The Tribune

By ANNELIA NIXON

TRIBUNE Business Reporter

anixon@tribunemedia.net

RAPID growth in vacation rental properties since Sandals Emerald Bay’s closure was yesterday described as a double-edged sword for Exuma tourism businesses, as it has encouraged some second homeowners to offer unpermitted boat tours despite filing the accommodation gap.

Steven Cole, owner of Off Island Adventures, said Exuma tourism businesses have been motivated by the recent developments to come together and determine how they can help tackle the issues facing local operators.

“We’ve been motivated by recent events to call a meeting, figure it out and see what we can do to help with some of these issues,” Mr Cole said.

He added that the growth of short-term vacation rentals has created a complicated economic situation because the Airbnb sector has helped generate business for the island while also creating opportunities for activities that are supposed to be reserved for Bahamian operators.

“There’s a little bit more intricacy in the whole Airbnb issue, because it’s an economic avenue for so many people in so many different ways that the Government is turning a blind eye to because it’s not drug running and crime, but it’s breaking the law,” Mr Cole said.

Ray Lightbourn, owner of Exuma Water Sports, said the island has lost the business generated by the closure of Sandals, but the rapid growth of vacation rentals has helped compensate for some of that demand.

“We lost all the Sandals business but we probably got like 400 Airbnbs built since Sandals been closed,” Mr Lightbourn said. “Some of those got 16 and 20 rooms in them.” 

Mr Lightbourn said the practice places established Bahamian tour operators at a disadvantage because they are required to spend money on advertising and operate within the regulatory framework while competing against businesses that, he alleges, are not doing the same.

“Like I say, it’s unfair that all these Airbnbs are allowed to do it. It makes us have to spend a lot more in advertising, do a lot more in advertising, things like that,” Mr Lightbourn said. “The whole purpose we let all these Airbnbs come down here was so we can get the side businesss.”

Mr Lightbourn said water sports operators, taxi drivers and rental car and rental boat businesses are among the sectors where Bahamian ownership requirements are intended to apply.

“That’s the law. The tour boats and taxi drivers, rental cars, rental boats. They all supposed to be an area reserved for 100 percent Bahamians,” Mr Lightbourn added.

He alleged, however, that some foreign property owners get around the requirements by placing a Bahamian name on the business while retaining effective control of the operation.

“But what these people do is they know nobody really checks, and so all they do is they hire a Bahamian to say that he owns the company,” Mr Lightbourn said. “Most he might do is work for it if he does work for it, and that’s all. That money that comes here, they don’t pay no VAT, no nothing.” 

Mr Lightbourn said the issue is particularly concerning because payments for these services can be made directly to overseas owners. “The people pay online to the real owners in the US or Canada, wherever they’re from,” he said.

Mr Cole said the situation is further complicated by the fact that some Bahamians themselves may be participating in arrangements involving foreign property owners and boats.

“You have a need for bigger, better boats, if you will, and Bahamians are unfortunately not in the means or ways to get loans and do this. So they’re taking part in fronting for people,” Mr Cole said.

“And also, the homeowners are just giving Bahamians boats and saying: ‘Go out and make money’. So it’s not always the homeowner’s true 100 percent fault.” 

Mr Cole said the resulting competition is being felt among local operators, although he stressed that Exuma’s overall tourism demand remains strong enough to sustain a large number of businesses.

Robert Thompson, owner of Robert’s Island Adventures, said the lack of enforcement is allowing the situation to worsen. “It’s only a matter of time because there’s no law,” he said. “They just doing their own thing, man. There’s no law enforcement or nothing. If this continues we’re going to be in a lot of trouble.”

Despite those concerns, the operators said Exuma’s tourism outlook remains strong, particularly with the planned redevelopment and reopening of the Beaches brand in place of Sandals. Mr Cole said Sandals had been a major driver of tourism demand on the island, and predicted that Beaches would provide another significant boost when it opens.

“Four Seasons was good for Exuma,” Mr Cole said. “Sandals was 10 times better. Beaches is going to open up in another two years and do even better than Sandals did.” 

He said the combination of the resort development, infrastructure improvements and continued demand for Exuma’s natural attractions should generate more jobs and business opportunities. “So Beaches is going to turbocharge everything, and it’s going to provide more jobs,” Mr Cole said.

Mr Lightbourn said his business is already seeing strong interest for the upcoming Christmas and New Year period, despite the seasonal slowdown currently affecting Exuma.

“Christmas and New Year’s looking pretty good,” Mr Lightbourn said. “We’re actually closed, like half-way closed right now, because it’s so dead over here. We closed September 1, and we’re going to open October 1,” he said, adding that the company is using the downtime for maintenance and is continuing to conduct some private tours.

Mr Lightbourn attributed the strong holiday outlook to the company’s two decades of operation, customer service and word-of-mouth referrals.

Mr Cole said many visitors are increasingly seeking authentic, locally operated experiences rather than large group excursions. “My demographic from 40 to 60, 80 year-old people, they’re coming,” he said.

“They’re renting low-key houses, not the big Airbnbs, and they’re doing local things. They’re coming out with folks like me and other bonefish guides that are doing the real island thing. So that’s very encouraging, and that’s not going to go away.”

Mr Cole said the challenge now is ensuring regulation and enforcement keep pace with Exuma’s rapid tourism growth. “Exuma’s going to be off the charts,” he said. “So, the regulation and the enforcement of water sport-run operations is going hand in hand with it.” 

Mr Cole said he believes local businesses must take a more active role in advocating for themselves rather than waiting for government to resolve the problems.

“They’re not going to move unless a bunch of people like us come together and show them that we’re not going to stay and lay down and let them take advantage of us,” Mr Cole said.

“I would like to retire, but I don’t want to leave it at this. It would be sad to have just people come to The Bahamas and do whatever they want because Bahamians don’t want to do anything about it.

“We think the Government’s going to always do something about it. There’s communities to do stuff for themselves, and we need to be one of those communities to do it again, because we’ve done it before. So we’re just going to do it again. I think it’s time.”