THE Bahamas will hit a “breaking point” if it keeps increasing aviation-related fees, operators warned yesterday, amid mounting “uproar” over the new charges levied by Bimini airport’s private operator.
Paul Aranha, founder of TransIsland Airways, told Tribune Business there is a danger that the Government and its different agencies are assessing fee increases in “a vacuum” with each implementing its own hikes and not alive to the bigger picture total cost increase for private aviation, tourists and Bahamians alike.
Speaking out following the imposition of Customs fee increases and the new/higher charges levied at Bimini’s airport, both of which took effect on July 1, the Bahamian aviation entrepreneur warned: “The perception is that because its private aviation people can afford to keep paying
it, but what they don’t realise is there’s a breaking point and The Bahamas has to be very careful that we remain competitive.
“If we keep raising our fees, the price of whatever is down the line becomes more attractive.”
Mr Aranha’s position echoes that of Kerry Fountain, the Bahama
Out Island Promotion Board’s executive director, who told this newspaper last week that the combined impact of the Customs and other fee increases threatens to erode The Bahamas’ proximity advantage with regards to the US.
It also makes rival destinations, such as the Turks & Caicos and the Dominican Republic, more attractive to a “fickle” sector that can fly anywhere it desires and will not mind increased fuel costs if participants feel they are being exploited, taken advantage of or merely suffering increased taxation from The Bahamas due to perceptions that they are wealthy and can afford to pay.
“What you’re doing is everyone is adding on these costs, costs, costs, but nobody is looking at the
Restaurant chain: ‘Sky’s the limit’ over expansion
By NEIL HARTNELL Tribune Business Editor
A BAHAMIAN res-
taurant chain yesterday said expansion possibilities in the US and Canada mean “the sky’s the limit” as it created 22 new jobs through the opening of its first New Providence franchise.
Chef Kevin Culmer, Tropical Gyros chief executive, told Tribune Business this was “the first time” a local eatery has teamed with franchisees within The Bahamas as he voiced confidence the brand can “establish a foothold” in the North American market just how Wendy’s and others have done in this nation.
Revealing that there have already been inquiries about bringing Tropical Gyros to Toronto, he disclosed ambitions to expand to up to ten locations within The Bahamas with five-six sites in New Providence and four in Freeport and the Family Islands. The opening of the
Prince Charles Drive franchise, owned by Kimberly Marshall, takes the chain’s existing network to four spread between Nassau and Freeport. Chef Culmer told this newspaper that, with the addition of its Freeport location on May 2024, the restaurant chain is “shooting for close” to $4m in total revenue combined from its three whollyowned locations in 2024. This would represent a roughly 48 percent increase compared to last year’s $2.7m in revenue, generated by its Palmdale and JFK Drive locations, with Chef Culmer also
disclosing that the restaurant chain is aiming for a six percentage point increase in gross profit margins to 13 percent for the 2024 full-year.
Confirming that Tropical Gyros is seeking to hire 15 extra staff, in addition to the 100 that the brand now employs directly and indirectly, he revealed that it has “pulled back” from plans to open an outlet on Carmichael Road because the cost to outfit the targeted location would be double what it normally spends on such a project at $200,000.
“It’s humbling,” Chef Culmer told Tribune
Business of yesterday’s opening of Tropical Gyros’ first franchise. “We’re trying to step into the realm of the US [restaurant] franchises. Something different is being done in Nassau. This is the first time a Bahamian restaurant has done this. “We’re excited. We feel confident that our brand is scalable, can build up and stand up against the US franchises. We don’t have their economic power, but we do have determination, grit and the Bahamian
IMF: Gov’ts ‘not strong’ cash forecasts hit vendor payment
By NEIL HARTNELL Tribune Business Editor
nhartnell@tribunemedia.net
THE International Monetary Fund (IMF) yesterday branded the reliability of the Government’s cash management forecasts as “not strong” and resulting in the frequent build-up of arrears owed to vendors.
The Washington D.C-based Fund, in a newly-unveiled report on
how The Bahamas can improve debt securities market operations, said these issues also resulted in “a sustained reliance” on Central Bank advances and commercial bank overdrafts to smooth out the Government’s cash flows. “Co-ordination of debt and cash management should be strengthened,” it said in a report completed in January 2024, but which was only released yesterday. “Responsibility for
cash management rests with the Treasury department of the Ministry of Finance.
“The Treasury prepares forecasts of above-the-line and below-the-line cash flows based on inputs from the Budget department, other Ministry of Finance units and the Central Bank of The Bahamas, along with its own analysis of historical trends. The forecasts are updated during the year to take account of
actual outturns and unforeseen expenditures. The reliability of forecasts over a multi-month horizon is not strong.
“A Treasury single account is in place, but there is no target for the cash balance. There is a sustained reliance on the overdraft facility and advances from the Central Bank, while arrears on payments to suppliers
PAGE B3
Long Island resort laments free dive event cancellation
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
A LONG Island resort operator yesterday said the private sector is being “severely impacted” by deteriorating infrastructure that has driven the Vertical Blue freediving
competition to seek an alternative venue.
Shavonne Darville, proprietor of Gems of Paradise Long Island, told Tribune Business that the island has been experiencing frequent water and electricity outages that have forced some resorts to rely on their back-up water systems full time.
She added that although Long Island has historically had few electricity outages, over the past two to three years these have consistently increased to up to six outages a month. Ms Darville said: “We’ve been around over 20 years, so by now being quite accustomed to what little regard the Family Islands are
considered when it comes to work infrastructure.
