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Caribbean Islands Tourism
As already indicated, tourism has been the motor of the
Bahamian economy for the past several decades; the nation's
geography, including its climate, natural beauty, and proximity to
the United States, have made it a prime tourist spot. Tourism is
the major determinant of the well-being of the Bahamian economy and
has maintained steady growth since World War II. The government has
successfully implemented policies to increase private confidence
and investment in the sector. It has transformed tourism into a
year-round industry, overcoming the seasonal fluctuation of demand
by aggressively promoting specialized summer tourist attractions.
In 1986 the World Bank estimated that the Bahamas accounted for 20
percent of stopover visitors in the Caribbean region as well as
having a large share of cruise ship passenger arrivals.
The Bahamas achieved record high levels of foreign visitors in
1985 and 1986 with 2.6 and 3 million visitors, respectively. The
statistical breakdown of foreign arrivals in 1985 included 52
percent stopover visitors, 43 percent cruise ship arrivals, and 5
percent day visitors. Total tourist expenditures in 1985 amounted
to US$870 million. Most of the expenditures were attributed to
stopover visitors, who accounted for 92 percent of the total in
1984; by contrast, cruise ship passengers accounted for just 6.6
percent of total visitor expenditures in that year.
The major tourist centers were New Providence (Nassau, Cable
Beach, and Paradise Island) and Grand Bahama (Freeport). Fiftyeight percent of stopover visitors in 1984 went to New Providence,
25 percent to Grand Bahama, and 17 percent to the Family Islands.
Most of the tourist growth in the mid-1980s occurred in New
Providence. Grand Bahama experienced a steady decline in tourist
arrivals, reaching a five-year low in 1984, whereas the Family
Islands had a steady flow of tourists. The average length of stay
for stopover visitors had declined substantially from 7.14 days in
1980 to 6.46 days in 1984, reflecting the trend toward short
package vacations of three to four days.
The government was actively involved in the tourist sector in
the mid-1980s. The government-owned Hotel Corporation of the
Bahamas, established in 1974, had seven major hotels (four in
Nassau and three in Freeport). All were managed by international
hotel management companies. The Hotel Corporation also owned a golf
course, a marina, and four casinos (two in New Providence and two
in Grand Bahama). In 1983 the corporation completed work on a new
700-room hotel at Cable Beach with a convention center and a
casino.
The Ministry of Tourism marketed and monitored tourist
services; a World Bank study labeled it one of the most effective
tourist ministries in the world. In addition to its headquarters in
the Bahamas, the ministry also operated offices in nine cities in
the United States, three in Canada, and three in Western Europe.
Bahamasair, the national airline, provided the only scheduled
interisland air service. Competing with several airlines in the
North American market, Bahamasair managed to control over 25
percent of North American routes to the Bahamas.
Since its development after World War II, the tourist industry
has been dependent on the North American market. In the early
1980s, this dependency increased further. Between 1980 and 1984,
Canada's and Western Europe's percentage share of the market
decreased. The major factor in the increased United States share of
tourist trade was the strong value of the United States dollar, to
which the Bahamian dollar was pegged. Bahamian vacations for
Canadians and West Europeans became all the more expensive. This
dependency on the United States for tourist receipts made the
Bahamian economy quite vulnerable to downturns in the United States
economy. A 1986 World Bank study indicated the strong relationship
between the performance of the tourism sector and the performance
of the United States economy. A decline in the strength of the
United States dollar has boosted the Canadian and West European
share of the market, but continued benefits along these lines
depend on the capability of the Ministry of Tourism to tap those
markets effectively. To this end, the ministry maintained offices
in Canada and Western Europe.
In late 1986, the government's plans for improvements in the
tourist sector included programs to improve marketing and
infrastructure and to work toward balanced growth of tourism to the
Family Islands. A multimillion-dollar marketing campaign was
planned, followed by the launching of a national magazine campaign
across North America. Major tourist infrastructure programs
included improvements to Nassau International Airport and Nassau
Harbour and upgrading of docks and airports in key Family Islands.
The government also planned to bring more cruise ships to the
Family Islands to tap the potential of these underutilized tourist
spots.
Data as of November 1987
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