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FRIDAY, APRIL 3, 2020
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‘Govt cannot save everyone’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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CABINET minister yesterday said he was “on his knees” hoping the cruise lines’ Grand Bahama projects pull through, as he warned: “Government cannot rescue everyone from this crisis.” Dionisio D’Aguilar, pictured, minister of tourism and aviation, acknowledged that both Carnival and Royal Caribbean Cruise Lines (RCCL) are likely to adopt a “wait and see” approach to those investments once the COVID-19 pandemic eases due to the major financial blow they have suffered. Disclosing that the government “hasn’t heard anything yet” on either development, the minister said his “whole arms are crossed” in the hope both cruise lines will eventually proceed - albeit with some delay to construction and opening schedules - once the global health crisis has abated. And, responding to
• Minister ‘on knees’ hoping cruise projects OK • Government ‘hard-pressed’ to ease pain for all • Borrowing ‘heap loads of money’ not an option suggestions that several Bahamian airlines may require a financial bail-out to resume operations once COVOID-19 is eliminated, Mr D’Aguilar said the government’s limited financial resources meant it would be “hard-pressed” to help all industries, businesses and persons likely to request such aid. Pointing out that the government’s revenues have been “gutted” by both the tourism industry’s closure and wider national lockdown, he warned that while “everyone is going to come with their hand-out” once the pandemic ends it would be “very difficult to help everyone who wants to be helped”. Calling on businesses and different sectors to “pool resources” to resuscitate themselves and the Bahamian economy, Mr
New auto sales facing ‘50% hit’ at a minimum By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
NEW car sales will take at least “a 50 percent hit” due to the COVID-19 pandemic, a major dealer is forecasting, having already slashed his orders for the next three months by some 60 percent. Fred Albury, the Bahamas Motor Dealers Association’s (BMDA) president, told Tribune Business he was “just leaving the office revising my ordering forecast” with the industry among those businesses forced to close by the government’s nationwide lockdown. Confirming that his Auto
Mall dealership had been closed from the start, Mr Albury argued that the “next 30 days” will tell whether the Bahamian economy is “deep up the creek without a paddle or sailing smoothly” as a result of this nation and the world bringing the pandemic under control. Indicating that his forecasts were open to further revision, depending on how long COVID-19 and the associated economic shutdown last, and how deep they go, Mr Albury said he and one of his vehicle brands had started from the
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‘We fell asleep’ over chance of tourism freeze By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas failed to plan for the possibility of a total tourism shutdown because it was lulled “to sleep” by years of record arrivals and earnings, a former finance minister said yesterday. James Smith, also a former Central Bank governor, told Tribune Business that no planning was ever done to prepare for the reality The Bahamas faces now because no one foresaw that
JAMES SMITH it could happen. Speaking after the prime minister warned Bahamians to prepare “for generational changes to the economic
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D’Aguilar said The Bahamas simply lacked the ability and fiscal space to “borrow heap loads of money” and debt finance its way due to the likely onerous burden this will impose on current and future generations of taxpayers. The minister conceded he was “scared” to inquire as to Carnival and Royal Caribbean’s plans for Grand Bahama after the global cruise industry was brought to its knees by a pandemic that has forced its total shutdown. Carnival, a publicly-traded company that typically earns billions of dollars in annual profits, was forced to raise $4bn from an emergency bond issue as part of a $6bn package designed to stabilise its finances amid the COVID-19 turmoil. Despite having investment grade status, the
bond issue was managed by so-called “junk syndicate desks” and priced at a previously unheard-of 11.5 percent interest rate. As for Royal Caribbean, Standard & Poor’s (S&P) yesterday cut its credit rating to ‘BB’ and placed a “negative” outlook on the company. These developments, among the many blows inflicted by COVID-19, are especially ill-timed for Grand Bahama’s longmoribund economy given that the separate investments by both major cruise lines were being relied upon as the catalysts to revive the island after almost 16 years in the doldrums. The Grand Lucayan’s purchase by Holistica, the joint venture between Royal Caribbean and its ITM Group partner, is especially
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‘No gouging’ on eggs as prices rise over 100% By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A LEADING food retailer yesterday reassured Bahamian consumers “there’s no price gouging on eggs” despite prices increasing by “more than 100 percent” over the past two weeks. Philip Beneby, head of the Retail Grocers Association, told Tribune Business that demand in the US and other countries amid the COVID19 pandemic is “driving up the cost” of this food staple and prompting numerous complaints from local shoppers. He revealed he had been in contact with Danny Sumner, the Price Control Commission’s chairman, who had investigated the concerns voiced to the regulator and found no evidence of the alleged “price gouging”. Mr Sumner could not be contacted for comment by Tribune Business yesterday, with Mr Beneby warning hard-pressed
Bahamian consumers - many of whom have lost jobs and/ or income amid the pandemic - that “there’s no relief in sight” on egg prices which may well further increase before they decline again. “I’ve been listening to the chairman of the Price Commission with regard to customer complaints about the price of goods,” he told this newspaper. “Egg prices increase every year, as do lime prices, and the prices have been magnified by what’s going on around the world as shoppers flood to the stores. “Now, with the sudden increase in prices, people are beginning to scream. The prices on eggs have gone up even more than 100 percent in some cases on a weekand-a-half to two weeks. The demand in the US is driving up the cost of eggs. Egg prices have increased across the US. “It’s just supply and demand. People are cleaning out the stores in the US
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