“We tend to have backup. Regarding the water supply, we never disengage our back-up water system, which is a rainwater system that’s quite large. So our guests have never been affected by that. Regarding power outages, that
PAGE B4
total cost,” Mr Aranha told this newspaper. “Everybody is looking at the fees in a vacuum. We need to look at these fees as an overall cost for a trip....I really don’t feel we’re going down a great path.” His comments came as the push back against Bimini airport’s new and increased passenger fees intensified yesterday, with charter operators asserting that the situation has already cost them business and homeowners revealing that it their children more to exit the island than a family meal at the Bimini Big Game Club. One Bimini homeowner, who regularly flies into the island on his private plane, told Tribune Business that it would likely cost his four-strong family “something
IMF urges Gov’t: Cut bond issues by 90%
By NEIL HARTNELL Tribune Business Editor
THE Government was yesterday urged by the International Monetary Fund (IMF) to cut the number of outstanding Bahamian dollar bond issues by around 90 percent to reduce market “fragmentation”.
The Fund, in a report on how The Bahamas can improve its domestic debt markets, argued that the Government should “consolidate” its 240 bond issues into just 20-30 “benchmark” lines via a series of measures including exchanging outstanding debt securities for new ones.
“The large number of government securities outstanding creates an illiquid and fragmented market. Given the lack of a benchmark bond policy, it is not reasonable to expect that one or more financial institutions would assume the role of a market maker for all government securities,” the IMF said in an assessment completed in January
2024 but not released until now.
“Efforts should be taken to consolidate the outstanding 240 BRS (Bahamas Registered Stock) lines into fewer 20-30 benchmark lines by using liability management operations. The consolidation of the outstanding debt could help stimulate secondary market trades in other bonds as well.”
The Fund repeated this call consolidation call elsewhere in its report, stating: “The lack of a benchmark building policy is hindering market development efforts. Currently, there is no policy to build benchmark lines that would concentrate issuance on a smaller number of bonds that could be deemed ‘the’ benchmark in key tenors.
“Despite some re-openings, most BRS lines are small in size. The domestic market will remain fragmented until there are fewer BRS lines outstanding. The increased size of benchmark BRS lines could
CHEF KEVIN CULMER
CARNIVAL NAMES BAHAMIAN EXECUTIVE TO HEAD GB PORT
CARNIVAL yesterday named Brandon Culmer as assistant general manager for its $600m Celebration Key cruise port destination on Grand Bahama.
The cruise line, in a statement, said Mr Culmer, who is a Bahamian, will report directly to Carnival’s director of operations for Bahamas destinations and manage all operational aspects of Celebration Key. He will work closely with more than 700 staff across the destination’s five different-themed concept areas once it opens in summer 2025.
CARNIVAL Corporation’s assistant general manager for Celebration Key, Brandon Culmer.
Mr Culmer will also be responsible for developing strong relationships on Grand Bahama through engaging residents and businesses to help make Celebration Key a major global destination.
“Returning to my home of Grand Bahama, where I can put my experience and skills to work alongside the ever-growing pool of local talent at Celebration Key, is a dream come true,” said Mr Culmer. “Like so many others, I left Grand Bahama in search of new opportunities when the local economy was struggling, but I always planned
to return and contribute to the prosperous development of my island.
“Celebration Key is creating so many great career pathways for Grand Bahamians and I am just one of many who are returning home to be a part of this ambitious project.” Mr Culmer previously earned the Star Award for outstanding leadership at Baha Mar, where he previously served as assistant general manager of water park operations.
Under his tenure, Baha Mar’s water park department maintained an impeccable safety rating
while overseeing the operation of 13 pools, 1,000 feet of beach, four ride towers and numerous other guest services and amenities.
“We are thrilled to welcome Brandon to the Celebration Key family,” said Michelle McGregor, Carnival’s director of operations for Bahamas destinations. “His passion for hospitality, along with his impressive leadership history, is exactly what we need to make Celebration Key the premier destination in the Caribbean, attracting millions of guests from around the world.
Drone training supports key mapping exercises
EIGHT drone pilots and eight data analysts have completed an inaugural Food and Agriculture Organisation (FAO) drone and geospatial programme following three months of intensive training.
A graduation ceremony was held on July 4, 2024, at the Department of Information Technology in the ‘A piece of Europe’ building at the Airport Industrial Park. In attendance were Leon Lundy, acting minister of agriculture and marine resources, and ministry officials. The training facilitator was Dr Kim Baldwin of Marine Spatial Information Solutions based in Jamestown, Barbados.
Mr Lundy said that, as a nation of 700 islands and cays, the Government has the “monumental” responsibility to monitor, maintain and manage The Bahamas’ land and ocean resources.
“The Ministry of Agriculture and Marine Resources is striving to use innovative technologies and methodologies to work together to safeguard our environment for future generations,” he said. “Through the help of our international partners - the FAO and Marine Spatial Information Solutions
- we are a step further in this mission.”
In March 2024, the FAO donated four drones to the ministry, complete with a component for the training of eight pilots and the geospatial mapping analysis software to support the implementation of a National Unmanned Aircraft Systems (UAS) Unit, a custom ‘participatory’ drone mapping and geospatial analysis training package.
With the drone technology in place, The Bahamas will be able to build capacity in agricultural, coastal, marine and disaster risk management applications.
“The drones donated to the country are equipped with specialised sensors, cameras and other technologies to monitor, assess and analyse the environment,” said Mr Lundy. Drone technology, and the data it provides, can take aerial photographs and videos, and accumulate large volumes of accurate data. This data is used to make critical, well-informed decisions related to disaster risk management, environmental resources management and development.
“Brandon’s experience in leading diverse teams and his dedication to excellence have helped him earn a well-deserved reputation as a proven industry leader. We’re fortunate to have such a charismatic talent building and leading our Celebration Key team as we create extraordinary guest experiences.”
The $600m Celebration Key project will see at least 75 percent of outlets owned and operated by Bahamians. More than 700 permanent local jobs will be created, including around 400 Bahamians directly hired by Carnival.
ACTING Minister of Agriculture & Marine Resources Leon Lundy.
Drones can also be used for the monitoring and surveillance of marine resources such as fish populations and observing illegal activities. Additionally, the drones will be able to provide valuable data for farmers to improve crop management.
