...unless and until we fix whatever is wrong with our tourism industry (and fix it urgently) ...the economic and social dislocations currently being experienced in The Bahamas will continue unabated

What needs to happen in tourism

CFAL Economic View

The Ministry of Tourism’s ‘Islands of The Bahamas Arrivals Report’ released earlier this year contains some very useful and informative data on the tourism industry in The Bahamas, and a lot more information on the economic performances of those countries from which our visitors originate.

The report, compiled by the ministry’s research department, provides a summary of total visitor arrivals to The Bahamas for the year 2011, in what appears to be a record-breaking total of 5.234 million.  That figure is broken down further to show that only 1.29 million of those visitors (or about 25 percent) arrived by air.

There is something troubling about that figure when it is taken into account that about 25 years ago The Bahamas was boasting total air arrivals in the region of 1.5 million.  What is more troubling is the fact that we are in the midst of the worst recession ever experienced in a modern Bahamas and the agency which oversees our most important industry appears to be offering no concrete solutions.

Almost 75 percent of the report outlines the economic challenges facing the United States as a result of the crash of the housing market there, and the subsequent financial meltdown.  The rise in unemployment, particularly in the northeastern states, is highlighted perhaps to remind us that the reason for the poor performance of our local economy is tied to employment levels in the U.S.  It is also noted that Texas, contrary to popular belief, generates more tourists for The Bahamas than many of the northeastern states.

Similar information is provided on Canada and the western European nations whose citizens also visit The Bahamas, although not in such great numbers as the Americans.  Again, the intent is presumably to inform us that it is the global slowdown in economic activity that is adversely affecting our visitor arrivals (by air) and consequently contributing to the slow economic growth figures.

Those examples, or more appropriately arguments, would have been more persuasive had we not been made aware from other sources that air arrival tourists were up and growing impressively in our competitor destinations, such as Jamaica, the Dominican Republic, Cuba and Cancun, Mexico.  Some mention of the costly and perhaps unsustainable subsidies to the industry in the form of ‘companion airfare’ is given as a successful policy response to the crisis.

For more than half a century tourism has played a pivotal role in the economic development process of this country.  It has accounted for most of the foreign direct investment, more than 50 percent of direct and indirect employment, and has provided the necessary level of foreign exchange inflows to not only fund our insatiable import appetite but also to support the important one-to-one peg between the U.S. dollar and the Bahamian dollar.

Changes needed

In other words, unless and until we fix whatever is wrong with our tourism industry (and fix it urgently), the economic and social dislocations currently being experienced in the country will continue unabated.  Large numbers of skilled and semi-skilled Bahamians will join the unemployed labor force. Unable to meet their debt commitments, they run the risk of losing their homes and other assets acquired during better times.  Unable to provide the needed level of support for their immediate families, the inevitable household tension could rip families apart.

What is needed is a recognition of the importance of the tourist industry to The Bahamas in general and to the partial solution to the current economic crisis in particular.  In the short-term, attempts to stimulate other less important parts of the economy or programs to diversify production from our main service provider simply will not create the number or types of jobs sufficient to absorb the unemployed.

The tourism plant, in terms of existing and planned hotel rooms, needs some form of re-tooling to ensure it is functioning at its optimal potential.  We know for instance that the costs of labor and utilities are out of line with our competitors, placing the country at a pricing disadvantage.  Those areas need to be addressed, perhaps by permitting the hotel operators to produce (hopefully more efficiently) their utility needs rather than relying on the inefficient state-owned corporations.

Above all, we need more air-arrivals since that category of visitor spends more than 10 times what is spent by their cruise counterparts, making a larger contribution to employment and output in the country.  The Bahamas at this time in our history needs a fresh, focused and comprehensive plan to increase the number of air arrivals in order to produce the required number of jobs and to begin the process to effectively reverse the unemployment trend.

 

• CFAL is a sister company of The Nassau Guardian under the AF Holdings Ltd. umbrella.  CFAL provides investment management, research, brokerage and pension services.  For comments, please contact CFAL at: column@cfal.com

Aug 15, 2012

thenassauguardian

Caribbean Blog International

2012 will go on record as being one of the worst years in the history of the Free National Movement (FNM)

The Bahama Journal


Dear Editor:
 


2012 will go on record as being one of the worst years in the history of the Free National Movement (FNM). This was not supposed to be the case, however. You see, this month and year marks the 20th anniversary of the FNM’s stunning victory in 1992 (August 19) against the legendary Sir Lynden O. Pindling and his Progressive Liberal Party (PLP) Government.

