The Tribune

By ANNELIA NIXON

Tribune Business Reporter

anixon@tribunemedia.net

Family Island businesses are rapidly adjusting their business models and strategies to cope with the ongoing uncertainty surrounding US trade and tariff policies.

Karen Catalyn, owner of the Harbour Island Spa and Karen Catalyn Catering, told Tribune Business that due to the likely tariff-induced rise in some food costs she may have to focus less on her catering business and more on the spa given that she will not have to spend as much money so quickly on the latter.

“I don’t buy anything in The Bahamas,” Ms Catalyn said. Very seldom. I bring my meats even from Costco or Sam’s. Like every three months I get my spa supplies, my catering supplies. I just did a birthday party last week Friday of 150 people.

“I had to get more chairs, bring in more table cloths, the usual stuff, more serving dishes and stuff like that. The sheets, the towels, the products, the oils - every three months I do a turnover because... every three months a boat comes here from America, and they actually bring my stuff.”

Despite the 90-day “pause” announced last week by Donald Trump, where he suspended previously-unveiled tariff hikes and instead imposed a “baseline” 10 percent levy on US imports of goods from all countries with the exception of China, mass confusion and uncertainty still persist - especially over what will happen when this period expires in early July 2025.

Ms Catalyn said she has just completed the Blue Hideout, a restaurant and bar located in North Eleuthera, and has obtained many of the permits necessary to launch the business. However, the damage that Mr Trump’s tariffs have inflicted on business and consumer confidence, both in the US and globally, have discouraged her. She said she plans to turn the building into an AirBnB instead, given vacation rental demand.

“I’m in a position where I was building a new restaurant and bar on Eleuthera, the Blue Hideout.” Ms Catalyn said. “I already have the permit, licence and everything. I’m going to turn it into an Airbnb because I’m afraid of the pricing for food. A lot of restaurants are going to go under.

“The good thing about the spa is the overhead expenses. My biggest challenge is electricity that goes up, triples, every summer. I don’t have to buy stuff constantly to keep up with my supplies. Whereas with the food, I bought a turkey on Harbour Island last week for the same catering business. It was $104. It’s $4.50 a pound. It was almost 30 pounds - a big one. But, nonetheless, very expensive.

“So I’m pulling back on the catering. I’ll just do it under my mom’s hotel that she left us. And the one that I was going to do on Eleuthera, the Blue Hideout, I want to change that to a home, an Airbnb, because apparently they are getting prepared to start the new airport and housing will be in demand.

“So now I’m not too keen on doing my personal bar and restaurant that I’ve already built. I’m going to just rent it out as an Airbnb. We have enough restaurants and bars.”

Discussing the price differential between New Providence and Harbour Island, Ms Catalyn said the Trade Diversification programme recently launched by the Government is “too little, too late”. She said Eleuthera has the right conditions for farming but, unfortunately, they have not been properly exploited.

“Too little, too late. I was a teacher for 40 years, and they’re teaching agriculture, but there’s no farm there,” Ms Catalyn said. “I try to get a lot of young men on Harbour Island. They are fishermen. Not many farmers. Very few farmers. For every five fishermen, we might have one farmer… Unfortunately, we’re back to the Government. They did not push the idea of self-sufficiency and agricultural or fisheries.

“I’ll get political. If Brave [the Prime Minister] is smart, as I suspect he is, he would visit every island and see what can be done. We have the soil. Eleuthera was once a booming farming island. I’m not talking about where you meet with politicians. I’m talking about where you walk through the farms.

“There’s still some in the north who do a lot of farming, but it’s hard. They can grow the limes. We have somebody in Current who has the best limes, and I get them from him, but they’re few and far in between because he doesn’t really push it,” she added.

“I’m trying to understand what Trump is trying to do. I understand it somewhat. He’s trying to make America great again. Is he doing it the right way?.... I understand what he’s trying to do but the ripple effect is that The Bahamas will feel it.

“The prices are going to go up because all prices are going to go up. A lot of the food comes from Mexico, like the limes. And we use limes a lot in our hotel business. They’re now $1 a piece on Harbour Island or 75 cents, if you’re lucky, and they’re going to go up. We use a lot of lemons. I use a lot of lemons, in particular. Most of America’s meats come from a lot of the countries that he’s imposing these tariffs on. My only concern other than the pricing is, will America be able to meet the supply and demand; like eggs?”

Stephen Knowles, an artisan based in Abaco, imports some materials including glue and sand paper. He said that while he tries to buy materials mostly in Abaco, the fact some are imported means he can expect a price increase. Mr Knowles said he will have to absorb the cost increase or discontinue his craft.

“I go to the local shops here, like, Home Fabrics just opened up a store there,” Mr Knowles said. “So, I’ll go in there and buy a couple of my decorative items from there. And then the hardwares. I used to work at one of the hardwares here in Abaco. Abaco Hardware, actually.

“So, like I say, lately I’ve been trying to buy local. I guess they are going to up their prices. So either I’ll have to go along with it. Or, like I said, I only do so many small items, so I don’t think it’ll really bother me unless they really get expensive. Then I guess I won’t be able to do it.”