if the political system is corrupt and broken, these billionaires see it as the Bahamian people's responsibility to do whatever it takes to free themselves from the reins of the corrupt political elite. Begging from or targeting billionaires as the answer to our problems will accomplish nothing.
FrustratedBusinessman 3 years, 1 month ago
I will never support selling citizenship, selling a right to vote is a disgusting practice. Keep it as it stands with economic permanent residency.
I have a better idea, why don't we fix the crumbling power grid, water systems, pot-hole laden roads, and make our streets safe. Who would have thought that no one wants to do business in a place where the power constantly fails and you have to invest in a backup generator, or water constantly goes off so you have to put in a cistern, or where you will get robbed at gunpoint on a bank drop.
I keep telling people this, it is all about the basics. We have always wanted to run before crawling and that is why we fail at everything we do as a nation.
DillyTree 3 years, 1 month ago
What a joke! Let's get this straight -- you want the very people who already do the lion's share of shoring up the Bahamas economy to do more. And these are the very people who, when donating to the "white" organisations like the Humane Society or the National Trust are somehow villains who they then mock and ridicule. Hahahahahahaha!!!! Good luck with that plea.
How about the Bahamians take responsibility for the MESS we have created and continue to settle for? Why does it always have to be someone else to come and save us from ourselves? Where is our national pride when it really matters? It's not about jumping aroun don Independence Day waving flags -- it's so much more. When will we get it???? Shame on us!
sheeprunner12 3 years, 1 month ago
Go throughout the country from Abaco to Inagua and examine how locals benefit from rich second home owners or winter residents or investors. A few examples:
Abaco .......... look at the poverty of the Haitian villages (labour force for the rich)
Bimini/Briland ......... look at the state of the locals schools & clinics etc
Inagua ........... look at the state of the school/amenities and lack of initiative to diversify
Most of these communities are exploited by the rich foreigners ............. and the Bahamians who may benefit from their "connections" do little to share the wealth with the general public
ThisIsOurs 3 years, 1 month ago
Agree with you. Today someone postulated that we could become a US territory, my immediate thought was, what would that do to our labour force? Make no mistake about it, persons like DAguilar would take it as an opportunity to hire an all white workforce. Bahamians would be fighting for Kentucky jobs. And it would have nothing to do with whether you had 20 degrees and 50 certifications. None of these issues are simple
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