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Viewing cable 09NASSAU414, BAHAMAS MONTHLY -- JUNE 2009

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Reference ID Created Released Classification Origin
09NASSAU414 2009-07-09 17:50 2011-08-26 00:00 UNCLASSIFIED Embassy Nassau
VZCZCXRO9903
RR RUEHGR
DE RUEHBH #0414/01 1901750
ZNR UUUUU ZZH
R 091750Z JUL 09
FM AMEMBASSY NASSAU
TO RUEHC/SECSTATE WASHDC 6508
INFO RUCNCOM/EC CARICOM COLLECTIVE
UNCLAS SECTION 01 OF 02 NASSAU 000414 
 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: ECON EFIN PGOV PREL BF
SUBJECT:  BAHAMAS MONTHLY -- JUNE 2009 
 
1.  This is a monthly report on a variety of topics of interest 
which do not merit full reporting cables. 
 
-- IMF Recommends Increasing Revenue by 1.75 Percent 
-- Admission Applications for College of The Bahamas 
   Increases by 20 Percent 
-- 10,000 Bahamians Apply for Unemployment Benefits 
-- April Tourism Numbers:  Flying is Out, Cruising is In 
-- The Curious Case of the Missing Speedboats 
 
-------------------------- 
IMF Recommends Increasing 
Revenue by 1.75 Percent 
-------------------------- 
 
2.  The International Monetary Fund (IMF) recommended that the 
Government of The Bahamas (GCOB) adopt more aggressive fiscal reform 
by increasing revenue by an amount equivalent to 1.75 percent of GDP 
between the 2011-2012 and 2012-2013 fiscal years.  The IMF 
recommended this step following the announcement that the current 
national debt level in The Bahamas is nearly 39 percent -- a level 
too close for comfort to the generally accepted 'danger' level of 40 
percent.  International agencies and Bahamians alike are worried 
that the increasing national debt could lead to a negative credit 
rating in the future. 
 
-------------------------- 
Admission Applications for 
College of The Bahamas 
Increase by 20 Percent 
-------------------------- 
 
3.  The College of The Bahamas (COB) reported a 20 percent increase 
in admission applications this year, receiving 400 more applications 
in 2009 than in 2008.  A COB spokesperson noted that this increase 
is likely due to the unemployment spike in The Bahamas that has 
resulted from the economic recession.  Many Bahamians are unable to 
afford sending their children to U.S. or Canadian colleges or 
universities, resulting in a renewed interest in COB.  The COB 
spokesperson indicated that the majority of this year's applications 
are from recent high school graduates, but that a small portion are 
being sent from students who had been studying abroad and now need 
to return home to finish their education. 
 
-------------------------- 
10,000 Bahamians Apply for 
Unemployment Benefits 
-------------------------- 
 
4.  Minister of Labor and Social Development Dion Foulkes told local 
media that nearly 10,000 Bahamians have applied for the newly 
established unemployment benefits program since its inception in 
late April.  Foulkes said over 7 million USD has already been 
disbursed to qualified registrants, representing over 19,000 checks 
to date.  Foulkes encouraged those still in need to step forward and 
apply, noting that the number of unemployment applications received 
was smaller than anticipated. 
 
------------------------------ 
April Tourism Numbers:  Flying 
is Out, Cruising is In 
------------------------------ 
 
5.  New arrival numbers for April released by the Ministry of 
Tourism and Aviation (MOTA) show total arrivals for Nassau up by 12 
percent over the year-ago period.  A MOTA representative told local 
media the climb is largely due to an increase in sea arrivals. 
April numbers show there was a decrease of 0.4 percent of visitors 
flying into Nassau, but a 21.8 percent increase in those opting to 
arrive by sea.  Grand Bahama, on the other hand, saw a 5.9 percent 
decline in total visitors, representing some 2,360 less visitors 
that came to the island in the same period in 2008.  Overall, The 
Bahamas suffered a decline of 1.2 percent in visitor arrivals in the 
year-to-date numbers, though April arrivals saw a 4.5 percent 
increase compared to April 2008. 
 
----------------------- 
The Curious Case of the 
Missing Speedboats 
------------------------ 
 
6.  Two valuable, high powered speedboats were stolen from a marina 
on the island of Abaco within hours of their arrival on June 7. 
These are the latest in a series of recent boat thefts in The 
Bahamas, including the theft and return of the Prime Minister's 
fishing boat (which was likewise docked at an Abaco marina) in 
March.  News of the potentially unsafe docking locations in The 
Bahamas spread quickly, and locals have called on the Royal Bahamas 
Police Force (RBPF) to take more action to ensure security at these 
facilities.  Many in The Bahamas are worried about the ripple effect 
the increase in boat crime will have on the tourism sector.  Boaters 
have already reported increased insurance rates for those choosing 
to dock their vessels in The Bahamas.  In the meantime many marinas 
 
NASSAU 00000414  002 OF 002 
 
 
have employed their own local security forces in an effort make 
their establishments more secure. 
 
ZUNIGA-BROWN