Bahamas II: Gateway to the Caribbean

Aired January 2006

Made up of about 700 islands, the Bahamas stretches over 100,000 square miles of some of the clearest water in the world. The archipelago offers year-round sunshine, stunningly beautiful beaches, and a high-quality lifestyle.

The country has about 300,000 English-speaking citizens, most of whom live on the islands of New Providence, home of the capital Nassau, and Grand Bahama Island, home of Freeport.

Discovered by British explorers in the 1500s and claimed by the British crown in 1629, today the country remains a member of the British Commonwealth. Independence was granted in 1973, although the country has enjoyed a parliamentary democracy for 275 years.

With close proximity to the United States, strong ties have developed between the 2 neighbours over the years.

Well aware that location alone is not enough to lure potential investments, the business-friendly government welcomes investors by offering state-of-the-art infrastructure, an educated workforce and favourable tax policies.

Today, the economy of the Bahamas relies heavily on the tourism and financial services sectors to generate foreign-exchange earnings.

BANKING

Ideally located at the crossroads of the Americas, the Bahamas attracts numerous international companies and tourists, who are drawn to the nation’s stability, economic diversity, and tax-free business opportunities.

The Bahamas has been providing banking and trust services to the international financial community since the 1930’s. Today, the Bahamas is firmly established as one of the foremost international financial centres and a key operational base for many of the world’s recognized and respected financial institutions.

With its historic commitment to providing top quality service to high net-worth individuals, the Bahamas has emerged as one of the world’s foremost private wealth management centres.

Trust and private banking services are the foundations of the industry that has seen the country evolve into a complete international centre.

We’re one of the 1st really to provide an environment where it becomes very attractive for international development and investment through the Bahamas. We were also one of the 1st centres to criminalise money-laundering – very important as you look at protecting not only the reputation of the client, but also the reputation of the Bahamas and the institutions that do business from the Bahamas.

Between 1999 and 2001, The Bahamas’ financial services sector came under close scrutiny from international financial regulators creating a number of challenges for the country.

Now the country’s second-largest contributor to GDP after tourism, the financial services sector is expected to continue to grow and to play an even larger role in the country’s economy in the future.

CONSTRUCTION & PROPERTY DEVELOPMENT

With its great natural beauty, proximity to the United States and excellent infrastructure, many Americans look to the Bahamas as an ideal place to have a second home.

Increased demand for ocean front property and resorts alike has created a spike in construction and property development throughout the Bahamas.

All over the Bahamas, there is much evidence of construction – both for posh multi-million dollar private residences, as well as mega resorts that cater to visiting tourists.

While there may be some concerns that all this construction might detract from the natural beauty of the islands, the Bahamas has certain measures in place.

The boom in construction and property development accounted for 10 percent of the nation’s GDP in 2004. Most of this boom has come as a side effect of the nation’s still ever-growing tourist product.

TOURISM

The Bahamas has long supported a thriving tourism sector, and tourism remains the country’s top industry.

Tourism is big business in the Bahamas and a mainstay of the economy, contributing nearly 60% to the country's total GDP. More than 5 million visitors, of whom about 90% are Americans, spend an estimated 2.3 billion US dollars annually.

Supporting nearly half the labour force and producing 70% of the government tax revenue, tourism is expected to remain the dominant industry of the Bahamas for the foreseeable future.

Home to some of the world’s most beautiful beaches, the islands offer visitors a chance to relax as well as to take part in sporting activities.

Nassau is the bustling capital of the Bahamas archipelago, and many colonial mansions, cathedrals, and fortresses are preserved till today.

The famous Straw Market is one of the largest in the world. Here, you’ll find an array of handmade hats and baskets along with woodcarvings.

The capital also offers excellent duty-free shopping opportunities.

Several multi-billion-dollar anchor investments have led the Bahamas to being ranked among the world’s five-star venues for tourism. Recent mega-projects include the Atlantis Resort on Paradise Island.

Connected to the city of Nassau by two 600-foot bridges, the island has many amenities which cater to tourist interests.

Visitors can also enjoy the wide variety of flora and fauna found in the country.

From trained flamingos to family-friendly dolphins, the various animal reserves offer a wonderful day’s outing.

One of the highlights of the Bahamian calendar is Junkanoo, an energetic local celebration of dance and music. Held at the end of the year, both the young and old take part in the celebrations.