The Tribune

By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

The Prime Minister yesterday asserted that the island economies in his constituency are on an “upward trajectory” after their combined GDP output grew by 16 percent to $58m in 2023.

Addressing the Cat Island Business Outlook, Philip Davis KC, who is also MP for Cat Island, San Salvador and Rum Cay, said increased stopover visitor arrivals had continued to drive the post-COVID rebound with San Salvador achieving almost full employment.

“Last year, the combined GDP of Cat Island, Rum Cay, and San Salvador totalled more than $58m, a 16 percent increase compared to the year before and nearly double the $34m recorded in 2021. Year-by-year, we are establishing a clear upward trajectory,” he said.

“Last year, Cat Island experienced the highest number of foreign air arrivals since 2008. In San Salvador, we are close to achieving full employment. In fact, San Salvador experienced 16,000 arrivals in 2023, four times’ higher than the year prior, and the highest since 2019. In 2024, we are seeing similar success.”

Mr Davis said his administration is tackling inflation and the rising cost of living by introducing solar microgrids across the Family Islands in a bid to lower the cost of electricity. He added that BPL has also adjusted its fuel charges and tariff rates, which led to hundreds of consumers in Cat Island and San Salvador experiencing savings on their September electricity bills.

“In the month of September, 397 BPL customers in Cat Island and 127 in San Salvador experienced savings of 44 percent to 48 percent; 295 customers in Cat Island and 161 in San Salvador experienced savings between 20 percent to 44 percent, and hundreds more experienced more moderate savings up to 20 percent,” said Mr Davis.

“And so we are heading in the right direction, and we just ask you to check your bills and see that you’re having those savings. The good news is that this is just the beginning. As the extensive upgrades to our power grid are carried out, and as we integrate solar power and LNG, we can expect more significant price decreases for households and businesses throughout the nation.”

Mr Davis said the Family Islands are “fertile soil for opportunity”, and highlighted the diverse industries contributing to GDP growth in Cat Island, San Salvador and Rum Cay.

“The most recent NSI data points to multiple contributors to GDP growth for all three islands. The categories include agriculture, forestry and fishing, wholesale and retail trade, motor vehicle repairs and transport and storage, which accounted for $11.6m in GDP,” said Mr Davis.

“Accommodation and food services, arts, other services, and household employment, which accounted for $10.9m in GDP. And real estate activities, owner-occupied properties and rentals, which accounted for $15.2m in GDP.

“These numbers point to economic diversity as one of the core strengths of our Family Islands. There is, in fact, a lot more to The Bahamas than tourism and financial services. If we are serious about economic diversification, the pathway to greater diversity of industries must pass through our Family Islands.

“Modernising industries like agriculture and fisheries, and leveraging the unique strengths of each island, will be key to reinvigorating our islands.” Mr Davis said that while capital access remains a challenge for small businesses, funding is available through the Bahamas Development Bank and the Small Business Development Centre (SBDC).

“We know that access to capital remains a challenge for small businesses. This is by no means a new issue,” said Mr Davis. “Funding from the SBDC, as well as the Bahamas Development Bank’s Family Island grant, have been successful in supporting small businesses in our Family Islands.

“But more can be done to expand access to finance for businesses of all sizes – both through direct government grants and loans, but also through new avenues to private capital. The more barriers are removed, the more the people of these islands will thrive.”