Overview
Tourism makes up 50 percent of the country’s GDP, rising as high as 80 percent when factoring in tourism-related services and construction, and is expected to be the lifeblood of the Bahamian economy going forward. With increased air service, a multimillion-dollar port renovation and recent and scheduled resort openings, the Bahamas anticipates close to 8 million visitors this year. Most visitors come from the United States and Canada, with a growing number of visitors from Latin America, Europe, and China. Nassau Cruise Port expects 4.2 million passengers to arrive by cruise ship (2023), which would eclipse the record of 3.9 million (2019). The t balance are stopover visitors who stay in all-inclusive resorts, boutique hotels, fishing lodges, or vacation homes. The sector is vulnerable to external shocks, but prospects remain solid, and the government is supportive of new entrants.
Leading Sub-Sectors
Promising sub-sectors include hurricane-sustainable construction materials for new hotel and second home construction; hotel equipment; restaurant equipment; airport and infrastructure development; and goods and services for the marine and yatching industry. Most of the equipment, construction materials, and furnishings for resort hotels are sourced in the United States.
Opportunities
There are several-million-dollar projects under development throughout the archipelago, including a $400 million Disney Cruise Line Lighthouse Point development, a $200 million Carnival Cruise port on Grand Bahama, a $200 million Ritz Carlton development, a $100 million Half Moon Cay development, and Sterling Global Financials’ $250 million Hurricane Hole mega-yacht facility on Paradise Island. There are also efforts to diversify the tourism product away from mega-resorts and cruises by promoting boutique hotels and Air BnB-style accommodations and homestays on smaller islands. There are also efforts to promote niche tourism such as medical, health and wellness, religious, culinary, and environmental tourism. The government is supportive of new entrants that contribute to the diversification. Opportunities exist for firms that provide construction-related materials, hotel and restaurant equipment and furnishings, and goods and services for the marine and yatching industry. Port development remains a government focus.
Resources
Tourism Development Corporation