The Tribune

By AVA TURNQUEST

Tribune Staff Reporter

aturnquest@tribunemedia.net

WITH the Government on track to meet fiscal targets, Prime Minister Perry Christie yesterday presented an “optimistic” forecast for the country’s economic recovery as he outlined the progression of foreign direct investment projects and related opportunities for employment across the country.

Underscoring heightened discipline towards expenditure and revenue collection, Mr Christie pointed to significant decreases in recurrent and capital expenditure, GFS deficit and debt during the mid-year budget statement for the 2013/2014 fiscal period.

“We are on the right course,” Mr Christie said. “Resurging economic growth and a rebound in employment opportunities for Bahamians are the concrete proof.”

“Our commitment to the path that we have charted will not waver.”

Mr Christie revealed a string of boutique hotel developments currently underway throughout the country, adding that a group of American investors are developing a small resort on Stocking Island, off Exuma, and discussions were underway for the construction of a five-star resort at Cotton Bay, Eleuthera.

“On New Providence,” said Mr Christie, “Atlantis is proceeding with $40 million in capital expenditures, including upgrades and refurbishment of the Cove Hotel and Royal Towers; Albany will move ahead with its next phase of expansion, offering 1,300 new jobs during construction and operational stages; Mark Holowesko’s boutique resort is proceeding on schedule; The Palms Hotel is being upgraded into a Courtyard Marriott hotel. The purchase of the Hilton and South Ocean Beach properties should proceed in the ensuing months; the new Baha Mar development will open at year-end, creating 5,000 new permanent jobs.”

Mr Christie said the government has remained “faithful” to its medium-term fiscal consolidation plan unveiled in the 2013 budget communication. He added that tax reform was a critical component of fiscal reform, upon both of which the execution of a national development plan rested.

“Fiscal reform,” said Mr Christie, “is at the heart of the Government’s plan for national economic and social development. The key to successful and durable fiscal reform is to re-engineer Government such that it does things better – not that the Government does less.

“My Government,” he said, “has worked tirelessly over the past eighteen months to promote the further development and expansion of economic activity and the attendant employment opportunities.

“We have clearly gotten through the worst of the global crisis and the future looks bright.”

Mr Christie also announced several changes to revenue measures with customs duty on imported eggs increased to 30 per cent, and the tax of sparkling wines and cognac – formerly duty free. 

Imports of government vehicles will now be duty free, along with imports of point-of-sale equipment, the latter of which Mr Christie said will assist the business community with preparations for the implementation of Value-Added-Tax.

Mr Christie highlighted the following developments and foreign direct investment projects: 

In Grand Bahama: a joint venture with the Sunwing/Blue Diamonds Group for a new four-star Memories Resort is expected to create 1,000 jobs; and upgrades to Balearia’s existing 400-passenger ferry to a newer and larger 1,200 passenger fast ferry; the opening of a Freeport call centre, Island Outsource Contact Centre, is expected to take on 200 employees by year-end.

Among proposals to provide major attractions in Grand Bahama, Mr Christie added that there were ongoing discussions with the parties connected to the former Gin development in West End with a view to reviewing the project.

In Bimini: Genting’s Resorts World subsidiary has taken over management of the resort, opened a new casino and employed a staff of 500; a deep water jetty is also under construction and the airport and other public works are being substantially upgraded and expanded. A new five-star hotel is under construction and will open in May, employing 300 people.

In the Abacos: the Baker’s Bay upscale residential resort continues to flourish and expand; the construction of the new port in North Abaco and the improvements and opening of the new terminal at Marsh Harbour International Airport; The Blackfly Fishing Lodge is in operation and the Sandpiper Inn should open this year, with 150 employed and more jobs to be created;

“We put in place,” said Mr Christie, “incentives and collective strategies to successfully address the concerns of Sandals Emerald Bay and Club Med, protecting the jobs of hundreds of employees; Club Med has joined with Canadian partners to carry out a $90 million refurbishment and expansion project at Columbus Isle Village and adjacent land in San Salvador; Sand and Ocean is planning construction of a 125-room boutique hotel; two projects have just been approved for a boutique hotel near the landfall of Columbus and a residential development at the Columbus Landings subdivision. The Norman’s Cay residential and resort project is in the advanced planning stage.”

In the Berry Islands and North Andros, Mr Christie pointed to the sale and continued development of the Chub Cay Resort, adding that discussions are underway for the acquisition and development of Bird Cay and Whale Cay.