Some Great News for The Bahamas Economy!

By
Real Estate Agent with Keller Williams Lake Norman ~ Cornelius NCREC License #285201

Despite the ongoing pessimism regarding the global economic outlook, The Bahamas continues to get great news with the announcement of some very positive events!  Firstly, the Minister of Tourism, Mr. Vincent Vanderpool-Wallace was quoted recently in The Nassau Guardian newspaper as saying, "In the middle of a recession, 2010 will see an increase of over 400,000 new airseats bringing a potential visitor spend of an additional $400 million compared to 2009," said Vanderpool-Wallace during debate on the government's mid-year budget in the Senate. "These new seats include non-stops to Exuma, to Abaco and to Eleuthera from the United States and Canada that have either never been seen before or haven't been seen in decades."  This potential injection of revenue into the local economy will surely have a profound effect on the economy of our country!  Mr. Vanderpool-Wallace went on further to say, "We are restoring the proximity advantage of The Bahamas by having that proximity reflected in the cost of travel to The Bahamas," Vanderpool-Wallace said. "That, as I mentioned earlier, is the first of six strategies that we outlined for tourism over a year ago. There is very strong research to show that for flights under three hours in length, the customer would rather spend their hard earned money enjoying themselves at the destination instead of consuming their funds in airfare cost in traveling to the destination. We are obliging them." The remarkable part to this statement is that proximity not only the tourist visitor but the second home owner as well!

Another very encouraging bit of news is that the new Bahamar Resort in Cable Beach seems to finally be moving forward with the release of the news that there will be an estimated $7 Billion (with a B) in wages injected into the Bahamian economy in the next 2 decades.  A report by the Oxford Economic Company, seen by Guardian Business, set out some of the key economic benefits which could create a "transformative economic event for The Bahamas in terms of tourism, economic multiplier effect, infrastructure and social change". Yesterday Hu Dingxian, Ambassador to The Bahamas for the People's Republic of China, re-asserted his country's commitment to the project saying: "Baha Mar is an important project for the long-term benefit of The Bahamas. It is exciting that two Chinese companies, China's Exim Bank and China State Construction, are participating with Baha Mar to bring this project to fruition." The benefits outlined in the report include:

*6,500 Bahamians directly employed by Baha Mar by 2014

*A further 2,000 jobs indirectly created by the project, totalling 8,500

*$5.5 billion in direct wages going straight into the pockets of Bahamian families

*A further $1.5 billion in salaries for those indirectly employed

*A $14.8 billion contribution to The Bahamas gross domestic product GDP - a massive boost to the national economy.

*$24.5 billion extra in visitor spending over a 20 year period, though spending and direct taxes, taking the total contribution for the resort to $33.6 billion over the next two decades

*An extra $6.2 billion in government revenues over a 25-year horizon.

*Visits to the property jumping from 250,000 this year to 644,000 by 2016, generating a predicted 2.3 million visitor nights Figures have also predicted that the development will inject $880 million into The Bahamas in its first year of operation through direct taxes and spending.

It is clear to see that the future of the Bahamas economy and, as a result, the Bahamas real estate market will be enormously effected over the next several years!  There is no better time than now to get into the Bahamas real estate market!

**Information and statistics provided by The Nassau Guardian newspaper

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