The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The FNM’s deputy leader yesterday challenged the Bahamas’ private island cruise port development model, arguing that those located on remote cays would generate “limited” benefits for Bahamians.

K P Turnquest told Tribune Business he found himself at odds with Prime Minister Perry Christie’s assertion that the Mediterranean Shipping Company (MSC) cruise port on Bimini was “the model” for similar future developments in the Bahamas.

The MP, whose own east Grand Bahama constituency is still awaiting its own cruise port, in the shape of Carnival Cruise Lines’ promised $200 million project, questioned why the Bahamas would seek out such projects for remote locations like MSC’s Ocean Cay.

Pointing out that these sites were far from commercial and population centres, Mr Turnquest said this negated the economic impact and spin-off opportunities for Bahamian entrepreneurs.

And employees/business operators would likely be sourced from other parts of the Bahamas, splitting up or uprooting Bahamian families.

“The question is why there? Why build a cruise port and destination on a cay in the middle of the ocean?” Mr Turnquest queried to Tribune Business, adding that there were numerous populated Family Islands that could have benefited more from a project such as MSC’s.

Ocean Cay is a man-made island near Bimini that was previously used for industrial purposes, particularly aragonite mining. It faces a major transformation in usage that will address any of the lingering environmental concerns stemming from its past life.

However, as shown by November’s Labour Force Survey, Bimini’s need for such a development is much less than for other islands, given that its official unemployment rate is pegged at around 3 per cent due to the Resorts World project.

As a result, the more than 120 Bahamians who will be employed full-time at Ocean Cay are likely to be primarily drawn from elsewhere in the Bahamas, and will have to relocate.

“I heard the Prime Minister say that he hopes this is the model for this kind of development in the future,” Mr Turnquest said of the MSC project. “I found myself thinking I do not.

“When we do these kinds of development, they need to benefit Bahamians, and create opportunities and employment for Bahamians. Certainly, if they’re on some remote cay, the opportunities are very limited.

“It will be interesting to see what kind of contribution they [MSC] make to the revenue of the country, given that they’re going to be another closed shop. Is this the best use of our opportunity?”

Mr Turnquest’s concern over whether the Bahamas is maximising the benefits of cruise tourism were yesterday shared by Branville McCartney.

The Democratic National Alliance (DNA) leader told Tribune Business: “They [private cruise ports] don’t seem to ultimately benefit the Bahamas and the Bahamian people as a whole.

“At the end of the day, monies go out of the country as opposed to circulating throughout this economy, and that’s what’s going to happen here.”

Mr McCartney’s comments allude to a wider concern that private cruise islands and ports benefit the cruise lines more than the Bahamas and Bahamians.

Concerns have long existed that the cruise lines control the excursions, tours and attractions at such facilities, potentially denying Bahamians entrepreneurial opportunities, while controlling the mark-ups charged by the locally-owned businesses they do allow.

The impact for the Public Treasury is also limited, as the per capita departure tax levied on cruise passengers is often discounted once a certain number are brought in.

However, MSC is slightly different given that it already has a physical presence in the Bahamas in Freeport, where it is a major equity shareholder and customer at the Freeport Container Port.

Prime Minister Perry Christie said MSC had made a commitment to Bahamian entrepreneurial development at Ocean Cay through the offer of financing of construction and equipment in respect of restaurants, retail shops, water sports, entertainment and attractions to be operated by Bahamians.

He added that MSC has also committed to establishing a Seafarers Technical School in Freeport, and has been working with a Cabinet sub-committee to facilitate planning, infrastructure development and screening of candidates.

The first 55 recruits are to begin training next month in food and beverage, guest services, deck and engineer ratings, and entertainment for placement on MSC’s cruise ships.

Mr Christie said an additional 55 recruits per quarter will undergo training, leading to a total of 220 graduates by end of this year.