CUSTOMS’ top official yesterday conceded not all officers were initially “on the same page” over newly-implemented aviation fee increases which may not be “a shut case”.
Ralph Munroe, the Customs comptroller, told Tribune Business that the agency has swiftly tackled the “different treatment” that some pilots and operators have encountered at separate ports of
entry over fee rises implemented on July 1, 2024. He added that the “misunderstandings” cut both ways with some private pilots unsure of the aircraft category they fell into and, as a result, what fees are applicable to them. Voicing confidence that industry concerns will be eased and addressed, Mr Munroe said the Government will always listen and make adjustments to the charges if the general aviation sector can make the case.
The Customs comptroller, though, would not be drawn on
Realtor beats 2023 full year with first half sales
By NEIL HARTNELL Tribune Business Editor
A BAHAMIAN realtor yesterday disclosed that its 2024 first-half closed sales have “surpassed” 2023’s full-year performance as it moves to “accelerate” deals at a south-west New Providence project.
Ryan Knowles, founder and chief executive of Maison Bahamas Real Estate, told Tribune Business that the first six months have been “pretty incredible” with closed sales boosted by deals that “spilled over” from 2023 to be completed this year.
“We’ve had a very strong first half of the year,” he said. “Our first half of the year, we surpassed our 2023 results in just the first six months. For us, it was quite a big first half. Some of that was pending sales from the fourth quarter last year that closed in the first half of this year. Some of that was spill over.
“As far as closed business, we surpassed last year in the first half of this year, which has been pretty incredible. It’s definitely in excess of everything we did last year already. It’s a good time for the real estate market. We’ve seen strong demand at all price points - the mid-market, $1m and up, to the high-end at $5m-$10m. We’re seeing growth in actual business and in new development business.”
Mr Knowles said the “new development business” includes Windsor Lakes, the south-west New Providence community whose principal developers are former Chamber of Commerce chairman, Robert Myers, and Bahamas resident, Michael Huttman. He added that some 43 percent of available lots have either been sold or are in the process of closing.
“We’ve been able to sell 40 percent of the project with no sales gallery, no
model home having been built,” Mr Knowles said. “It speaks to the strength of the market, strength of the product. The market is in a good place overall.”
With 75 of the 173-strong lot inventory at Windsor Lakes now sold, or closed upon, he added that the developers are aiming to start construction of two model homes this September in a bid to further drive sales by showing what living in the community will ultimately look like.
Mr Knowles revealed that sales agreements impose a “five-year build compulsion” on purchasers to prevent persons simply buying a lot and sitting on it for years, with no construction or development activity taking place, or quickly flipping it to someone else for a profit.
“We have a five-year build compulsion,” he explained. “It’s a little different from other developments that take time to fully mature. You have to start construction within five years and complete it within 16 months. It will be a family-oriented community and it will help everyone’s property values. “We don’t want a community where someone buys a lot and sits on it for 20 years. It keeps everyone’s property value down and you don’t get the community you are hoping for. The five-year build compulsion is great. It means that
By FAY SIMMONS
re-established
Darrin Woods, the union’s president, said industrial agreement talks had begun in 2019 and resumed this year with employees requesting the
the rationale for why the fees were increased; the magnitude of the hikes; the extra revenue that will be raised; and private pilot claims that they were blindsided and not consulted over the rises, saying they were either policylevel decisions or not his and the agency’s responsibility.
“I think there are a number of issues there,” Mr Munroe told this newspaper of the initial backlash over the fee increases.
“Some of the pilots were not too sure which category they fell into; whether they fell into commercial,
whether they fell into recreational or whether they fell into charter.
“There were a few persons who engage in private commercial charters in The Bahamas as well who, in some cases, were being wrongly classified. That was one issue. There was also a misunderstanding as to whether they would be paying to land on the inbound. That was cleared up. There is a one-time payment” for both the inbound and outbound fees being levied by Customs to clear and exit The Bahamas.
Why two securities
By NEIL HARTNELL
Business Editor
THE Bahamas International Securities Exchange’s (BISX) top executive says he “doesn’t have the answers” for why this nation has created two separate facilities to clear and settle securities trades.
