FREEPORT, Grand Bahama - State Minister of Finance Zhivargo Laing says he is not "delusional" about the uphill climb for the Grand Bahama economy.
The minister served as the opening speaker of this year's Grand Bahama Business Outlook at the Grand Lucayan Beach & Golf Resort.  This year's event, he said, comes at a critical time.  Laing believes it will be remembered as the turn of the tide for this struggling economy.
He told Guardian Business the island will begin to recover by the fourth quarter of this year, and by early 2013, the unemployment rate should fall below 20 percent.
"I'm not delusional," he said. "Grand Bahama's economy is significantly challenged.  I think people do not realize for about 10 years this has been going on.  That is the closest to a recession you can get.
"But I remain bullish on the future."
The minister began his speech by looking back over the last 10 years.  In May 2002, he said, unemployment stood at 6.4 percent.  By 2007 it had risen to 8.8 percent, caused by a lack of significant investment, the impact of hurricanes and in particular the closure of the Royal Oasis Resort.
Of course, next came the recession in 2008. The GBPA was also plagued with ownership and managerial issues at this time and there was limited promotion of the island.
Millions upon millions of dollars in government subsidies, he claimed, "stopped the island's economy from collapsing".
According to the latest numbers from the Department of Statistics, the unemployment rate on the island stands at more than 21 percent.  Investment, both foreign and domestic, has remained stagnant and uninspiring.
After acknowledging the past, Laing announced to the crowd that the future holds a different story.
Continued government subsidies to the tune of $17.3 million this year, rising airlift from Bahamasair and "aggressive intentions" from the GBPA "will begin a renaissance of this island", he said.
Last week, Guardian Business reported that Bahamasair plans to inject at least $25 million into the Grand Bahama economy through significantly expanded airlift.
Through an initiative with the Ministry of Tourism, direct service from Baltimore, Raleigh, Louisville, Richmond and Fort Lauderdale will all begin in a matter of weeks.
Bahamasair is investing in new, more efficient planes for its fleet and will enlist a sub-service operator to assist with the service.
According to David Johnson, the director general in the Ministry of Tourism, airfare will be slashed 50 percent and travel time by 70 percent.
"I think we're going to gain serious momentum in the tourism sector as Bahamasair follows with this arrangement," Laing added. "I expect it will create results."
The minister said the "fullness" of the Job Readiness Programme should be felt a little later this year as spending works its way through the system.  He told Guardian Business the intention is to improve the economic outlook and generate enthusiasm for those on the island.
Another concern for business interests in Grand Bahama is the future of the shipping industry.
Over recent months, Hutchison Port Holdings has laid off dozens of workers as Mediterranean Shipping Company (MSC), its sole client, continues to move operations over to Panama.
The booming South American nation has proven to be a force to be reckoned with in the region, offering high efficiency, low prices and convenience.
Hutchison Port Holdings owns a significant stake in the Grand Lucayan, which has also experienced major struggles in recent years.
Laing said that with light at the end of the tunnel, stakeholders in Grand Bahama will stay the course.
"The one thing I am confident about is those who made an investment here are interested in protecting it.  They have the ability to be creative and innovative," he said.  "The government is prepared to do what it can to provide support.  I think GB is ready for the turn and things will get better."

Click here to read more at The Nassau Guardian