Senior Advisor to the Prime Minister (Office of the Prime Minister)

The Christie Administration created the Stronger Bahamas initiative, which aims to build a stronger and more modern and prosperous future. How satisfied are you with the government’s progress to date in terms of strengthening the Bahamas?

The Stronger Bahamas is both an aspiration, a work in progress and an indication that there have also been milestones of achievement along the way. The Christie Administration has been faced with continuing to grow the Bahamian economy after the worst international recession in the last century. In doing so it has looked at the pillars of the Bahamian economy - the tourism sector and the financial services sector - and sought to not only consolidate but also build on them, and then to address other very important elements of the economy such as agriculture and fisheries, other services as well as communications. Also at the same time it has worked to bring about fiscal reforms in which there is smarter spending of public expenses and revenues that are more effectively collected, and broadened the tax base and hence the introduction of VAT, which has had the effect of giving a shot in the arm to the Bahamian economy, very largely from local businesses.

With regards to FDI, which is within the portfolio of the Prime Minister, we have seen FDI as a vehicle to not only continue to drive tourism and financial services but also to drive international shipping. Grand Bahama, in particular Freeport, has an industrial, tourism and international shipping base. It has the deepest deep-water harbour in the region and anywhere along the east coast of the U.S. So there has been not only the strengthening of existing pillars of the economy but the expanding of others and what we are now seeing in Grand Bahama, for instance, the container port there is going through a major expansion with international partners, Hutchison Whampoa and Mediterranean Shipping. We are in the process of seeking to spin off other activities, one of which will be a marine school where Bahamians will be able to be trained to become part of the international shipping industry. At the same time the government has been strengthening its position with regards to the Bahamas as a maritime country for international shipping as well as our maritime registry. It has one of the largest registries in the world not only with cargo ships but also with cruise ships. So what we are seeing is an expanding of the activities that will drive the economy in the future.

In the tourism sector, which accounts for some 60% of our national receipts, there has been a tremendous  concentrated drive towards the upscale market and resorts that are untraditional in that they combine residential and traditional tourist components. A classic example of that is Albany on the southern coast of New Providence, which attracts persons of high net worth from all over the world and is also home to persons who are doing business in the Bahamas. They are also in the process of establishing at Albany developing a financial centre and a golf academy, which will attract both young golfers for training and also provide training for Bahamian golf professionals. So here you find a mix of tourism and residential, a different sort of model where you have high net worth individuals who own luxury homes, spend a good part of the year there and when they are not residents in their homes they lease them to other high net worth individuals. Another example would be the Baker’s Bay project in the Abacos. They have put an emphasis on golf and again the residential component and their focus has more been on attracting residents and high net worth guests from mainly North America but also Europe. We have also continued to attract high net worth individuals and people who are very outstanding in areas like sport, sciences and the arts to private homes throughout Tthe Bahamas, particularly in the northern and central Bahamas. Again they are bringing a level of awareness about Tthe Bahamas as a wonderful place not only to visit but to own a home.

We have also focused on other touristic projects such as the upscale all-inclusive products like Sandals and the Memories brand out of Canada. At the same time we have been attracting brands to the Bahamas. We have a Four Seasons on the drawing board for South Eleuthera, which is in conjunction with a very high net worth Colombian investor. We haveThere is  another group that is partnering with Aman in the Abacos where another a group of out of New England is doing upgrading the only linx golf course in the Bahamas at a place called Winding Bay. That has also become a very interesting residential community. We are also attracting into East Grand Bahama a group that has developed a resort called Deep Water Cay. These are small islands adjacent to Grand Bahama and they will be partnering with Six Senses there. So it’s a combination of tourists projects, which embrace the top end and exclusive brands. We are also focused on the middle market as well with other brands. On Paradise Island, in the last year to 18 months, Atlantis has partnered with Hyatt Marriott in a marketing partnership that has resulted in them being able to increase their occupancy on their off-peak periods/days in their rewards program on a large scale. Warwick has acquired and is upgrading the former Paradise Island Harbour Club on Paradise Island.

Also on the touristic side, on the other end of the scale, there is an emphasis on the type of resort where you can just get away from it all and focus on nature. There is a major study now being done with Colombia University and the Inter-American Development Bank on the island to the west of us, Andros, where the BAMSI project is. But two thirds of the island constitute the following sort of mass: swamp lands, fertile lands and just offshore is one of the largest barrier reefs in the world and most of the island has not been populated. So we are looking at nature reserves there. It’s a very interesting ecosystem and this island could become a centre for eco-tourism with little bonefish lodges scattered along the coastline so people can fish in the flats as well as the ocean, and explore the reefs and the interesting flora and fauna on the mainland.

So we are diversifying the tourism product. The Bahamas is more than island; it’s a series of islands. It’s an archipelago of islands, mutli-destinations. So that’s the strategic approach that we are taking to tourism but at the same time increasing the industrial and fishery space.

Despite at heart representing a good news story, the Baha Mar saga continues to do a disservice to the international perception of The Bahamas. How do you want the country to be perceived amongst international investment and diplomatic communities?