Mr Lundy also unveiled the Participatory Drone Mapping & Data Analytics
Unit. “Our newly trained and certified UAS Drone pilots and data analysts will present on what they have been able to achieve in the past three months of intensive training,” he said. He added that the work of this unit, which comprises 16 persons, covered more than 300 acres between two islands in 56 days. Through the use of drones, they
performed a series of mapping, surveys, panoramic and data analyses of various sites of national interest.
“Through this unit, we will enhance our ability to protect and preserve the biodiversity of our lands and oceans, and ensure sustainable practices,” Mr Lundy said.
Beryl’s destruction
places
focus on communications
HURRICANE Beryl’s trail of destruction across the Caribbean has again highlighted the need for robust communications infrastructure and reliable data access, a regional conference was told.
Cable & Wireless Communications (C&W), the immediate parent for the Bahamas Telecommunications Company (BTC), said the devastation inflicted by the Category Five storm attracted great focus during the opening of CANTO’s 39th annual trade exhibition and conference in Miami.
“The Caribbean is on the front lines of the global climate crisis, facing significant and immediate impacts that threaten the region’s environment, economy and way of life. The Caribbean’s resilience and adaptive capacity are vital in the face of climate change, and it is imperative that we take proactive and coordinated action,” said Daryl Vaz, Jamaica’s minister of science, energy, telecommunications and transport.
Mr Vaz delivered the key address at CANTO’s opening ceremony on Sunday days after Beryl made landfall in Jamaica. “Resilience and adaptive capacity are vital in the face of climate change. By embracing innovative solutions, fostering collaboration and committing to sustainable practices, we can safeguard our islands for future generations,” he added.
“If we really want to survive and thrive, the time for talk is over and now
is the time for action. We must walk the walk.” The theme of this year’s event is ‘Towards a sustainable digital economy’ and C&W Communications, operator of Flow, Flow Business, C&W Business and BTC, has returned as the major sponsor for the region’s premier telecoms conference.
“As we gather in the wake of Hurricane Beryl, we are reminded of the immense challenges that natural disasters pose to our region, but also of the resilience and solidarity that define the Caribbean spirit,” said Marilyn Sealy, senior director and head of communications for C&W Communications.
“We are proud to be a part of an industry that provides the backbone for growth and innovation, and we remain committed to supporting the region and, at the same time, the critical work that CANTO has undertaken over the years.” The annual event brings together regional heads of state and government, along with regulators, telecom operators and other key stakeholders to network, build alliances, review policy,and share best practices as it relates to the Caribbean telecoms sector.
“As a leading provider of digital connectivity solutions across the region, this year’s theme resonates deeply with the core values and mission of C&W Communications,” added Ms Sealy.
“We recognise the transformational role that technology plays in
driving sustainable development, social inclusion and economic growth, and it is our firm belief that by leveraging the power of connectivity we can unlock new possibilities and create a brighter future for all.”
C&W Communications will host several discussions and events during the conference to spotlight important industry topics including digital sustainability and education; cyber security in the digital era; sustainable infrastructure development; investment challenges in digital sustainability; strategies for equitable access to broadband services; and empowering an inclusive digital economy.
Featured speakers include Inge Smidts, chief executive; Kerry Scott, senior vice-president, chief people officer, Liberty Latin America (the parent company of C&W Communications); John Winter, senior vice-president, chief legal officer, Liberty Latin America; Sameer Bhatti, chief executive, BTC; Nicolas Collette, chief commercial officer, business markets; and Sebastian Kaplan, vice-president of government affairs, Liberty Latin America.
CANTO is a non-profit association made up of operators, organizations, companies, and individuals primarily focused on leading the information and communications technology (ICT) sector across the Caribbean region and the Americas.
GROUP Photo 1 from right: Leon Lundy, acting minister of agriculture and marine resources; Neil Campbell, permanent secretary, Ministry of Agriculture and Marine Resources; Juliana Braynen, deputy Permanent secretary, Ministry of Agriculture and Marine Resources; Gregory Bethel, director, marine resources; Alexander Ferguson, representative of Civil Aviation Authority of The Bahamas (CAAB).
Photos:Mark Ford/BIS
BISX-LISTED WATER SUPPLIER IN OUT ISLANDS EXPANSION
By FAY SIMMONS
THE main BISX-listed supplier for Water and Sewerage (WSC) has said arrangements have been made with the government to collect outstanding sums owed by the utility.
Henderson Cash, general manager of Consolidated Water Bahamas, said yesterday the government
has made arrangements to “iron out” the payments on arrears - which stood at $23.2m at the end of September 2023. Speaking to reporters after a tour of the Windsor Field plant yesterday, Mr Cash said he is “very confident” WSC will fulfil its financial obligation. He said: “Arrangements have been made, but we are steadfast in producing water for the WSC and we have engaged to work along with them to iron out
the payment side of these engagements.
“We continue to be steadfast to provide water to the WSC and we’re very confident that they will meet their financial obligations to us.”
Consolidated Water, which supplies the stateowned utility with water from its Blue Hills and Windsor plants, revealed in its results filings for the three months to endSeptember 2023 that the outstanding sums owed
to it by WSC increased by almost $7m during that period to $23.2m.
Consolidated Water, in its 10-Q filing with the US Securities & Exchange Commission (SEC), said it had again held recent discussions with the government’s Ministry of Finance to determine when the outstanding monies will be paid. The ministry again reiterated its goal of bringing WSC’s payables current.
Mr Cash also revealed that Consolidated Water
has recently signed an agreement to provide potable water in Cat Island and “see no reason” to not expand into other Family Islands to bring a solution to their water challenges. He said: “We just penned last month a contract to provide desalinated water in Cat Island in two sites, Venice Harbour and New Bight and we aim to have those operational within this calendar year. Those facilities may produce about 120,000 gallons per
day. They have containerised units.
