03202024 BUSINESS

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Bahamas wants 2,000 more hotel rooms for ‘good footing’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Bahamas’ prospects for continued tourism growth depend on bringing 2,000 hotel rooms, or 15 percent of its total preCOVID inventory, back on line swiftly with the industry at “maximum capacity”.

Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, yesterday told

Tribune Business that the country must “address capacity” if its largest industry is to maintain the post-pandemic growth momentum, adding: “We have to get those rooms out of order back in order.”

Apart from the loss of the now-demolished Melia Nassau Beach Resort’s 694 rooms, and the closure of Atlantis’ Beach Towers property for redevelopment into the Somewhere Else concept, the BHTA

president said a “significant” amount of inventory has also been lost in Grand Bahama. That largely stems from the closure of two of the three properties that form the Grand Lucayan complex. Voicing optimism that hotel developers and operators are working to “reverse” these trends, Mr Sands told this newspaper that The Bahamas has withstood earlier negative international media

No ‘monopoly pricing’ through $25m air freight terminal deal

By

THE Government will not permit “monopoly pricing” by the private operator of Nassau’s air freight terminal, its top finance official asserted last night, as he pledged to make the deal a “win-winwin” for all.

• 15% down on pre-COVID with sector at ‘max capacity’ • BHTA chief confident Bahamas ‘can trump’ crime woe • Out Isl nights up 7%; ‘postCOVID boom not a bubble’ SIMON WILSON

Simon Wilson, the Ministry of Finance’s financial secretary, told Tribune Business that any predatory pricing by JDL, the company charged with transforming the facility under a $25m public-private partnership (PPP) with the Government, is “a no-no” and will not be tolerated while promising

• Top official pledges ‘nono’ and JDL ‘win-win’ • But admits ‘growing pains’ were made worse • Private operator unveils schedule of 20 fees

to ensure the arrangement “works out well for all stakeholders”. Speaking after the Ministry of Finance yesterday met with air cargo operators, freight forwarders and other private sector

interests to address concerns with the air freight terminal’s outsourcing to JDL’s management, he conceded that “a better job” should have been done in communicating the plan to stakeholders along

with details of how they would be impacted. Tribune Business was yesterday told that uncertainties surrounding the JDL agreement, and fears that it would significantly increase air freight costs, have resulted in a business slowdown for those in the sector as many Bahamians switched to re-routing their import shipments via ocean freight (see other article on Page 1B).

And this newspaper was also informed that the addition of JDL’s fees and charges, especially the 20 cents per pound air freight terminal handling fee, will likely drive several couriers out of the industry because it will make

SEE PAGE B4

PM ‘explores’ GB diamond repository with Botswana

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

GRAND Bahama’s Chamber of Commerce president yesterday said he was unsure what economic benefits will flow from the diamond repository proposal that the Prime Minister discussed with Botswana.

James Carey told Tribune Business he had been unable to discover any details on a facility which the Prime Minister’s Office said was “explored” by Philip Davis KC and his ministerial delegation during their five-day state visit to the African nation his week.

“Moreover, the establishment of a diamond depository in Grand Bahama was explored as a strategic initiative to facilitate Botswana’s diamond exports to the US.

This collaboration involves the Grand Bahama Port Authority and the Freeport Container Port, aiming to enhance trade links and foster economic co-operation,” the Prime Minister’s Office said.

Several sources suggested such a facility should be described as a repository, not a depository. It would seemingly act as a secure storage facility for diamonds in transit from Botswana to the US, with the gems held in it until they were required for onward transportation. Botswana is one of the world’s largest sustainable diamond sources, and the country is the world’s leading producer by value. “I saw that and I’ve been trying to find out a bit of information on what they may be talking about,” Mr Carey told this newspaper of the statement by the Prime Minister’s Office.

“Diamonds are not bulky items, so they won’t be shipping container loads of the stuff. I don’t know what it brings to Freeport but there will be some payroll on the ground.

staff. Any type of that thing bodes well for Freeport. PHILIP Davis KC speaks with members of the Bahamian delegation during the state visit to Botswana. SEE PAGE B4

URCA independence fear over director terminations

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

CABLE Bahamas is urging the Government to reform the law so as to preserve the Utilities Regulation and Competition Authority’s (URCA) independence and reduce its costs. The BISX-listed communications provider, in feedback provided to the consultation on URCA’s draft 2024 annual plan, called for several sections in the regulator’s governing Act to be amended so

as to prevent its non-executive directors from being terminated prior to the statutory end of their term in office. Besides potentially compromising URCA’s supposed independence from government, Cable Bahamas argued that this appeared to be increasing URCA’s costs by forcing it to make settlement payments to the impacted directors. And these extra expenses, in turn, were being passed on to itself and other communications providers in the form of higher licensing fees.

Addressing directly the Cabinet ministers responsible for communications and regulations with URCA, Cable Bahamas said in reference to the URCA Act: “There is a need for correction of sections 18 and 20 (Part IV, appointment of nonexecutive members and reappointment of nonexecutive members), which appear to have had the unanticipated effect of causing settlement payouts to Board directors likely as a result of their termination prior to their statutory tenure, thereby adding to

budgetary amounts to be paid by licensees.

“The Cable Bahamas group is of the view that revising these two sections will result in cost savings to the electronic communications sector budget going forward.” Cable Bahamas also urged the Government t reverse previous URCA Act changes, made in 2013 and 2017, which now require that any surplus or excess licence fees be paid over to the Government’s consolidated

coverage of its crime woes and US/Canadian travel warnings with bookings for the upcoming Easter period and winter tourism peak “meeting or exceeding the expectations” of many resorts.

