The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Central Bank of The Bahamas said tourist arrivals grew by 17 percent in 2021, but are still a way off 2019 numbers.

The bank in its Annual Report & Statement of Accounts, 2021 released last week, said tourism output began to recover once COVID-19 vaccination rates improved in key source markets - coupled with the lifting of travel restrictions in those markets.

The report also said: “According to data from the Ministry of Tourism, total tourist arrivals grew by 17.1 percent to 2.1m in 2021, following a sharp reduction by 75.2 percent in 2020. While, this represented just 29.0 percent of 2019 levels, air arrivals, indicative of high-yielding stopover tourism, increased more than two-fold to 886,629 arrivals, compared to 418,329 visitors a year earlier.

“This outcome capitalised on an earlier second quarter resumption in visitor flows, in contrast to the delay for cruise activity, under voluntarily constrained occupancy, until the third quarter of the year. Consequently, the sea component, reflected an 11.8 percent reduction to 1.2m passengers in 2021, which was still a notable slowdown from the 75.4 percent falloff in 2020.”

Overall arrivals to New Providence rose by 22.2 percent to 1.1m and air arrivals rebounded to 651,571 from 322,377 in 2020.

The report also said: “Meanwhile, a moderated 21.5 percent decrease in sea arrivals registered to 463,713 passengers, considerably lower than the 79.6 percent contraction in the preceding year. Likewise, visitors to the Family Islands grew by 17.1 percent to 900,014, primarily driven by air arrivals, which advanced to 215,307 from 84,242 in 2020; while the sea segment stabilised at 684,707 visitors, following a 69.6 percent retrenchment in the previous year. In Grand Bahama, visitor arrivals reduced by 24.4 percent to 85,320, easing from the 78.5 percent retrenchment in the prior year, as air arrivals resumed by 68.7 percent, and the reduction in the sea segment moderated to 35.2 percent.”

The vacation rental market also saw an uptick in business as total room nights sold increased by 62.8 percent in 2021, in contrast to the 46.9 percent reduction in 2020.

Construction on the other hand continued to remain solid, backed by ongoing foreign investment projects. While domestic construction showed “modest” improvement, however the long-term look is not as promising.

“As an indicator of domestic activity, total mortgage disbursements for new construction and repairs—as reported by commercial banks, insurance companies and the Bahamas Mortgage Corporation—rose by $11.7m (14.5 percent) to $92.6m, following the $32.5m (28.6 percent) decline in 2020. Residential disbursements—which accounted for 98.0 percent of the total—in- creased by $12.1m (15.4%) to $90.7m, relative to the 25.7 percent falloff in the prior year. In contrast, the commercial component decreased by $0.4m (17.5 percent), although lower than the $5.3m (70.0 percent) reduction a year earlier,” it said.

The report added: “Forward-looking indicators of domestic activity were still subdued. Total mortgage commitments for new construction and repairs-reduced in number by 73 (18.3 percent) to 325, with the associated value contracting by $19.9m (23.9 percent) to $63.2m. A breakdown by loan category revealed that residential approvals fell in number by 63 (16.8 percent) to 312, while the corresponding value declined by $8.7m (13.1 percent) to $57.5m. In addition, commercial commitments decreased in number by 10 to 13, with the associated value lower by $11.2m (66.2 percent) at $5.7m.”