“We have signed the contract to put potable water in Cat Island and we see no reason why that couldn’t get expanded from there.
“I’m sure you’re aware of all of the issues to do with water in other districts. But we’re here to help and we’re here to bring result in solution to certainly water challenges that’s being faced.”
Pintard: Why pay $50m to join Development Bank?
OPPOSITION leader
Michael Pintard yesterday questioned the decision to join the Development Bank of Latin America and the Caribbean (CAF).
Myles LaRoda, Minister of Social Services said yesterday the Bahamas’s membership to join the CAF will ‘broaden’ the available resources available to finance continued development in the country.
While giving his contribution in Parliament, Mr LaRoda said the membership will help the country to advance its "socio economic agenda" through access to regional funding.
He said: “The Bahamas as a small island state is constantly seeking to advance its socio economic agenda for growth and development of its citizens.
IMF:
In this regard, we have and continue to benefit from access to the technical and financial resources of our regional multilateral development partners, namely
the Inter American Development Bank, and the Caribbean Development Bank.
“As regional institutions, they have a unique
Gov’ts ‘not strong’ cash forecasts hit vendor payment
FROM PAGE B1
sometimes accumulate.
These factors pose impediments for the formulation and the orderly execution of the annual borrowing plan.”
To address these woes, the IMF report said:
“Unexpected cash management shortfalls in The Bahamas point to an opportunity to improve the cash management’s resilience to unforeseen expenditures without having recourse to special auctions, which are detrimental to market development.
“Streamlining the access of line ministries, agencies and state-owned enterprises (SOEs) to liquidate buffers and conducting selfevaluation in order to find out what makes forecasts unreliable would improve the credibility of forecasts and increase efficiency of cash management.
“That said, most important would be to develop a sufficiently large cash buffer, via the issuance to government securities, to enable the cash managers to operate from a position of strength and security,” the IMF continued.
“Cash management could have a jump start with the introduction of more proactive cash management practices, including repos (repurchase agreements) and a cash buffer for the Treasury. Advances and overdrafts should be viewed as last-resort funding. Treasury Bill issuance should move away from the simple rollover of maturing securities and become a dynamic source of raising liquidity from the market.”
Meanwhile, the IMF report said relatively low Ministry of Finance salaries are a “key obstacle” to improving capacity at its Debt Management Office. It added that under-staffing was one of the factors preventing this unit from fulfilling “most functions” expected from a debt management office.
“With respect to institutional arrangements, a Debt Management Office (DMO) has been established within the Ministry of Finance, though it remains understaffed and lacks the capacity to conduct most debt management functions,” the IMF said in a report completed in
January 2024, but which has only just been made public.
“Under the Public Debt Management Act, debt management operations are the responsibility of the DMO and encompass front, middle and back office functions. In the interim, while capacity in the DMO is being built, the Ministry of Finance continues to rely heavily on the Central Bank to perform many functions as its agent, including front-office tasks related to issuance of Treasury Bills and The Bahamas’ Government Registered Stock (BRS) bonds, payment of debt service, debt recording and compilation of statistics and other information on government securities.
“The Ministry of Finance and the Central Bank are drafting a memorandum of understanding (MoU) to govern the principal-agent relationship related to debt management functions. The DMO, however, has begun to perform some middle office tasks.”
These included the publication of the Government’s medium-term debt management strategy. However, the IMF report added: “Developing the capacity of the DMO will
be a medium-term process, involving the recruitment, training and retention of staff with appropriate and specialised skills not currently available within the Ministry of Finance.
“The level of Ministry of Finance salaries is a key obstacle to staffing the DMO. While a solution to the problem of remuneration is being sought, the Ministry of Finance should explore modalities such as receiving secondments of staff from the Central Bank and hiring private sector professionals on non-permanent consulting contracts.
“Those modalities would also assist in the training of staff who may be hired externally or transferred from elsewhere in the Ministry of Finance to the DMO. There is scope for materially improving the conduct of debt management over both the short and medium to-long term to increase the credibility, and effectiveness, of the authorities’ debt management activities,” the Fund continued.
“In the immediate future, it will be important to improve coordination between the Ministry of
LGAM HOLDINGS LIMITED (Dissolved)
NOTICE IS HEREBY GIVEN that pursuant to Section 138(8) of the International Business Companies Act, 2000 (No. 45 of 2000) the dissolution of LGAM HOLDINGS LIMITED (Dissolved) (the “Company”) has been been issued by the Registrar of Companies. The Company has been struck off the Register of Companies with effect from the 15th day of April, 2024.
understanding of our challenges, and have delivered responsive tools, services and instruments to move us further along the path to achieve to achieving our key development and growth objectives. Having considered the performance and operations of the CAF in the region, I am convinced that membership in CAF will reinforce this successful regional institutional achievement for The Bahamas and broaden the resources available to us for advancing the development agenda.”
However, Mr Pintard questioned why the government would decide to pay a $50m subscription fee to CAF "given the scarcity of funds" in the country.
He said: “This government is asking the
Finance and the Central Bank, and to include the Ministry of Finance in the regular market consultations related to government financing that are currently undertaken by the Central Bank alone. Increased exposure of Ministry of Finance staff to Central Bank funding operations and market participants will facilitate skills transfer as well as sensitise the issuer to current market conditions.”
Bahamian people to commit $50m in subscription fees to the organisation - they are compelled to give compelling reasons why at this juncture, given the scarcity of funds we seem to have as a country, why they have made this particular choice."
Mr Pintard said while he agrees it is "useful" to have multiple bodies the country can borrow funds from when necessary, there are already two similar organisations the country has available for that purpose.
He said: “We certainly agree that it is a useful thing to have multiple options on where our administration where this country can go in order to borrow funds, in order to ensure that the work of our country is done effectively. So we are not
opposed to pursuing additional options.