While acknowledging that the negative perceptions created by such coverage never completely dissipate, he added that he is confident The Bahamas

ROBERT SANDS KERRY FOUNTAIN

Opposition urges air fees ‘legal challenge’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Opposition’s leader last night argued that the fees imposed by the air freight terminal’s new private operator should be “challenged legally” as he questioned the Prime Minister’s silence on the issue.

Michael Pintard, renewing his party’s attacks on the $25m deal to outsource the facility’s management to JDL, told Tribune Business the arrangement may also breach section ten of The Bahamas’ air transport agreement with the US by requiring all imports to go through the new operator’s hands. This was in addition to queries over whether JDL’s 20-strong fee schedule is lawful because it has not been approved by an Act of Parliament.

That section stipulates that all airlines “designated” by the agreement “shall have the right to perform its own ground handling in the territory of the other party (selfhandling) or, at the airline’s option, select among competing agents for such services in whole or in part”. Such choice is only to be constrained by airport safety issues, with all charges “based on the cost of services provided”.

Mr Pintard blasted: “We should look at whether or not all security requirements are satisfied with respect to the cross-border movement of parcels with the US.” And, arguing that Philip Davis KC has

MICHAEL PINTARD

a “fiduciary duty” as minister of finance to address the Bahamian people on the rationale for the JDL outsourcing and its implications, the Opposition leader said thus far it has been “mum’s the word” from the Prime Minister.

The Free National Movement (FNM) chief added that it was “really egregious” that Simon Wilson, the Ministry of Finance’s financial secretary and a civil servant, rather than a policymaker, had been left to “carry water” and explain an arrangement that he asserted is akin to a new tax and will impose millions of dollars in extra costs on Bahamians importing goods via air freight.

“This is a massive deal,” Mr Pintard told this newspaper. “You’re talking about a major policy decision being made that has significant implications in the tens of millions of dollars. It’s a $25m deal. A non-policymaker is in the front line discussing this process, and the Prime Minister has not a conversation

SEE PAGE B6

A vacancy is available for a Financial Controller in the Bahamas Maritime Authority Finance team based in London (United Kingdom). The Bahamas Maritime Authority is one of the leading Flag State Administrations in the world and is seeking to strengthen its Finance team in the United Kingdom. London is one of the global business hubs in the world and home to the strong BMA team.

The Financial Controller is a key leadership role responsible for managing the finance department in London and overseeing the finances of other offices. This role involves strategic financial management, including developing and implementing financial policies, ensuring accurate financial reporting, and leading the budgeting and forecasting processes. The Financial Controller will ensure compliance with financial regulations, manage cash flow, and provide decision support Head of Finance. Additionally, this role encompasses team management, developing internal controls, and coordinating audits. Deputise for the Head of Department in their absence.

If you are interested in this role, please send your CV along with a cover letter, and a copy of your accounting qualifications to hr@ bahamasmaritime.com

Key responsibilities:

• Financial Leadership and Strategy:

o Provide direction and guidance on financial policies, systems, and procedures to ensure efficient and effective management of the company’s finances.

• Team Management:

o Assist in the management and oversight the finance team, ensuring tasks are completed accurately and on time.

o Provide leadership, direction, and training to finance staff to achieve departmental objectives.

• Financial Reporting and Compliance:

o Assist with accurate and timely financial reports, including monthly, quarterly, and annual statements.

o Management of the accounting software overseeing the release of entries, consolidation reports.

o Preparation of Bahamas Shipowner’s Association financial reporting and audit.

o Process of the pension contributions and Payroll (Tax & NonTax).

• Budgeting and Forecasting:

o Assist the budgeting and forecasting processes, ensuring they are completed effectively and reflect the company’s financial position and future risks and opportunities.

• Cash Management:

o Oversee cash flow planning and ensure the availability of funds as needed.

o Oversee banks in all offices and third-party authorisation in the regional online banking system.

o Maintaining up-to-date, accurate accounting records, processing “BORIS” transactions and approving bank reconciliations.

o Implement strategies to optimise the company’s financial resources.

o Management of the Accounts Receivable and Accounts Payables.

o Management of the credit and credit controls for external clients.

• Audit and Internal Controls:

o Coordinate with local and regional auditors during audits and reviews.

o Develop and maintain internal controls to safeguard financial assets of the organisation.

• Financial Analysis and Decision Support:

o Conduct financial analysis to identify trends, risks, and opportunities.

o Provide recommendations to the Head of Department based on financial analysis and projections.

o Maintain up-to-date, accurate accounting records and oversee VAT reporting, audits, and banking operations.

o Act as a point of contact for third-party service providers and manage relationships effectively.

o Implement and maintain financial management systems and processes.

Person Specification:

• Skills and Experience:

o Strong analytical skills and excellent organizational skills.

o Proficient in Microsoft Office packages and experience with multi-currency accounting software.

o Demonstrated leadership capabilities with a team-oriented approach.

Qualifications required:

• Essential:

o Bachelor’s degree in accounting, Finance or Business-related subjects

o Qualified ACCA, CPA, CA

• Desirable:

o Master’s degree in accounting, Finance or Business-related subjects o 5+ years’ experience in a senior role

o Data analytics

Personal qualities required:

o High level of confidentiality and attention to detail.

o Commercial and market awareness.

o Strong leadership, team player, and critical thinking skills.

The role is based in our London office.

