Ladies and gentlemen,

Ours is a region on which Nature has conferred a bounty of assets: Translucent, turquoise waters that astonish astronauts orbiting the earth; miles of secluded, powder soft, white sand beaches, a spectacular culture, hospitable, welcoming people and a varied tourism product catering to world travellers.

Madam President of the Caribbean Hotel & Tourism Association, Mr Chairman of the Caribbean Tourism Organization, Ministers and Commissioners of Tourism, Members of the Board of CHTA and CTO and Executives of CHTA and CTO, please allow me to add my welcome to The Bahamas for your meetings regarding the advancement of tourism, the most important sector of our Caribbean economies.

This is the third forum which I have addressed this week on vital matters relating to the advancement of the economy of The Bahamas and the Region. On Tuesday I addressed the Jamaica Stock Exchange’s Regional Investments and Capital Markets Conference in Kingston. With the Conference theme being: “Reaching Beyond Traditional Boundaries – Exploring and Partnering for Growth for All”, I spoke on the topic “Positioning the Caribbean in the International Arena”.

This morning, I delivered the keynote remarks at the opening the 25th Annual Bahamas Business Outlook, using as the theme “A Bold New Agenda: The Next 25 Years”. I took the opportunity to outline a bold, coordinated and clear agenda through comprehensive national planning to ensure a bright future for the entire Commonwealth of The Bahamas.

This year’s Marketplace has expanded its outreach to Latin America and other global emerging markets which are well poised to tap into mainstream and niche tourism and hospitality products available throughout the Caribbean region.

I am advised that almost every single country of our region is represented here at CHTA Marketplace, and that the array of options in tourism products and services is record breaking. We are pleased to see joining Marketplace this year, along with all of our longstanding friends in the travel industry from our traditional markets, buyer representatives from Russia, Poland, France, Belgium, China and throughout Latin America.

This eclectic mix of buyers and sellers from both traditional and new markets will serve to further elevate Brand profile of the Caribbean and create new opportunities for the growth of tourism products and services throughout the region.

We are delighted that, as global tour operators and buyers, you have taken time out to travel for pre scheduled meetings at Marketplace. We are relying on you to sell in your corner of the globe the dream of a Caribbean vacation. The Caribbean is a place where all are welcomed and embraced.

It is with deep regret and sadness that we witness the increase in random, wanton acts of terrorism in areas around the globe that are highly frequented by tourists. The constant threat of terrorism creates a psychology of anxiety. It is our earnest hope that peace would soon be restored to those regions. In selecting the Caribbean for their clients’ next holiday, travel professionals the world over can have peace of mind that our region is one of calm and stability.

The Caribbean is a region full of tropical dream vacation destinations that persons around the world desire to visit at least once in a lifetime. There are enough island gems in our region for the traveller to collect one, two or three each year for decades to come. While we are proud of our product offering we are also acutely aware that tourism is the world’s largest industry and that global competition for the traveler is fierce.

Tourism as a direct contribution to Caribbean GDP was 3.0% in 2015 compared to the worldwide average of 3.7%[1]  and as a total contribution to Caribbean GDP rose by 2.9% in 2015. This is expected to increase by 3.3% of GDP per annum each year over the next decade, against the worldwide average of 3.8%[2]. In the region, total capital investment in tourism grew by 4.2% in 2015, as compared to the worldwide average of 4.8%[3]. All of this suggests that while we are holding our own in tourism in the Caribbean, we must do much better if we are to meet the needs and expectations of Caribbean citizens over the next decade and that we must be intent on giving prioritized focus to those drivers of our economies that will leverage our tourism assets for continued and accelerated growth in the years to come.

We commend the brave step that President Obama has taken to re-open diplomatic relations with Cuba and to work toward completely lifting the trade embargo. With the US trade embargo eliminated, Cuba will enter the Caribbean arena as a heavy weight contender for the region’s share of the tourism trade. Among Cuba’s many attractions is her novelty and human beings are naturally attracted to what is new.

But let’s keep in mind that there is an upside to stiff competition. Competition motivates us to reach deep within and bring out qualities that we are unaware that we possess. All nations seek to strengthen their economic position through collaboration with neighboring countries. Cuba is no exception. Already, several of our destinations have entered into agreements with Cuba to do joint tourism marketing and to create multiple destination packages.

For us in the Caribbean, it is no longer business as usual. We are at that juncture in our development as tourism dependent nations where the name of our region must become synonymous, bar none, with world class, impeccable service, value for money, top rate accommodations and wonderfully memorable vacation experiences.

The upside is that today’s global economic landscape continues to provide opportunities for each of the Caribbean’s tourism destinations, even as our governments seek  to mitigate challenges such as infrastructure development, energy security, technological advancement, citizen security and climate change that impact tourism development.

