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WEDNESDAY, JANUARY 31, 2024
$5.30
$5.31
Taxable transactions plunged by $1.26bn at COVID’s peak By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
t "VEJUPS (FOFSBM SFWFBMT SFTUSJDUJPOT TAXABLE goods and serFDPOPNJD JNQBDU vices transactions plummeted in value by $1.264bn during the COVID pandemic’s peak due to t 1PTU 0GmDF #BOL and other economic UPME 5SBOTGFS lockdowns restrictions, it has been revealed. The Auditor General’s EPSNBOU BDDPVOUT recently-filed report on the finances for the t 8BSOFE UIBU NBOVBM Government’s 2020-2021 fiscal year, which coincided with the pandemic’s TZTUFNT FYQPTFE peak, gives an insight into just UP AGSBVE FSSPST how sharply consumption-based
activity within the Bahamian economy slumped based on the value of transactions that attracted VAT at the then-prevailing 12 percent rate. Taxable, or VAT-able, goods and services transactions declined in value by 15 percent or $1.264bn year-over-year, according to the report, falling from $7.296bn in the 2019-2020 fiscal year to some $6.168bn in 2020-2021. “COVID-19 economically impacted trade and industries’ VAT-able goods and services and, in addition, the lockdown
$5.30 and curfew protocols,” the Auditor General’s Office affirmed in its report. “In 2019-2020, $7.29bn was spent on the consumption of VAT-able goods and services, and this decreased in 2020-2021 to $6.16bn or 15 percent, the amount being $1.2bn less spent on VATable consumption.” The two figures cited represent consumption spend excluding the 12 percent VAT levied on those goods and services. Consumption-based VAT fell from $875.542m in 2019-2020 to $740.103m the following year and, adding those revenues to the value of goods and services transacted, reveals that total consumption spend plunged from $8.171bn to $6.908bn during the first full year of COVID. While the data does not capture all
$5.28 consumption-based transactions that took place in the Bahamian economy over those two fiscal years, it nevertheless serves as a reasonably accurate barometer of the negative consequences for a system in which the consumer is thought to drive around two-thirds of all activity. “VAT performance, in part, was impacted by tax relief and policy put in place to combat the economic impact and devastation of Hurricane Dorian on Abaco and Grand Bahama, and the COVID-19 pandemic on the country,” the Auditor General’s Office said in the report. “Curfews, lockdowns and restrictions on businesses impeded VAT revenue growth as is related to the consumption of goods and
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GBPA praises PM for easing investor fears By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
KERRY FOUNTAIN
DIONISIO D’AGUILAR
Hotels dealing with visitor safety concerns on crime t "NJE SFQPSUT $BOBEB IBT FMFWBUFE #BIBNBT XBSOJOH t *ORVJSJFT AOPU PWFSXIFMNJOH BOE OP ANBTT DBODFMMBUJPO t 'FBST HMPCBM NFEJB AQBJOUJOH #BIBNBT XJUI CSPBE CSVTI By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net HOTELS have been fielding concerns over whether it is safe to vacation in The Bahamas as Canada was yesterday reported to have issued a crime alert on this nation. Kerry Fountain, the Bahamas Out Island Promotion Board’s (BOIPB) executive director, told Tribune Business that while the volume of inquiries fielded by member hotels has “not been overwhelming” there is growing concern about the level of media coverage around the stance taken by key source markets responsible for generating 90 percent of this nation’s visitors. Confirming that the sector is “not seeing any mass cancellations”, he added that it was impossible to blame the few that are occurring on the crime alerts and said: “It has not
impacted business to this point.” Urging tourists to not abandon their travel plans in light of the warnings, Mr Fountain told this newspaper that his Promotion Board and hotel members are especially fearful that overseas media coverage “paints The Bahamas with a broad brush” and gives the impression that crime is running rampant nationwide rather than being principally a New Providence problem. Pointing to this nation’s 16 multi-island destinations, he nevertheless voiced concern over “the image and identity” of The Bahamas that is being portrayed by these travel alerts and subsequent media coverage, and added: “The prevention of crime is everyone’s business.” Mr Fountain spoke prior to international media reports disclosing that Canada has issued a travel
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THE Grand Bahama Port Authority (GBPA) yesterday praised the Prime Minister for soothing the fears of multiple licensees and investors “alarmed by recent unsettling commentary” from Fred Mitchell. Freeport’s quasi-governmental authority, in a statement responding to Tribune Business inquiries, did not name the “members of the Davis administration” who it was referring to but there can be little doubt it was the minister of foreign affairs since he has been its most vociferous public critic. Picking up on Philip Davis KC’s assertion that he has “no disputes” with the GBPA and its shareholders, despite recent reports that his
GRAND BAHAMA PORT AUTHORITY (GBPA) administration intends to launch arbitration proceedings over monies the Authority allegedly owes to cover the costs of providing public services in Freeport, the statement agreed that “all hands will be needed on deck” to maximise the city’s potential.
