This statement was made Tuesday by Senator James Smith at the 13th Annual Bahamas Business Outlook seminar.
Delivering the keynote address to the group of business people assembled at the Radisson Cable Beach resort for the economic conclave, Mr. Smith said the strategy will focus on four broad areas, involving: Sustained economic growth; promotion of social development and equity, particularly in low-income areas; more emphasis on environmental management and natural resources conservation; and the implementation of a public sector reform programme.
The one-day conference was held under the theme: “Looking out for Global Opportunities”.
Senator Smith also acknowledged that the economic outlook for The Bahamas in 2004 and beyond was heavily dependent on the performance of the U.S. economy, and the absence of any global catastrophes and natural disasters.
“Our major macro-economic indicators over the past year are for the most part on favourable positive trends,” Senator Smith said.
He said that major foreign direct investment projects are in various stages of implementation, and if fully realised, “we could expect expanded opportunities for growth and employment in the local economy.”
“We believe firmly that we have the appropriate mix of policies and programmes to place The Bahamas on a sustainable path of development well into the future,” he said.
Senator Smith gave an overview of the Bahamian economy, including tourism, construction, financial services, and trade, and projections for the future. He also discussed areas of tax reform and e-commerce.
He also outlined Government initiatives and projected expenditure over the next four to five years.
When Mr. Smith addressed the seminar last year, The Bahamas, and the rest of the world, faced economic uncertainty over the prospect of a war between the United States and Iraq, with resultant conditions depending on how long the conflict might last.
“Today, there is concern regarding labour unrest in the tourism sector and the possibility of a strike which would have an adverse impact on economic growth,” Mr Smith said.
Given the recent turnaround in the U.S. economy, which should result in an increase in disposable income by U.S. travellers, Senator Smith said he was optimistic about the outlook for the country’s tourism industry in 2004.
“We should be mindful however,” he cautioned, “of the ever-present threat of terrorism and the disruptive effects terrorist actions would have on our economy.”
Senator Smith further noted that over the next year, there is likely to be an increase in the stock of hotel rooms, more diversity in the tourism product and more effective marketing of The Bahamas as the destination of choice for the value-conscious traveller.
“In the absence of any natural or man-made disasters, we could look forward to healthy increases in both stopover and cruise-ship visitors,” Senator Smith said.
Regarding the government’s macro objectives, he said that the government recognised and accepted the need for thoughtful and prudent economic management of the economy over the next few years.
“Its policies and programmes must be designed to foster economic growth and development,” the State Finance Minister said.
By Lindsay Thompson, The Nassau Guardian
