The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Total tourist arrivals to the Bahamas for the 2014 first half increased by 2.8 per cent to 3.3 million, with higher-yielding stopovers recovering some of 2013’s decline.

The Central Bank of the Bahamas’ report on monthly economic developments for July found that stopover or land-based visitor numbers increased by 2.6 per cent year-ove-year, partly reversing the 6.2 decline from the year before.

The growth rate in sea arrivals, meanwhile, slowed from 3.7 per cent in 2013 to 2.9 per cent for the 2014 half-year.

“Disaggregated by major ports of entry, visitors to New Providence rose by 2 per cent to 1.9 million, buoyed by a 2.7 per cent increase in sea passengers, while the air component stabilised at 0.5 million,” the Central Bank said.

“Increased airlift capacity and the opening of a new, mid-sized resort [Memories] in April underpinned a sharp 31.7 per cent spike in air arrivals to Grand Bahama,” the Central Bank report said.

“However, because the dominant sea traffic component contracted by 16.2 per cent, there was an overall 10.3 per cent drop in visitors to 0.4 million. For the Family Islands, the visitor count strengthened by 10.3 per cent to one million, occasioned by growth in both sea and air visitors, of 11.7 per cent and 1.2 per cent, respectively.”

Non-performing loans, which are more than 90 days past due and upon which banks have stopped accruing interest, passed the $1 billion mark for the first time in July. However, due to a drop in credit between 31-90 days past due, banks’ overall credit quality indicators improved slightly.

“There continued to be an uptrend in the non-performing component - arrears in excess of 90 days and on which banks have stopped accruing interest - which rose by $27.4 million (2.7 per cent to $1.028 billion, elevating the attendant loan ratio by 30 basis points to 16.7 per cent,” the Central Bank said.

“Banks’ credit quality indicators improved slightly, as total private sector loan arrears declined by $2.8 million (0.2%) to $1.356.8 billion, with the corresponding ratio of arrears to total loans narrowing by 24 basis points to 22 per cent.

“In terms of the average age, the short-term (31-90 day) loan segment was lower by $30.2 million (8.4%) at $329 million, for 5.3% of total loans - a decrease of 54 basis points from the prior month.”