R 021304Z MAR 09
FM AMEMBASSY NASSAU
TO SECSTATE WASHDC 6157
INFO DEPT OF COMMERCE WASHDC
AMEMBASSY SANTO DOMINGO 
AMEMBASSY BRIDGETOWN 
AMEMBASSY GRENADA 
AMEMBASSY KINGSTON 
AMEMBASSY PORT AU PRINCE 
AMEMBASSY PORT OF SPAIN 
AMEMBASSY BELIZE

UNCLAS NASSAU 000124 
 
 
STATE FOR WHA/CAR AND EB 
USDOC FOR MICHELLE BROOKS 
SANTO DOMINGO FOR USFCS 
 
E.O. 12958:  N/A 
TAGS: ECON BEXP ETRD BF
SUBJ:  ECONOMIC OUTLOOK FOR GRAND BAHAMA ISLAND 
 
¶1.  SUMMARY:  On February 23, during the Annual Business Outlook 
conference in Freeport, Grand Bahama, Bahamian economic officials 
confirmed that the economic outlook for that island will continue to 
be grim for at least another 12 to 18 months.  Newly appointed 
Chairman of the Port Group Limited Hannes Babak, however, announced 
plans to attract foreign investments to Grand Bahama, including a 
retail license fee discount plan, assistance to small business 
owners, and a plan to attract home builders to the island.  In 
addition, the Ministry of Tourism and Aviation noted their plan to 
work with airport authorities to reduce the price of airfare to 
Grand Bahama in an effort to stimulate tourism.  End Summary. 
 
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ECONOMIC OUTLOOK FOR GRAND BAHAMA GRIM 
-------------------------------------- 
 
¶2.  During the Annual Business Outlook conference in Freeport, Grand 
Bahama on February 23, Minister of Finance Zhivargo Laing told 
conference delegates that Grand Bahama has suffered from an economic 
recession for the past seven years and an economic crisis for the 
past five years.  Laing noted that he does not anticipate a 
turnaround in this situation for another 12 - 18 months.  He 
indicated that Grand Bahamas has never recovered from Hurricanes 
Francis and Jeanie in 2004 which resulted in the closure of the 
Royal Oasis Hotel as well as a number of other businesses in Grand 
Bahama. 
 
¶3.  Conversely, Hans Babak, the newly appointed Chairman of the Port 
Group Limited of the Grand Bahama Port Authority said that he is 
optimistic about the future of Grand Bahama and plans to attract a 
number of foreign businesses to the island.  Babak is already 
credited for the recent opening of Ross University Campus and the 
Fernestration Glass and Services Company.  Babak believes that the 
best fit for Grand Bahamas is companies in the area of education, 
training, health care and medical facilities. 
 
-------------------------------- 
THE PORT AUTHORITY'S ACTION PLAN 
-------------------------------- 
 
¶4.  Newly appointed President of the Grand Bahama Port Authority 
(GBPA) Ian Rolle outlined the Port's plans to revitalize the local 
economy by revitalizing downtown Freeport, implementing a retail 
license fee discount plan where fees will be reduced by 50 percent 
for bills paid within three months after billing.  The GBPA also 
plans to partner with the College of The Bahamas, Grand Bahama 
Chamber of Commerce and the Bahamas Development Bank to form "The 
Enterprising Center."  The mission of the center is to provide 
persons seeking to operate or currently operating a small enterprise 
with valuable resources to make their business a success.  Rolle 
said the Port also plans to introduce the "Build Now Program" to 
allow qualified persons to build their dream home immediately after 
purchasing a piece of property.  Additionally, GBPA will provide 
scholarships to top graduates of all high schools on Grand Bahama 
and identify vacant properties in communities that can be used for 
after school learning programs.  Rolle said he also plans to 
relaunch the Port's website in April to enable members to gain a 
better understanding of what the organization does.  The GBPA's 
website will also include a site entitled investgrandbahama.com, 
which specifically caters to investing on Grand Bahama island that 
will be linked to the GBPA.com website. 
 
----------------------------------- 
TOURISM INCENTIVES FOR GRAND BAHAMA 
----------------------------------- 
 
¶5.  Director General of the Ministry of Tourism Vernice Walkine told 
Outlook attendees that the Ministry of Tourism plans to partner with 
the airport operator and the Tourism Board to reduce the price of 
airfare to Grand Bahama in an effort to stimulate more tourism for 
the island.  Currently, Grand Bahama airport's fees, taxes, and 
surcharges result in the highest operating cost in the region. 
Walkine said that this incentive will enable the Ministry to attract 
new life to Grand Bahama and reduce the turnaround cost to existing 
carriers enabling them to offer more affordable travel packages to 
the island.  In addition, the Ministry of Tourism announced plans to 
build a new cruise passenger port terminal in Freeport in an effort 
to increase the cruise passengers to the island.  Cruise liners are 
already attempting to increase bookings to Freeport by lowering 
prices.  Discovery Cruises lowered prices in 2009 and increased its 
passenger arrivals to Freeport by 60% during the first two months of 
2009, bringing a total of 32,000 passengers to the island between 
January and February, compared to 20,000 during the same time in 
¶2008. 
 
¶6.  COMMENT:  Grand Bahama has suffered from an economic depression 
for many years and local officials welcome any assistance from GCOB 
or private industry to stimulate the island economy.  The incentives 
described by the Port Authority at the conference could certainly 
help the struggling economy, but only if U.S. tourists and home 
buyers return to the market.  It seems unlikely that Grand Bahama 
will see a real tourism boost until U.S. consumer confidence has 
returned. 
 
 
ZUNIGA-BROWN