THE BAHAMAS was yesterday urged to “tie together” all the initiatives it has undertaken to combat graft after it maintained its 30th spot in Transparency International’s corruption perceptions index. Matt Aubry, the Organisation for Responsible Governance’s (ORG) executive director, told Tribune Business that while it was
“good to know we’re not dropping” this nation can improve its ranking by “connecting all the pieces of the puzzle” underway in the bid to fight and reduce corruption. The Bahamas, with a score of 64, just maintained its position in the top sixth of 180 countries ranked by Transparency International and finished just a few places below the US. However, Barbados - as the only Caribbean state ranked higher than this country
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Fisheries warning on Royal Caribbean’s Xanadu deal By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net BONEFISH conservationists last night voiced concerns about potential negative impacts for a key fisheries spawning ground if Royal Caribbean’s proposed Xanadu Beach Hotel acquisition proceeds. The Bonefish & Tarpon Trust (BTT), in a statement, said it is “closely monitoring potential cruise port development plans near Xanadu Beach” given that a bonefish pre-spawning aggregation (PSA) site is located nearby. It added: “BTT recognises the importance of balancing economic development and environmental conservation, and expresses its willingness to work closely with the developer to explore
solutions that minimise negative impacts on the PSA site at Xanadu Beach.” Tribune Business revealed in December 2023 that the cruise giant was eyeing the potential acquisition of Freeport’s long-closed Xanadu Beach Hotel as part of plans to develop a resort and water park destination, along with the purchase of “all the tracts of land down to Princess Isle” that are presently controlled by Irish-headquartered Harcourt Developments, the Royal Oasis owner. This newspaper understands that negotiations between Royal Caribbean and representatives for the Xanadu’s owner, Mario Donato, are ongoing. Part of the cruise line’s plans are thought to involve mooring at least one of its vessels off Xanadu Beach close to the site identified by the BTT.
Tie ‘pieces of puzzle’ for better corruption ratings By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Calling for collaboration, rather than arbitration, the GBPA conceded Freeport’s situation remains “delicate” despite the $1.7bn worth of investments said to be in “the pipeline” as it urged the Davis administration to heed calls for both sides to co-operate for the city’s greater good
and unlock “the spirit of true partnership”. Seemingly offering an olive branch following Mr Davis’s comments at last week’s Bahamas Business Outlook conference, where he said “I have no disputes with them” when asked about relations with the GBPA, the Authority said: “We welcome Prime Minister Philip Davis KC’s confirmation that he has no dispute with the Grand Bahama Port Authority. “His comments will help ease the concerns of residents, licensees and investors, many of whom have become alarmed by recent unsettling commentary from members of Mr Davis’ administration in the public domain.” The GBPA statement likely did not name Mr Mitchell because it is keen to avoid prolonging any
- continued to improve its score and ranking, although The Bahamas finished ahead of the likes of Spain, Portugal, Israel, Qatar and Italy. Mr Aubry, though, suggested to this newspaper that The Bahamas has the potential to join Barbados and improve its position in the Transparency International rankings by explaining to outside observers how initiatives
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MATT AUBRY
“PSA sites are vital for the survival of these species, and any disturbance or alteration to these areas could have irreversible consequences,” said BTT Bahamas initiative manager, Justin Lewis. “A PSA site is a crucial location in the life cycle of bonefish and other species. It is a gathering point for bonefish that travel from flats 10 to even 100 miles away. “They gather at these sites before moving offshore to spawn. These sites play a pivotal role in the
bonefish reproductive process, and any disturbances or alterations to these PSA sites can disrupt the natural reproductive cycle, impacting the local and regional bonefish populations.” The BTT said recent research documented Xanadu Beach as a bonefish PSA site and tracked bonefish moving offshore to spawn. This, it added, confirms that this location is essential for sustaining the bonefish population and supporting
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