For 25 years Sir Lynden was the undisputed ruler of the Commonwealth of The Bahamas. His erstwhile political son, Hubert A. Ingraham, led the perennial official opposition party to what many described as a momentous event in the annals of the history of the modern Bahamas. This would have also been a little over three months into the fourth non-consecutive term as prime minister for Ingraham had the FNM pulled off the May 7 General Election. But the Bahamian electorate voted against Ingraham and his party.

After all was said and done, only nine out of 38 candidates for the FNM were able to win a seat in the House of Assembly. The remaining 29 seats were won by PLP candidates. Many of the future leaders of the party were defeated by relatively unknown candidates. One of the FNM’s brightest candidates to fall in the May 7 electoral contest was Charles Maynard, former Member of Parliament for the Golden Isles constituency and minister of youth, sports and culture in the Ingraham administration. Like thousands of Bahamians, I was astonished and saddened after learning that Maynard had died on the early morning of August 14 in North Abaco. What makes his passing all the more shocking is the fact that he was only 42.

He was a great asset to the FNM as a chairman. I always enjoyed listening to him give radio and television interviews. He was very articulate and professional in defending the policies of his party despite being harassed and harangued by his political foes while on the radio. He always arose above the fray. He never got into mudslinging or character assassination in order to score brownie points. He always had a smile. What makes his membership to the FNM so unique is the fact that many of his family members have deep roots in the PLP.


 Yet despite having grown up in that party and having served as one of the leaders of the now defunct Coalition for Democratic Reform party, he decided to join the FNM party. His death is a major setback to a party that is in the midst of a by-election campaign. Perhaps FNMs in North Abaco will rally behind Dr. Hubert Minnis and throw their support behind his candidate Greg Gomez in tribute to a man who was determined to rebuild a great political organization that appears to still be reeling from the devastating loss it suffered on May 7.

Who knows? Maybe his death will serve as a unifying factor for a party that many political pundits are saying is badly disjointed. Maynard’s sudden passing teaches us all that death is the great common denominator. All of Adam’s offspring will be taken by the icy, cold hands of death. The Old Testament Book of Job 14:5 reads, “Seeing his days are determined, the number of his months are with Thee, Thou hast appointed his bounds that he cannot pass.”

Maynard’s death has put everything into perspective. In the last analysis, the only thing that will matter on the day we die is whether we had been fully obedient to the Lord Jesus Christ. How many elections we have been able to win or how famous we have become or how much wealth we have amassed won’t matter on the other side of death. Life is so fragile; so uncertain. You never know where the Grim Reaper is. My condolences to the Maynard family. My prayers are with you during these troubling times. I truly hope that the fallen former FNM chairman is in the presence of God and His holy angels in heaven. May his soul rest in peace.

15 August, 2012

Jones Bahamas

Caribbean Blog International

The Free National Movement (FNM), Charles Maynard and the North Abaco Bye-election

By Dennis Dames

The official opposition Free National Movement (FNM) has raised the stakes tremendously for the upcoming by-election in north Abaco by sacrificing their Chairman – Charles Maynard.

Like a confident gambler in a poker game, the party has gone all-in in the Abacos.  Will the Progressive Liberal Party (PLP) call the bet by sacrificing their very own big man in the Chairman’s seat; or will they fold?

The approaching by-election in north Abaco has just gotten exciting, and the FNM has let it be known that they intend to go all-out to retain the seat left vacant by the Rt. Honorable Doctor – Hubert Alexander Ingraham.

The FNM clearly believes that the PLP has not got the guts to answer their wager, or they could simply be calling them bluff.

In any event, Charles Maynard is on the table – and in order for the PLP to win the game in Abaco, their Chairman will have to be the bundle used to match the FNM’s stake.

It remains to be seen if the PLP’s wizards will be allowed to call the FNM’s pot at the north Abaco poker table.

