News
Reflections on Freeport, the “Magic City” as it turns sixty
Providenciales, 07 Aug 2015 – The vision of developer Wallace Groves that gave birth to an economic zone on Grand Bahama that would come to be called the Magic City, Freeport, the industrial capital of The Bahamas, legally enabled by the Hawksbill Creek Agreement, turned 60 this week.
The agreement between the government of The Bahamas and Wallace Groves was signed on the 4th of August 1955 and by all accounts, the Freeport experiment was a qualified success.
Built on Pine Barren, by all accounts, Freeport is a modern and well designed city. The name Freeport was derived from the guaranteed long term tax concessions and benefits for financial, commercial and industrial enterprises by port licensees within this one of a kind economic free trade zone. At that time the advantages offered were superior to any being offered in the region.
The 1955 Act specifically stated that “no real property or rates and no real property levies (whether capital or periodic) of any kind shall be levied, charged or collected by the Government within the Port Area or upon or against any land building or structure within the Port Area.”
Additionally, “no personal property taxes or rates and no capital levies and no taxes on capital gains or capital appreciation shall be levied, charged or collected by the Government. No taxes of any kind shall be levied upon or against the earnings of the Grand Bahama Port Authority or against the earnings of a Licensee in the Port Area and outside the Colony.”
The initial vision and business model called for Freeport to be a major shipping hub, taking advantage of its proximity to the North and South American shipping lanes, and an international business center. Under the 1955 Hawksbill Creek Agreement, the Grand Bahama Port Authority established the infrastructure for World Standard Services and Facilities.
The city thrived under the 1955 tax regime and business model but was subject to the radically changing social order that was sweeping across North America and the Caribbean. This social revolution engulfed The Bahamas as it came into its own by bringing all citizens on the periphery of Bahamian society well into the Bahamian mainstream, both socially and economically; this public policy remains a work in progress.
Today, Freeport continues to offer an exceptional business climate for both domestic and foreign direct investment in the aftermath of Hurricanes Frances, Jeane and Wilma one decade ago that caused extensive infrastructural damage; the legal disputes between and the deaths of both of its principals, Sir Edward Saint George and Sir Jack Hayward; the extensions of tax concessions to east and west Grand Bahama beyond the port area; and the ongoing negotiations between the government and relevant stakeholders on the future of the tax concessions enjoyed by port licensees for sixty years.
On Wednesday 29th July 2015, the Parliament of The Bahamas extended the tax provisions for another six months to allow for a more in depth analysis of the local economy and to finalize a strategic economic plan for the island going forward.
On Freeport’s sixtieth birthday, the voices of Grand Bahamians were heard on this decidedly successful commercial experiment, its growth and development over the years, and its promising future. The recurrent themes were the lack of economic activity and job opportunities, especially for our youth.
“I believe that the magic has gone out of Freeport; the drive that the movers and shakers had for Freeport died now…I guess it died with the person who was in charge and when they died the vision died as well” said one resident.
“For the last twenty years Freeport has gone totally down. Since the storms, there was no type of replenishment for Freeport” said another Freeport resident.
“Some people doing okay; some people doing bad so I guess it depends on what you into” was another observation.
“Freeport right now…the state it in, you could see it, it picking up slowly but what needs to really happen right now we need more…basically for the youth more job opportunities” was yet another view.
One lady felt strongly about opening the former Princess Towers and Princess Country Club:
“People need work. They need to do something with that big hotel down at the Bazaar, the Princess, I mean open it up or do something ‘cause people need jobs. Young people coming out of school – they need jobs.”
One observer believed the principals made a strategic error in developing Freeport. He commented on the structure and function of the Freeport model.
“The successful business model created by Wallace Groves was transformed by the Hayward/St George shareholders, who determined that assets critical to the operation of a “Freeport” were to be either partially or completely sold off to outside interests. Under new management those entities became profit centers, thereby increasing operational costs – a disincentive to potential investors; the power company, the Freeport Harbour Company, the airport company and the Grand Bahama Development Company (are just a few examples).”
The complaints about high airport landing fees, the high cost of aviation fuel and the absence of a modern airport post Hurricane Wilma have reached the highest levels of government and will no doubt figure prominently in the current negotiations.
We thank the observers for their frankness and brutal honesty.
In the end we congratulate Freeport on its sixtieth birthday and Bahamians remain optimistic and hopeful of its return to its lofty perch as the “MAGIC CITY.”
KINGSTON, October 8 (JIS): Prime Minister, Dr. the Most Hon. Andrew Holness, has invited Indian investors to explore business opportunities in Jamaica.
He cited prospects for innovative business investment in tourism, infrastructure development, renewable energy, animation, medical tourism and health.
He noted that, with the island’s extensive harbour and port systems, “We are the gateway for Indian innovation in the Americas. I think the time is right for a trade and business delegation from India to visit Jamaica. I mentioned this to Prime Minister [Shri Narendra] Modi and he welcomed the possibilities of such a trade delegation.”
The Prime Minister was addressing a dinner reception on Tuesday (October 1), during his working visit to India.
He said that his trip is intended to herald a new era of Jamaica-India friendship and partnership.
Dr. Holness said that Jamaica is looking forward to working with the Confederation of India Industry (CII) to explore areas of cooperation.
Of special interest, he noted, is working with Indian companies on joint research projects and technology transfer “to enhance Jamaica’s research and development landscape, particularly in the areas of biotechnology, as well as products and drug development, using Jamaica’s natural resources”.
