The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Bahamian investors and businesses are at a disadvantage when competing against foreign investors because of this nation’s high cost platform.

Robert Myers, the Bahamas Chamber of Commerce & Employers Confederation (BCCEC) chairman ,who was a speaker at the 11th annual Abaco Business Outlook conference, said the cost of doing business for Bahamians was “far too high”.

He added that while Bahamians were being given opportunities to invest and develop, and receive incentives, they were at a competitive disadvantage due to the high cost of doing business compared to foreign investors.

“Whether it’s a Bahamian looking to buy or operate a hotel, or trying to compete with a foreign contractor on a hotel project, the playing field is not level.,” he added.

Mr Myers added: “If he is a foreign contractor, coming out of the US, he is probably leasing all of his equipment and has very favourable terms from his manufacturer and can ship the equipment off.

“He can also get his loans at considerably lower interest rates, operates his core business that is paying 1 cent per kilowatt hour, and his operating costs are probably a third of what ours are.

“He also has a much larger skill base from which to employ his people, and they have got economies of scale so they can come in and significantly underbid a local contractor.”

Mr Myers said: “A local guy, on the other hand, has to pay for all of his equipment because they won’t let you ship until you own it, and when you bring it in you’re paying somewhere between 45-85 per cent in duty and Excise tax.

“When it breaks down you are paying duty on the parts. Your operating costs are higher, debt and overdraft facilities are costing you 6.5- 7 per cent, three or four times higher than a guy from the US.”

“They want to know why aren’t Bahamians participating. The cost of doing business is simply too high for us. It’s absolutely not a level playing field, and if any one says so they simply ned to do the math.”