Keith Davies, BISX’s chief executive, told Tribune Business he was unsure why The Bahamas “has taken this route” of creating separate depositories for government debt securities and shares/bonds in private companies given it was “always the plan” to have one single, consolidated facility. Affirming that this recommendation was made more than two decades ago, in the 2003 report that set out the road-map for BISX’s financial rescue, he added that one depository for clearing and settling all securities trades would “increase efficiency, lower
• Says ‘always the plan’ to have one clearing facility
• Agrees with IMF as ‘more efficient and lower cost’
• Private pilots experience ‘different treatment’
• Comptroller: Issues tackled; rises not ‘shut case’
• ‘Don’t take aviation for granted’, authorities told
The uncertainty, though, was not confined to private pilots and charter operators. “Some of the officers were not fully clear on it themselves,” Mr Munroe disclosed. “As soon as it came to our attention, we discussed it and sorted it out in the first week.
• Feels Central Bank ‘approach may not be the best’
cost and instill confidence” among Bahamian investors and other capital market participants.
However, The Bahamas has moved away from the 20 year-old plan by creating the Bahamas Government Securities Depository (BGSD) to administer the registration and transfer of ownership in government bonds and Treasury Bills once they have been traded. It will also handle the clearing and settlement of trades in such securities.
Meanwhile, the Bahamas Central Securities Depository (BCSD) performs exactly the same functions for the trading
of shares and corporate bonds that are listed on BISX. Its creation was one of the recommendations that came from the 2003 BISX report, with the BCSD jointly owned by the exchange, RF Bank & Trust and CFAL with a one-third interest each.
Now the International Monetary Fund (IMF), in its recent analysis of The Bahamas’ government debt market, has backed the original BISX report by raising concerns over two separate securities depositories. It warned that this could undermine market “efficacy”, and result in “fragmentation”
KEITH DAVIES
that works against the development of more “liquid capital markets” and greater trading activity. Mr Davies, effectively backing the IMF’s conclusions, also hinted that he disagreed with the Central Bank’s position against any near-term moves to privatise the government securities depository. Suggesting that such a stance was “typical” of central banks, he added that “it may not be the
IT outage gives ‘horrific’ small business impact
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
MANY Bahamian
small businesses suffered an “horrific” and “huge impact” from Friday’s widespread IT outage due to their reliance on card transactions for 65 percent of customer purchases.
Mark S Turnquest, the 242 Small Business Association and Resource Centre’s (SBARC) founder, told Tribune Business that many of his members and clients simply “lack the resources” to have a backup plan to cope with events such as the shutdown of
benefits they previously enjoyed to be reinstated.
He revealed that while a dollar amount could not be assigned to the agreement, the 180-plus employees will receive a 9 percent pay increase over the agreement’s lifetime, a five-day work week, pension fund, Christmas bonuses and a sick leave incentive to “encourage productivity”.
Mr Woods said: “There’s a 9 percent increase, and
many Microsoft Office systems worldwide.
This knocked out the networks employed by many card processing firms, which left numerous small businesses unable to accept debit and credit card purchases for much of Friday. Mr Turnquest said electronic transactions now account for around two-thirds of purchases because many firms discourage cash due to the threat posed by armed robberies.
“It was horrific because many of them lost sales because they couldn’t process card sales,” he told this newspaper. “It was across the board, and a problem and challenge for
RYAN KNOWLES
SBDC teams to aid creative economy
THE Small Business Development Centre (SBDC) has formed a partnership designed to boost entrepreneurs in the creative economy by focusing on authentic Bahamian products and linkages to tourism.
The SBDC, in a statement, said it has teamed with the United Nations Education, Scientific and Cultural Organisation (UNESCO), the Bahamas Baptist Union of Churches, and the Ministry of Youth, Sports and Culture to launch its Creative Entrepreneurs Initiative.
It described this as a” groundbreaking programme” designed to empower both existing and aspiring Bahamian entrepreneurs in New Providence and the Family Islands. The SBDC added that the initiative will encourage the creation of uniquely Bahamian products using natural elements found in this nation.
The focus is on boosting the tourism industry by offering products that capture the essence of Bahamian culture. The
SBDC said the programme aims to harness the creative potential in The Bahamas, providing the tools and resources needed to transform ideas into thriving businesses. It will involve fullybooked crafting workshops that offer hands-on creative sessions where participants work alongside experts to create items such as body soaps, necklaces, headbands and picture frames. These workshops are designed to highlight and use natural Bahamian materials, fostering a connection to the local environment and culture.
