The Bahamas is set to develop infrastructure on various Family Islands in an effort to lure foreign investment and boost the tourism economy confirmed Minister of Works, Utilities and Bahamasair Bradley Roberts in Havana on Sunday afternoon.
The Minister was part of a Bahamian delegation who traveled with Prime Minister Perry Christie to the Republic of Cuba upon the invitation of the nation’s President Fidel Castro.
The entourage were attending the 30th anniversary of diplomatic relations between Cuba and four Caribbean nations, Barbados, Guyana, Jamaica, Trinidad and Tobago.
The Minister acknowledged that it is possible that many investors are not susceptible to invest in various Family Islands which have great economic potential for The Bahamas because of their minimal infrastructural position.
However, with Cuba’s shift toward developing its tourism product with the marketing of its cays and islands around the mainland as part of its tourism product, The Bahamas could see Cuba as a real major competitor in the region.
“Cuba has evolved as a competitor,” said Mr. Roberts. ” Before you were born, Cuba was the dominant tourism destination in this part of the world and because of Cuba being placed on the embargo by the United States, Cuba has had to go out there all by itself. And they have been coming back with a great deal of success,” said Mr. Roberts.
“They obviously are a force to reckon with and as they get to know this tourism business, as they seem to be doing with some degree of positive result, they are going to become even more of a challenge. But I think we can co-exist together as we have been co-existing in the Caribbean,” he said.
At present, Cuba welcomes some 2 million visitors per year, which grosses up to $300 million for the island.
Tourism now stands as the country’s number one industry, as it does for The Bahamas.
Minister Roberts said that The Bahamas will rise to the challenge to further develop the infrastructure of the Family Islands.
In particular, Inagua he said, is also projected for promoting tourism.
“They have the beautiful flamingoes and the natural habitat there. This offers excellent possibilities for Inagua. But right now, the charter flights between San America and Cuba means we will be getting tourists from Europe who are coming into Cuba and stopping over in The Bahamas for a few days as well,” he said.
He also gave an example of the hotel project for Four Seasons Emerald Bay Resort in Exuma, for which he said electricity has been expanded , and the Ministry is also providing a ” significant” upgrade of the airport.
The Ministry, he said, is also ” aggressively attacking” the situation of potable water on that island.
“And would do so in all islands of The Bahamas,” he said.
He said that tourists can visit both The Bahamas and Cuba, because we both have unique offerings in our tourism product.
“We are right next door to each other,” he said.
Minister of Tourism Obie Wilchcombe earlier reported at the Progressive Liberal Party Convention held in November, that The Bahamas is on the rebound since the tragedy of September 11.
Family Islands tourism arrivals grew by 40 .5 per cent to the end of October Mr. Wilchcombe said, noting that in October 2002 the islands welcomed an 11.7 percent increase compared to October 2001.
This can be attributed to the cruise visitors.
Some 15,000 more visitors came to The Bahamas this year, which represents a 22 per cent increase in arrivals compared to 2001.
Overall, The Bahamas received 3.67 million visitors already for the year compared to 3.52 million in 2001 he said. Adding that this is attributed to an additional 205,000 sea arrivals, a 9 per cent increase.
These tourists spent over $150 million he said.
Air arrivals have also increased substantially with Nassau and Paradise Island receiving a 16.2 per cent increase, which include some 8,000 new visitors in the month of October alone.
Air arrivals for the first 17 days in November show an 8.4 per cent increase over last year, with air arrivals and sea stopovers for Grand Bahama having 28.6 per cent more visitors for the same period last year.
The year 2002 is foreshadowed to have between 4.3 and 4.4 million visitors by the end of the year.
In The Quarterly Economic Review, a publication of The Central Bank of The Bahamas, prepared by the Research Department for issue in March, June, September and December, it was reported that reduced revenue collections contributed to a substantial deficit during the first 11 months of fiscal year 2001/2002.
In the area of tourism preliminary indications are that tourism output remained sluggish during the second quarter, although weakness in the volume of stopover business was softened by comparatively appreciated hotel room pricing, says the Bank.
“Total arrivals fell by 1.8 percent to 1.12 million visitors, against a 2.6 percent increase in 2001. Losses in New Providence and the Family Islands led to an 11.3 percent downturn in air traffic, whereas growth in sea arrivals nearly doubled to 4.1 percent, due entirely to augmented cruise traffic to the Family Islands.”
Estimated room revenues in the hotel sector, a key indicator of expenditure performance, declined further by 0.8 percent, despite a 7.5 percent appreciation in the average nightly room rate to $162.89, as average occupancy levels decreased to 64.3 percent from 70 .5 percent in 2001, says the Bank.
This, nevertheless, was the first comparative rebound pricing since the September 11 incident, although concentrated entirely in New Providence.
It further reports that combined with a 15 percent contraction in net factor income remittances to $57.3 million, these developments overshadowed an otherwise reduced net invisible inflow of 4.4 percent to $326.7 million, which included a 5.2 percent decrease in net tourism receipts and increased net outflows for most other foreign services, except transportation and insurance.
By Vanessa Rolle, The Nassau Guardian