“We do ask the government to pay greater respect to the Bahamian people in laying out why at this time, $50m subscription fee need to be paid to an additional organisation, given the fact that we have two similar organisations that make funding for similar purposes available to the Bahamian people.”
Kwasi Thompson, Member of Parliament for East Grand Bahama, also questioned what the funds borrowed from CAF will be used for and Mr LaRoda said they will be used for climate change infrastructure, the digital economy, crime, violence and energy.
MICHAEL PINTARD
‘Breaking point’ fears on aviation fee hikes
FROM PAGE B1
like $8,000-$10,000” in airport fees and taxes to visit for two weeks every month over a six-month period.
“I’m getting older, but this is just dizzying,” they said of the fee schedule implemented by Bimini Airport Development Partners (BADP), the private sector consortium that has taken over Bimini International Airport’s operations and will oversee its $80m transformation into a facility fully compliant with global safety and regulatory standards.
“People won’t put up with this stuff. They just won’t,” the homeowner warned. “There’s been so many new fees I’ve had to get out my calculator and spreadsheet. Two hundred and seventy-five dollars for two people to leave? That’s insanity. If you made it four, I could take a four-day cruise with a family of four for less money per day.
“If they don’t want us there, come out and say it so we can plan accordingly. That’s how I feel. Bimini, a whole 50 miles off the coast of Florida, must probably be the most expensive cost per mile in the south-east [US to travel to.”
Based on the Bimini airport fee schedule seen
by Tribune Business, the combination of passenger facility and processing fees plus the $1 tourism enhancement levy means that international travellers now have to pay an extra $51 every time they leave Bimini between July 1, 2024, and year-end. From January 1, 2025, these three combined fees are set to further increase to $58. The fees will ultimately help to finance Bimini airport’s redevelopment, enabling the BADP consortium and its investors to repay any debt financing they take on as well as earn a return on their investment. However, one operator who has been serving Bimini from Florida for ten years yesterday revealed they have already lost three charters due to traveller reaction to the fees.
Kenya, of Elite Travel 242, told Tribune Business that the total direct cost for travellers to depart Bimini on international flightstaxes and fees combined - had more than doubled from $42 to $99 following the introduction of the new fees.
“Everybody is in an uproar because they had planned this holiday from last year,” she said. “It’s just been crazy. I’ve lost three
charters for August because of these fees. It’s cheaper to go elsewhere. People are not going to come out because leaving the island is so expensive.
“We don’t understand what the fees are for when the airport has not even been built. Everyone has been complaining about it. Pilots have been complaining about it. Some of these fees I can bite because I don’t want to ruffle people’s feathers but I cannot bite all of it.”
Frank Frione, a Bimini homeowner since 2000 and a regular visitor to the island during the summer, produced receipts and documents showing that his daughter, son-in-law and their baby had to pay a combined $275 in taxes and fees to depart the island by air yesterday. Their one year-old daughter, while not charged a departure fee, was still subject to a $10 security fee.
“When she got back to the States she phoned me and said they cannot come over every two weeks. I just cancelled a trip for my children to come over at the end of the month,” Mr Frione said. “To charge a one year-old a security fee, and she just turned one, and you charge her a security fee?
Restaurant chain: ‘Sky’s
indomitability to excel in whatever we do.”
Chef Culmer said Tropical Gyros’ first franchise, located in the Prince Charles Drive Shopping Centre, has created 22 jobs following a $150,000 investment. He added that Ms Marshall, the franchisee, has a ten-year career background in the food business having operated a “little deli” and the cafeteria at Government High School.
“What I loved about it was her enthusiasm,” he added. “She came into my office and said she would be interested in this franchise opportunity. I sent her the information, and four days later she came back and said there’s a spot on Prince Charles Drive that she liked. She was a go-getter from day one.
“Like any new business with new employees, there’s always a challenge to get employees to buy into what you’re doing. We’re going to give her all the support to help her. The product will be the same as at all three other Tropical Gyros locations. We’re excited about the possibilities.
“Another gentleman signed up 12 days ago for a franchise in western New
Providence. We will make an announcement on that once he secures the location. People are seeing value in something that is Bahamian grown and Bahamian developed. That in itself is humbling.”
Chef Culmer said budding restaurant entrepreneurs have the choice of striking out on their own, and investing $150,000 in their own new, standalone restaurant, or making a similar outlay on a brand that, in Tropical Gyros, has “done a lot of the groundwork over the past nine years to come into the consciousness of the Bahamian public”.
“That’s what Kim saw,” he added. “She came into our restaurant at JFK Drive and it blew her mind.”
Chef Culmer said Tropical Gyros is now receiving inquiries about franchising opportunities on multiple Family Islands, but is carefully screening partners and conducting the necessary due diligence to ensure that it does not “over-saturate” the market.
“We’ve got people now talking about Bimini, Abaco, Exuma, Eleuthera,” Chef Culmer said. “We’ll see how those things go down. We have some people interested in doing a franchise in Turks & Caicos.
LONG ISLAND RESORT LAMENTS FREE DIVE EVENT CANCELLATION
remains a problem. However, we’re quite aware that that’s due to aging equipment, not so much on the part of the local BPL crew,
which does try and restore power whenever it’s off.
“Fortunately, in past years, we had minimal issues with that but, in the past two or three years, I would say on a monthly basis, we’re having outages
“I get having increases, I understand it, but in my business or any business, if you say to everyone you are going to be doubling the fees and, in six months’ time in January you’re going up again, if that’s true we might not come here and go to the [Florida] Keys.
“We love The Bahamas, love the lifestyle and are very supportive of the island. We do all sorts of stuff here. That $275 was the equivalent of dinner for the whole family, $250, at Bimini Big Game Club for four adults and one child.... They’re going to price themselves right out of it, and people are going to come less and go the Abacos and not have stuff like this.”
Bimini Airport Development Partners (BADP), in an updated May 3, 2024, notice to commercial, charter and private aviation customers, served warning of its intent to impose a passenger facility fee on travellers from July 1, 2024, this year. These fees were set at $20 for domestic travellers, and doubled to $40 for international passengers.
