|
Courtesy of OAS
Bahamas Prime Minister the Rt. Honourable Hubert A. Ingraham and United States President George W. Bush. |
|
| Courtesy of Bahamas News Bureau (FCS) |
Since coming to power last May in a stunning election upset, the fiscally conservative government of Prime Minister Hubert Ingraham has been remaking the country’s tourism industry, submitting balanced budgets, and putting the brakes on further “mega” resort projects.
Ingraham, 59, led his Free National Movement party (FNM) to victory on May 2 after pledging to bring good governance and accountability to office – along with policies spurring even higher levels of growth for greater numbers of Bahamians.
The outgoing government of Perry Christie and his Progressive Liberal Party (PLP) had presided over an expanding economy and unprecedented building boom, involving some 53 projects worth $13 billion. But voters felt Ingraham would better manage the accelerating economy. The economy is expected to grow by at least four percent this year.
Ingraham, also prime minister between 1992 and 2002, led his party to winning 23 of 41 seats in Parliament, while the PLP won 18 seats.
In his previous term, Ingraham initiated privatization efforts of state-owned hotels and public utilities, welcomed foreign investors, cracked down on money laundering and implemented the first local government elections. He formed an anti-corruption commission, targeting alleged abuses associated with the outgoing party’s 25-year rule.
Ingraham, who also serves as finance minister, quickly produced a $1.5 billion budget that projected a $25 million budget surplus, thanks to improved collections. It contained no tax increases or new taxes. Officials projected a virtual elimination of the budget deficit by 2011.
Speaking to Parliament, Ingraham surprised some observers by allocating what he called “significant” increases in spending on national defense, with new equipment and manpower going to the Royal Bahamas Defense Force, including 100 additional recruits, two airplanes and four patrol craft.
“This will enable the Defense Force to effectively patrol our territorial waters and deal with poaching, illegal immigration and the movement of contraband.”
In addition, 200 new officers will be added to the Bahamian police force. “It is envisaged that there will be an obvious and continuous police presence – by way of foot and mobile patrols – throughout The Bahamas,” Ingraham said.
Spending increases also were budgeted for local government, education, public health care, and youth and sports programs.
Ingraham also has called the $300 million upgrade of Nassau’s international airport “a priority.” Officials have already improved security at the aging facility. To fund the improvements, the government announced that starting July 1, 2007, passengers at Nassau’s airport would be charged a $7.50 “security fee,” and those using airports in the outlying “Family Islands,” as they’re called, would pay $5.00 each.
On another front, the government has pledged to continue with the previous administration’s privatization of Bahamasair, the national airline.
Until the election upset, The Bahamas had never had a one-term government. The unexpected outcome was viewed in positive terms by many political observers in the Caribbean—a region where more than a few governments have ruled for years on end.
“This country is run by the people now, not by the leaders,” declared an editorial in a Nassau newspaper.
As has typically been the case in The Bahamas, the election campaign and balloting were for the most part peaceful and orderly. Shortly before the election campaign started last March, Dr. Marcus Bethel, a minister in the outgoing government, observed, “The Bahamas has no history of serious political violence. We’ve been blessed.”
Because the two main parties embrace the same vision – that of a democratic nation embracing a market-oriented economy and low-tax philosophy – few big changes were expected.
“Both parties are pro-business,” observed Robert “Sandy” Sands, a hotelier and vice president of Bah Mar Resorts Ltd.
Rating agency Standard and Poor’s observed, “Any minor delays in addressing the pending issues will be short-term and technical in nature. In fact, the FNM is generally perceived as being more rapid and aggressive in decision making than ousted PLP, particularly in dealing with investors.”
Ingraham nevertheless offered one surprise after being sworn-in. He declared an end to “mega” tourism projects. The former government had encouraged big “anchor” developments on the main islands of the Bahamian archipelago in order to create jobs and attract investment. But Ingraham, according to local newspapers, said that low-key developments were more appropriate for The Bahamas and its environment.
Neko Grant, head of the government’s newly created tourism and aviation ministry, said he was unaware of Ingraham’s reported comments on mega projects. However, new projects should “blend in” into to their host island’s surroundings and not be over-imposing, he explained.
How this would affect big projects in advanced stages of planning or negotiations was unclear. Two of the biggest are the $4.9 billion Ginn Sur Mer mega resort in Grand Bahama and $2.3 billion Baha Mar mega project on New Providence’s Cable Beach, home to a row of high-rise hotels. Neither development has started, although both developers are well along in their plans, and that is especially so in respect to Baha Mar.
Weeks before the election, negotiations between Baha Mar and government officials failed to meet a contractual deadline, leading to speculation about the project’s future. But Sands, of Baha Mar Resorts Ltd., said developers remained committed to a project that would generate thousands of jobs and revitalize Cable Beach.
“We’re ready to start immediately,” he said.
Asked about the Ingraham administration’s policy on mega projects—a definition Baha Mar certainly meets—Sands said he felt the prime minister was mainly referring to projects in sleepy outlying islands in the 700-island Bahamian archipelago.
Along with its preference for low-key developments, the Ingraham administration is undertaking a major “rebranding” of the tourism industry. It will stress local culture and festivals—not just sun, sea, and beaches. As part of this effort, the government has budgeted some $26.6 million for marketing and promotion for the fiscal year.
On another front, spurring additional tourism in Grand Bahama—The Bahamas’ fourth largest island, just off southeast Florida—will be a priority for the new administration. It hopes to develop a major cruise ship port in Freeport within the next 24 months—turning the town into a major cruise ship destination.
Mr. Neko Grant, the tourism minister, said that the government wants to see Grand Bahama’s vacant Royal Oasis Resort up and running again. Three years ago, the 1,300-room facility closed after suffering major damage from Hurricane Frances. It has since been acquired by the Harcourt Group. “I just think that if they follow through on their plans, it could be a wonderful thing for Grand Bahama,” Grant said. The resort employed more than 1,000 people and pumped $20 million annually into the now-depressed local economy.
Speaking to Parliament, Grant said the government also would attempt to “reenergize” Grand Bahama by working with major hotels there – specifically, the Westin and Sheraton at Our Lucaya.
|