A “self-paced” virtual course on business training will include business incorporation, intellectual property protection, online store set-up, financial accounting software, and securing funding through grants, loans or equity. The SBDC said this will help entrepreneurs to protect and grow their businesses effectively.
It added that it will offer a standalone grant to participants who complete the business training course and meet the other eligibility
pre-requisites. This grant will provide financial assistance to help launch or expand their businesses, ensuring sustainability and growth.
“The Creative Entrepreneurs Initiative is a testament to our commitment to nurturing the unique talents and resources of The Bahamas. By focusing on products that are inherently Bahamian, we not only preserve our cultural heritage but also create opportunities for our entrepreneurs to thrive in the tourism market,” said the SBDC’s executive director, Samantha L. Rolle.
“Tourists are always seeking authentic experiences, and what better way to offer that than through products that are crafted with Bahamian elements and creativity.”
For more information about the Creative Entrepreneurs Initiative, and how to apply for the business training course, visit sbdcbahamas.com or contact (242) 461-7232.
Graycliff wines win six global honours
A WELL-known Bahamian hotel has won six awards at ‘The World of Fine Wine’ - The World’s Best Wine Lists awards.
Graycliff Hotel & Restaurant, in a statement, said the publication has recognised its commitment to providing an unmatched wine experience in the South and Central America and the Caribbean region. The categories in which Graycliff has been recognised are:
* Best Hotel Wine List
* Best Champagne and Sparkling Wine List
* Best Dessert and Fortified Wine List
* Best Sake List (outside of Japan)
* Best Long Wine List
* Best Spirits List
Graycliff said the ‘The World of Fine Wine’ - The World’s Best Wine Lists Awards put all contenders through an intensive judging process by an independent, international panel including masters of wine, master sommeliers and a world champion Sommelier.
Enrico Garzaroli, Graycliff’s principal, began developing the resort’s wine offering reputation after purchasing the downtown Nassau property in 1973. He described the awards as “a true validation of Graycliff’s commitment to excellence”.
“This recognition by ‘The World of Fine Wine’ solidifies our position among the top destinations for
wine and spirits lovers in the world. It is incredibly rewarding to curate a collection that reflects our team’s passion for the quality and variety our patrons have come to expect,” Mr Garzaroli said.
He started buying wines from all over the world more than 50 years ago, assembling an impressive and diverse collection that would become the foundation for Graycliff’s Wine Cellar, now the world’s third largest private collection. As Graycliff’s reputation grew, so did the need for a selection of rare and highly sought-after spirits: Bourbon, whiskey, cognac, armagnac, calvados, grappa, rum, tequila and others.
Besides its 2024 accolades, Graycliff Hotel and Restaurant has received the ‘World of Fine Wine’
three-star award, its highest honour, annually since 2014, as well as the 2023 global award for the Best Spirits List.
Graycliff’s success in the regional categories has qualified it once again for consideration in the global category awards and the 2024 Star Awards, which will be announced at the World’s Best Wine Lists awards ceremony at Glaziers Hall, London, on September 16, 2024.
A landmark listed in The Bahamas’ national register of historic places, Graycliff is a five-star retreat. It is also home to the Graycliff Cigar Company, producing hand-made cigars, Graycliff Chocolatier, where guests can make their own gourmet treats, and the Bahama Barrel by Graycliff winery.
TAX AGENCY’S VAT INTERPRETATION
MORE IMPORTANT THAN LAW REPRINT
By FAY SIMMONS Tribune Business Reporter
THE Chamber of Commerce’s chief executive yesterday called for the private sector to be better educated on the VAT legislation to ensure “optimal understanding and adherence”.
Dr Leo Rolle, responding after Ryan Pinder KC, the attorney general, revealed that a Commissioner of Revision has been appointed to consolidate and reissue much-changed laws such as the VAT Act, said the business community needs to know how the Department of Inland Revenue (DIR) is
interpreting the law rather than merely reprinting the legislation. He added: “The Bahamas Chamber of Commerce & Employers’ Confederation believes that the key to ensuring optimal understanding and adherence to the VAT legislation lies in the education of the business community on the DIR’s interpretation of it and properly explaining changes to their procedures rather than reprinting the same document to have the same results.”
