Paul I Jukic  03/14/2008 10:00:13 AM  From  DB/Inbox:  Search Results

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UNCLAS        NASSAU 01437

SIPDIS
CXNASSAU:
    ACTION: ECON
    INFO:   POL RSO CONS NAS AMB DCM

DISSEMINATION: ECON
CHARGE: PROG

APPROVED: CDA:DBHARDT
DRAFTED: ECON/COMM:AMBAIN
CLEARED: POL/ECON/PD:DOCONNOR

VZCZCBHI444
RR RUEHC RUCPDOC RUEHDG RUCNCOM
DE RUEHBH #1437/01 3371603
ZNR UUUUU ZZH
R 031603Z DEC 07
FM AMEMBASSY NASSAU
TO RUEHC/SECSTATE WASHDC 4998
RUCPDOC/USDOC WASHDC
RUEHDG/AMEMBASSY SANTO DOMINGO 2875
RUCNCOM/EC CARICOM COLLECTIVE

UNCLAS SECTION 01 OF 02 NASSAU 001437 
 
SIPDIS 
 
STATE FOR WHA/CAR/, EB/CBA WINSTEAD, 4322/ITA/IEP/WH/OMCB/MBROOKS, 
AND 
SANTO DOMINGO FOR FCS 
 
E.O. 12958: B/A 
TAGS: ETRD EINV SENV BF
SUBJECT:  BUSINESS OUTLOOK CONFERENCE ON ABACO HIGHLIGHTS EMERGING 
FNM THEMES 
 
 
¶1. SUMMARY:   At the 4th Annual Abaco Business Outlook Conference 
earlier this fall, Deputy Prime Minister Brent Symonette told 
delegates that the Free National Movement government plans to 
monitor the environmental impact of major hotel investment projects. 
 The theme of the conference, "Growth by Design," was fitting for 
The Bahamas as it tries to manage the rapid growth of the Family 
Islands (islands outside of New Providence).  Conference speakers 
noted that the future of The Bahamas is in the Family Islands and 
that Nassau is close to maximizing its potential.  The Bahamas 
Director General for Tourism noted the increased competition from 
larger rivals such as Dominican Republic and Mexico.  END SUMMARY. 
 
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GOVERNMENT CONCERNED ABOUT THE ENVIRONMENT 
------------------------------------------ 
 
¶2. Embassy Commercial Assistant recently attended the Abaco Business 
Outlook Conference, which featured Deputy Prime Minister Brent 
Symonette, Tourism Director General Vernice Walkine, and Bahamas 
Agricultural and Industrial Corporation Head Edison Key.  Deputy 
Prime Minister Symonette told conference attendees that Abaco's 
environment was pivotal to its economy.  He noted that the FNM will 
not support developments that might create undue demands on 
environmental resources and did not embrace Bahamian culture and 
traditions.  He observed: "Development that is not friendly to our 
environment, which does not embrace our cultural traditions and 
which creates undue demands on our environmental resources will not 
be supported." 
 
¶3.  This environmental priority tracks with other recent meetings 
with FNM ministers and with campaign statements made in April 2007. 
Symonette said that the government now plans to amend the Hotels Act 
and the Hotels Encouragement Act to permit the owners and operators 
of small hotel and bed and breakfast establishments to access 
customs duty and real property tax concessions for the first time. 
These types of developments are reserved for Bahamians investors and 
owners.  The FNM government repudiated the previous government's 
focus on "anchor projects," citing their high environmental impact 
on the local communities.  While it has not rejected any previously 
approved project, it is unlikely to approve any new major projects 
not already on the drawing board. 
 
¶4.  Minister Symonette also told participants that he will move 
expeditiously to conclude consultation and adoption of a National 
Marina Policy, establish independent standards for golf course 
development, and adequately regulate coastal zone construction.   In 
pledging consultation with local communities, Minister Symonette 
stated: "The time when governments could sit in Nassau and determine 
the future for citizens living in the Family Islands without their 
involvement is now gone." 
 
------------------------ 
BAHAMIAN TOURISM IN 2010 
------------------------ 
 
¶5. Director General (DG) for Tourism Vernice Walkine told Abaco 
conference delegates that her main challenge and focus during her 
tenure is to brand all major Family Islands so that visitors would 
know exactly what each island has to offer.  She said that this was 
important because The Bahamas is still perceived as being just 
Nassau and Paradise Island and that branding is the only way to 
change this perception.  The Bahamian islands will then be presented 
as "a menu of island vacations."  Walkine noted that The Bahamas 
does not have the infrastructure to compete with other destinations 
such as Japan or Dubai, nor the population size to match regional 
competitors like Mexico, Cuba, and the Dominican Republic, that have 
consistently received greater numbers of stopover visitors.  Her 
Ministry's plan is to "re-think" tourism in order to make all major 
islands attractive to the global tourist consumers who are more 
discerning and demanding. 
 
¶6.  The DG presented statistics suggesting that, in the year 2010, 
The Bahamas will have an estimated 5,000 additional rooms, mostly 
upscale - with up to five star rating.  She said that Abaco 
continues to be among the islands with the highest repeat visitor 
percentage.  According to Ministry of Tourism Exit Surveys, Abaco 
received 63,000 visitors for the first half of 2007.  These visitors 
stayed an average of 9.4 nights.  Additionally, a significant 
percentage of visitor arrivals to Abaco are affluent, with household 
income exceeding $75,000.   The exit surveys further revealed that a 
majority of visitors to Abaco say that they are likely to return and 
to recommend Abaco to their friends and relatives.  Walkine said 
that Abaco was the island closest to achieving the balance The 
Bahamas ought to strive for in a tourism mix.  She said that 
economic growth in Abaco has come at a manageable pace that has been 
assimilated by the community. 
 
---------------------- 
WHAT ABOUT BAY STREET? 
---------------------- 
 
¶7. Edison Key, Chairman of The Bahamas Agricultural and Industrial 
Corporation (BAIC), told conference delegates that the future of The 
Bahamas lies in the Family Islands.  Key believes that both Nassau 
and Paradise Island have reached their potential and do not have 
anything further to offer tourists.  He noted that Bay Street -- 
Nassau's main business street -- is in a state of disrepair and 
unwelcoming to tourists, especially the cruise ship passengers that 
frequent the area.  Plans for the redevelopment of Bay Street were 
left on the drawing board by the PLP, and the current FNM 
administration is currently studying the plans before deciding on 
their preferred course.  The FNM government has also put plans to 
rebuild the downtown straw market on hold and have cancelled 
architectural plans left by the PLP government, stating that the $23 
million price tag was too expensive.  The FNM government has 
allocated $3 million for its construction and is negotiating with 
straw venders regarding an appropriate location for the market. 
 
¶8. COMMENT:  The Abaco Business Outlook conference presented a 
snapshot of some of the general themes emerging from the new FNM 
government regarding tourism.  Overall tourist arrivals were down 
roughly 10 percent early in 2007, which created angst in the 
Bahamian government and business community.  Summer and early fall 
figures have rebounded, easing some concerns.  Minister Symonette 
has a strong interest in the environment, and both his and DG 
Walkine's statements reaffirm the FNM government's emphasis on 
smaller, boutique resort projects that better fit the environmental 
and community needs of the Family Islands.    While Edison Key's 
comments may reflect his speaking to an Abaco audience, they also 
reflect the challenges facing the redevelopment of Nassau's most 
visible street.  Bay Street is a mess, and the FNM government will 
have to expend significant financial and political resources to 
revitalize the area or risk losing at least some of the valuable 
cruise ship passenger trade in the coming years. 
 
HARDT