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Bahamas Prime Minister Appoints Committee To Review Specific Provisions Of The Hawksbill Creek Agreement

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PRESS STATEMENT BY

THE RIGHT HONOUORABLE PERRY G. CHRISTIE, M.P.

PRIME MINISTER & MINISTER OF FINANCE

ON COMMITTEE TO REVIEW AND MAKE RECOMMENDATIONS WITH RESPECT TO THE EXPIRATION OF CERTAIN PROVISIONS OF THE HAWKSBILL CREEK AGREEMENT AND OTHER APPROPRIATE MEASURES TO PROMOTE AND SUSTAIN ECONOMIC GROWTH IN GRAND BAHAMA

MARCH 5th, 2015

As indicated in my extensive presentation this morning at the Grand Bahama Business Outlook. I have called this Press Conference to announce a timely significant intervention which my Government is making with a view to charting a path forward to positively impact economic growth in Grand Bahama within a framework suited to the present and future, that also has due regard to the provisions of The Hawksbill Creek Agreement.

Certain provisions of The Hawksbill Creek Agreement with respect to exemptions on business licence fees and real property tax are due to expire in August of this year. For some time the Grand Bahama economy, despite the broad incentives and tax concessions under the Hawksbill Creek legislation, has remained stagnant with limited exceptions, thus adversely impacting economic growth in the private sector and Government revenues. In the absence of aggressive policy interventions to jumpstart a new round of development, and enhance returns on existing investments, Grand Bahama’s economic performance could remain sub-par relative to other islands in The Bahamas. Thus the expiration of these Hawksbill Creek Agreement incentives provides an opportunity for the Government to secure a comprehensive set of new arrangements which can spur economic development and increase the Island’s contribution to net fiscal receipts. Several months ago the Government retained the international consulting firm McKinsey and Co to consult with the Grand Bahama Port Authority and other stakeholders and to undertake a study of the economic situation within the Port Area, the implications of the expiring incentives, and measures which might be taken to spur economic development. McKinsey and Company has presented its Report to the Government.

Following upon the McKinsey Report, the Government has therefore appointed a Committee to hold discussions and negotiations with representatives of the Grand Bahama Port Authority, investors, relevant public, private sector and community interests, with a view to making appropriate recommendations to the Government on arrangements for securing both an economic package to promote more robust sustained growth, and a fiscal package that enhances Grand Bahama’s contribution to the Government’s revenue base.

In this regard there are several main objectives:

(i) Agree with the Grand Bahama Port Authority and principal licensees a long term economic development plan which both protect and promote the shipping, industrial, logistics, tourism, real estate and other commercial sectors as the focus for Grand Bahama Island;

(ii) Create a framework for immediate and long-term investment promotion on the island to attract investors which can operate assets competitively at a world class standard, and effectively and efficiently utilize the land resources with proper environmental safeguards;

(iii) Ensure that the mechanisms are in place to align the Grand Bahama Port Authority’s quasi-regulatory authority with the policies of the Government and that a regulatory framework exists in keeping with present and changing international business best practices.

(iv) Agree a suitable framework for property tax and business license that would note impede economic growth, and contribute along with other suitable measures to the enhancement of the Government’s revenue base.

The Committee will report to a Ministerial sub-committee chaired by the Prime Minister and Minister of Finance. It is expected to conclude its work before the real property tax and business license exemptions expire in August 2015. The Committee is comprised of the following persons:

Dr. Marcus Bethel, Chairman
Sir Baltron Bethel
Mr. James Smith
Mr. Kevin Seymour, President Grand Bahama Chamber of Commerce
Mr. Maurice Moore
Ms. Cassietta McIntosh

The Committee will carry out its duties in collaboration with and the support of the consulting firm of McKinsey and Company. It will be assisted by a technical team from the Office of the Prime Minister, the Ministry of Finance and the Office of the Attorney General. The Ministry for Grand Bahama would coordinate administrative support.

My Government looks forward to the full cooperation of all concerned parties in facilitating the Committee’s work, and to a successful outcome of this important exercise.

Magnetic Media is a Telly Award winning multi-media company specializing in creating compelling and socially uplifting TV and Radio broadcast programming as a means for advertising and public relations exposure for its clients.