Dr Rolle said the Chamber is interested in partnering with the relevant authorities to provide education and training to the private sector, and clarify portions of the legislation that are confusing.
“The Chamber is open to partnering with the Government and relevant agencies to host a series of meetings/webinars that will provide training and capacity building opportunities where the relevant authorities can discuss the Act and clarify the many points causing confusion. We feel this is the better course of action given the concerns of the business community,” he added.
Mr Pinder said the VAT Act is a “nightmare” as it has been changed and amended multiple times every year, thus making it hard for businesses and attorneys to stay current with the amendments.
He said: “Historically, we’ve never had a focused revision section and that’s
why our laws are so choppy. I mean, you go through the VAT Act and amendments, it’s a disaster. You have amendments that add things, amendments that delete things that were added, amendments that were added again, and to follow it is a nightmare.
“We look to issue a reprint, we call it, because it’s not a revised edition. Revised edition is the whole compendium, a reprint of the VAT legislation this year that will be a full certified consolidated element of that.”
Mr Pinder said the reprint of Acts will ensure members of the public are aware of what laws apply to them and attorneys can adequately advise their clients.
World’s second-largest cruise ship makes first Nassau call
DR LEO ROLLE
“Our revision exercise is underway. We’re looking at a comprehensive approach. We just updated laws online last year, 18 months ago or so, that was updated with the 2017 revision exercise.
That tells you how gappy your revision exercises in this country have been with respect to legislation,” he added.
ROYAL Caribbean’s Utopia of the Seas cruise vessel made its first-ever voyage to Nassau on Sunday. Commemorative plaque and key exchanges took place to officially welcome the world’s second largest cruise ship, which sails between Port Canaveral, Orlando, and The Bahamas, with a stop at ‘Perfect Day at Coco Cay’ attraction in the Berry Islands. Among the officials in attendance was acting prime minister and minister of tourism, investments and aviation, Chester Cooper, who gave welcome remarks. Utopia of the Seas’ captain, Gus Andersson, participated in the commemorative plaque and key exchange with Nassau Cruise Port’s chief executive, Mike Maura; director-general of tourism, Latia Duncombe; port controller, Berne Wright; and president of United Shipping, Andrew Malone. Photos:Kemuel Stubbs/BIS FROM PAGE B1
“We want this to be a continuous process of revision to have clean laws so people can understand the laws that apply to them, so lawyers aren’t making mistakes advising their clients because it’s the clients that are put in jeopardy.”
we didn’t sit down to start looking at dollar value. One of the main focuses that our people said to us is whatever we had we want back. We said to them:
‘Listen, all of the benefits that you would have been receiving, they were phased in’, so we told them the main thing was to get them established.
“At the end of this contract, they will have four weeks’ Christmas bonus. When you talk about sick pay and the like there’s even a bonus for them if they do not take sick pay, which we believe helps to encourage the productivity in terms of person showing up for work.
“One of the things that was advanced by management is what they call emergency leave. There are persons on the spur of the moment who recognise they can’t come to work. They have to call in days that they can’t come to work for ‘XYZ’ reason and that is not held against them.”
Mr Woods said airlift is a ‘major concern’ for Club Med as there is only one airline that operates flights from Nassau to San Salvador. He added that the runway has been extended and lights installed so the airport can accommodate night-time flights.
The union chief said: “One of the major concerns coming forward is because, of course, you know, we have just one flight - one airline that goes from Nassau, but of course because we also have the international airlines come in.
“If we can get more of the local flights being able to move from Nassau to San Salvador because it’s one flight.... you go in the morning, once a flight leaves, that’s it until another
day. Unfortunately, we had a situation where the only flight coming out yesterday was cancelled so some more of the employees that have wanted to be a part of this signing are not here today.
“The runway was extended and also there’s lights on the runway, which allows for night flights coming in and out. And, of course, the major carriers are able to also benefit from it.” Angeles Martinez, Club Med’s regional human resources director for North America, said the resort is currently running at 85 percent occupancy and expects the trend will continue through the summer.