Meanwhile, the passenger processing fee was pegged at $5 for domestic, and $10 for international, travellers with both categories also
the
having to pay a $1 “passenger levy”. In total, these additional fees come to $26 for domestic passengers and $51 for their international counterparts, and are on top of the $29 per head departure tax. The BADP fee schedule then reveals that the passenger facility fee is being increased to $25 for domestic travellers, and $45 for international passengers, with effect from January 1, 2025. And the passenger processing fee will rise to $6 for domestic, and $12 for international, travellers with effect from that same date. Thus persons leaving Bimini to travel outside The Bahamas will have to pay an extra $58. The Bimini airport consortium has already delayed, and pushed back, the imposition of the new fees by almost two months with Tribune Business having previously revealed it intended to implement them on May 6 this year based on its April 26, 2024, notice to the aviation industry. Its subsequent May 3 missive, revising the dates, differed only in that it acknowledged consultation with the sector has occurred.
“This notice is to serve as an announcement concerning the change of
limit’ over expansion
We’re going to explore all those opportunities.
“We’re not going to throw a franchise to someone who we feel is not qualified and does not have the finances to see it through. We don’t want the brand to fail. We had some issues during COVID. We intend to continue on an upward trajectory. Any time we franchise we do our due diligence on them, but the most important thing for now is passion.
“We’re looking for franchisees with passion to drive this product forward. You don’t see it as a burden, you don’t see it as a job; you see it as something you enjoy. We’re looking for people who want to invest and enjoy a return on investment, but it’s their passion to be part of something in The Bahamas, that is owned by Bahamians and they love food. Kim ticked off all those boxes.”
Asked how large Tropical Gyros could ultimately become, Chef Culmer told Tribune Business: “I think that, in The Bahamas, we could definitely see about ten locations easily: Five to six in New Providence maximum, and maybe four in the Family Islands including two in Freeport.
- at least about five or six times a month.” The infrastructure and utilities challenges detailed by Ms Darville echo those cited by William Trubridge, Vertical Blue’s director, in explaining why the freediving event at Dean’s Blue Hole will not be held in 2024.
Citing the “recent deterioration of the infrastructure”, Mr Trubridge said the decision not to hold the event on Long Island will deprive its economy of around $1.1m in foreign currency revenues generated by competitors and other attendees who sometimes arrive six weeks’ in advance and have a median stay of 25 days.
He added that Long Island, and the wider Bahamas, also stand to lose “the commercial value of the organic marketing” generated by the freediving competition, which he pegged at much higher than the cash injection at between $2m-$10m per annum “in equivalent advertising spend”.
Mr Trubridge said the frequent utility outages, lack of banking facilities, road deterioration and lack of airlift to Long Island were all factors that drove the cancellation. “In the last 20 years there have been no significant upgrades to any part of the island’s infrastructure, whether airport, road or port,” he wrote.
“In many areas the island has gone back in time. For instance, where there used to be three bank branches
“I had a call from someone today who asked if we would be interested in bringing a franchise to Toronto, Canada. I believe the sky’s the limit; I don’t want to put any limits on it. As long as people see the value of the product, and the logistical support is there, I believe Tropical Gyros is one of those brands that can go through North America without a doubt.
“If Wendy’s can come over here, and have such a strong foothold in The Bahamas, why can’t Tropical Gyros go to North America and establish a foothold? That’s the way I look at it.”
Chef Culmer said Tropical Gyros is currently seeking to add another five employees to its existing 100-strong workforce, while a further ten will be added within the next two weeks to man its food trailer.
As for the restaurant chain’s financial performance for 2024 to-date, Chef Culmer said: “We’re about 13 percent over last year on revenue. We’ve managed to trim 3.5-4 percent off our cost of goods. We’re just finishing up the first two quarters, the first half of the year. Last year we ended at 7 percent, and we’re up to about 10 percent on gross profit margin.
there are now none, and the single ATM on the island is rarely operational. Local Bahamian residents persevere, but it’s evident that the attrition is taking a toll on them as well.
“All this means that it has become impractical, and even unsafe, to host an event such as Vertical Blue on Long Island. Athletes, crew and spectators have difficulty finding flights to the island, and it is common for baggage to be left behind and even for flights to be cancelled,” Mr Trubridge said.
“Unkept and unmarked roads mean the small Japanese rental cars that athletes and crew must drive are at constant risk of serious incidents. The incessant water, power and Internet outages mean that all visitors have less than optimum experiences with hospitality, and it can even impact their performances, since the competition is staged in the summer when air conditioning is mandatory for tired athletes.”
Ms Darville’s resort has benefited from the annual freediving competition, along with many other businesses including restaurants, care rentals and tour guides. She voiced concerns about the effect the cancellation will have on booking future events, as a large competition deciding that Long Island’s infrastructure is not up to par could have an effect on other visitors. She said: “This could have an impact on future
management at South Bimini International Airport,” the notice read.
“Effective May 6, 2024, Bimini Airport Development Partners (BADP) will assume the management, operations and development of the airport.
“BADP will begin immediate improvements of the airport to modernise and expand the facility, improve airside and navigational infrastructure, procure equipment and enhance services and processes. As a part of our endeavour to provide world-class services, and following consultation, we will be continuing and implementing various rates and charges for all general aviation private operators and passengers.”
Dr Kenneth Romer, the Government’s director of aviation, last week defended the fee increases at airports such as Bimini as “the price of development” and argued that the Government had undertaken a study to ensure they were competitive with other destinations. He also said the Government and private operators will listen to residents’ concerns and make adjustments if necessary.
do $1.2m in revenue,” he added.
“We’re up by three percentage points on gross profit margin. If we continue on this track we hope to hit 13 percent for the full year. That would be a six percentage point increase over last year. If we can hit a three percentage point increase in the first half, hopefully we will have another three percentage point increase over the next six months, so 13 percent is our target.”