That’s why I’ve taken the time to tell you about all of these wonderful things. Baha Mar is just one component; a very important component and one that in time is going to add a great deal more to what the Bahamas has to offer. The problems of Baha Mar are not at the government’s makings. They were purely a commercial undertaking between parties. The government provided extensive incentives for the project there and it is 95% finished and will have an interesting mix of product once it is finished. It has been a number of years in the making and the unfortunate thing is that a dispute arose between the developer and the general contractor, and so it has entered some financial difficulties in regards to their cash flow. That ended up with the The developer seeking to evokefiled for Chapter 11 Bankruptcy Protection in the Delaware Court in the US and the jurisdiction rightly being in the Bahamaswhich was dismissed. Subsequently the Bahamian courts appointed provisional liquidators, and failing a negotiated settlement, the Eximbank of China, the lender, appointed receiver managers while remobilization talks are advancing.  The receiver managers and the Bank are entertaining new investors with a view to the successful early completion and opening. . The Bahamas’ courts have entered into the picture and have given the developer, the bankers and the construction company a period of time before they could be put into liquidation. They are now in discussions and one thing is certain that either they will have a negotiated solution by the beginning of November and if not, then the bank, which has a legal right to put the project into receivership, will be able to do so and bring the project to completion. So the project will come to completion either through a negotiated settlement between the parties or the bank exercising its legal rights. This has delayed the project and created adverse publicity for the project in the marketplace with its delayed openings and the public spectacle of the dispute that has arisen between the parties but it will be resolved. I anticipate that the project will be completed and will open in the course of next year.

Sir Baltron, you have previously mentioned that public-private partnerships (PPPs) are “a necessity for The Bahamas.” How successful has the current government been in developing this model?

I think that we have been quite successful. I point to an example in Bimini, which is very close to the US, only about 40 miles east of Miami. Bimini was made famous by the legendary foundation of youth and it was also a place of residence and favourite fishing grounds for Hemingway and a place where Martin Luther King Jnr wrote some of his most famous speeches and went for rest and relaxation. There has been a major public private partnership there between Resorts World, which is the leisure company of Genting. They have partnered with a Florida developer in a major resort now known as Resorts World Bimini. It’s comprised of both residential and hotel components, a casino and a large marina. They have built a deep water pier at their expense and they operate a high-speed cruise ship ferry from Florida to Bimini. They have lengthened the runway at the airport, expanded the terminal facilities and upgraded the road system in Bimini which has contributed to social progress there. With regards to the public infrastructure, which would normally be the government’s financial responsibility, the developer has bore the cost of these infrastructural and community developments and they are recouping all of their expenses in public infrastructure from casino taxes that are paid to the Ggovernment. from their casino taxes.

On a more personal note, you have played, and continue to play, a key role in the country’s development. You are the former Director General of tourism, Chairman of the Caribbean Tourism Organisation, Chairman CEO of the Hotel Corporation and now as the Senior Policy Advisor to the Prime Minister. What is the legacy you would like to leave?

My legacy is in the area of nation building that with  in the various roles I have played in the country, have all been to building the nation not only from the physical development aspect but also the human development aspect, ensuring that there are trained Bahamians to carry on with the building of the nation and establishing international contacts. I would see my legacy as being one which I was able to bridge Bahamians and non-Bahamians in the building of the Bahamas.

When I became Director General of Tourism long ago, our tourism receipts were under half a billion a year. Over a period of 15 years, our tourism receipts have become well upwards of three billion a year and that has touched the lives of a lot of people, not only those who work directly in the tourism industry. The tourism industry in the Bahamas touches so many lives in terms of the spinoff benefits. The training that I have been able to work out I think is something that is going to go on well after I am gone. I have always sought to ensure that the agencies that I have worked with were in good hands when I left.

What I have been doing in the last few years is  In my capacity as Senior Policy Advisor to the Prime Minister, . It it gives me a broader reach and enables me to touch most aspects of public policy while at the same time I still perform the functions of Tourism Development Consultant to the Government and also Investments Consultant. I’ve been involved with most of the negotiations with the heads of the major developments  in recent years. and so it has been a mixed bag for me. I have also had some involvement in education in public and private sectors.as well.

So I have been fortunate to be alive in the Bahamas at the right time. It was fascinating to work with the Founding Fathers of the nation, have a lot of international exposure and to see this country, which 40 years later, is taking its place in the international community. We are a small country but a country that produces the best athletes in the world, a lot of the better brains in the world and very resilient people. The devastation that has taken place with a category four hurricane in the southern Bahamas, although there has been lots of physical devastation, it is remarkable that there was no loss of life. I think it gives you some idea of how well we prepare ourselves not only to move forward but also to deal with a disaster. So the country is on a good track - we have a vibrant democracy, a clear separation of powers between the courts and the government, a strong commercial sector and great international exposure. We are at the gateway to the Americas - not only North America but also South America - and the Caribbean so both geographically and at a point in history,. It has  it’s been a tremendous opportunity to have been involved for some decades  many years in public service.