She said: “The wonderful thing about this particular club is that it sustained certain levels of occupancy. Right now, I can tell you that we are hitting 85 percent occupancy, and it pretty much stays the same throughout the summer. Then we’re going to be closing and, once we reopen for the winter season, these levels tend to go back up. So, it is very linear in terms of occupancy.”
The BHCAWU also signed an industrial agreement with Orange Hill yesterday, securing the 10 employees at the familyrun hotel a 4 percent salary increase and a housekeeping gratuity. The previous industrial agreement expired in April.
“This was one of the ones we were able to retain all of the benefits, which is Christmas bonus, there’s a 4 percent increase, and that was because they received an increase at the end of the contract which expired April 19,” said Mr Woods.
“Also, we were able to introduce down there the housekeeping gratuity. They’ve only always had food and beverage gratuity. Now, there’s a gratuity on housekeeping and that is pooled amongst the employees. So, all of the gratuities are there, inclusive of the food and beverage gratuity, which is now pooled, which improves their take home.” CLUB MED STAFF ENJOY 9% SALARY INCREASE
WHY TWO SECURITIES DEPOSITORIES? BISX CHIEF ‘DOESN’T HAVE ANSWER’
that “it may not be the best approach” because it can potentially stifle “innovation”.
The IMF had also called for “a bridge” to be established between the two securities depositories, and Mr Davies told Tribune Business: “I’m not surprised by that analysis and recommendation in terms of linkages so as not to fragment the market.
“If you remember your history, during the tenure of Julian Francis as governor of the Central Bank, one of the steps that was taken at that time, and recommendation coming out of the steps that were taken in collaboration between BISX and the Central Bank, was that there be the creation of a central securities depository (CSD).”
At that time, only RF Bank & Trust’s predecessor and CFAL were providing registrar and transfer services in the Bahamian capital markets. They were responsible for maintaining shareholder registers, recording trades of shares and bonds, and helping their clients and BISX to
facilitate clearing and settlement of these transactions. “The recommendation coming out of the study the Central Bank did with members of the financial community, the creation of the central securities depository, was recommended by the directors, by the Governor at the time,” Mr Davies recalled.
“The whole purpose of the central securities depository (CSD) was not just to provide services to the equity market but also to the Government debt market. The recommendation was that all government securities be listed and traded on BISX. And the natural progression was that the CSD would facilitate the clearing and settlement of that as well.”
As a result, Mr Davies said of the IMF report’s findings: “It’s nothing new, nothing surprising that that recommendation has been on place for over a decade. The fact it’s come full circle, I don’t have a comment other than to say this [one CSD] was always the plan. Why this route was taken, I don’t have the answers to that.
“It was not something that was recommended at the time for obvious reasons, which are now becoming clear from this report. Finding a solution that would meet the recommendation that was made some time ago, and the recommendation now being made, will be in everyone’s best interests.
“When you do things like that you increase efficiency, lower cost and instill confidence. Finding a way to do that would be a good idea.” However, both the IMF report and Mr Davies’ position on having just one central securities depository for the entire Bahamian capital markets is seemingly at odds with the Central Bank’s and the advice it has received from other consultants.
John Rolle, the present Central Bank governor, told Tribune Business earlier this month that the need to establish a separate government securities depository, the BGSD, arose from technical assistance that The Bahamas has received since 2016 from the Commonwealth Secretariat and UN Development Programme (UNDP).
“Two major early outcomes of that technical assistance were the need to establish a centralised securities depository (CSD) specifically for government securities and the listing of Government securities on BISX,” Mr Rolle said.
“Deployment of the CSD was required to automate parts of the primary and secondary bond market operations, as well as efficiently operationalise other policy outcomes generated under the technical assistance programmes.”
This, though, was contradicted by the IMF’s more recent advice, which asserted: “Currently, The Bahamas has two CSDs (clearing and settlement depositories) - one for government securities owned by the Central Bank that has only recently adopted automated processes, and another CSD (the Bahamas Central Securities Depository or BCSD) operated by BISX for corporate securities and equities.
“While the current BGSD system is in its infancy and is cautiously welcomed by market participants, the future efficacy of the market infrastructure
may be negatively impacted by the existence of two CSD systems. “Institutions seeking to execute cross-market trades - selling corporate bonds to purchase government securities - might face delays and potential operational and settlement risk as the two systems are not connected electronically. Capital markets liquidity will be separated into different market segments. This fragmentation of market sectors is inimical to the development of liquid capital markets.”