Turning to Tropical Gyros’ Freeport location, which opened on May 24 this year, Chef Culmer added: “It’s exceeded the projections we had initially, and I’m quite pleased with the response. We’re ahead of expectations with that. We’re about $500 a day ahead with what we’re doing. We’re $3,000 more per week than what we anticipated. It’s looking good. We feel it bodes well.”
Freeport was initially targeted as a franchise site but, after Tropical Gyros’ partner had difficulty securing the necessary financing, Chef Culmer said the restaurant chain’s Board decided to expand into the city itself. “We went a bit overBudget on Freeport with the extra travel and Port Authority fees, but I’m confident that, after our first full year, we will be on target to
bookings. It’s short sighted to say that this just surrounds one dive competition. The fact remains is that persons read reviews, persons read international stories. Dean’s Blue Hole is a pull for the island as a whole, so any story that is affiliated ends up out there for everyone to see.
“For prospective visitors to see that they, who have been coming here for 20-odd years and are used to the situation and how to accommodate, suddenly find it burdensome to do so, why should I then give Long Island Bahamas new opportunities?”
Ms Darville added that due to the lack of ATM and banking services in Long Island, businesses that have not transitioned to operating cashless often miss out on making sales and booking tours when guests cannot access funds.
She said: “The ATM issue is quite fractious because, of course, there are going to be services on islands that do not accept cards. Most of our guests are interested in patronising elsewhere, and we really to facilitate, but unfortunately sometimes they have to forego going on a particular independent fishing trip or boating trip because they can’t get cash.”
Ms Darville said digital solutions for the Family Islands are “a bit ludicrous” as they do not take into account the frequent electricity and Internet outages they experience. “We’re
Noting that Tropical Gyros last year generated $2.7m in revenue from just its Palmdale and JFK Drive locations combined, Chef Culmer said: “This year we’re hoping to do $3.2m-$3.3m and, including Freeport, we will be close to $4m. That’s what we’re shooting for. We’re pushing. We’re pushing.
“We want to show people the investment they made in Tropical Gyros, through ArawakX, will pay off. It doesn’t happen overnight, this is no get rich quick scheme. For us it’s important to continue moving forward progressively and take advantage of opportunities as they arise.
“We don’t want to oversaturate the island. We want to be able to hit certain demographics in the island so that every area is covered,” he added. “We had a spot on Carmichael Road that we were looking to build-out, but we are going to pull back from that project because we are not comfortable with what would have to go into that building to get it ready.
“It would be more expensive than the cost we’d look to keep building-out at, $80,000-$100,000, and that cost would push us to near $200,000.”
cashless, and unless we have a scenario where our Internet is off, the phone lines are down at the same time and, of course, when there is no electricity, we can’t process card payments,” she added.
“I feel it’s a bit ludicrous to say the solution is online scenarios to facilitate our lack of banking services because no consideration is given for the loss of utilities, and that no infrastructure upgrades are occurring on a timely manner.
“Say everybody just goes digital, that’s well and good, but if you don’t have reliable Internet, you don’t have reliable phone service, you don’t have reliable electricity, then how are you going to process anything?”
Adrian Gibson, Long Island ‘s MP, said yesterday that he is “deeply troubled” by the water challenges faced by his constituents.
He added that when he was the executive chairman of the Water and Sewerage Corporation under the former Minnis administration, he left several projects including a 265,000 gallon per day reverse osmosis plant in Deadman’s Cay and a 250,000 gallon water tank, which were not completed by the Davis administration.
Showing photographs of the sites overtaken by grass and coppice, Mr Gibson said those projects were 85 percent completed and would have “significantly” improved the water supply on Long Island.
Wall Street ends mixed, nudging the S&P 500 and Nasdaq to more records
By DAMIAN J. TROISE and ALEX VEIGA AP Business Writers
A SUBDUED day of trading on Wall Street ended Monday with a mixed finish for the major stock indexes and more market milestones.
The S&P 500 and Nasdaq composite each notched all-time highs after finishing with gains of 0.1% and 0.3%, respectively. The Dow Jones Industrial Average gave up an early gain and closed 0.1% lower.
The indexes have been gaining ground steadily over the last several months and that has helped push the benchmark S&P 500 index to 35 records so far this year.
"The current market is positive and steady to a nearly unprecedented degree," said Mark Hackett, chief of investment research at Nationwide.
"It's extremely rare to see these types of consistent gains with almost no volatility."
Gains in tech stocks, including several chipmakers, tempered declines in communication services, energy and other sectors of the S&P 500. Nvidia rose
1.9%, Broadcom added 2.5% and Advanced Micro Devices finished with a 3.9% gain.
Specialty glassware maker Corning surged 12% for the biggest gain in the market Monday after raising its sales forecast.
Troubled airplane maker Boeing rose 0.5% after agreeing to plead guilty to a criminal fraud charge stemming from two crashes of 737 Max jetliners that
also attract wider investor participation, owing to increased perceptions of liquidity in the benchmark, and make it easier to find interested buyers or sellers in the secondary market.”
The Central Bank, which together with the Ministry of Finance would likely be sent an advance copy of the IMF’s findings, and discuss the Fund’s conclusions with it before the official release, already appears to have acted on the consolidation recommendation and be following much of what was suggested.
For it unveiled a document entitled ‘The Bahamas benchmark bond issuance policy’ on November 17, 2023, in which it set out its strategy for “aggregating bond issuances in a relatively limited number of popular, standardised maturities” on the Government’s behalf in a bid to boost investor confidence through greater transparency and develop a deeper, more liquid government securities market.
“With approximately 240 Bahamas Registered Stock (BRS) securities, comprising 149 fixed-rate and 90 floatingrate bonds, often issued
with non-standardised features and varying original maturities, the bond market in The Bahamas faces significant market fragmentation,” the Central Bank said.