Caribbean News

Migration Is No Longer Just About Borders

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What Caribbean migration dialogues reveal about the region’s future

 

By Patrice Quesada, Coordinator, IOM Caribbean

Migration has become one of the defining issues shaping the Caribbean’s future—not simply because people are moving, but because our economies, labour markets, populations and climate realities are changing.

Over the past several weeks, I have participated in migration discussions at the global, regional and national levels. While each conversation was different, they all pointed to the same conclusion: the Caribbean is beginning to recognize migration not only as a border issue, but as a development issue.

The challenge now is moving from dialogue to action.

From Global Commitments to Caribbean Solutions

That shift was evident during the International Migration Review Forum held at the United Nations in New York, where Caribbean participation was particularly strong. Delegations from ten Caribbean countries, including ministerial representatives from Barbados and Belize, reinforced the region’s growing commitment to shaping international migration policy.

Two messages emerged clearly.

First, migration governance must be grounded in each country’s realities and supported by concrete national commitments. Second, migration cannot be viewed in isolation. It is closely linked to labour markets, demographic change, climate vulnerability and long-term development planning.

Every Caribbean Country Has Its Own Story

Across the region, governments are approaching migration through different lenses.

In Saint Lucia, the launch of the country’s draft migration policy reflected concerns about declining birth rates, labour shortages and continued emigration. The discussions recognised that labour needs, diaspora engagement, remittances, return migration and protection must all work together within one national strategy.

Jamaica demonstrated how migration planning can begin at the local level, with Clarendon becoming the country’s first parish to integrate migration considerations into its long-term development strategy.

Guyana, meanwhile, is managing migration in the context of rapid economic growth, balancing increased labour demand with worker protections and orderly migration systems.

Barbados has also begun incorporating migration into broader population planning as it addresses demographic decline and an ageing population.

The Bahamas has focused on disaster preparedness, bringing together government agencies to strengthen national plans for managing inter-island and cross-border movement during emergencies while safeguarding the rights and dignity of displaced people.

Different countries face different challenges—but all are recognising migration as an essential part of national planning.

The Caribbean’s Greatest Untapped Asset

One message resurfaced repeatedly throughout these discussions.

The Caribbean diaspora should no longer be viewed simply as a source of remittances.

Across the region, citizens living abroad continue to contribute through investment, entrepreneurship, professional expertise, advocacy and, in many cases, by returning home with new skills and experience.

The opportunity now is to engage the diaspora more deliberately as a strategic development partner.

Turning Dialogue into Action

Technical discussions held throughout May demonstrated that governments are beginning to move beyond policy conversations.

CARICOM, supported by the International Labour Organization and the Inter-American Development Bank, convened regional labour migration specialists to explore how migration can help address workforce shortages while ensuring fair recruitment and decent working conditions.

Together, these initiatives suggest the Caribbean is entering a new phase—one where migration is no longer viewed simply as movement across borders, but as a tool for economic resilience, demographic planning and sustainable development.

The conversations have begun.

The next challenge is ensuring they lead to meaningful action.

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Africa’s Latest Economic Report Sees Caribbean Price Pressures Easing

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By Deandrea Hamilton | Editor

For years, Caribbean families have endured relentless increases in the cost of food, fuel, housing and everyday essentials. Now, one of Africa’s leading financial institutions says the worst of those inflationary pressures may finally be easing.

The African Trade Report 2026, published by the African Export-Import Bank (Afreximbank), shows inflation across Latin America and the Caribbean fell sharply from 16.6 percent in 2024 to 7.6 percent in 2025. The report compares economic performance across the world’s major regions, placing Latin America and the Caribbean alongside Africa, Asia, Europe and advanced economies.

The figures suggest regional price pressures have moderated considerably after several years of high inflation driven by supply chain disruptions, rising energy costs and global economic uncertainty.

Consumers, however, should not expect prices to suddenly return to pre-pandemic levels.

Economists note that lower inflation does not mean goods and services become cheaper. Rather, it means prices are continuing to rise, but at a much slower pace than before. That distinction helps explain why many Caribbean households may still feel the strain at the supermarket, petrol station and on utility bills despite improving economic indicators.