Benefits:

London competitive salary;

15% gratuity paid every three years; UK Private medical insurance; 22 days holiday per annum (pro rata) in the first year

BAHAMIAN ACCOUNTANT MAKES INSOLVENCY FIRST

The HLB Bahamas accounting firm has confirmed that John S. Bain, its advisory partner, has been named a fellow in INSOL International’s 2024 class of inductees.

INSOL, which stands for International Association of Restructuring, Insolvency & Bankruptcy Professionals, is a UKbased organisation and the leading global association of professionals who specialise in corporate turnarounds and insolvency. It has more than 10,500 members from 44 member associations worldwide, but only 76 fellows internationally.

HLB Galanis said Mr Bain thus joins a select group, which it said was “a testament to his exceptional qualifications and expertise in international insolvency”. To complete his training, Mr Bain participated with 23 other global professionals from global financial centres in Tokyo and London.

The graduating class includes a cross-section of legal and financial professionals from financial centres such as the US, Japan, The Netherlands, Germany, Singapore and Australia. The formal induction ceremony will occur at INSOL’s annual meeting in San Diego on May 22, 2024. ‘

Mr Bain joins two Bahamian attorneys who are also INSOL fellows. However, he is the only - and first - Bahamian accountant todate to be inducted. HLB Galanis described this as “truly exceptional; a unique milestone that not only underscores his exceptional expertise in international insolvency but also inspires all”. Philip Galanis, HLB Bahamas managing partner, said: “The partners of HLB Bahamas are not just proud, but also deeply honoured to have supported John in this outstanding achievement. As our restructuring practice continues to grow, John will lead the firm’s efforts for insolvency consulting

both in The Bahamas and globally.

“HLB continues to make its footprint in The Bahamas in auditing, consulting, taxes and insolvency and restructuring practices, and we are confident that John’s appointment as an INSOL fellow further strengthens our position as a leading advisory and accounting practice.”

HLB Bahamas provides independent attestation, tax and consultancy services to organisations dealing with governance challenges in complex situations. Its services are tailored to local and international companies, particularly those involved in cross-border issues and restructurings.

Eleuthera hotels meet to resolve challenges

SOME 25 Eleutherabased hotel owners and executives have met to discuss “challenges, opportunities and goals for 2024” at an event organised by the Bahamas Hotel and Tourism Association (BHTA).

The meeting, held at The Cove property in Gregory Town, brought together hospitality professionals and proprietors from south, central and north Eleuthera, plus Harbour Island, representing properties such as Jack’s Bay Club, One Eleuthera Foundation, Pineapple Fields, French Leave, The Cove, The Potlatch Club, Ocean Tally, Daddy Joe’s Hotel and Restaurant, The Rock House, Coral Sands, Pink Sands Resort, Valentine’s Resort and Marina, Romora Bay Resort and Marina, Eleven Bahama House and Runaway Hill Club.

Robert Sands, the BHTA’s president, said: “The conclave of tourism professionals who gathered

to talk about common challenges, and potential solutions, was impressive. It was indeed telling to have so many properties from the length and breadth of Eleuthera in attendance.

“I was also wholly impressed and pleased to see how many Bahamian men and women held the helm of their respective tourism businesses, many of whom quite literally grew up in the tourism industry, starting at entry level positions in varying properties.

“It was equally gratifying to hear how they, coming from all echelons of industry to reach the top of their proverbial podium, were intent on supporting other young Bahamians so they, too, could excel in the tourism industry.”

Those present included representatives from The Bahama Out Islands Promotion Board. Hoteliers present were able to speak to Shevonn Cambridge, Bahamas Power & Light’s

(BPL) chief executive, and Melanie Roach, general manager of The Bahamas Striping Group of Companies, on important issues relating to the tourism industry.

The supply of consistent, affordable and clean energy, and the provision of other utilities such as water/sewage and the Internet; human resources (the availability of workforce and training); airlift; airport improvements; infrastructure; safety and security; and the ease of doing business were all featured as “high ranking” matters of importance for the tourism industry in Eleuthera.

Discussions were described as solution-oriented, collaborative and productive, as the meeting was designed to identify and work alongside public and private sector partners to resolve issues impacting the tourism industry.

ROBERT SANDS, the Bahamas Hotel and Tourism Association’s (BHTA) president, addresses tourism stakeholders representing properties throughout Eleuthera at the Association’s ‘meet, greet and engage’ session at The Cove.

JOHN BAIN

PM UNVEILS VISION FOR AFRICAN FINANCIAL LINKS

THE Prime Minister yesterday unveiled his vision and road map for developing stronger financial ties with Africa via a plan that capitalises on The Bahamas’ long-standing strengths.

Philip Davis KC, unveiling what he branded as a ‘Blueprint for Collaboration’ between the Caribbean and African financial sectors during a speech on his five-day state visit to Botswana, said this outlined a strategy that could “unite our banking systems, enhance financial inclusivity, and catalyse economic growth across Africa and the Caribbean”.

Speaking at the Bank of Botswana, he said the strategy’s implementation would start through the formation of a joint financial task force made up of industry execuives, policymakers and stakeholders from both regions. Its primary goal will be to dismantle barriers to banking integration.

“Establishing a joint Financial Task Force can be the cornerstone of our

blueprint. This collaborative body will harness the expertise of banking and finance leaders, policymakers and stakeholders from both regions. Tasked with identifying and dismantling barriers to banking integration, this task force symbolises our collective

will to forge a unified path forward,” Mr Davis said. The Prime Minister, who is also minister of finance, said his blueprint would align African and Caribbean anti-money laundering and counter-terror financing standards as well as digital currency policies. Streamlined banking

Second sky dive provider now seeks CAAB permits

By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net

THE company behind the Grand Bahama sky diving demonstration is different from a separate entity that has voiced repeated frustrations over its inability to obtain the necessary licences.