As a result, the IMF called on The Bahamas to “consider establishing a bridge between the BGSD and BCSD for efficient cross-market settlement”. However, Mr Rolle also ruled out any move to privatise the BGSD in the near-term. The Fund had urged the Government and Central Bank to “consider privatising the BGSD to allow the private sector to take responsibility for a key component of the capital markets infrastructure”.
The Central Bank governor, though, responded: “This point has been raised in many of the
past consultancies that the Central Bank has received. What has been made clear, though, is that the ideal private arrangements would need to have very mature and transparent governance structures. Spinning off the CSD is not currently under consideration.”
Yet Mr Davies told Tribune Business: “That’s a typical Central Bank approach. It may not be the best approach as it does not allow for innovation and persons that do that for a living to demonstrate capacity and ability. The BCSD has far surpassed any demonstration of capacity and ability. There’s no question they could have done it.
“If that’s the direction we’re going to take, there’s no better entity to take the mantle and deliver superior service properly, more efficiently and at lower cost. This is not controversial, this is not new. It’s something that’s been the recommendation for a while. This [the IMF report] is not news to me. They’re preaching to the choir, so to speak.”
Customs officers not all ‘on same page’ over fee hikes
“Sometimes it’s a misunderstanding on the part of the officers. There was a case where the operator was being treated one way at a particular port of entry and, in another island, was being treated in another way. We had to call that island and say ‘no, this is how they are to be treated’. We had some simple cases like that where not everyone was on the same page.”
The Customs comptroller then echoed Dr Kenneth Romer, the Government’s aviation director, in signalling that the newlyincreased Customs fees are not set in stone and that the Government is open to talks with private pilots and the general aviation industry on the matter.
“I believe they’ve started some discussions. I don’t know if it’s a shut case, so to speak,” Mr Munroe told Tribune Business. Asked if he was surprised at both the push back to the increases and the extent, he replied: “No and yes. Any time you have an increase in any fees Customs has to implement, there’s always somebody who’s a stakeholder that will have a response.
“People don’t like increases, that’s number one. Secondly, I think there are a number of persons who don’t fully understand where they fall in all this; the categories they fall into. At the end of the day, they’ll have it all worked out. Two to three years ago we had a similar situation where persons were justifiably concerned, but it was all worked out.
“I think there’s going to be some discussions. If there’s a need for adjustment of the fees, the Government will look at that... I’m sure they’ll get it worked out. You sometimes have to look at things again and, if there is some justification, they will make the change if you bring the case. The pilots are reasonable people. I’m sure they’ll work it out.”
Mr Munroe said Customs officers are present at The Bahamas’ booth at the ongoing EAA AirVenture Oshkosh fly-in, one of the world’s largest private aviation events currently taking place in the US, which attracts more than 600,000 people and 10,000 airplanes each year.
He added that the officers would be meeting with
private pilots over several days to address any questions they may have on visiting The Bahamas. “I’m sure it’s going to be clear from that perspective and they will get the message out to all their members,” Mr Munroe said.
A Bahamian aviation entrepreneur, meanwhile, added his voice to the concerns expressed by visiting pilots as he warned that the aviation industry must be “nurtured and not taken for granted” or overlooked.
Paul Aranha, founder of Trans-Island Airways, told Tribune Business that while successive administrations have increasingly focused on attracting greater commercial airlift to The Bahamas in the belief this sector brings in more tourists they ignore private aviation at their peril. He added that one ultra high net worth individual brought in by private plane could outspend all passengers on a commercial jet combined.
“It’s something we need to be very cautious about,” he warned of the fee hikes.
“If you look at the yachting industry and what happened when the taxes increased there they moved
on to other destinations. It could be very similar for the aviation.
“It’s a lot more sensitive and a lot more diverse than just a family flying into The Bahamas. Aviation is very important for the lifeblood of our country... It’s an industry that needs to be nurtured and not taken for granted.”
Besides distributing high-spending tourists to the more far-flung Family Islands that are off the beaten track for commercial visitors, Mr Aranha said private pilots and general aviation also provide extra connectivity for the locals living in those locations. The sector also helps to transport workers from Nassau to the Out Islands to effect critical infrastructure repairs much more quickly.
