Baha Mar's billions for Bahamas
By Scott Armstrong ~ Guardian Business Editor ~ scott@nasguard.com
twitter.com/guardianbiz:
The quality of life for thousands of Bahamian families is set to get a $7 billion boost over the next two decades, with that being the expected wage bill for the Baha Mar mega-resort.
The Nassau Guardian can to reveal that wage bill is just one of a number of social benefits expected to be created by the $2.6 billion Cable Beach project.
A report by the Oxford Economic Company, seen by Guardian Business, set out some of the key economic benefits which could create a "transformative economic event for The Bahamas in terms of tourism, economic multiplier effect, infrastructure and social change".
Yesterday Hu Dingxian, Ambassador to The Bahamas for the People's Republic of China, re-asserted his country's commitment to the project saying: "Baha Mar is an important project for the long-term benefit of The Bahamas. It is exciting that two Chinese companies, China's Exim Bank and China State Construction, are participating with Baha Mar to bring this project to fruition."
The benefits outlined in the report include:
*6,500 Bahamians directly employed by Baha Mar by 2014
*A further 2,000 jobs indirectly created by the project, totalling 8,500
*$5.5 billion in direct wages going straight into the pockets of Bahamian families
*A further $1.5 billion in salaries for those indirectly employed
*A $14.8 billion contribution to The Bahamas gross domestic product GDP - a massive boost to the national economy.
*$24.5 billion extra in visitor spending over a 20 year period, though spending and direct taxes, taking the total contribution for the resort to $33.6 billion over the next two decades
*An extra $6.2 billion in government revenues over a 25-year horizon.
*Visits to the property jumping from 250,000 this year to 644,000 by 2016, generating a predicted 2.3 million visitor nights
Figures have also predicted that the development will inject $880 million into The Bahamas in its first year of operation through direct taxes and spending.
The Guardian Business source said as well as the statistical economic benefits, there would be a far more 'real' and 'direct' positive impact on the lives of Bahamians.
The source said: "The Baha Mar project is an economic sparkplug to The Bahamas not only in terms of jobs it will create directly related to the project but to the development of businesses throughout the Bahamas.
"This will truly be a transformative economic event for The Bahamas in terms of tourism, economic multiplier effect, infrastructure and social change.
"Consider that this isn't just 8,500 jobs, this will be 8,500 families who will be better off, who can afford a better quality of life, be it food on the table, paying for children's school fees or moving to a better home.
"We are talking about this generating $7 billion in wages over a 20 year period, that is a lot of food on the table.
"Then think about the 8,500 individuals being employed. They won't be simply turning up for work, they will be trained in all manner of areas be it hospitality, finance, maintenance, plumbing, the many professions a $2.6 million resort would need to call on benefits.
"That will significantly increase the pool of skilled workers in The Bahamas, empowering them to pursue careers rather than live day to day."
Our source also said the huge upturn in visitor numbers would help re-establish The Bahamas as a premiere destination, not only in the Caribbean but around the world.
He said: "When you look at the visitor prediction numbers you can see that by 2016 we are looking at 644,000 tourists spending 2.3 million nights here at Baha Mar.
"That puts The Bahamas firmly back on the map as a destination and that means opportunities not just for those 8,500 employed but for many more across the nation."
Talking about quality of life The Nassau Guardian's source also said there would be a number of benefits that would impact people's daily lives.
He said: "The sheer amount of infrastructure which is going in to make this happen will have an effect on the people living here.
"Electricity connection, water, sewerage will all be upgraded in the area, and we will be introducing CCTV and lighting which will greatly improve the security and feel of the area.
"That means that people will be able to feel so much safer in their own neighborhood and walking the streets at night."
The Nassua Guardian source also talked about the substantial road improvements, with Phase one of the construction to involve re-routing West Bay Street followed by the expected demolition of the closed Nassau Beach resort.
"The impact of that will be a better flow of traffic so that commute to work will be easier and faster," said the source.
"There will also be much work done in increasing frequency and the quality of transportation to and from the resort, which obviously will be a benefit to the local community."
As revealed previously by The Nassau Guardian the Baha Mar deal is expected should everything go to be put before government by the end of this month.
That would see a loan agreement between Baha Mar Resorts and the Export-Import Bank of China should be submitted to the government for its approval.
Once the deal receives government approval as expected, it will mean the Baha Mar mega project can begin
The Nassau Guardian reported how that contract has now officially been given to China State Construction, and all commercial matters between Baha Mar and China Ex-Im have now been satisfactory concluded.
Tuesday 09, 2010,
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