Skydive The Bahamas, which conducted the Grand Bahama dive and is itself seeking the necessary Civil Aviation Authority of The Bahamas (CAAB) permits, is not the same as rival skydiving excursion provider, Sky Dive Bahamas. The latter’s principal, Vans Johnson, has previously expressed concern over his inability to obtain the necessary permits.

The Sky Dive Bahamas chief executive could not be reached for comment yesterday, but previously told Tribune Business he is still not licensed to offer excursions and was burning through $8,400 monthly to rent a plane his company cannot use until it obtains the necessary permits. The initial licence he received from the Civil Aviation Authority of The Bahamas (CAAB) was only for a seven-day period, not an annual licence, even though he aims to offer regular excursions and not a one-time event.

“My last monthly invoice was $8,400 a month. I have to find $8,400 a month, or find a way to send money for them to hold my plane,” Mr Johnson added. He said he was disappointed in that

there appears to be a ‘glass ceiling’ on what ventures Bahamians can get involved in.

“If I was selling conch salad or opening a chicken shack, I would not have a problem. But because I’m doing something different, new and exciting for The Bahamas, I’m encountering all types of obstacles and problems,” he added.

Meanwhile Brian Strong, co owner of Skydive The Bahamas, said it decided to target Grand Bahama and hold the first dive demonstration there because of the lower air traffic volumes currently attracted to the island. He explained that skydiving will give both visitors and Bahamians an opportunity to have in a “bird’s eye view” of the island.

standards, counter-financing of terrorism policies and digital currency regulations, we create a seamless environment conducive to cross-regional banking operations.

“With its robust regulatory landscape exemplified by the DARE (Digital Assets and Registered Exchanges) Act, the Bahamas is a pioneer in this endeavour, guiding our efforts towards regulatory excellence and stability.

Africa and the Caribbean. By focusing on sectors of mutual interest like tourism, agriculture, renewable energy and technology, we can unlock new avenues for growth and collaboration.”

Mr Davis said his strategy will also help workforce development as joint education and training initiatives will be formed.

procedures, he added, will increase trade in sectors such as tourism, agriculture, renewable energy and technology.

“We can also harmonise our regulatory frameworks to address a critical hurdle in our journey,” Mr Davis said. “By aligning our anti-money laundering

“Grand Bahama just seems like a good port for us to start sky diving for several reasons. For the tourists and the locals to have something to do. The air traffic is a little slower here versus Nassau, so we just feel that Freeport would be a safer place to conduct a skydive operation,” said Mr Strong.

He added that although Skydive The Bahamas is a new company, having been incorporated last October, its principals have successfully operated Skydive Coastal Carolinas in North Carolina for more thab 29 years. Mr Strong said the company is looking forward to receiving a licence for its first skydiving operation outside the US, and plans to hire Bahamians throughout the operation.

“Skydive The Bahamas was incorporated in October of last year. So we’re

“Additionally, the promotion of financial inclusion and digital banking leverages the power of technology to erase boundaries and open doors,” the Prime Minister continued. “Inspired by The Bahamas’ pioneering launch of the Sand Dollar, the world’s first central bank digital currency, this facet of the blueprint can envision a future where digital banking platforms extend financial services to every corner of our regions, ensuring that no citizen is left behind.

“Facilitating trade and investment through streamlined banking procedures and dedicated financial instruments can bolster economic exchanges between

a very new company. We came from Skydive Coastal Carolinas in North Carolina where we have been a skydive operation there for 29 years,” he said. “We have a wealth of experience that we’re bringing to The Bahamas,

He added: “Key to this blueprint is developing human capital, which underscores the belief that our greatest asset is our people. Joint educational initiatives and training programmes will equip banking professionals with cuttingedge skills in fintech, cyber security and regulatory compliance, ensuring our financial sector is robust and secure but also innovative and adaptive.

“Creating a bilateral payment system or exploring the development of a shared digital currency represents a bold step towards financial sovereignty and integration. Such an initiative will facilitate smoother trade and investment, reduce our reliance on external currencies, and strengthen our economic bonds.”

and we’re looking to hire Bahamians to hopefully fly the plane, pack parachutes, answer the phones where we’re hopeful that we can get a bunch of people hired here.”

The air freight terminal handling fee, which is purported to cover costs associated with transporting “shipments/package within the warehouse”, is one of 20 that JDL plans to levy according to a schedule seen by Tribune Business that was due to take effect from Monday, March 18. Fees for frozen storage, morgue storage, pallet wrapping, late pick-up and overtime are among those that can be levied.

The 20 cents per pound handling fee represents a 50 percent reduction on the initial 40 cents charge said to be under consideration.

Mr Wilson last night reiterated that “the fee is going to be a lot less than 40 cents”, and conceded that - while an initiative such as the air freight terminal PPP always comes with “growing pains” - it had been made worse by poor communication with industry stakeholders.

“We’re going to work with JDL to make sure things work well for all stakeholders,” Mr Wilson told Tribune Business. “It has to be a win-winwin for everybody. We

want a better facility and better controls. We want to encourage the business. We will not allow monopoly pricing by JDL. That’s a no-no for us. We will meet with them later this week to talk about what’s happened in the last couple of days and make sure everything’s going well.”

Confirming yesterday’s meeting between the Ministry of Finance and the private sector, the financial secretary added: “We realised we had to do a better job of communicating with all the stakeholders about what is happening.