The PLP has got enough chips to control the game for at least four more solid years; so – they could go south and leave the FNM and their dead chairman alone in the room.  Only time will tell if the PLP will hold-up, fold-up, walk away or run in north Abaco.

Caribbean Blog International

The Christie-led government has remained noncommittal concerning oil drilling in The Bahamas

PM still committed to referendum on oil drilling

By Candia Dames
Guardian News Editor
candia@nasguard.com

While a referendum on oil drilling is not currently the priority of the Bahamas government, Prime Minister Perry Christie told The Nassau Guardian he remains committed to such a referendum.

But he said “there would have to be serious indications that there is oil and natural gas in commercial quantities”.

“I committed my party to if we are going to have oil drilling in The Bahamas while we are in power, we will do so by seeking the support of the people of The Bahamas, so the answer is yes,” said the prime minister when asked recently by The Nassau Guardian whether the referendum was still planned.

He said,  “One of the dangers for The Bahamas is that concessions are being given to explore in the same area by the Cuban government and it would be a very interesting development as they are in a position to start exploring and digging a well before us.

“If they were to find a well then it makes it almost a compelling case for The Bahamas having to do the same thing.  And so, we’re not going to look a gift horse in the mouth and play crazy with it.

“But at this particular time we have to continue to assess where we are on that subject matter to see whether in fact the company (Bahamas Petroleum Company) is in a position to finance drilling because it’s a huge sum of money involved in that.

“This is not a $50 million or $60 million kind of enterprise.  This is a hugely expensive enterprise, particularly with the environmental safeguards that should be in place.

“And so, at some stage or the other the company will come forth to us to say,  ‘listen, we are ready to do the following things and this is the evidence we have that you have fossil fuels there’ and we’ll see.”

Bahamas Petroleum Company (BPC) has committed to spudding its exploratory well in Bahamian waters by April 2013, although recent reports from the company indicate this drill date could be pushed back later in the year.

BPC is looking to bring on an operational and equity partner for the drill, The Nassau Guardian previously reported.

The Christie-led government has remained noncommittal concerning oil drilling in The Bahamas.

“We do believe that the Bahamian people ought to be consulted,” said Kenred Dorsett, the minister of the environment, previously. “Whether it goes the extent of a referendum, that will have to be determined based on the costs. That is a matter for the Cabinet to decide.”

Prior to the election in April, the previous government suspended BPC’s oil drilling licenses. There has been no formal announcement from the new government as to whether these licenses have been renewed.

The Christie administration has also committed to a referendum on gambling, which the prime minister has said will be called by the end of this year; and a constitutional referendum on citizenship matters, which the government intends to call before the end of the term.

Aug 13, 2012

thenassauguardian

Caribbean Blog International

The local gambling debate: ...The number houses, Bahamian culture, the Progressive Liberal Party (PLP) and numbers kingpin and former PLP Treasurer - the late Percy Munnings ...and the call to legalise the native numbers business; tax it, and strictly control it ...so that it is not allowed to grow into an octopus of destruction

The Destructive Face Of Casino Gambling

Tribune242 Editorial



AS A follow up to our comments in this column yesterday a Tribune reader has sent us an interesting article from London’s Daily Mail on the Englishman’s destructive addiction to the roulette machine and Labour’s admission that it made a mistake by relaxing gambling laws thus allowing casinos to flourish.

All the observations in the Daily Mail article are among the reasons that we made it clear in this column yesterday that our comments about the ever present “numbers racket” to the growing presence of web shops did not include the more sophisticated casino tables of the hotels.

However, with the number houses becoming over the years almost a part of the island culture, it is going to be impossible to shut them down. It must be particularly hard for the PLP to even consider closure, considering that their party’s treasurer Percy Munnings was the acknowledged numbers boss and with his gains a generous financial supporter of his party for many years.

If Percy Munnings could get away with it, reasoned the little numbers man, then why couldn't he? It was a reasonable proposition. Despite the police raids, the back room numbers trade became bolder and more entrenched.

This is why we accept that it has been allowed to become so much a part of the fabric of the Bahamas that government might as well capitulate, legalise it, tax it, and strictly control it so that it is not allowed to grow into an octopus of destruction.

