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Last Updated: Feb 13, 2017 - 1:45:37 AM |
 Nassau, Bahamas - Remarks by the Right Honourable Perry G. Christie, M.P. Prime Minister & Minister of Finance At the 20th Annual International African American Hotel Ownership &
Investment Summit & Trade Show (NABHOOD) 29th July, 2016:
Four years ago when I first addressed this body as a recently elected second term Prime Minister in 2012, I did so confident in the belief that through an understanding of our shared ancestry and the active mining of our mutual interests, we could together transform the economic underpinnings of our respective constituents; and in spite of today’s challenging economic realities which have slowed progress on all fronts, that is still my unshakeable belief.
Ladies and gentlemen we in The Bahamas have just celebrated our 43rd Anniversary of Independence as a sovereign nation, marking our continuance on that long journey of self-determination through the garnering of political clout, economic self-sufficiency and empowerment of our citizenry.
During the past four years that path has been fraught with challenges for my Government, both within and without. On the global scene, few nations have been spared the impacts of the seismic political, economic and social disruptions which began in 2011 and which continue to reshape the World Order, which is reflecting in the downward spiralling of economic growth projections for many countries across the globe and necessitating far-reaching reforms to alleviate poverty and suffering.
As global citizens we are all facing the polarizing effects of slowed or stagnant economic growth and inequalities in income distribution resulting in marginalization, not only between nations, but also amongst citizens within countries. And we are all experiencing a changing global demographic that is re-shaping business models across all sectors of the global tourism industry.
Last year as part of our Reform Agenda, my Government took carriage of the nation’s Economic Planning Unit which has responsibility for publication of the country’s first locally produced National Development Plan. The Unit recently completed an in-depth assessment of socio-economic trends and prevailing headwinds to determine which of our economic pillars can propel us forward as a nation and provide for future generations. The Unit also undertook a comprehensive examination of the challenges we confront as a nation and which now threaten to undermine our continued progress.
What we have learned in a nutshell is not rocket science; it is that our survival and stability revolves around building strong communities and skilled human capital. That the entrepreneurial spirit must be nourished and must prevail if we are to stimulate economic growth. That high standards in every field of endeavour must be sought after and attained by the majority if we are to maintain international reputational integrity, productivity in the workplace and social cohesion; that, indeed, all lives do matter! And that the evolving tourism industry continues to be our best defence and a buffer against rising levels of poverty and strife in our nation.
Over the past four years there have been advances on all fronts, and in particular, the implementation of a series of reforms in pursuit of an agenda of transformation for the creation of a modern Bahamas.
Last year we implemented improvements to our tax administration with introduction of value added tax aimed at increasing government revenue and a reduction of the GFS Deficit. These measures will ensure that there are sufficient public funds to support continued improvement in government services and costs associated with archipelagic development. According to the Governor of the Central Bank, there is every indication that VAT receipts in our fiscal year 2016/17, projected at 23.7 percent of GDP, will outstrip the collections in 2015.
We have embarked along a path of energy reform to lower costs and increase energy sufficiency as well as promote diversification of the sector into renewables and have liberalized cellular access in the country to provide greater competition and more value for money to consumers.
We have allocated a sizeable sum of funding to training and apprenticeship programmes focused on youth development and reduction of youth unemployment which in The Bahamas currently stands at thirty percent. Our social services initiatives too are geared toward youth empowerment while improving the efficacy of access to social safety nets and providing more immediate relief to the economically disadvantaged.
My administration has established the Bahamas Agricultural and Marine Science Institute (BAMSI), a tertiary level, academic and research institution offering certification and skills training to students across the archipelago. BAMSI is focused on improving food security through crop and livestock production and marine and fisheries development. These initiatives are also geared toward poverty reduction through the growth of backyard farming in Bahamian communities and improvement of farming techniques in agriculture and toward the establishment of cross industry linkages.
BAMSI, which recently graduated its first candidates, is now an accredited institution, facilitating student exchanges with the College of The Bahamas, the University of
Miami, University of Florida, Ocean University of China, and a pending MOU with the University of the West Indies.
My administration continues to work diligently to create a system of cost effective, universal Health Care and affordability of basic medical services remains a government priority as reform of our National Health Insurance system to enable more inclusive coverage.
A Standards Bureau, long in the making, has now been launched to ensure that there is consumer protection infrastructure and monitoring in place to improve the quality of goods and services imported, exported and sold in The Bahamas.
We have allocated over $550 million for infrastructure development of roads, bridges, schools and government buildings, and in particular, on improvements to some of the 65 international and domestic airports that provide critical access for Bahamians to their families, and opportunities for tourism development.
Over $470 million has been allocated to improving our national security infrastructure, as well as training and mobilization of our Police and Defence Forces.
Most importantly, we have implemented measures to ensure fiscal prudence while spending only what is necessary for the safety, security and well-being of our people and to support a growth agenda that will generate construction employment for 11,000 persons and 9,000 permanent jobs through foreign direct investment over the next decade.