“Because the facility is so bad, the current facility is so bad, persons did things to compensate for its poor state, and now with the new approach to operations these things fall away. When people saw the fees, they relate those fees to existing operations and not how it should operate.”

As an example, Mr Wilson said many freight firms had rented space in the air freight terminal “because there was nothing else they could have done” to store cargo when flights arrived late and could not be cleared by Customs. Renting space in a bonded room was the only alternative, but this will now not be required with the

JDL-financed upgrades to the facility.

Mr Wilson said many operators had reacted negatively to the end of such practices, fearing their available space would be reduced, when in reality they will now no longer need as much square footage. And few had realised they will also now have “‘x’ amount of free storage” because this had not been properly communicated.

“I think the meeting, in essence, conveyed to us that we have to communicate with all stakeholders,” he added. “I think everybody agreed that the facility needs to be upgraded, and everybody agrees that these facilities globally are a userpaid system. The upgrades have to be paid for by the users. There’s no issue with the model. The issue is we have to communicate what services we offer and so forth.

“There’s always going to be some growing pains, and part of the growing pains is to do a better job of communicating with our stakeholders.” Private sector operators yesterday agreed with Mr Wilson’s description of Lynden Pindling International Airport’s (LPIA) government-owned air freight terminal, with one

branding it “a rat hole”. Tribune Business revealed on June 6 last year how the Government was seeking to solve the air freight terminal’s issues via a potential PPP outsourcing arrangement with JDL.

Documents accompanying the 2023-2024 Budget, in an annex detailing privatepublic partnerships, set out the “justification to design, finance, build and operate a new air freight terminal”.

“The purpose of this proposal is for the Government to transfer the property consisting of the air freight terminal to a special purpose vehicle (SPV) owned by the Government, and then to lease that property to JDL in order to design, finance, build and operate a new air freight terminal,” the Budget documents stated.

Mr Wilson yesterday said JDL has already begun renovations, focusing initially on the restrooms, and added: “We’ll make the facility a place where people feel comfortable working. That, right now, is not the case. The facility is in a poor state.”

The JDL arrangement, though, has continued to come under fire from the Government’s political opponents. Michael Pintard, the Free National

Movement’s (FNM) leader, yesterday again challenged the seeming lack of competitive bidding that resulted in JDL’s selection and also queried whether the fees it has been levying since Monday need to be given lawful approval by an Act of Parliament.

Mr Wilson, in response, said BISX-listed Arawak Port Development Company (APD) had been levying cargo handling fees for more than a decade and adjusting them accordingly as the operator of Nassau’s major commercial shipping port. “They adjust the fees without any input from anybody. Is there any legislation for that,” he asked.

As for the questions over competitive bidding, and whether JDL’s selection complied with the two Public Procurement Acts, the financial secretary said: “We were searching for the right partner, and seeking partners to help is with the air freight building. The air freight building has been a problem for at least ten years. “There was a lack of interest from partners. At one point in time we started discussions with APD. The building right now is in poor shape and half the building has been unoccupied for over ten years. Where

PM ‘explores’ GB diamond repository with Botswana

FROM PAGE B1

many, I can’t begin to guess.”

Freeport’s bonded status as a free-trade zone, under the Hawksbill Creek

Agreement, makes it the best location in The Bahamas to store high-value objects such as diamonds in a secure facility because they can be held tax-free. The city’s transhipment, logistics

and distribution infrastructure can then be used to facilitate their onward dispatch to the US.

Tribune Business sources, speaking on condition of anonymity, yesterday said

they recalled previous discussions about establishing a repository for precious valuables, such as gold and silver, in Freeport several years ago. One said he remembered the former Associated

Grocers warehouse, located at the Sea/Air Business Centre, being talked of as a possible location.

“There was some talk a while back about their being a repository in place to store valuables,” the source said. “The way the law is set up you can ship pallets of gold anywhere. If there was a repository in The Bahamas, it would not fall under the banking laws.

“There was some talk about that a couple of years ago; two years ago. I know they were kicking around for a building to use, and the Associated Grocers building came up at one point. That’s an interesting concept. They’d have to licence it here. What they were looking at back then I think was gold, silver, precious artworks, antique vehicles and high-value consumer electronics.”

The Prime Minister’s Office, in its statement on Mr Davis’ meeting with Botswana’s president Masisi, said: “On the table for both countries is an economic co-operation of a proposed MOU (memorandum of

Customs used to be, they had to move because it was leaking, and unfortunately cargo operators with perishables such as drugs and flowers, it’s very, very difficult.

“There was nobody beating our door down to say: ‘We’ll look at this’. We’ve been up and down looking at options and talking to people to see if they’re interested. They [JDL] were the only group to say they were interested and think they can make this work.” Mr Wilson said Customs and the authorities will now “be able to tell with more accuracy” the amount of air cargo being imported into New Providence because they will be able to “weigh the manifest”. He added: “We’ll be able to tell with more accuracy haw to spread the costs over the volume of cargo.

“In a couple of months we’ll have a better understanding of the true volume of cargo and that will determine the real financial model. Because we are now weighing the manifest we are seeing the true volume of cargo. If activity levels have fallen, they are much higher than we thought they would be. Before we had no actual control over what was coming in and out. We couldn’t verify.”

understanding) between the Central Bank of the Bahamas and the Bank of Botswana.

“This partnership will facilitate the exchange of expertise and technology in the area of Central Bank Digital Currency (CBDC), leveraging The Bahamas’ Sand Dollar and Botswana’s SmartBots initiatives to spur advancements in the digital economy.