“It’s a critical element of responding to natural disasters,” the Trans-Island Airways chief said of private aviation. “When we had disasters like hurricanes Joaquin, Matthew or Dorian, it’s the private planes that are instantly the first ones to spring into action to help.
“We want these pilots to feel welcome in our country
because when it comes time to help us we don’t want them to feel alienated when we need them to help. Often the industry is overlooked, and what we’ve seen with successive governments is they view the larger commercial airlines as the lifeblood because they deliver hundreds of thousands of passengers per year. “But don’t overlook the small planes that bring in ultra high net worth individuals because some of them could outspend an entire airliner.” One private pilot estimated The Bahamas could lose between “50,000-100,000 flights per year right now because of the fees” being increased. Private planes brought 323,000 air arrivals, or one out of every six higherspending stopover visitors, to this nation in 2023. Some 95,000 of that number came from Florida alone and, giving an insight into what is at stake, the total was more than combined visitor numbers from Canada, Europe and Latin America. The Customs Management (Amendment) Regulations 2024 changed the aircraft inbound and outbound fee structure such
Realtor beats 2023 full year with first half sales
in a short time you will have a fully built-out community.
“We have building guidelines and restrictions to ensure buildings meet certain standards, which will protect the integrity of the community and protects property values as well. It also speeds construction up.”
Mr Knowles said the first of three storage buildings, each containing 40 units, “is about to be completed
FROM PAGE B1 NOTICE
in the next two weeks” and turned over to the Windsor Lakes developers. He added that around half the units in the first property “are spoken for”, in terms of being sold and leased, and the remainder will be marketed once it is finished to meet the demand for storage space in that part of New Providence.
“There’s going to be a total of 120 units when it’s completed,” the Maison Bahamas chief said of the
HELIZ HOLDINGS LTD. (In Voluntary Liquidation)
NOTICE IS HEREBY GIVEN as follows:-
A. In accordance with Section 138(4) of the International Business Companies Act, 2000 (No. 45 of 2000) HELIZ HOLDINGS LTD. (the “Company”), is in dissolution.
B. The dissolution of the Company commenced on the 23rd day of July, 2024 when its Articles of Dissolution were submitted to and registered by the Registrar of Companies of the Commonwealth of The Bahamas.
C. The Liquidators of the Company are TONI Y. GODET and CELESTE F. MITCHELL both of Harbour House, Western Road, Lyford Cay, P. O. Box N-7776 (Slot 193), New Providence, The Bahamas.
D. Creditors having debts or claims against the abovenamed company are required to send particulars thereof to the undersigned at P. O. Box N-7776 (Slot 193), New Providence, The Bahamas to be received on or before the 8th day of August, 2024. In default thereof, they will be excluded from the benefit of any distribution made by the Liquidators.
Dated the 24th day of July, 2024.
TONI Y. GODET and CELESTE F. MITCHELL Liquidators
three buildings, adding that they will have separate entrances and access points from the Windsor Lakes residential with fences also keeping them apart physically.
Suggesting that construction on the two other storage buildings could also begin shortly, Mr Knowles added: “We’re going to wait to get this one and work out the kinks to ensure everything works the way it was anticipated. If we see enough demand we will get going right away. This one, the guinea pig is now complete, and we will understand all the kinks the next two will face.”
With utilities installation poised to start imminently,
he confirmed that the Windsor Lakes developers are still planning a $15m investment in a commercial complex that will form the project’s final phase.
“That’s still definitely in the plans for a later phase of the development,” Mr Knowles told Tribune Business.
that it appears a private plane with more than four seats now pays three times’ what a regularly scheduled commercial jet does. Under the new fee structure, commercial jets have to pay a $50 “inbound” and $50 “outbound” fee for a total of $100. However, a private plane with four seats or less “including all seats in the cabin” is now faced with paying $75 each way for a total of $150. That is slightly more than the $100 fee for a commercial jet, but private aircraft with more than four seats “including all seats in the cabin” now face having to pay $150 “inbound” and “outbound” fees to Customs for a total $300. So-called “recreational” flights will only pay $150 “inbound”, but cargo flights will see a $150 fee levied on both “inbound” and “outbound” trips involving The Bahamas.
