01112022 BUSINESS AND FEATURES

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business@tribunemedia.net

TUESDAY, JANUARY 11, 2022

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Bahamas sees $715m gain if ‘infrastructure gap’ closed By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas stands to gain a $715m boost if it invests just $31m to close the “digital infrastructure gap” between itself and the world’s leading economies, a multilateral lender is arguing. The Inter-American Development Bank (IDB), in its just-released Caribbean Quarterly Economic Bulletin, asserts that The Bahamas’ could enjoy economic returns 23.3 times’ greater than the investment outlay required to bring its broadband and mobile Internet networks up to the same standard as Organisation for Economic and Co-Operation and Development (OECD) countries. Doing so, the IDB argued, would increase Bahamian economic output (gross domestic product) by 5.6 percent over a six-year period, will also generating productivity gains over the same timeframe. And, with

INTER-AMERICAN DEVELOPMENT BANK

• Nation to enjoy return 23’ times $31m outlay • IDB predicts 4,000 job gain, productivity up • Warns on Internet cost, download speeds

COVID-19 having driven many companies and workers to Internet-dependent remote working, the lender forecast that eliminating the digital divide will help create 4,000 jobs. The IDB report did not break down exactly where the $30.7m needs to be invested, or provide the underlying calculations that gave rise to its projections, although it referenced other studies that it drew upon. The forecasts, though, strengthen the case for increased private and public sector investment in The

Bahamas’ digital transformation as an area that can generate great returns for a relatively modest outlay. The report also acknowledged that The Bahamas is ahead of the leading developed economies when it comes to the nation-wide mobile broadband coverage provided by the combination of Aliv and the Bahamas Telecommunications Company (BTC), but warned that was a potential impediment to greater penetration and usage. In particular, the IDB said the monthly fee for a fixed Internet broadband connection in The Bahamas was some 113 percent higher than the average for OECD states on a purchasing power parity (PPP) basis, while mobile Internet fees were 24 percent higher. And Internet download/ connection speeds in The Bahamas were said to be 50 percent, and “close to onethird”, of those in OECD nations (the US and major European countries) for

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COVID shutdown COVID quarantine change: for auto dealer’s ‘Right direction on all fronts’ ‘major generator’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ONE of an auto dealer’s “two major generators” has likely been forced to close until tomorrow after almost one-third of staff tested positive for COVID-19 amid the latest case surge. Fred Albury, the Auto Mall’s principal, told Tribune Business “just about every sizeable company in this country” has been hit by staff shortages related to the Omicron variant’s spread after the dealership was last week forced to close its service department when multiple employees tested positive for the virus. Voicing surprise that the Government has yet to reintroduce more curbs to crack down on large social gatherings, he added that worker absences and partial closures had become “a part of doing business” that was exacerbating the challenges Bahamian auto dealers face in obtaining sufficient vehicles from their overseas suppliers. Factory backlogs, microchip shortages and global supply chain shortages have left many companies with too few vehicles to meet consumer demand, Fred Albury said, arguing that greater product availability could boost the industry’s new auto sales to up to 1,900 in 2022

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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Government’s adjustments to the COVID isolation and quarantine rules have strengthened the “building blocks of travel confidence” for the peak winter tourism season, a top hotelier says. Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, told Tribune Business that the country’s largest economic sector “certainly got the reduction we were looking for” in

the changes unveiled by the Ministry of Health and Wellness. “The reductions are certainly in the right direction, and we support that,” he said. “It’s certainly something we’ve advocated for. All of these initiatives are building blocks to travel confidence, and the more these things are adjusted and corrected, the more consumer confidence increases and travel continues unabated. “They are more aligned with best practices. These are all steps on a

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Cabinet yet to decide on jobless benefit extension By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net CABINET will likely decide today whether to further extend the Government-funded COVID-19 unemployment benefit that was due to expire at end-December 2021. Myles Laroda, minister of state in the Prime Minister’s Office with responsibility for the National

Insurance Board (NIB), told Tribune Business last night that the matter would probably discussed at today’s full Cabinet meeting although this was not definitive. “That decision has not been made yet,” he said of an extension. “Cabinet will probably decide on that tomorrow [today]. I don’t control the agenda, but it’s something

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Food prices: ‘What goes up may not come down’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net SUPER Value’s principal has warned Bahamian shoppers to brace for the possibility that increased food prices may be here to stay, warning: “I don’t believe in what goes up must come down.” Rupert Roberts told Tribune Business that no one in the food industry knew whether the anticipated prices rises, resulting from supply chain woes and other post-COVID factors, will prevail for one or five years but said prices rarely came down after an increase. While estimating that the 13-store supermarket chain has “put through” cost increases on a small minority of its 30,000 product lines to-date, he added that the possibility of up to 20 percent price hikes “on most items” by year-end 2022 could not be discounted based on US inflation estimates and information he was receiving from suppliers in The Bahamas’ northern neighbour. “I was talking to Senator Michael Halkitis, and he asked me the same question,” Mr Roberts replied, when this newspaper

RUPERT ROBERTS queried how long projected increases in food prices may last for. “I said: ‘Senator’, this could be a year, this could be five years. “When we were talking to Thailand, trying to secure canned mackerel, they went from $29 to $42. Those fishermen are not going to take $29 for their can of mackerel any more. I don’t believe in what goes up must come down. We’ve seen a lot just stay up there.” Still, Mr Roberts voiced optimism that Super Value’s pre-emptive buying and inventory build-up will hold off the worst of any price increases until “more like the end of March”. He added: “We probably have 30,000 SKUs (stock-keeping units). The larger stores have 30,000 items. I suspect so far that there’s 200-300

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