Big business expansions for Grand Bahama ... more employment

The Prime Minister Perry G. Christie was a speaker at the recent Grand Bahama Business Outlook at which time he said he was still optimistic about Grand Bahama.

Under this year's theme of "A Bold New Agenda: the next 25 years" he said his Government is setting the stage for the solid recovery and expansion of our economy.

"I cannot underscore more emphatically the point that we have embarked on a course of action and on a broad consultative platform that will lay the ground work for a stronger and more prosperous economy, particularly for  Grand Bahama, for many years to come" he stated.

He noted that Grand Bahama's economic makeup is far more diversified than that of other Bahamian islands, with a legal regime of superior tax concessions under the Hawksbill Creek Agreement, the superior infrastructure and topographical framework that are well suited to both tourism and industrial development. 

"We are moving on all fronts now, synching both tourism and industrial development in a manner that assures Grand Bahama’s viability as a destination in hospitality, health & wellness, shipping, cruise, industrial, residential and small business development.

"In just the past 2-3 years, SME expansion, new businesses coming on stream and committed capital by large stakeholder businesses have resulted in half a billion dollars being committed to investment in Grand Bahama, but when you look at the dollar value of new investment elsewhere in the country, Grand Bahama’s situation presents an anomaly given its tremendous infrastructure and development potential."   

However, the Prime Minister said, despite its positive tracking in recent times, Grand Bahama’s hotel occupancies for the first two months of this year declined compared to last year, due for the most part to a softening in the Grand Bahama tourism industry’s major market – the  Canadian market due to a much weaker Canadian Dollar.

Here he said the Ministry of Tourism is working with its airline, cruiseline and industry  partners to mitigate further decreases during the remainder of the year.

"Grand Bahama has demonstrated its resiliency as a Tourism destination in 2015 by leading the Country with a 33% Tourism growth rate, thereby outpacing all other Bahamas destinations and exceeding the Bahamas' average by more than 25%.

"New airlift, driven by our new partner Sunwing, from both Canada and USA markets, drove a more than 50% of the growth.  This was coupled with Memories' more than 1100 beds returning to Grand Bahama’s inventory to service the increased demand levels.

"In a complementary fashion to Sunwing, Bahamas Paradise Cruise Lines took a bold step to acquire a 50% larger and newer ship then expanded their Cruise & Stopover programme in 2015 to boost their delivery and garner a near 30% share of the incremental stopover visitors generated to Grand Bahama Island.

"I am also advised by the developer and operator that under-deliveries in the service product delivery quality at their Grand Bahama Memories, which fell behind that of its sister properties in the region in its first year of operating in Grand Bahama, is also a contributing factor to the softer than expected demand levels."

Mr. Christie then advised moving resolutely with the Sunwing Group, stating that they are committed to making the necessary marketing adjustments to increase traffic from the USA, while upgrading service quality levels to win back the loss market share recently gained. 

He said already we are encouraged to know that summer advance bookings are reflecting a 20% improvement in the booking pace compared to last year, while plans to add US cities in the fourth quarter will minimize dependency on the softened Canadian market next winter.

I now call on not only Memories but all employees in GBI's tourism sector to come to grips with the need for us to win and retain customers as we move forward through gaining a reputation for great service, which, along with Grand Bahama's great value proposition, deepen its market penetration with the segments from which Grand Bahama draws.

"I am also advised that Bahamas Paradise Cruise Lines will close out this March with 90% occupancy levels and anticipates a strong summer season ahead with growing optimism on the number of stopover visitors that will be generated.  Additionally the cruise line has already hired 104 Grand Bahamians and is actively recruiting others.

"My Government realizes that the ultimate fix for a sustainable tourism sector in Grand Bahama must be that of having fully committed and competent anchor private sector players at both ownership and operating levels.

"My Government remains committed to finishing the job we have begun in turning around Grand Bahama’s tourism and to move to a more sustainable existence in Tourism that will usher in fresher and more appealing product to a much wider array of customers globally.

"My Government is taking deliberate steps to re-shape the economic landscape, to arrest any further decline of Grand Bahama’s economy and to influence very different outcomes for existing businesses and to attract new ones." 

Prime Minister Christie turning his attention to the most important question on many business persons minds - the Hawksbill Creek Agreement to which he said the Government has been engaged now for the past year in an exercise which is expected to put in place the further mechanisms needed to revitalize the economy of Grand Bahama.  