Our business environment, typically characterized by high cost and low tax, is becoming more responsive to the needs of its customers and we intend to address this through initiatives to develop and promote better accountability and innovation and to expand the use of technology buttressed by our renowned legal protections.
Ladies and gentlemen, notwithstanding our challenges, The Bahamas continues to receive healthy inflows of foreign direct investment in resort projects and with $10 billion in investments committed since I took office in 2012 further demonstrating that it is still a most effective mechanism for income stabilization and economic growth.
The commitment of billions of foreign and local direct investments, particularly in the tourism industry in the form of high-end, boutique hotel and resort properties will generate 1500 new hotel rooms and 300 estate homes in resort inventory over the next decade. In addition, the development of high-end, locally owned and operated boutique hotels such as Island House and Ocean West in Nassau has greatly enhanced the product offering and is transforming the look and feel of the landscape of our Bahamas tourism industry.
What is different about the new developments though is the degree of integration of community aspects that necessitate entrepreneurial participation by Bahamians.
For example, on New Providence, Albany is investing another $200 million in development of a planned community around its resort, encompassing a financial centre, equestrian centre, recording studio, hospital and wellness centre, and condominiums.
The Pointe in downtown Nassau is unveiling a similar concept in its vertical integration of a $200 million retail and entertainment complex with a garage and performing arts centre designed around a 200-room, Hard Rock hotel and marina, condominium and residences.
A similar concept is occurring in Exuma where an amenities plaza and condominiums are being constructed around the February Point resort in Georgetown and which will soon encompass a planned community development and sporting complex through a joint venture with the Government.
This community-driven mixed-use model, comprising boutique hotels, estate homes and condominiums which integrates activities and business opportunities, is being replicated throughout our Family Islands. For instance, in Abaco at Baker’s Bay where $400 million is now being spent to launch the second phase of residential and community development; at Winding Bay which is undergoing a $200 million community expansion; at Cotton Bay, Eleuthera with a $200 million investment, at Children’s Bay and William’s Cay in the Exumas with a $200 million investment, at the Stocking Island Club in Exuma with a $600 million investment and where the owners plan for development of a sailing school, as well as developments on a smaller scale on Chub Cay in the Berry Islands, South Cat Cay, Little Norman’s Cay, Leaf Cay, and Highbourne Cay.
Likewise, the Genting/Resorts World Group has recently launched the opening of their $660 million, five-star, Hilton Resort and Casino which has attracted over one billion dollars of investment in infrastructural upgrades, transportation, housing developments and airport expansion on the island of Bimini, where the lack of infrastructure had made development that much more challenging.
Ladies and gentlemen, I am told that as a result of the Bimini Hilton development over thirty new businesses have come on stream on the island of Bimini. To use this example, the value-added in products and services which are being integrated into
developments will be the catalyst for our particular ‘industrial revolution,’ providing for long-term growth and the sustainability of economic development.
It is, after all, the viability and distinctness of the products and services, owned and operated by passionate entrepreneurs, which give any destination its uniqueness, its vibrancy, its critical mass and provide both direct and indirect employment and other benefits that enhance the overall destination image and visitor experience.
But these advances will mean little if we do not do enough to ensure that those entrepreneurs have the tools, the skills and the capital to sustain their enterprises.
Such initiatives would grow exponentially through the creation of partnerships with organizations such as yours to deliver joint ventures that can expand capital access, facilitate marketing efforts, and promote knowledge and skills transfer as often it is these intangible benefits which create positive and lasting outcomes for investors.
As a country we have not even begun to mine opportunities for business development which run the gamut from art, history and culture; to retail, culinary, entertainment,
sports and banking; to real estate, business services, transportation, housing, health, education and communication. Such ventures would need to be replicated throughout the chain of islands in The Bahamas to create a vibrant domestic economy.
Our tourism sector includes the existence of second homes in single or fractional ownership which are operated as vacation rentals and where there is collective participation, both Bahamian and foreign, through the formation of companies, joint venture partnerships, and other investment vehicles. Many such developments would also provide the impetus for economic growth but it needs champions of the joint venture partnership model; persons dedicated to the planning and packaging of real estate to attract local contractors; to driving international trade and investment in second homes and vacation rentals; to spearheading local workshops supported by the Bahamas Chamber of Commerce and the Government where interested parties in both local and international jurisdictions can connect, build relationships and jointly solicit financing once there is alignment of vision and business plan development.
I would like to take this opportunity to once again thank the organizers and sponsors of this most important Conference for again inviting me to speak and for their continued interest and commitment to fostering close ties with The Bahamas and for their efforts to advance our mutual economic interests. We urge you to maintain your commitment to the cause; to the partnership and to the long-term goal of creating economic opportunity for you as business people and for the future well-being of us all.
Thank you.
© Copyright 2016 by thebahamasweekly.com
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