However, allowing Bahamians into the hotel casinos is another matter and we agree with Robert “Sandy” Sands, senior vice-president of external and government affairs of BahaMar, that Bahamians are not “disciplined” enough to be able to gamble locally. Not only are Bahamians not disciplined enough, but neither are Britons — in fact few members of the human race, unless they have entrenched religious convictions, and strong wills, can easily escape the temptation of easy money.

Mr Sands’ comments came after Prime Minister Perry Christie, while promising a referendum before the end of the year to legalise gambling and create a national lottery, vetoed the referendum being extended to open casino gambling in the hotels to the local population.

According to the Daily Mail article, written by Sarah Bridge and Abul Taher, the extent of “Britain’s addiction to controversial casino-style gambling machines” was revealed with the disclosure “by two bookmaker giants that more than £12 billion was wagered on their machines in the first half of this year.”

The figures revealed by the “bookies” was staggering.

But the most interesting part of the article was the admission by Shadow Culture Secretary Harriet Harman, who was a senior member of the Cabinets of Tony Blair and Gordon Brown, that her government had made a tragic mistake.

“I think we were wrong,” the Mail quoted her as saying:

“We have made a mistake and we need to do something about it.

“If we had known then what we know now, we wouldn’t have allowed this.

“It’s not just ruining the high street, it’s ruining people’s lives.”

The Mail reports that this is the first time that Ms Harman, who is in charge of Labour’s gambling policy, has explicitly blamed the Labour government for the increase in gambling.

Ms Harman spoke out after hearing stories from people hooked on Fixed Odds Betting Terminals (FOTNs) that encourage people to stake £100 at a time on roulette, blackjack or poker games hoping to win £500.

“I have received the most heart-rending letters and e-mails and calls that I’ve ever had in 30 years of being an MP,” she said, “just saying, “Please, do something about this. It’s ruined my life, it’s ruined my family, it’s really dangerous.”

“And the problem is, it’s getting worse,” she said, “that is why we need the law changed so that something can be done about it.”

Ms Harman told the Mail that FOTBs were “bringing casinos right into the high street.”

“These machines,” she said, “are like mini-casinos— they’re not like the small machines you have in seaside arcades. People get addicted and lose all their money.”

This is a matter that has to be studied carefully. If it is decided to allow the betting shops that we now have, they have to be strictly controlled so that they do not grow into a greater menace than they are now.

Government now has to decided whether to close down all local gambling, or strictly control and tax the numbers and web shops. But the ridiculous situation of turning a blind eye to open and defiant illegality can no longer continue.

August 08, 2012

Tribune242 Editorial

Caribbean Blog International

...the numbers business is not only popular and a cultural norm ...but is one of the biggest contributors to the Bahamian economy ...says - business consultant, Paul Major

Gambling Debate Intensifies


By: Theo Sealy & Rogan Smith
The Bahama Journal



Two top clergymen, a leading hotelier, a business consultant and a college professor locked horns tighter than ever last night over the controversial gambling issue.

Retired Anglican Archbishop Drexel Gomez, Bahamas Christian Council (BCC) President Dr. Ranford Patterson, Kerzner International VP of Public Affairs & Retail Services Ed Fields, business consultant, Paul Major and educator and civil activist, Margo Blackwell all participated in a Jones Communications Network (JCN) town meeting series at the Harry C. Moore library where they each took turns highlighting the benefits or pitfalls of gambling.

The panel was split.

Opponents argued that gambling was destructive and against God’s will, while proponents touted the economic benefits that could be gained from its legalisation.

The Christie administration has announced plans to hold a referendum before the end of the year so that Bahamians can decide whether they want gambling legalised.

The BCC has repeatedly stressed that it is “diametrically opposed” to gambling and it didn’t stray from that premise last night.

“To engage in this gambling . . . one is going counter to what Jesus stands for and for what the church is here to promote. We believe that gambling is, in its final analysis, an affront to God,” Archbishop Gomez said.

“Our problem in the church is we have been compromised by our members in that so many of our members gamble and so many of our members do not really believe what the church teaches us because if they really believed, they would apply it in our lives. So, there are a lot of persons who belong to the church who participate in gambling because they aren’t putting into practice the teachings of the gospel. Gambling produces social dislocation. That is not disputed even by persons who engage in gambling.”

