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After tourism, the financial services sector is the No. 2 engine of growth in The Bahamas. It supports some 22,000 jobs – more than 13 percent of total employment – and accounts for 27 percent of GDP directly and indirectly.
That’s according to a recent study by London-based Oxford Economics, an international firm specializing in analytical research.
Commissioned by the Bahamas Financial Services Board, a Nassau-based trade organization, the Oxford study determined that financial services play an important role in The Bahamas economy.
According to the BFSB, the study’s most noteworthy findings determined that:
“The direct impact on GDP of the financial services industry in The Bahamas is worth 15 percent of total GDP.”
“The financial services industry generates substantial government revenues - $200 million and 19 percent of the tax base, according to latest publicly available figures.”
“The offshore banking sector represents 26 percent of total banking sector employment, and 38 percent of the total direct value added of the sector.”
“The value added per employee in the offshore banking sector is nearly twice as large as in the domestic banking sector; this is reflected in both higher profits for offshore banks and higher wages for their employees.”
“The job opportunities in the financial services sector are among the best-rewarded jobs available.”
“The financial services sector provides extensive training to its employees, increasing their intellectual capital.”
“The financial services sector contributes to the Bahamain economy as a whole by providing access to the global capital market and facilitating investment opportunities, which foster entrepreneurial spirit and encourage entrepreneurial activities throughout the economy.”
“Activities in the financial services sector bring high-end customers and high-end investment to the tourism industry and real estate industry in The Bahamas.”
According to the BFSB, the Central Bank of the Bahamas and Department of Statistics (DOS) “provided active guidance and assistance during the study.”
Commenting on the study, the trade group observed, “It is worthwhile (to note) that the direct economic contribution of tourism is 21 percent. Of the 15 percent direct contribution of financial services, over one-third (5.5 percent of The Bahamas’ GDP) is generated by international financial service providers. Additionally, many of the domestically licensed banks also provide services to international clients.”
In commissioning the study, Wendy Warren, the BFSB’s CEO and executive director, said: “Our objective is to have data which will enable us to engage in wide-ranging communication with all stakeholders, not only on the contribution of the sector to the nation, but also on the need for continued development and growth of the industry.” |
