The main headline of the Bahama Journal of Wednesday, April 16th read “Atlantis Booming” The story went on to say that despite the weakness in the worldwide travel market following the September 11, 2001 terrorist attacks in the United States, the Atlantis Paradise island Resort had experienced its best operational results up to that year. This resulted in the company grossing more than $500 million or half a billion dollars, according to Kerzner International annual report for 2002.
This milestone was indeed extraordinary, especially in the light of the tremendous downturn in government revenue, which has been constantly used as the reason for government’s freeze on hiring and its ultra-conservativism in its fiscal policies.
The Minister of Tourism, Obie Wilchombe has gone on record in substantiation of the fact that Atlantis did enjoy such astounding success, without reducing room rates. What might be some implications concerning this marvel, at a time when government-run and other hotels that depend on Ministry of Tourism promotion for their survival were doing so poorly.
The success of Atlantis, Sandals and Breezes hotels, especially during the crisis of 2002 and lately surrounding the Iraq war, might be suggesting that those properties that do their own advertising and marketing have done and can do a better job of it than can our Ministry of Tourism, which is so heavily subsidized by the taxpayer. Maybe we don’t need a Ministry of Tourism as presently constituted, just as we don’t need a Z.N.S., Bahamasair and some other government controlled entities, as they are presently constituted.
As a casual observer, we may not have all the facts to make a well-informed judgement on the matter. However, it would appear on the face of it, that these managers and private investors of the Tourism industry would be much more motivated to making their operations successful than those of public corporations being run or directed by politicians. The private operation is driven by the bottom line of profit for its owners and shareholders; and so those in charge, whose livelihood depends on the profit line, would put more creativity and commitment into making their operation successful.
On the other hand public entities, especially in developing countries with a narrow economic base, would tend to be run to the appeasement of the political directorate and party faithfuls. More than likely the engine drivers of such operations would be of the civil service and party supporters’ mentality, seems quite obvious at government owned and run entities. Whatever the fiscal bottom line is does not necessarily affect their job security. The business or operation could lose money and be a severe burden on the taxpayer, as are the above-mentioned corporation, but it doesn’t matter. Their paycheck and pensions are secure.
They have lost millions of dollars year after year, at the expense of huge government deficits which sooner or later will have to be paid by our children or grandchildren. In the private arena those businesses would long ago have gone into receivership as a result of bankruptcy; but somehow we are constantly duped into believing that the government can do a better job of running these business entities than can private enterprise.
It is hardly likely that any government-run entity, even monopolies, will be run efficiently without being a burden to the taxpayer. The history of the fallen Soviet Union and many other socialist systems have attested to that. Government should constantly assess the need for and involvement in such enterprises, and not try to compete against private enterprise from which it derives its income to keep its operations going. Rather it should put more emphasis on good legislation to protect the integrity of such private operations and the rights of individual who invest and work in them.
The Paradise Island-New Providence or Nassau Tourist Board, we are sure, could and would do a much better job of marketing their properties, and maybe some Family Island Boards can do likewise, with some financial support from government – without political strings. Are we bold enough to think and operate differently?
Maybe we should privatise the Ministry of Tourism, as is being suggested by Professor Gilbert Morris and The Nassau Institute. Dare we trust the advice of non-governmental, local experts? It would be nice to credit some intelligence to non-politicians some time.
Viewpoints, The Bahama Journal