Mr. Major, meantime, said the church cannot legislate morality.

“It comes down to a matter of civil liberty – people deciding what they want to do with their disposable income,” he said.

“The only ones who don’t benefit from gambling are the government and the citizens who don’t gamble. At this stage in our development and enlightenment we should not be so concerned about whether Bahamians gamble.”

Dr. Patterson said with gambling, “we can only lose, not win.”

“The negative effects outweigh benefits. It can destroy a family. Every day in our ministries we are confronted with persons who are marginalised, persons who are experiencing loss, persons whose lives are falling through the cracks and that is why we feel so strongly about this because we see the devastation. That’s where our passion comes from,” Dr. Patterson said.

“Think of the devastation that we now see and the proliferation of the web shops. We believe it’s only going to get worse and our people are going to suffer as a result of it.”

But, one audience member chastised the church for its weak arguments on the controversial issue.

“I have been listening to a lot of debates on this gambling subject and it seems that the church is relying on the argument of morality. As it stands right now those arguments are not standing up very well against the arguments that these other panellists are presenting. Why isn’t the church presenting strong arguments about the economic and social impacts of the numbers business? These are the issues we need to present as opposed to what is morally incorrect,” she said.

Mr. Major, meantime, sought to dispel the notion that the ‘house’ always wins.

He told the panel and attendees that two number houses “went broke” because they couldn’t pay out winnings.

“On average 60 to 70 per cent of winnings go back out,” he said.

When challenged to substantiate his claims by providing the statistics, Mr. Major responded, “Trust me, trust me.”

He later said the numbers business has attracted 150,000 account holders.

He said 120,000 of those individuals have online accounts, while the remaining 30,000 individuals are walk-in customers to various web shops throughout the country.

Mr. Major suggested that the numbers business is not only popular and a cultural norm, but is one of the biggest contributors to the Bahamian economy.

Ms. Blackwell, careful to “stay far away from moral and social values as possible,” said she felt that Bahamians are being denied a right to gamble.

“I am a young lady who has lived her whole life being discriminated against in an independent Bahamas by a constitution that allows people who are not Bahamian to do something in my country that I am not allowed to do. I have a real problem with that,” she said.

Mr. Fields, meantime, said the gambling issue is not about its decriminalisation, but its liberalisation.

Churches have over the years demonised gambling in The Bahamas, but many have turned to major resorts for donations even though a good chunk of their revenue comes from casino dollars.

Mr. Fields said in his 16 years at the Paradise Island resort, he has received a letter from every single denomination in The Bahamas requesting donations.

He later questioned the difference between church raffles and the numbers business.

“Either you are hot or you are cold. The reality is that if I buy a raffle ticket my intent is to win over someone else…we are in a quagmire trying to justify this thing. Either we like them all or we wipe them all out. It cannot be a case of juggling. It cannot be that it is okay for the church to gamble through raffling but it is not okay for Bahamians to do the same through gambling at numbers houses,” Mr. Fields said.

“Yes numbers is illegal and perhaps there is a problem with the concept that because it is illegal on the books the donation from that illegal gambling is a problem. But there is not a problem with the church asking donations from an entity that has legal gambling. So gambling is okay if it is legal? That must be what the message is.”

Mr. Fields said if Bahamians vote to legalise the numbers business, the government could take a percentage of the money and set up counselling for addicts.

Gambling proponents say if the numbers business is legalised it could fund various government initiatives and provide millions of dollars to the public purse.

“It would do well for us here in the country if we go ahead with legalising the numbers business. It can contribute significantly to health care, sporting and education, overall helping with national development. We need to move forward with this and try to look at the positive side of how beneficial gambling can be, economically, to The Bahamas,” attorney Wallace Rolle said.

JCN CEO Wendall Jones moderated the town hall meeting.

August 10, 2012

Jones Bahamas

Caribbean Blog International

To gamble or not to gamble: ...as it now stands, gambling, although illegal for Bahamians, is now so prevalent ...and has been for so many years, that to let it flourish while continuing the debate whether it should be outlawed ...is making a fool of the law

The Devil Has Had It Too Long, Turn It To Good

 Tribune242 Editorial


TO GAMBLE or not to gamble — that is the question. In the Bahamas today it is a question that has already been answered by a large number of Bahamians without need of a referendum.

