Published On:Wednesday, April 14, 2010

By NEIL HARTNELL

Tribune Business Editor

An industry that contributes an estimated $141 million per annum to the Bahamian economy saw anywhere from a 30-50 per cent decline in business during 2009 due to the global recession, a study has revealed, heavily impacting Family Island economies such as Andros.

A March 2010 study on the economic impact made by Flats Fishing in the Bahamas, conducted by a Florida-based researcher, Tony Fedler, found that while the industry and tourists served by it generated $141 million in "total economic benefits to the Bahamian economy annually", the sector was hard-hit by the economic downturn over the past two years.

Pointing out that the recession had inflicted "a significant impact" on all tourism in the Bahamas, including that which was fishing-related, the study said: "Among guides, fishing lodge owners and other lodging facilities there were consistent reports of 2009 business declining between 30 per cent to 50 per cent, with a few reports exceeding a 50 per cent decline from 2007."

"If 2009 fishing was similar to 2007, direct expenditures for anglers on guided trips would approach $20.6 million compared to about $14.8 million," the study added.

"Non-guided angler expenditures may not be as great as those for guided anglers because of smaller trip costs. If non-guided angler numbers were reduced by 20 per cent from 2007 levels, then their $55.1 million in 2009 would equate to about $66.1 million."

Illustrating the recession's impact on a flat fishing/guided fishing industry that is a key staple of the tourism economy in many Family Islands, the study said: "This dramatic drop in business has had its greatest impact on guides in two areas. First, guides on the margin, fishing less than 30 days per year and generally relying on referrals from other guides, reported the largest loss in business.

"These guides, in many cases, only guided a few days if any at all in 2009. Relying on referrals and only a handful of clients garnered over several years, these guides did not have any way of attracting new business, as they did no active marketing of their services."

"The second impact was on guides tied to fishing lodges and resorts," the Fedler report added. "These businesses experienced substantially fewer anglers in 2008 and 2009, and thus were not able to employ local guides during 2009 to the extent they had in past years. Further, resorts on some islands had closed during 2008 or 2009, further reducing opportunities for local guides. Both occurrences were particularly notable on the smaller islands and underscore the dependence of guide businesses on fishing-related tourism."

As for the immediate future, the study, which was also prepared for the Bahamas National Trust among others, said: "Discussions with several fishing lodges revealed that many hoped to make enough money in 2009 and 2010 to at least break even financially each year. This was particularly prevalent among fishing lodges that are primarily dependent on anglers, and which have not diversified into other eco-tourism activities like diving or touring. Some of the lodge owners were also working at outside jobs to make up shortfalls in personal income."

The Fedler study highlighted that visiting anglers pumped $70 million in direct spending into the Bahamian economy per annum, supporting 2,500 jobs. Further employment was created from the $126 million "in value-added impacts associated with direct angler expenditures. "Further, flats anglers spend more money per visitor night and total visit than non-anglers. This makes anglers very desirable visitors."

Flats fishing accounted for 81.2 per cent of total visitor spending on Andros, generating $23.633 million in estimated direct spending out of $29.1 million in total tourism spending. The industry also accounted for 12.5 per cent of total tourist spending on Eleuthera, 8.5 per cent in Abaco and 4.6 per cent on Exuma. "Overall, flats fishing accounted for slightly more than 3 per cent of tourist expenditures throughout the Bahamas," the study found. "This percentage grew to 9 per cent when only the Family Islands are considered."

The study identified some 313 flat fishing guides in the Bahamas, some 221 of which were active and 92 inactive. The number of days spent guiding tourists ranged from five to 300.

"The primary reason for guides being inactive was the economy," the study said. "In some cases, fishing lodges or resorts that booked guides were closed for the year or had gone out of business. In other cases, guiding was a secondary job and the individuals were pursuing other employment, with some guides moving to other islands seeking alternative employment."