The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

More Bahamians must “invest in tourism big-scale”, the deputy prime minister is urging, challenging why this is not occurring given how “bullish” the country is on the industry.

Chester Cooper, addressing the Harbour Island Business Outlook, questioned why Bahamian entrepreneurs are not exploiting the industry’s “growth potential” to invest in larger resorts and other tourism-related projects as he pointed out that virtually all such assets are foreign-owned.

And, asserting that the Ministry of Tourism is “bringing the numbers”, with visitor arrivals for 2024 year-to-date some 13 percent ahead of last year’s record-breaking nine million-plus, he urged Bahamians to develop more attractive tours and activities that will - particularly for cruise ship passengers - “that will make our guests want to leave the island with their pockets empty”.

Mr Cooper, who is also minister of tourism, investments and aviation, acknowledged the need to increase per capita spending by cruise ship passengers if The Bahamas is to maximise the economic benefits from this tourism segment but placed the onus on the private sector and its innovation, ingenuity and creativity to achieve this.

Praising Jack’s Bay, the Eleuthera resort development headed by Sir Franklyn Wilson and former Cabinet minister, Tommy Turnquest, the deputy prime minister hailed it as a project that “truly speaks wonders for Bahamian entrepreneurs and Bahamian entrepreneurship”.

“This is something where, if there was one area we could improve improve in our overall investment landscape, it’s Bahamian investment in tourism big-scale,” Mr Cooper said. “If you think of all the resorts in Eleuthera, if you think of all the resorts in New Providence and Exuma for that matter, we will find that most of them are owned by foreigners.

“If we are so bullish and we are so optimistic and enthusiastic about the growth and potential we are seeing in tourism, why aren’t we investing more in tourism?” He also praised Bahamians who have invested in Airbnbs and other vacation rental-type products for “enjoying some of the wealth tourism is bringing”.

The lack of Bahamian ownership and investment in tourism, beyond boutique hotels, tour and excursion providers (supposedly reserved for 100 percent local ownership under the National Investment Policy), and vacation rentals has been a concern voiced frequently over the years as it means the largest assets in the country’s number one industry are chiefly owned and controlled by foreigners.

Bahamian entrepreneurs, though, will likely counter by pointing to an unequal playing field with their overseas counterparts. Foreigners are able to access capital at cheaper interest rates for “big scale” tourism projects in The Bahamas, while many local commercial banks and risk averse and do not lend to the resort sector. There also complaints that Bahamians are not given access to the same investment incentives.

Mr Cooper, meanwhile, branded The Bahamas’ investment market as “very vibrant and robust” with Eleuthera said to be “playing a pivotal role”. He added that regardless of where investment is occurring on the island, “we know a rising tide for Eleuthera will float all boats”.

“The Briland Club right here has already put $130m in the ground,” the deputy prime minister said. “It’s a beautiful marina from what I have seen at night, and we expect an additional $150m investment in this development. Utopia is $75m, and this is in the Governor’s Harbour area.” The Briland Club’s developer is Michael Wiener’s 4M Harbour Island, with Sterling Global Advisors the development manager.

Elsewhere on Eleuthera, Mr Cooper said the Davis marina is “continuing its development with 24 slips” while the French Leave marina now includes a fixed mega yacht slip to attract this market. The $200m Ritz-Carlton project in south Eleuthera was said to be “progressing well, while Cape Eleuthera is adding 20 new cottages.

“We are bringing the numbers,” Mr Cooper said of his ministry. “We want and need more experiences to get persons out of the hotels or off the ships and spending money. We want to ensure we are increasing the level of spend of visitors who come to Eleuthera or any island of The Bahamas by cruise ship.”

With “the empowerment of Bahamians” through entrepreneurial opportunities a key focus of his ministry, Mr Cooper added: “We can enrich the visitor experience and they can spend more money. So the Ministry of Tourism will bring the numbers, as you have been hearing, and last year we brought almost ten million.

“The trouble with breaking records is you have got to do it again, but I am happy to tell you so far, so good. This year we are about 13 percent [ahead] so far. We can bring the numbers, but we cannot extract the money out of their pockets. This is where you come in as stakeholders in the tourism industry.

“We have, and you have, to make our guests want to leave the islands of The Bahamas with their pockets empty by creating the experiences and customer care that will continue to make us the delight of the world.”