“We also want to welcome Indian companies providing software development and maintenance, cybersecurity, back-office, finance and accounting services,” he added.
Based in New Delhi, CII is a non-governmental trade association and advocacy group that represents the interests of Indian businesses in various sectors, chiefly engineering, manufacturing, consulting, and services.
The organisation works to create and sustain an environment conducive to the development of India.
CONTACT: SIMONE HYLTON
KINGSTON, October 8 (JIS): Some students at Old Harbour High School in St. Catherine, now have reliable transport after the institution received a 29-seater bus, donated by the Japanese Government.
The vehicle, valued at more than $11 million, will cater mostly to students who travel long distances, filling a gap for safe, reliable, and efficient transportation.
It will also be used to transport students on field trips, sporting events and other activities.
Speaking at the handover of the bus at the school on October 4, Minister of Education and Youth, Hon. Fayval Williams, lauded the Government of Japan for providing the funds through the Grant Assistance for Grassroots Human Security project (GGP), to purchase the bus.
Mrs. Williams said that special thanks must be given to the people of the donor country as “we continue to deepen the partnership with
Japan”, adding that the GGP project “has played a vital role in the development of our schools”.
Meanwhile, Ambassador of Japan to Jamaica, His Excellency Yasuhiro Atsumi said his country “stands together with Jamaica to strengthen the education system, so that all students can pursue their education and lifelong skills training opportunities”.
For her part, Custos of St. Catherine, Hon. Icylin M. Golding, who is also Chairman of the school, told her audience that the bus will enable the students to reach school much easier, and to “participate in more sporting events”.
Principal of the institution, Lynton Weir, said the students will reach school and return to their homes on time, with the acquisition of the bus.
He added that this will also result in reduced cost for parents who used to pay the public transport operators.
For Executive Director of the National Education Trust (NET), Latoya Harris Ghartey, getting the Japanese to fund the acquisition of the vehicle shows the strength of partnerships.
“It also stands as a testament to the deep-rooted commitment we have in providing our children with the tools they need to excel,” she said.
Student at the school, Ashanti Jones, said the “life-changing donation and invaluable gift will aid in students not missing classes due to unreliable transportation”.
Another student, Dormel Hamilton, said the students will have a safe and reliable vehicle in which to travel to school, and appealed to motorists to take care on the roads.
CONTACT: GARFIELD L. ANGUS
RELEASE: JIS
Caribbean News
Sanovnik Destang Elected New President of the Caribbean Hotel and Tourism Association (CHTA)
Bay Gardens Resorts Executive Director to Lead Organization for Next Two Years
Sanovnik Destang, a respected hotelier from St. Lucia and Executive Director of Bay Gardens Resorts, has been elected as the new President of the Caribbean Hotel and Tourism Association (CHTA). His appointment was confirmed at CHTA’s Annual General Meeting (AGM) last week, succeeding outgoing President Nicola Madden-Greig. Destang will serve a two-year term, leading alongside a newly elected slate of executive officers.
Destang brings extensive leadership and hospitality experience to his new role, having served as a key figure in the growth of Bay Gardens Resorts in St. Lucia. His commitment to CHTA began in 2012, and he is ready to lead the organization into a new chapter, focusing on people and technology as well as creating stronger linkages with other sectors of the Caribbean economy.
Destang expressed gratitude to his predecessors and emphasized the importance of collaborative leadership: “Thank you all once again for putting your faith in me and my generation. Being CHTA’s first president born in the 1980s, I fully understand the responsibility ahead of me. I’m ready to lead, but, more importantly, I’m ready to serve. My focus areas will be people, technology and linkages to other sectors of our economies and communities. This strengthened advocacy is aimed at attracting more members to our association, bolstering our
collective voice and impact.”
Reflecting on her tenure, Madden-Greig highlighted CHTA’s achievements during a challenging period. She praised the resilience of the Caribbean region as it emerged as the fastest-recovering tourism market in the world post-COVID-19. Under her leadership, CHTA along with regional and international stakeholders helped implement and promote recovery measures and initiatives, including Caribbean entry portals and the Caribbean Public Health Agency’s (CARPHA) Healthier Safer Tourism program.
“The past three years, taking over at the height of the COVID-19 pandemic, were both challenging and very rewarding,” said Madden-Greig. “Nothing has given me more joy than having headed the hard-working team that led the Caribbean to be the fastest recovering region in the world, coming out of a once-in-a-century pandemic,” she added.
The newly elected CHTA Officers will work closely with Destang over the next two years, along with CHTA Regional VPs, Committee Chairs, and other Executive Committee Members, who will be announced shortly.
The officers include:
- 1st Vice President: Karen Whitt, The Hartling Group, Turks & Caicos
- 2nd Vice President: Craig Marshall, Blue Diamond Resorts, Antigua & Barbuda
- 3rd Vice President: Clifton Reader, Palace Resorts, Jamaica
- 4th Vice President: Kendra Hopkin Stewart, Blue Horizons Garden Resort, Grenada
- 5th Vice President: Bill Clegg, BW Hotels, At-Large
- Treasurer: Jim Hepple, Tourism Analytics, Aruba
CHTA, as the voice of Caribbean hospitality and tourism, will build on the strong foundation laid by Madden-Greig. Destang’s leadership will advance growth through innovation, people-centered initiatives, and stronger linkages with key sectors, keeping the Caribbean at the forefront of global tourism.
Supported by a team of regional leaders, Destang will drive new initiatives that propel the industry and CHTA members to greater heights.
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