“The meeting also set the stage for partnerships between financial institutions of both nations, aimed at unlocking investment opportunities and diversifying financial services. Plans for joint conferences to explore collaborative financial solutions were discussed, promising to strengthen economic ties further.

“In a move towards enhancing digital economy co-operation, the two countries agreed to collaborate on developing a regulatory framework for digital assets.

Drawing from The Bahamas’ experience with the DARE (Digital Assets and Registered Exchanges) Act 2023, this initiative aims to bolster Botswana’s digital economy strategies and secure robust investment avenues.”

BAHAMAS WANTS 2,000 MORE HOTEL ROOMS FOR

“can trump” any fall-out by providing visitors with such high-quality experiences that they will continue to recommend the destination to family and friends.

And, asserting that tourism’s benefits are “not Nassau-centric”, Mr Sands said the two days he and other BHTA executives spent in the company of Eleuthera resort executives showed that “they are very bullish” on current and near-term business prospects for the sector.

Kerry Fountain, the Bahamas Out Island Promotion Board’s (BOIPB) executive director, yesterday told Tribune Business that room nights sold by member properties during the early part of 2024 were 7 percent up on the same period last year although they have yet to match preCOVID performance.

Ben Simmons, proprietor of the Ocean View and The Other Side properties on Harbour Island and mainland Eleuthera, said his occupancy numbers for March and April 2024 are

“running neck and neck” with the same months for 2023. “It means the postCOVID boom is not a bubble,” he told this newspaper, as occupancies for March stand at 95.5 percent compared to the prior year’s 95.8 percent.

However, Mr Sands said increased room inventory - both among hotels and vacation rentals - remains critical to maintaining tourism and the wider economy’s momentum by providing sufficient accommodation to meet the still-surging demand for a Bahamas vacation.

While New Providence “will be seeing in earnest this year” the impact from the British Colonial’s reopening, and “can look forward to an entire year of that additional capacity” with some 290 rooms returned to operation, he added that more was required to further cement the country’s growth prospects.

“I would say that we will be at maximum capacity,” Mr Sands told Tribune Business of the hotel industry’s anticipated Easter

weekend. “We have to put this in the context of the amount of rooms we have available. The only way we’re going to grow our tourism industry for the future is we need increased capacity. I believe everybody knows that.”

Explaining that the solution is not simply just building more hotels, the BHTA president called for an “holistic” solution “because a lot of infrastructure has to go into place” - especially increased airlift and upgraded Family Island airports - to support greater room inventory and visitor demand.

Acknowledging that this was occurring, although “possibly slower” than desired when it came to Family Island airport transformation, Mr Sands said: “The holistic development of the industry is beginning to take shape. But we have to address capacity. We have to get those rooms out of order back in order, and a significant number of them are in the Family Islands, especially Grand Bahama.

and casting out properly appointed directors regardless of the term left to be served.

“Not all of it is new build, but a lot of it is getting that inventory capacity which, for multiple reasons - whether for Dorian, recession or COVID - back in line to put us back on a good footing. I would say if we were to add it all up in totality, compared to preCOVID, we may be down 2,000 hotel rooms, which is 15 percent of inventory. I am confident that a number of developers and operators are working to reverse that trend.”

Mr Sands acknowledged that small Family Island resorts are “adding rooms on a continual basis’, while vacation rentals such as Airbnb - despite having “stumbled to begin the year” due to the crime coverage fall-out - have also “rebounded”.

Disclosing that The Bahamas has regained its momentum following the temporary international media interruption, the BHTA president added: “Booking pace, and bookings, for Easter are very strong, meeting or exceeding expectations in some cases. March has always

continuity of service of URCA Board Directors in order to be independent of government changes,” Cable Bahamas added.

traditionally been the strongest month of the year, and I think a number of hotels are exceeding those projections.

“The Bahamas brand remains strong and vibrant, and it has withstood some of the headwinds it received earlier in the year. The first quarter was always going to be very strong, and we continue to work on the second quarter for its growth. It’s trending in the right direction.

“I’m hearing that not only from hoteliers on New Providence but in areas like Abaco, Eleuthera, Exuma and Andros, which are some of the fastest growing islands in terms of tourist activity. I can tell you having just spent two days visiting with hoteliers [on Eleuthera] they are very bullish about business they are seeing currently until they close their doors towards the latter part of the year.” Mr Sands said Bahamian resorts are continuing to enjoy increased visitor lengths of stay and higher average daily room rates (ADRs), but added that

occupancy improvements are relatively small heading into Easter because many properties were already performing at a high level. He added that “revenue management and converting to the bottom line” has become more critical.

The BHTA president also asserted “there’s no question” that the resort industry is now exceeding pre-COVID numbers with stopover visitor arrivals at year-end 2023 exceeding 2019 comparatives. “We would have exceeded the 2019 position at the end of 2023,” Mr Sands said.

“We’re not seeing the deep valleys and hills that we’ve seen in years past. While there are still hills and valleys, they are not as distinct and pronounced as in years past. All of that will contribute to a year most hotel operators will be happy with. All of these things largely strengthen The Bahamas’ brand and generate the positive momentum and spend to the industry.”

fund rather than retained by the regulator.

Expanding on these themes, Cable Bahamas added: “Whilst a modest increase in staff costs as part of providing a more attractive package to attract and retain top talent is tolerable, we are constrained to make reference to the amount of non-executive compensation, which bears the explanation that the amount budgeted includes yet again a provision for settlement fees for two non-executive directors further to the earlier settlement with one nonexecutive Director.