Infrastructure development costs is one of the greatest impediments to the growth of tourism in our region. And although the Caribbean is said to need $30 billion of infrastructure development to drive sustainable growth. From The Bahamas in the north, to Curaçao in the south, Caribbean countries have laid down the gauntlet to overhaul of their tourism infrastructure. A number of modern, state of the art airports have been constructed; others have been refurbished and expanded and airlift has significantly increased, with American Airlines, Jet Blue and Delta leading the way, among many others.

There has been significant investment in road infrastructure, new ports and hotels, from boutique inns to luxury resorts; and destinations have greatly expanded the selection of tours, excursions and uniquely authentic experiences on offer. Commendably, many of our governments have put our tourism industry personnel through rigorous training in the fine art of hospitality.

In 2015, our dynamic and collective efforts at re-calibrating our tourism plants have yielded the rewards of a 6% increase in tourist arrivals and promising year-long profitable room occupancy rates across the Caribbean. We have not even scratched the surface on increasing intra- Caribbean travel which can be stimulated through public and private sector collaboration in addressing ease of travel and marketing.

One area of growing concern, however, to our tourism industry stakeholders, and which is also gaining my attention and that of some of my colleague Ministers, is the increasingly high cost of taxes and fees on air travel to and within the region. Air-related taxes and fees for travel to the Caribbean can represent over half of the cost of an airline ticket for a number of destinations. By comparison, air-related taxes and fees represent less than 20% for travel within the United States.

Arguments have been presented by the private sector which contend that by reducing the cost of air travel, primarily through tax and fee reductions, we will stimulate more travel to the Caribbean and government revenues will be protected and even enhanced through an increase in visitor arrivals.

There is some evidence that this would be the case. When the United Kingdom reduced the air passenger duty, travel increased. Here in The Bahamas, when we adjusted some of our fees to the airlines, some of the airlift we lost which was attributed to the fees returned. We’ve seen examples throughout the region of how air and cruise travel has been stimulated when the cost of travel is reduced.

At the same time with greatly reduced fuel costs on the world market and the use of more fuel efficient aircraft, it is only reasonable to expect the benefit of these cost reductions to be passed on to the travelling public, thereby stimulating additional travel and leaving the tourist with more money to spend within the destination, and giving the Region a better competitive edge.

The cruise lines provide ample evidence to us about how price stimulates travel and how occupancy rates can be increased with pricing strategies. Most cruises to the Caribbean are operating at, or near, 100 percent occupancy. Compare that to our hotels which are operating at between 65 and 70 percent occupancy, and you see the tremendous growth opportunity which already exist without a single additional investment in new hotels. Raising occupancy rates by ten percent would go a long way in increasing employment and tax revenues. Concomitant with such an initiative thought must be the thrust toward employee training for sustained improvements in service delivery.

This is but one way that we can improve tourism performance and accelerate the rate of growth of our economies beyond international forecasts. Growing tourism performance to beat the odds means that we will be forced to innovate and to push the boundaries of our knowledge, abilities and capacities to enable us to declare our tourism industry as “cutting edge” as we seek to remain both individually and regionally competitive in an arena which will continue to power not only our economies but the global economy over the next decade.

I am tremendously excited about Caribbean tourism’s future and The Bahamas’ role in it. For us, the year 2015 has been a year of putting our tourism sector in high gear as my Government embarked on an ambitious investment strategy and agenda of energy, financial and social reform to grow our economic pillars and ensure continued strides in our tourism performance, which will ultimately raise the standard of living of our citizens.

In The Bahamas, foreign direct investments have greatly facilitated growth targets. The Pointe, a $250 million dollar, multi-faceted hotel and residential development slated to open in the fourth quarter of 2017 will revolutionize the physical and social landscape of downtown Nassau, delivering non-stop entertainment and diverse social activity to the our premier city centre. Just further west at Junkanoo Beach, two rebuilt three star hotels are opening this year. The Warwick, Paradise Island’s newest Four Star All-Inclusive property will re-open this year after extensive renovations as an "Adults Only" Resort.

Several other hotel projects opened in 2015, including The Island House in Nassau, a boutique Bahamian-owned property where average room rates of $670 are top draws on TripAdvisor. Extensive capital expenditures have been committed for product expansion and improvements at resorts on New Providence, such as the upscale Albany, Atlantis, Sandals Royal Bahamian and One and Only Ocean Club.