“The primary aim of the policy is to eliminate market fragmentation by adopting bond standardisation, concentrated issuance of bonds from benchmark maturities, bond reopening and the implementation of liability management operations, such as bond buybacks and exchanges.”
The Central Bank set the “benchmark” issue targets at $85m for Bahamian dollar bonds with maturities between three to five years; $105m for paper due to mature between seven to ten years; and $170m for 20 and 30-year maturities.
This appears to follow the IMF’s advice very closely, with the Fund’s just-released report stating: “Introduction of a benchmark issuance policy, accompanied by Liability Management Operations (LMOs) aimed at consolidating smaller securities into larger and therefore more liquid bond lines - one long-term line maturing in any given year instead of a multiple number of smaller issues - could form a strong base to support
killed 346 people. The government determined the company violated an agreement that had protected it from prosecution for more than three years.
Entertainment giant Paramount Global slid 5.3% for the biggest decline among S&P 500 stocks after it agreed to merge with Skydance.
All told, the S&P 500 rose 5.66 points to 5,572.85. The Nasdaq added 50.98
primary market demand and secondary market development.....
“Buybacks and exchange/ switch auctions could consolidate the large number of outstanding bonds into a smaller number of larger benchmark securities and help manage future rollover risk inherent to the issuance of benchmark size securities. LMOs are quite common in the practice of public debt managers, but some market consultation and education would be useful before actual deployment.”
Outstanding Bahamian dollar bond issues, worth a collective $4.17bn at year-end 2022, are the instrument accounting for the greatest share of the Government’s total debt at 38 percent or just over onethird. The IMF added that the Government’s shorterterm securities, Treasury Bills, which typically have 91 and 182-day maturities, could also benefit from the addition of a 30-day security.
“Market participants are open to an expansion of money market instruments,” the Fund said. “Several counterparts with whom the mission met expressed an interest in 30-day Treasury Bills as a
divided among left, center and far right, with no single political faction getting close to a majority.
and whether banks are worried about payments and potential delinquencies.
Federal Reserve Chair
Jerome Powell addresses Congress on Tuesday and Wednesday. The central bank has kept its benchmark interest rate at its highest level in more than two decades in an effort to tame inflation.
points to close at 18,403.74. The Dow fell 31.08 points to 39,344.79. Traders are looking ahead to several earnings reports this week including updates from Delta Air Lines on Thursday. JPMorgan, Citigroup and Wells Fargo will report results on Friday. The latest updates for banks could give Wall Street a clearer picture on how consumers are handling increased debt
more flexible liquidity management tool.
“Others commented that issuing the one-year Treasury Note as a discounted 360-day Treasury Bill priced via competitive auction would provide a valuable additional price reference for short-term interest rates. The introduction of two new money market lines will provide additional flexibility for the monetary authorities, should the need arise to manage domestic liquidity more actively at some point.”
The IMF added: “Better co-ordination between the Central Bank and Ministry of Finance will be essential to advance reforms and develop the local bond markets. The different and interconnected responsibilities of many agencies - the Central Bank, Ministry of Finance, BISX, and the Securities Commissionand the weak co-ordination across them is hindering market development.
“Improved co-ordination, and a clearer delineation of the roles
The Fed's goal is to cool inflation back to 2% without slowing economic growth too much. Inflation is still squeezing consumers, but it has fallen significantly from its peak two years ago. Economic growth has slowed this year, but it remains relatively strong amid a solid jobs market and consumer spending.
The central bank will get more updates on inflation at the consumer level on Thursday. Wall Street expects the latest government report to show inflation easing to 3.1% in June from 3.3% in May.
and responsibilities of each stakeholder, would also facilitate capacity buildup in the MInistry of Finance, which will be essential as it undertakes additional tasks.... Improvements in investor relations and debt reporting would greatly facilitate market functioning.
“Uncertainty regarding bond auctions, improvement of data and transparency in the
A report for inflation at the wholesale level, before costs are passed on to consumers, is expected Friday. Inflation is seemingly stuck at around 3% by most measures. That has prompted more caution from the Fed and dampened expectations for the number of anticipated rate cuts this year. Most experts are expecting one rate cut from the Fed this year, but not until September. The Fed holds its next policy meeting later this month. Treasury yields were relatively stable in the bond market. The yield on the 10-year Treasury fell to 4.27% from 4.28% late Friday.
European stocks were mixed after France's elections left its legislature divided among left, center and far right, with no single political faction getting close to a majority. Stocks in Asia fell.
medium-term debt management strategy and annual borrowing plan, and more systematic outreach to creditors, are areas where quick progress can be made. Improvements in debt reporting by updating the medium-term debt management strategy/ annual borrowing plan, and strengthening the investor relations function, would directly improve market functioning.”
THE NEW York Stock Exchange is seen on July 3, 2024, in New York. Asian stocks have fallen while European markets are higher on Monday, July 8, 2024, after France’s elections left its legislature
Photo:Peter Morgan/AP
CROSSWORD PUZZLE
Wednesday, July 10, 2024
Happy Independence Bahamas - 51 years
PUBLIC NOTICE
The Public is hereby advised that I, MELANIE THERESA WILLIAMS of Nassau, Bahamas, intend to change my child’s name to GENA THERESA WILLIAMS If there are any objections to this change of name by Deed Poll, you may write N-742, Nassau, Bahamas no later than thirty (30) days after the INTENT TO CHANGE NAME BY DEED POLL
NOTICE
NOTICE is hereby given that THERMUTA ANNESTA KNIGHT of P.O.Box SB-51709 Prince Charles Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 2nd day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that OPHNY ELIEN of Golden Isles, Carmichael Road, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas and that any person who knows any reason whyregistration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 9th day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that HERLIN MICHEL of Marsh Harbour, Abaco, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 2nd day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that SHARNISKA VICTOR of Infant View Road, Nassau, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 2nd day of July, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