A referendum has only become necessary because of government’s desire to avoid a clash with the churches, particularly the strong Baptist vote, which itself is now divided. Government wants the bitter chalice of who decides on legalisation to pass to the “Voice of the People” – hence the referendum.

As Minister Lavern Turner, whose letter is published on this page today, points out gambling has “grown from the number man to the web shop.” Now that people can gamble on the web, gambling cannot be stopped, he wrote.

“The permission was already given,” he said, “when the web shop obtained a licence, paid National Insurance and hired workers. The people already have the legal right and it should not be taken from them.”

We also agree with the reverend gentleman that now is not the time to open casino doors to Bahamians. The minister pointed out the seriousness of the economic downturn and the hundreds of Bahamians without jobs – “light bills, water bills, rent, mortgages, school uniforms and fees, education, food, car upkeep and other more important responsibilities take priority over casino gambling. Entertainment at that level can wait!” he said.

It is true, gambling does reduce the moral fibre of a community by making people believe that by the throw of the dice they can get something for nothing; it can destroy families, and turn a pathological gambler into a destitute human wreck. A gambler never learns that the odds are stacked in favour of the house, never for him. In the end he is the loser.

The Tribune was against the introduction of betting at Hobby Horse Hall many years ago because of the harm it did to the family unit. It was the late Nurse Alice Hill-Jones, who came to The Tribune to report that whenever Hobby Horse Hall was in season and betting was in full swing, babies arriving at the government clinics were undernourished — their milk money was going to the race track. The fathers were spending their meagre wages every Friday afternoon betting on the trifecta.

Today the government has no choice but to legalise gambling. The people have already spoken. Already the numbers and the web shops have defied the police. No sooner are they closed than they are open again. If gambling is denied, then everything has to close. And the gambling houses have shown they plan to go nowhere without a fight.

It was the same story with alcohol. Prohibition became so dangerous that in the end alcohol had to be legalised. This did not mean that alcohol was beneficial, in many ways its abuse does more harm to the human body than many of the drugs that are still illegal. However, alcohol is now within the law. Gone are the smuggling days when much of the alcohol was contaminated, leaving people, if not dead, then blind.

The religious can find the answer to their quandary in the soliloquy of the Grand Inquisitor in Dostoevsky’s Brothers Karamazov where the pros and cons of God’s gift of free will is argued. Many condemned such a gift believing it too great a responsibility for weak man. Others saw it as a great gift enabling each human being to accept or reject morality, and to individually decide whether to follow good or evil. God’s gift of free will was to the individual, not to his pastor. The most that a pastor can do is to advise his flock and try to lead them on what he considers the right path — even going after the one who strays. But that is the limit of his responsibility. The final exercise of free will is for the individual. If the individual strays — as suggests pastor Turner in his letter – the “responsibility to deliver them belongs to the Holy Spirit, so take the load off your head, their blood is not on your hands…” A good bit of advice. Each person is judged individually by the extent of his knowledge and the exercise of his own free will in making a final decision based on that knowledge.

Ministers who are against gambling are only responsible for their own congregations — and only so far as they can guide the free will of their members. However, they have no right to even consider trying to impose their beliefs and will on a nation. Each man has his own beliefs.

Of course, there will be laws and if an individual’s free will leads him down the wrong path, then the law will be there to punish him.

But as it now stands, gambling, although illegal, is now so prevalent and has been for so many years, that to let it flourish while continuing the debate whether it should be outlawed is making a fool of the law.

Either make it legal and control it, or declare it illegal and shut it down.

In our opinion the added expense of a referendum is not necessary — it’s just an easy way out enabling government to avoid the wrath of religious ministers and the loss of the Baptist vote at election time.

Those who believe that gambling is evil and against their religious beliefs won’t gamble, and those who see nothing wrong with it will continue as they are doing now. The only difference is that the government will tax their foolishness.

As one religious minister once said: “Give me the money so that I can put it to good use — it’s been in the devil’s hands too long!”

August 07, 2012

Tribune242 

Caribbean Blog International