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TUESDAY, AUGUST 1, 2023
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‘Noble objective’: Aviation in annual 15% stopover growth By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
t 0QFSBUPS 5ISFF ZFBS TUSBUFHJD QMBO UBSHFUT THE Government’s ambition to increase stopover tourist arrivals “by ASFBMJTUJD a minimum” 15 percent per annum the National Aviation Strategic t &ZFT JODSFBTF JO 'BNJMZ via Plan was yesterday hailed as “a noble objective” by sector participants. *TMBOE BJS BSSJWBM TIBSF Anthony Hamilton, Southern Air’s director of administration, and presit "WJBUJPO EJSFDUPS QMFEHFT dent of the Bahamas Association of ASFHJPOBM IVC GPS USBJOJOH Air Transport Operators, told Tribune
Business that the goals set out in the three-year aviation industry strategy document are “reasonable projections to be pursued” and will help both Government and the private sector measure their progress. He spoke after Dr Kenneth Romer, The Bahamas’ aviation director and deputy director-general of tourism, provided more details on the National Aviation Strategic Plan 2023-2026 at last week’s Bahamas Hotel and Tourism Association (BHTA) Board of Directors meeting.
Governor trims Bahamas GDP growth to ‘3% range’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank’s governor yesterday again trimmed his 2023 economic growth forecast to “the 3 percent range” as he warned The Bahamas is poised to next year “resettle” back into low expansion rates. John Rolle, addressing the regulator’s 2023 second quarter economic briefing, said The Bahamas must boost hotel room inventory to maintain tourism’s post-COVID recovery momentum (see other article on Page 1B) as he revealed that foreign currency inflows from the sector, foreign direct
t &DPOPNZ QPJTFE UP ASFTFUUMF UP USBEJUJPOBM HSPXUI JO t 'JSTU IBMG GPSFJHO DVSSFODZ JOnPXT OPU BT TUSPOH BT GPSFDBTU t &YUFSOBM SFTFSWFT IFBMUIZ CVU TFU UP DMPTF ZFBS CFMPX investment (FDI) and other private sectors were not as strong as anticipated during the first half. Outflows on imported goods and services and overseas investments were stronger than inflows during the first six months of 2023, he disclosed, resulting in a much smaller expansion
of The Bahamas’ external reserves when compared to the same period in 2022 and underscoring the need for this nation to retain more of its foreign currency earnings. However, Mr Rolle also gave his second downward revision for The Bahamas’ 2023 economic growth prospects. “The Central
JOHN ROLLE Bank still projects some recovery-laced, above average real GDP growth in the 3 percent range for 2023. However, potential annual growth beyond 2023 is resettling closer to the two percent range,” he said. During the Central Bank’s first quarter briefing, held at the beginning of May, the Governor predicted Bahamian gross domestic product (GDP) growth “will moderate closer to 4 percent” in
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The closure of properties such as the British Colonial (291 rooms), the Melia Nassau Beach that is now being torn down (694 rooms), and the Atlantis Beach Towers (400 rooms) for transformation into the ‘Somewhere Else’ concept has removed close to 1,400 rooms from Nassau/ Paradise Island’s room inventory and left the destination unable to fully accommodate pent-up demand post-COVID. Vaughn Roberts, the Paradise Island resort’s senior vice-president of
government affairs and special projects, has previously confirmed to Tribune Business that the reduced supply has helped increase average daily room rates (ADRs) and yields across remaining properties to drive significant increases in room revenues. The Central Bank’s Mr Rolle yesterday added that higher prices paid by tourists as a result of inflation have also helped drive greater resort revenues as he asserted that industry
Soaring BPL costs delay inflation ease
will occur after the same is experienced in the US and elsewhere. “The point to stress for The Bahamas is that the timing is delayed partly because the adjustments that we are seeing, save the electricity and related costs, are much later than those that are already taking place in other countries,” he added. “To some extent we are going to have to experience the full amount of whatever adjustment and catch up that is likely to happen in the electricity costs before
THE Bahamas must increase its supply of hotel rooms and cruise passenger spending to maintain tourism’s growth pace beyond 2023 with industry earnings now “more than recovered” from COVID’s devastation. John Rolle, the Central Bank’s governor, in addressing its 2023 second quarter economic briefing, yesterday warned there appeared to be “a bit of
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BAHAMIANS will have to wait for Bahamas Power & Light’s (BPL) soaring energy bills to ease before “the moderation of inflation starts to look more like” other countries, the Central Bank’s governor warned yesterday. John Rolle, addressing the regulator’s 2023 second quarter briefing, also
a levelling off” in visitor volumes after sea arrivals exceeded pre-pandemic highs by an average of 40 percent during this year’s first six months. Higher-yielding air arrivals, who typically spend up to 28 times’ more than their cruise passenger equivalents, stabilised at just 2 percent below preCOVID levels during 2023’s first half, which he attributed at least partially to “increasing limits” on the supply of available hotel rooms especially in New Providence.
warned that high energy and transportation costs threaten to undermine the Bahamian tourism industry’s competitiveness even though the threat of a major US recession impacting travel demand appears to have receded. While Bahamians in April 2023 suffered the highest month-over-month increase in the consumer price index, as measured by the Bahamas National Statistical Institute, since
May 2022, the Governor pointed out that on an annual basis the rate of inflation had started to decrease. Acknowledging that the “highest level of inflation we have observed in The Bahamas did occur post-2022”, as numerous families continue to grapple with the cost of living crisis, Mr Rolle said the country’s status as an importing nation means any easing of prices here
Increased airlift and improved connectivity among The Bahamas’ multiple island destinations are identified as key objectives in the plan, which pledges to “develop a strategy to increase the number of international air carriers and stopover arrivals by a minimum annual increment of 15 percent”. Other targets are to “increase the market share percentage of international stopover arrivals to the Family Islands by 35 percent”, and also
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Central Bank reviews $250m investment currency reforms
More hotel rooms key to beyond COVID recovery By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
DR KENNETH ROMER
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t "JNT UP QSPUFDU SFUBJM JOWFTUPST GSPN hIFBEXJOETh t %FNBOE PO DPVSTF UP FYDFFE hT CJMMJPO By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank’s governor yesterday foreshadowed reforms to protect Bahamian retail investors from potential “headwinds” in an overseas investments market that is this year on track to exceed 2022’s $250m outflow. John Rolle, addressing the regulator’s 2023 second quarter economic briefing, said he wanted to ensure there was “sufficient balance” such that smaller investors are able to access foreign exchange for legitimate portfolio investments overseas and not be squeezed out by larger “wholesale” demands. Confirming that the Central Bank is eyeing reforms to the administrative policies governing the Investment Currency Market (ICM), and plans
to consult with the Government on any reforms and adjustments prior to the 2023 third quarter’s end, he disclosed that first-half foreign currency demand has already outpaced that seen in the first six months of 2022. “We are seeing a steady increase in interest, and I think that’s probably because of the lower premium with investment currency purchases, which is now just 5 percent,” Mr Rolle said in response to Tribune Business questions. “Just by way of a comparison, in 2022 for the annual numbers, it was about a quarter of a billion dollars in investment currencyrelated transactions. We expect this year for the numbers to look the same or greater.” The investment currency market is frequently used
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