“It should be noted that the amendment of the URCA Act in July 2017 provided for directors to be appointed for continuous three-year terms. In light of this, the Governments of The Bahamas ought

to observe the statutory tenure of URCA directors and the intended staggering of directors’ terms, and refrain from appointing new directors at the start of a new administration’s term

“Failure to do so results in this unjustifiable financial burden of term pay-outs of directors for the licensees to absorb into licence fees. It is most apparent that it is likely to continue uncorrected. Statutory terms were designed to ensure

“We therefore call on URCA directors as a part of their fiduciary duty to the organisation that they serve to have this fiscal burden

corrected if such is the case, forthwith, and for the Government to be educated and to recognize the unique attributes of an URCA Board appointee.” And, calling for URCA to retain all surplus licence fees, Cable Bahamas added: “We observe that

some $175,404 is collected from licensees in excess of the total operational expenditure. This is, again, a drain on licensees and this excess will likely end up in the Consolidated Fund with no direct benefit to the electronic communications sector.”

Opposition urges air fees ‘legal challenge’

to address the country on what is a new tax.

“It’s mandatory. You don’t have an option on whether or nor to comply. The Prime Minister, who is the minister of finance, it’s his duty to talk to persons raising legal concerns about a new tax not discussed in Parliament and the failure to put this out to an RFP (Request for Proposal).

“There’s no competitive bidding on the matter, and we’re left to understand what the motivations of the Prime Minister are. Where did it originate from, under whose authority, why did it not come to Parliament and why was there no competitive bidding in this regard,” Mr Pintard continued.

“The public has a legitimate reason to resist what the Government is seeking to do, should challenge the Government on this legally and, in the public sphere,

should challenge the Government on what could be a wholly illegitimate tax.”

Mr Pintard spoke out after the Ministry of Finance yesterday met with industry stakeholders, including air cargo operators, freight forwarders and couriers, to address concerns and clarify how the arrangement with JDL is supposed to work.

One charter cargo operator, speaking on condition of anonymity, told Tribune Business that fears the JDL deal would significantly increase the cost of imports brought in by air freight had caused a slump in his business because Bahamians had switched to bringing in more goods via sea.

“I should have flown three flights this week and have not flown any,” he added. “This affects me indirectly. If the costs are prohibitive from JDL, which I think they are at

this point in time, then it slows down my utilisation and that will affect my bottom line. In some cases, people have resorted to going by ocean freight.” Meanwhile, a courier/ logistics provider, also speaking on condition of anonymity, said the 20 cents per pound air freight terminal handling fee now being levied by JDL would make margins to thin for many in the business to survive.

They explained that air freight costs need to be kept in the range of $2 per pound to stay competitively priced for Bahamian consumers. With freight carriers such as Florida Air and Conquest Air Cargo charging $1.70 per pound, and now JDL introducing its 20 cents charge, they said companies have just a 10-cent margin left to meet expenses such as salaries and other overheads - making the economics impossible.

“It’s not just our industry. Think about what it’s going to do to the cost of living,” they said. “The numbers just don’t add up any more. We’re definitely winding down that part of the business. Today we paid them [JDL] over $500 in fees. This was for cargo for a charitable organisation. That money came from a donation for us out of our pocket. We felt the true brunt hit of that.”

Tribune Business revealed late last year that JDL, which has been charged with the $25m transformation of the Government’s air freight terminal, has as its principal Pete Deveaux, head of the Island Game web shop chain.

JDL’s ties to The Island Game’s principal emerged as international air freight providers voiced concern about the likely increase in the cost of imported goods,

and the extra complexity, that appears to be involved with the PPP outsourcing of the Lynden Pindling International Airport (LPIA) air freight terminal. Thomas Cooper, president/owner of Miami Lakes-based Conquest Air Cargo, which provides “quite a bit of air freight” to The Bahamas via LPIA, told Tribune Business the extra cost imposed by the fees JDL plans to charge will “be a big pill to swallow” for all Bahamian consumers.

Other sources, speaking on condition of anonymity, also argued that the JDL deal as structured would effectively usurp the role of Customs as the sole authority lawfully responsible for managing and handling all imported cargo landed in The Bahamas. As a result, they argued that the PPP arrangement violates the Customs Management Act.

DOING BUSINESS IN CHINA IS GROWING TOUGHER, MORE UNCERTAIN, EUROPEAN BUSINESS GROUP SAYS

By ELAINE KURTENBACH and KEN MORITSUGU Associated Press

UNCERTAINTY and "draconian regulations" have drastically raised risks for foreign businesses in China, a report by a European business group said Wednesday.

The lengthy paper by the European Union Chamber of Commerce in China urges China's leaders to do more to address concerns that it says have "grown exponentially" in recent years.

"This report comes at a time when the global business environment is becoming increasingly

NOTICE

NOTICE is hereby given that

JAMES SCORLY JOSEPH Blackwood, Eleuthera, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 13th day of March 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

politicized, and companies are having to make some very tough decisions about how, or in some cases if, they can continue to engage with the Chinese market," it says.

The study, compiled by the chamber and the China Macro Group consultancy, echoes concerns that have been raised by European

and American companies operating in China. Foreign investment fell 8% last year from a year earlier as companies recalibrated their commitments in the world's second largest economy.

EU Chamber officials said China's changing business environment partly reflects moves by Beijing to minimize risks due to trade

NOTICE

NOTICE is hereby given that JUSTIN JOSEPH of T.W. Alley, North Palmetto Point, Eleuthera, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 20th day of March 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

Besides cargo manifests being sent directly to JDL, instead of Customs as required by the Act’s section 72, the actual physical goods will also be received by the private company. Presently, all cargo is received by a broker/agent licensed by Customs, and held in a storage/bonded facility subject to the agency’s control and from which it earns rental fees.

