Dear Editor,
On the matter of Baha Mar. It is encouraging that, according to the government, the project appears to once again be funded and that works will recommence. If this is accurate, the government is to be commended for working to ensure that all Bahamian creditors will be paid a sizable portion of amounts owed to them.
The Organization for Responsible Governance (ORG) makes the following observations and comments in the name of good governance and towards the benefit of the nation.
1. The lack of transparency around the agreement is gravely concerning. It is every Bahamian's right to know what concessions their government extends to any developer, as they will ultimately pay for these concessions.
2. Although CCA and the CEXIM bank have reportedly agreed to complete the development, the installment of a number of reputable hotel brands (flags) is a critical missing component to the development.
The government's statements, to date, hold no mention of these. It is imperative that the owners and the government attract reputable flags immediately in order to provide much-needed confidence to make the project successful and, more importantly, sustainable. Additionally, the advancement of construction without the involvement of such flags is concerning, as any reputable hotel brand will most likely require construction to be completed to their specifications and with their management's oversight. Involvement of such flags late in the development stage will inevitably cost the developer and/or the flags more money, which will ultimately hurt returns on investment and levels of competitiveness.
3. The Bahamas and this development, specifically, have already suffered significant reputational damage due to the failed initial opening of Baha Mar. The Bahamas tourism brand cannot afford the Baha Mar product to be anything less than perfect or it will continue to be a weight around the neck of the Bahamian tourism industry.
The government and the owner must assure Bahamians that they understand the importance of providing a world-class operation, which will keep visitors coming back for decades and that will make Bahamians proud. Getting the project operational for the sake of showing progress, or because the country is entering election season, is not a responsible action and Bahamians need to demand more answers from the government and the owners to assure that there is a well-thought-out plan and the aforesaid concerns have been addressed.
4. The government must be cautiously aware of the number of key Bahamian assets that the Chinese government, its various agencies and offshore companies own. China, like any other respectful foreign direct investor, should be welcomed to invest responsibly in our economy and development. However, it is imperative that any and all foreign investors in key industries maintain assets and operations at a high level and that these operations remain regionally and globally competitive in these industries. Many assets in The Bahamas, which are owned by Chinese government driven entities, such as hotels, shipping ports, airports, terminals, real-estate developments, are performing at sub-par levels, which ultimately has a negative effect on the Bahamian GDP. Most developed nations have control over the number of assets being held by any one group through trade commissions. This is of great importance to assure that its citizens and the nation are protected against unfair or underhanded dealings.
Given its non-democratic structure, China, and its offshore companies can act as one goliath company. This puts private business, from a market like The Bahamas, at a significant disadvantage. In theory, Chinese government driven entities could lower their rates to drive out competing businesses, making it virtually impossible for a privately owned company from a free market nation to compete. The long-term success of the Bahamian economy is dependent upon a strong and competitive environment for local businesses to exist alongside foreign development projects. The Bahamas cannot put all of our eggs into one basket.
In any stable modern society citizens must understand what their leadership and government are doing. It is also incumbent on the government to properly and responsibly provide its citizens with information on all contracts and deals that it signs on the people's behalf. ORG continues to push all political leaders and government toward open, accountable and responsible governance.
Once again, it appears that the current Baha Mar plan is neither clear nor open and citizens are left wondering if this is a good and responsible deal for The Bahamas. This lack of transparency casts a shadow on the potentially positive news that the government has stimulated activity on the Baha Mar project. The long-term viability of this project and its benefits to the Bahamian economy and workforce still remain in question.
- The Organization for Responsible Governance
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