Prime Minister Perry Christie yesterday demanded that Abaco entrepreneurs ensure the nearly 800 second homes and rental villas on Abaco registered with the Ministry of Tourism are licensed and pay license fees and taxes.

Speaking at the annual Abaco Business Outlook (ABO) hosted by The Counsellors Ltd., Christie reported that in 2015 Abaco delivered over $41 million in fees, taxes and customs receipts to the Bahamas treasury. He said that figure did not include the requisite business license fees, registrations fees and VAT (value-added tax) contributions from vacation rental sales emanating from the 250 second homes and rental villas, representing some 780 rooms registered with the Ministry of Tourism.

"This number represents less than 25 percent of the total number of certificates and permits issued for second homes in Abaco with the Bahamas Investment Authority, most of which are neither registered nor licensed with the Ministry of Tourism for commercial operation.

"This situation should be rectified and all such properties, on a nation-wide basis, should be licensed and like hotels and other commercial entities, pay license fees and taxes to the Bahamas Treasury," the prime minister said.

He said developing communities throughout the Family Islands, many of which still lack services that would improve efficiencies and the quality of life for citizens and residents, could certainly benefit from increased revenues from home rentals. Christie pointed out that the Ministry of Tourism's registration drive for second homes is in full force, with notices posted in the Nassau, Grand Bahama and Family Island newspapers.

Public investment
Otherwise, Christie highlighted public sector investment in infrastructural improvement initiatives in North and South Abaco.

For instance, he pointed to a $5 million investment to extend the airport runway on Moore's Island. That project will also see the completion of sea wall repairs, replacement of water mains and development of a new airport terminal, which Christie said would bode well for the future of that island's 600 residents.

He also touted the sports master plan and the government's commitment to national sporting infrastructure. Under this initiative, Christie asserted that "a major new sporting complex is getting underway in Marsh Harbour with ancillary tracks being placed in Sandy Point and Cooper's Town."

Said the prime minister, "On November 10 of this year, my government will launch the National Sports Academy at what will become the University of The Bahamas. Moore's Island will the recipient of the first affiliated academy in December of this year and its facility will include dormitories, soccer pitches and a sports medicine practice, all in an effort to facilitate the training at home of young Bahamian athletes," he said.

Christie said the public and private sector initiatives provide for long-term construction and business development for local contractors, business suppliers, landscapers and tradesmen.

"In fact, the heightened level of business activity has created demand for a financial services sector in Abaco. Five international and Bahamian commercial banks, along with the Bahamas Development Bank, now have a presence in Marsh Harbour offering a portfolio of financial services to a growing base of industries and entrepreneurs," he said.

According to the prime minister, their presence further validates Abaco's stature as a rising international tourism and investment center and the increased level of economic activity has contributed to higher expenditure levels.

Against the backdrop of impending implementation of the National Health Insurance (NHI) scheme, Christie promised the opening of the new mini hospital in Marsh Harbour later this year. He said it would provide residents with improved access to medical care and provide an added boost to consumer confidence in the destination as a second home and extended stay option.

Trends
Christie asserted that Abaco has consistently delivered historic growth trends based on steady and methodical performance in both its air and boating sectors.

"In fact, it is one of only a handful of islands in our archipelago that has experienced a kind of robust, organic and measured multi-sector development delivering economic returns that are the envy of other destinations within The Bahamas and in the region," he said.

The prime minister reported that in the first half of this year Abaco experienced incremental growth in each of its top ten U.S. markets, which puts it on track to deliver solid returns for 2016.

"Abaco's performance is magnificent when you place it in context because according to the Caribbean Tourism Organization (CTO) the Caribbean outpaced the rest of the world in global growth of international visitors for the second consecutive year, with a seven percent increase in the number of international visits overall, and double digit increases from the United Kingdom and South America in 2015.

"Only three destinations in The Bahamas have been able to match that level of performance consecutively for two years running. They are Abaco, Bimini and Exuma, and of the three, Abaco consistently eclipses Bimini and Exuma in visitor volume by large margins," he said.

Christie also pointed out that Abaco has more marina hotels than any island in The Bahamas, which, on the whole, have fared better than traditional hotel products.

"There is no question that Abaco has developed over the years into a market leader, keeping ahead of trends and parlaying challenges into opportunities... In terms of room inventory, Abaco has seen robust growth in each of its product segments, some of which continue to outpace the performance of traditional hotels.

"Research has demonstrated that marina hotel properties, apartment/villas, vacation rentals, second homes and bonefish lodges collectively produce a higher and more distributed spend within destinations than traditional hotels. In fact vacation rental properties today account for almost 50 percent of the 1,850 on the Island. Although much of the business is still seasonal, the uptick in demand has caused many hotels to transition to year-round operations," he said.

K. Quincy Parker, Guardian Business Editor

Click here to read more at The Nassau Guardian