Baha Mar becomes major driver of Bahamian economy

The report shows that since 2005, Baha Mar has accounted for an average of 3.2 % of the Bahamian economy. This accounts for a total of us$ 2.1 billion between 2005 and 2012. Once the us$ 3.5 billion integrated gaming resort is up and running, it is expected to account for 12.8 % of Bahamian annual GDP on average. 

“We’ve always believed that Baha Mar would be a long-term investment that would pay off for all Bahamians, and we’re pleased to share data that show just how powerful an economic force our project has become,” said Sarkis D. Izmirlian, Baha Mar’s Chairman and CEO.  “Whether measured in construction impact, Bahamian jobs, tax benefits, gaming revenues or visitor spending, Baha Mar is expected to generate literally billions of dollars in economic benefits. This creates real opportunities for Bahamians—jobs, training, entrepreneurship, and economic mobility.”  

EIR highlights include:

-  Construction & Development Impact: Once Baha Mar is completed, total investment will reach us$ 3.5 billion.

Since 2011, Baha Mar has awarded us$ 230 million in local contracts. At least an additional us$ 170 million in local contracts are expected to be put out for bid, for a total of more than us$ 400 million in local direct impact.

-  Jobs & Wages: From 2005 to 2012, Baha Mar has generated us$ 719 million in additional employment income. Through direct and indirect impacts, Baha Mar has supported an average employment count of more than 3,000 jobs on a full-time-equivalent (FTE) basis.

Over a 20-year period, Baha Mar is expected to generate us$ 12 billion in additional employment income through direct and indirect impacts, or more than us$ 33,000 per capita. Baha Mar is expected to support an average employment count of nearly 12,000 jobs on an FTE basis, through direct and indirect impacts.

- Visitor Spending: Cumulatively, over 20 years of operations, Baha Mar is expected to generate us$ 25.3 billion in international visitor spending (measured in 2013 dollars).

After 20 years of operations, visitor spending is expected to reach nearly us $1.4 billion per year (measured in 2013 dollars). More than us$ 50 million a year is expected to be spent off site, which will benefit other Bahamian businesses.
-  Direct Benefits to Government Revenues: Over the project’s 20-year time horizon, an estimated total of us$ 5.5 billion will be generated in additional government revenues (measured in 2013 dollars).

Benefits include import duties; occupancy tax revenues; National Insurance; casino win tax revenues; and departure taxes on additional visitors to The Bahamas. For every us$ 1 granted in concessions to Baha Mar, the government will receive an estimated us$ 4.70 of cumulative tax revenues. For every us$ 1 granted for concessions to Baha Mar, us$ 30.40 in revenues will be added to the cumulative total of GDP.

“Baha Mar represents the largest single-phase tourism development in the history of the Caribbean,” said Minister of State for Finance Michael Halkitis. “The data reflect the short- and long-term influence of this investment, which will have a lasting effect on the Bahamian economy through higher employment income, international visitor spending and Government revenues.”

Oxford Economics is one of the world’s leading providers of economic analysis, forecasts and consulting advice. It was founded in 1981 as a joint venture with Oxford University’s business college. Izmirlian said, “The Oxford report provides hard evidence that Baha Mar has already had a real, positive impact on the people of The Bahamas. As we move forward, Baha Mar will be responsible for employing and training thousands of Bahamians-in technology, gaming, management, hospitality and a host of disciplines—for generations to come.”