"The Hawksbill Creek Review Committee is now completing its work, which was to provide recommendations to the Cabinet on strategies to improve overall destination planning and promotion to attract new industry and identify strategies for entrepreneurship and increased employment.  The Committee’s recommendations are far-reaching and involve a restructuring of the Grand Bahama Port Authority in such a way that would achieve best practice governance, accelerate business establishment and enable the development of public and private partnerships.

"The Cabinet Negotiating Committee has held private meetings with shareholders in the Grand Bahama Port Authority to determine their responsiveness to the Review Committee’s recommendations and those talks are progressing.

"The Cabinet Negotiating Committee has also been in discussions and negotiations with other major stakeholders on recommendations arising from the Hawksbill Creek Review Committee’s extensive Report and Recommendations.    

"Following on such discussions, Cheung Kong Property Holdings Limited, a part of the Hutchison Group of Companies, recently placed for sale their Lucayan Resort complex with a bidding deadline of June 10, 2016. The process is being handled by the internationally well known HVS Capital Corporation."

He stated that the government sees this as a positive step forward as they expect major well known hotel/casino investors and operators to be attracted and bring about a renaissance in Grand Bahama Tourism.

"We are most grateful to Hutchison and CK Property Holdings Ltd. for the major investments which they have made over the years in their properties, the Container Port and their other interests in Grand Bahama" he added. "Despite their major investments in their resort complex, the largest one in Grand Bahama, and heavy operating losses, they have partnered with the Government in keeping the hotels open and protecting the jobs of thousands of Grand Bahamians over the years.

"Mediterranean Shipping Company has committed with Hutchison to a $250 million expansion at the Container Port. We are extremely encouraged by MSC’s interest in Grand Bahama and its capabilities which extend across multiple sectors that align with Grand Bahama’s  broader economic model. 

"I recently led a delegation of Cabinet Ministers and met with MSC top officials in Geneva and discussed a number of new and potentially long-term investment opportunities in trans-shipment, maritime, cruise tourism, hospitality training and logistics, in addition to the establishment of the Maritime Academy in Grand Bahama, and the employment this year of 150 Bahamian crew on MSC’s cruise and cargo ships. We are in discussions with MSC on providing maritime careers and employment for a greater number of Bahamians on their expanding fleet."

Moving on to more industrial matters he said that PharmaChem will soon announce its plans for a multi-million dollar expansion and development of a new plant with tripling of its employment levels within the next two years.

"The Government is near to concluding its negotiations with Freeport Harbour Company and Carnival Cruise Lines which will pave the way the creation of Carnival Cruise Line’s cruise port in Eastern Grand Bahama. The project will also stimulate construction, employment and entrepreneurial opportunities for Grand Bahamians. 

"Last week my Government signed a partnership agreement with the Grand Bahama Shipyard to provide an avenue for training and long-term employment of Grand Bahamians in a variety of trades at the Shipyard for reversal of the ratio of foreign personnel in favour of Bahamians. 

"The recruitment and training of 200 semi-skilled tradesmen in rigging, scaffolding, painting and blasting to reduce expatriate labour and 40 apprentices per annum, beginning September, in concert with BTVI, will significantly reduce the number of expatriate workers presently employed, reduce overall operational costs and set the foundation for continued growth and stability of the company and opportunities for Grand Bahamians. The Shipyard is evaluating the feasibility of an additional $100million in capital spending on possible acquisition of a fourth dock next year, and has already committed to an additional $10 million in capital spending this year."

He then stated that dovetailing with the efforts in Grand Bahama which are further accelerated in light of the expiring concessions of the Hawksbill Creek Agreement at the end of April, the government has been diligently advancing national development planning efforts to provide insight into the anatomy of the overall economy with the aim of strengthening the quality and durability of our social fabric, closing the skills gap, replacing outmoded policy frameworks and designing new methodologies for governance that will improve our overall competitiveness and enable us to survive the stress-tests of any future global economic fallout.

"It is, again, a deliberate and multi-faceted approach to achieving sustained and balanced growth aimed at a methodic strengthening of The Bahamian economy. We are on course to achieve our goals have committed rationally to this exercise which is still in its diagnostic phase. Successive phases will address the malaise and deficiencies in our critical sectors and determination and resourcing of national priorities."