May I remind you that tourism in the Bahamas is not confined to Nassau and Paradise Island? In Freeport on the Island of Grand Bahama we are seeing much improved arrival figures as well as occupancy levels for hotels in our nation’s second city where Memories Resort, operated by Blue Diamond Resorts, has exceeded by over 20% Grand Bahama’s 70% average year round occupancy levels making it among the highest in The Bahamas. Their affiliated company, Sunwing, has added direct flights to Freeport from eight cities across Canada and six U.S. gateways. The Lighthouse Point at Lucaya has been renovated and reopened as an All Inclusive property.

Recently approval was given for the investment of $168 million in the expansion of Deep Water Cay Fishing Resort on East Grand Bahama, into a five star boutique and second home resort.

Resorts World Bimini has created easy access to Bimini by air and sea. Their new five star Hilton Hotel will be fully opened by March, complete with meeting, luxury suites, rooms and spa facilities with spectacular ocean views. The resort will offer a smorgasbord of eateries, shopping, water sports and fishing and a world class casino nestled beside the picturesque, historic and idyllic and tranquil Bimini community known for their local culture and hospitality.

Much of the investment focus has been placed on our Family Islands where major investments are committed in Family Islands such as  Abaco, Andros, Bimini, Eleuthera Exuma and San Salvador with flags such as Four Seasons, Aman Resorts, Sandals and Six Senses and which are in various stages of execution with launch dates in 2016 and beyond.

Prominent features of the high end residential/resort product like Baker’s Bay and Winding Bay in Abaco, the second home market of Exuma, Eleuthera and Abaco and boutique fishing and nature resorts feature prominently in the Family Islands’ expansion.

The Bahamas will see new, state-of-the-art luxury cruise destination ports, such as the $100 million development at Sandy Cay near Bimini by Mediterranean Shipping Company Limited, and two others by major cruise lines in Grand Bahama and Eleuthera.

Airports in Eleuthera, Exuma, San Salvador and Bimini will be expanded and modernized to accommodate more international direct commercial flights, private flights for which The Bahamas is a regional leader, and increased domestic traffic.

The high cost of energy, energy efficiency and alternative forms of energy are being simultaneously addressed within the energy reforms being undertaken by my Government. The Bahamas Electricity Corporation is being placed under private management and being recapitalized. With the reduction in oil prices electricity rates are already coming down. The mandate has also been given for further significant reductions during the course of this year and beyond. We aim by 2030 for 30% of our energy needs to be derived from Renewable Energy.

All of you are no doubt closely following the ongoing saga of Baha Mar, the $3.5 billion ocean front luxury resort, the largest single phase resort development in the history of the Caribbean. Baha Mar is a dream that has unfortunately met with a major setback just weeks away from its targeted opening date. This enormous project, with far reaching potential, is front and centre on my government’s list of top priorities.

Many are depending on a positive resolution to the Baha Mar dilemma: the key partners of this initiative; the 2,000 workers waiting to resume their jobs on the Cable Beach Riviera, and the countless numbers of prospective visitors anticipating a dream vacation at this luxury seaside resort.

Not for one second have I ever doubted that Baha Mar will open its doors. Why am I so confident? Because wherever there is a will and a duty bound commitment, there is a way. And every effort is being made by the Government working with the stakeholders to achieve remobilization, completion and opening of the Resort as soon as possible during the course of this year. Major investors, hotel and casino operators  are engaged with the relevant parties to achieve this desired objective.

While investments such as these offer much to do to build upon, we need to focus as a priority on those initiatives that will deliver the fastest growth and visitor satisfaction and commit relentlessly to solving challenges. That requires collaboration and partnerships. My challenge to the Caribbean Hotel and Tourism Association, the public sector led Caribbean Tourism Organization and groups like CARICOM, is to work together to fully realize the potential which tourism holds for our economies and our people.

Lastly, I would like to make a special appeal to niche tour operators attending Marketplace this year. Hurricane Joaquin was an unexpected, uninvited, but memorable visitor. He left behind much damage! The islands of the Southeast Bahamas that were affected by Hurricane Joaquin in October of last year are now on their way to recovery. These are islands off the beaten path where Nature can be found in her most pristine state. These are the islands you would want to select for your clients who are enthusiasts of fishing, boating, or diving and the newlyweds or persons in search of romance and tranquility.

Club Med in San Salvador was the largest resort to be affected. They have carried out major repairs and will re-open at the end of this month.

There is a high level of confidence in tourism’s promise, not just for my country but all of the countries of the Caribbean and together, embracing new ideas, policies, people and technologies… together we can memorialize the Caribbean in the hearts and minds of the world’s travellers, improve the livelihoods of our citizens and for ourselves, finally, take time to enjoy our own slice of paradise.

I wish you all a most productive, fun-filled conference and profitable marketplace experience.

Thank you.

Source: Bahamas Information Services