Bahamas Economy: Explain The Role Of Tourism In The Bahamas

The Bahamas is nation that is made up of 700 islands and cays. The economy is based primarily on tourism, offshore banking and construction. The agricultural and industrial/manufacturing sectors play a lessor role. Tourism generates more than half of the total GDP and directly employs roughly half of the total workforce (Bahamas Handbook). The Bahamas is made up of 700 islands and cays. The economy is based primarily on tourism, offshore banking and construction. The agricultural and industrial/manufacturing sectors play a lessor role. Tourism generates more than half of the total GDP and directly employs roughly half of the total workforce (Bahamas Handbook pg. ). Economic growth means an increase in real Gross Domestic Product (GDP) and

Furthermore, tourism is more focused on New Providence compared to the Family Island, which is restricting long-term development and the appeal of the Bahamas as a multi-island destination. During an interview with the Tribune in 2014, Director General of Tourism David Johnson, said “that after 50 years in tourism The Bahamas continues to be too focused on Nassau and Paradise Island, with the result that tourism is not supporting the economic and social development of the country to the degree that it could. However, he said that the potential from diversification is massive. ”According to the Bahamas Financial Services Board, it is estimated that the ecosystems on Andros alone are worth about $260 million per year, this is inclusive of forests and wetlands. It is also estimated that commercial fishing generates $70 million per year while tourism produces $43.6 million per year and that 60% of the Androsian economy is directly linked to the islands natural resources. Additionally lack of a diversified domestic market creates an import dependent country with imports accounting for $685 million and exports accounting for $114 million as at 2017 (Trading Economics). High dependence on tourism makes us more vulnerable to outside influences, for example during the global

The poverty rate for the country is 9.3%. It is less than this for the two major islands, New Providence and Grand Bahama at 8.3% while the poverty rates in the rest of the country averages 16.9% ranging from 13.2% in Abaco, Eleuthera and Andros to 16.6% in Exuma and Long Island to 21% in the other islands (qtd. In Plenty is it Enough?) In an article in the Tribune written by Khrisna Virgil it stated, “At the Pointe, there was an agreement for only 40% of the jobs for Bahamian labor and 60% is for foreign labor.” This indicates foreigners are getting more jobs than Bahamians, which is contributing further to the unemployment rate. Additionally, employment opportunities can be created by ensuring, related sectors like agriculture, handicrafts, transport and construction are utilized and promoted by large hotel developments during the initial and going phases of expansion. The intention would be to create more connections to the local economy to create jobs within small