The report also points to a relatively stable regional economy. Gross domestic product growth for Latin America and the Caribbean held steady at 2.4 percent in both 2024 and 2025, suggesting economic expansion continues, albeit at a modest pace.

For Caribbean governments, the findings provide cautious encouragement. Lower inflation can reduce pressure on household budgets, improve consumer confidence and give central banks greater flexibility as they balance economic growth with price stability.

Perhaps most intriguing is the source of the analysis.

Rather than coming from a traditional Western financial institution, the assessment comes from Africa’s premier trade finance bank. The report treats Latin America and the Caribbean as an important global economic region and repeatedly highlights the growing importance of ties between Africa and its diaspora, including the Caribbean. It argues that stronger economic, trade and investment relationships across what it calls “Global Africa” could become a powerful driver of shared prosperity in the years ahead.

For Caribbean readers, the report offers more than encouraging inflation figures.

It provides an outside perspective on the region’s economic performance and serves as a reminder that the Caribbean is increasingly being viewed not only as a tourism destination, but also as an emerging partner in trade, investment and global development conversations.

As governments continue searching for ways to ease the cost of living, Africa’s latest economic report suggests there is at least one reason for cautious optimism: the pace of price increases across the Caribbean is finally beginning to slow.

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Cruise Decline Emerges as Turks and Caicos Tourism Watchpoint

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By Deandrea Hamilton | Editor

PROVIDENCIALES, Turks and Caicos Islands – While the Turks and Caicos Islands continues to celebrate growth in its high-value overnight visitor market, tourism data shared in April 2026 suggests another critical sector of the industry deserves closer attention.

Experience Turks and Caicos reported that stayover arrivals climbed five percent during the first quarter of 2026, with 203,587 visitors between January and March—10,557 more than during the same period in 2025.  March, traditionally the destination’s strongest month for overnight tourism, also posted a three percent increase over the previous year.

But tucked within the same report was another statistic moving in the opposite direction.

Cruise passenger arrivals fell by 16 percent during the first quarter, with 344,287 passengers visiting the destination compared to the same period in 2025.  Preliminary figures for March also showed a seven percent year-over-year decline to 116,911 passengers—even though the destination welcomed an additional cruise ship call during the month.

The report offered no explanation for the decline, placing its emphasis instead on the continued strength of the stayover market and a series of international marketing initiatives designed to sustain overnight visitor growth.

Among those efforts are a partnership with TravelView to distribute destination videos to more than 80,000 travel advisors across the United States, expanded engagement with travel professionals in the United Kingdom through the UNITE Caribbean programme, and increased participation in tourism trade shows in Canada and Latin America.

Those initiatives are aimed primarily at attracting overnight visitors—travelers who typically stay longer and generate significantly more spending within the local economy than cruise passengers.

However, the decline in cruise arrivals raises important questions, particularly for Grand Turk, where the cruise industry remains a major economic driver supporting taxi operators, tour companies, restaurants, retailers and other small businesses that depend heavily on ship calls.

Following publication of the report, Magnetic Media was informed that cruise arrivals have been trending downward, suggesting the first-quarter figures may not represent a one-time fluctuation but part of a broader pattern.

If that is the case, industry observers will be looking for answers.

The report does not indicate whether the decline reflects changes in cruise line deployment, smaller vessels serving Grand Turk, reduced passenger occupancy, itinerary adjustments, or increasing competition from other Caribbean destinations.

Whatever the cause, the contrast between the two sectors is striking.

One segment of the tourism industry continues to post record gains through expanded air service and targeted destination marketing. The other appears to be facing headwinds that have yet to be publicly explained.

For the Turks and Caicos Islands, where tourism remains the country’s economic engine, understanding the reasons behind diverging performance in the stayover and cruise sectors will be essential to long-term planning.

As the destination moves into the traditionally slower months of the tourism calendar, attention is likely to turn not only to sustaining growth in overnight arrivals but also to whether the Government and Experience Turks and Caicos can identify the factors behind the cruise slowdown and outline a strategy to reverse what now appears to be an emerging trend.

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