Opportunities for profits in paradise
UNSPOILED NATURAL BEAUTY AND A PERFECT CLIMATE MAKE THE BAHAMAS AN EXCELLENT PROSPECT FOR FOREIGN COMPANIES LOOKING TO INVEST IN THE TOURISM INDUSTRY. NEW RESORTS AND HOTELS ARE BEING BUILT AND THE ISLANDS ARE EAGER FOR MORE INVESTMENT TO DEVELOP AND DIVERSIFY THEIR TOP-EARNING SECTOR

MAJOR ATTRACTIONS The islands are famous for their pink and white powdery beaches

CONJURE UP a vision of a hot sun in a blue sky, pristine sandy beaches with coconut palms moving gently in a cool breeze and a deep-blue underwater world of coral gardens inhabited by a dazzling variety of sea creatures.
It’s easy to understand why the beautiful islands of The Bahamas are a magnet for American tourists–and for the international investment companies that have seized the opportunities offered by privatization of the islands’ tourism industry.

The tropical marine climate is ideal, moderated by the warm waters of the Gulf Stream and the trade winds, with temperatures ranging from 70oF in January to 82oF in July and August. With a wide variety of flora and fauna, the unspoiled beauty and sheer diversity of the islands is unsurpassed.
And, to top it all, The Bahamas’ convenient geographical location gives easy access to the huge markets of both the U.S. and South America–some 800 million consumers strong.

The two major vacation destinations are Nassau/Paradise Island and Freeport in Grand Bahama. These are the areas where the main resort development has been focused. But while the sophisticated delights of the capital and the big resorts are an undoubted magnet for vacation dollars, eco-friendly development in the Family Islands is being promoted as one of the most promising sectors for future investment. There are low impact, environmentally friendly resorts on almost all of the other 29 inhabited islands.

ERIC WALDBURGER CEO of Our Lucaya

One of the most remarkable resorts to have been built in recent years is Our Lucaya Beach and Golf Resort, a spectacular new tourist playground on Grand Bahama. Owned by Hutchison Whampoa Property, the $450 million development has boosted the tourism industry on the island and acted as a catalyst for the refurbishment and expansion of other hotel facilities there.
In addition to 1,350 guest rooms, the resort boasts two world-class championship golf courses, a 30,000 sq ft casino, 40,000 sq ft of meeting facilities, 14 restaurants, bars and lounges, and a 13,000 sq ft spa-and-fitness center. Beach lovers can sun themselves on seven-and-a-half acres of white sand.
Eric Waldburger, CEO of Our Lucaya, is in no doubt that opting to build the resort on Grand Bahama was the right choice.

"Grand Bahama is an awakening giant for tourism," he says. "Being first with a large resort in a destination like this, you can obviously do very well and we are seeing the results already after having been open a little over a year. We have had exceptionally good results in the past three months and we are continuing to see encouraging growth."
He attributes this success partly to the efforts of the company’s sales and marketing department, but also to the cooperation of the Grand Bahama Tourist Board. "We work closely with them as we both have a common interest in getting Grand Bahama moving forward to catch up with the attractions and reputation of Nassau and Paradise Island."

A major advantage Grand Bahama has as a tourist destination is that it is the closest island to the US mainland. Mr. Waldburger is in no doubt that it has a bright future in the industry.
"This is definitely an up-and-coming destination, not just for the U.S. market but also for the European market," he says. "Having four carriers coming on scheduled flights to Grand Bahama is an indicator that the airlines are now recognizing how quickly the island is advancing."

Fine golfing greens are available at the big resorts

He describes the Our Lucaya resort as "multi-faceted" and designed to appeal to several different segments of the tourism market.
"We have the family part, the convention and business middle market, and then the high end–the suites. It is a big resort with three buildings but the same image and philosophy, catering to different social and income brackets. We can optimize our revenue, depending on the season and can be more flexible without jeopardizing quality or our income."
The recent re-opening after extensive renovation of the former Princess and Bahamia Resort and Casino as the Royal Oasis Golf Resort and Casino is expected to give a further boost to Grand Bahama’s economy. The properties, which feature the Crowne Plaza and the Holiday Inn Sunspree brands, comprise the first dual-branded resort in The Bahamas.
When the FNM government came to power in 1992, about 20 percent of hotel accommodation was state owned. The administration favored a tourism industry that was private-sector driven and most government-owned hotels were privatized.

Water sports abound and the ocean offers some of the best diving to be experienced anywhere

International investors took over the Ambassador Beach Hotel, the Royal Bahamian Hotel on New Providence, the Winding Bay Resort in Eleuthera and the Lucayan Bay Hotel and Marina, the Lucayan Beach Resort and Casino and the Grand Bahama Beach Hotel. Today, just five percent of the nation’s hotel room inventory is state-owned.
Given the crucial role it plays in the nation’s economy, it is not surprising that The Bahamas is determined to develop its tourism industry further. The focus will remain on upscale, eco-tourism and the cruise market.

International companies will continue to be attracted to invest in building and renovating hotels by exemptions from property tax and customs duty.
Construction of condominiums and residential single family homes for the expanding second home market has also been encouraged, leading to a real estate boom.
Demand has been so high that, in some housing and condominium developments, units have been sold before construction has been completed. Vacant property values in gated communities like Lyford Cay, the luxurious second home enclave of the world’s rich and famous, have quadrupled.