However, JDL is now taking on this role, where it will become the landlord and - in theory - receive the rent instead of Customs. Queries have also been raised over JDL’s plans to break down shipments for scanning, given that the Act requires owners and/ or their agents to be present when goods are examined, while its staff are not police or law enforcement agents and thus lack the authority to seize contraband.

friction and dependence on imports of key commodities or industrial products. That's especially the case given trade friction with Washington and discussions about "decoupling" supply chains from China after the disruptions that occurred during the COVID-19 pandemic. But they said European companies also must manage their own risks. China recently has sought to emphasize its openness to foreign companies and investment. Its commerce

ministry spokesperson said the country was working to ensure 100% access to manufacturing by eliminating remaining trade barriers.

On Tuesday, the State Council, China's Cabinet, issued an updated version of an action plan announced in July to promote more foreign investment, especially in high-tech areas favored for growth such as computer chips, biopharmaceuticals and advanced equipment. It promised tariff exemptions and called for stopping practices that discriminate against foreign companies.

NOTICE

NOTICE is hereby given that LEONARDO SAINT HILAIRE of 3rd Street, Cocount Grove, Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 20th day of March 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that

MANEDA JEAN-BAPTISTE Sherman Avenue, St. Albans Drive, Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 13th day of March 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that

KERVENS FRANCOIS

John Maxwell Street, Freeport, Grand Bahama applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 13th day of March 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The

NOTICE

NOTICE is hereby given that

ROBINSON PIERRE Marsh Harbour, Abaco, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 13th day of March 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

As electric vehicle sales slow, US relaxes plans for stricter auto emissions standards for a while

By TOM KRISHER and MATTHEW DALY Associated Press

THE Biden administra-

tion this week is expected to announce new automobile emissions standards that relax proposed tailpipe limits for three years but eventually reach the same strict standards set out by the Environmental Protection Agency.

The changes come as sales of zero-tailpipe emissions electric vehicles, which are needed to meet the standards, have begun to slow. The auto industry has cited lower sales growth in objecting to the EPA’s preferred standards unveiled last April as part of the most ambitious plan ever to cut planet-warming emissions from passenger vehicles.

The EPA suggested that under its preferred alternative, the industry could meet the limits if 67% of new vehicle sales are electric by 2032.

But during a public comment period on the standards for 2027 through 2032, the auto industry called the benchmarks unworkable with EV sales

slowing as consumers worry about cost, range and a lack of publicly available charging stations.

Three people with knowledge of the standards say the Biden EPA will pick an alternative that slows implementation from 2027 through 2029, but ramps up to reach the level the EPA preferred from 2030 to 2032. The alternative will have other unspecified modifications that help the auto industry meet the standards, one of the people said.

The people, two from the auto industry and one from the government, didn’t want to be identified because the

new standards haven’t been made public by the EPA.

The changes appear aimed at addressing strong industry opposition to the accelerated ramp-up of EVs, along with public reluctance to fully embrace the new technology. There is also a legitimate threat of legal challenges before conservative courts.

The Supreme Court, with a 6-3 conservative majority, has increasingly reined in the powers of federal agencies, including the EPA, in recent years. The justices have restricted the EPA’s authority to fight air and water pollution — including

a landmark 2022 ruling that limited the EPA’s authority to regulate carbon dioxide emissions from power plants that contribute to global warming. Biden has made fighting climate change a hallmark of his presidency and is seeking to slash carbon dioxide emissions from gasoline-powered vehicles, which make up the largest single source of U.S. greenhouse gas emissions.

At the same time, Biden needs cooperation from the auto industry and political support from auto workers, a key political voting bloc. The United Auto Workers union, which has endorsed Biden, has said it favors the transition to electric vehicles but wants to make sure jobs are preserved and that industry pays top wages to workers who build the EVs and batteries.

White House press secretary Karine Jean-Pierre said Tuesday that White House officials “don’t have

any concerns” about the EPA rule, which could be announced as soon as Wednesday.

“We know, with these types of things, it takes time,’’ she told reporters on Air Force One as Biden traveled to Nevada. “But we’re still going to stay committed to our (climate) goals.”

Generally, environmental groups have been optimistic about the new EPA plan.

Manish Bapna, president of Natural Resources Defense Council, told reporters last week that he expects the rule will significantly cut carbon emissions from cars and light-duty trucks, which are the source of one-fifth of the nation’s greenhouse gas emissions.

“Based on what we hear, there’s no reason to doubt that the climate rules for cars and light-duty trucks are going to cut well over 90% of the carbon pollution from new cars, SUVs and pickup trucks’’ over the

next few decades, Bapna said. “That’s huge.”

Between 2027 and 2055, the EPA rule “will prevent more than 7 billion tons of climate wrecking carbon emissions. That’s more than the nation generates in a year. It’s absolutely essential, real, concrete progress,’’ Bapna said.

“EPA’s clean car standards will put the pedal to the metal as the U.S. races to achieve cleaner, healthier air for everyone,” said Amanda Leland, executive director of Environmental Defense Fund, another environmental group.

“Strong clean car standards help provide cleaner air and a safer climate, thousands of dollars in cost savings for our families and hundreds of thousands of new jobs in U.S. manufacturing,” Leland said.

Luke Tonachel, an automobile expert with the Natural Resources Defense Council, said the new clean-car standards will encourage the auto industry to “continue investing, as it’s already starting to do, over the long-term period” in EV and zero-emission vehicles.