For private planes and private aviation, the fee increases represent a threefold and six-fold increase, respectively, on the previous Customs fee structure which was $50 “inbound” and zero “outbound”.
start in January 2025 and be completed after the first quarter’s end in April next year.
Along with the developers’ planned model homes, Mr Knowles said around three to four residential buyers were hoping to start work on their properties “at the same time. Quite a number of buyers intend to build as soon as they can.
“We expect to be busy with construction next year right through 2025 into 2026,” he added. “By the time the developer is ready to pull the trigger on the commercial centre there will be quite a number of residents who have moved in and more homes will be underway.” Construction of the clubhouse and other amenities is expected to
“That’s probably realistically a couple of years away from commencing. It will comprise retail on the ground floor, office space on the second floor and restaurant space on the third floor. I believe the number is around $15m, but we want to establish the residential side of things first, build critical mass and have the flow of people we need to sustain the business. But we expect to get there pretty quickly.”
“People have bought into the vision of the community and bought into the location,” Mr Knowles said. “It’s really unique. It has exceeded expectations, but we realise now we have something truly special. The market has responded to that. As soon as we get one of the homes going that is going to further accelerate sales, and we expect to have another major boost in sales and a price increase.”
Windsor Lakes is presently selling lots at prices between $225,000 and $350,000, with the cost of a home construction package ranging from $1.2m to $1.5m.
IT outage gives ‘horrific’ small business impact
card payments not available. Customers went to the store but couldn’t buy any product,” he added.
“Put it this way, they had to ask the customer are you paying in cash or are you paying by debit or credit card before they began the sales transaction. Those who were paying by card were told that the machine was down so they often left without spending anything.
“You’re talking about 10-15 clients at each business who walked out the door. When it comes to the sales loss itself, they don’t know because they let the customer know in advance the card machine was not
working,” Mr Turnquest continued.
“I can tell you one thing. It need not happen again. Small businesses, they don’t encourage the use of cash. They encourage credit card purchases to reduce the threat or robbery.” Mr Turnquest said most of his clients and members conduct two-thirds of their consumer-related transactions with credit and debit cards rather than cash.
“It was a huge impact because a lot of our clients use the 65/35 percentage split between credit and debit card payments compared to cash,” he added. “The ratio is severe. And there’s no back-up plan. What are you going to
move from? It’s come inside and bring more cash, and we’re trying to discourage cash because of the robbery threat.
“The business continuity plan is to encourage customers to bring cash and credit and debit cards to their business. The problem is small businesses don’t have the type of resources to have a back-up plan. We have a problem if BPL goes down. The majority of customers I work with, retail clothing and electronic stores, they have more card sales than cash sales.”
Mr Turnquest said the use of electronic payments is only set to grow as electronic wallets and digital providers become more
popular, while the Sand Dollar, the Central Bankbacked digital version of the Bahamian dollar, also expands. Friday’s woes were caused by CrowdStrike, the cyber security firm, implementing a faulty upgrade that rendered clients’ Microsoft Windows systems largely inoperable.
Keith Roye II, Plato Alpha Design’s chief operating officer, told Tribune Business: “I think most definitely it’s a great wake-up call not only for businesses globally but businesses in The Bahamas. I believe companies, first of all, need to look at the level of access and level of control vendors have, and what is done
SENATE TO CONSIDER BILLS THAT AIM TO PROTECT CHILDREN AND TEENAGERS ONLINE
By MARY CLARE JALONICK Associated Press
THE Senate will consider legislation this week that aims to protect children from dangerous online content, moving forward with what could become the first sweeping new regulation of the tech industry in decades.
Majority Leader Chuck Schumer announced Tuesday that he will bring the bipartisan bill up in the Senate, with hopes of passing it before the chamber leaves for its August recess. The legislation had stalled for months even as more than two-thirds of the Senate signed on to support it and families of children who have suffered online bullying and harm advocated for its passage.
Schumer said on the Senate floor that the bill is "personal" for him after meeting in recent months with parents of children who died by suicide after they were harassed online, targeted by predators or had their information stolen. The parent advocates say social media and other tech companies need to do more to try to help prevent trauma endured by
children and teenagers who inevitably spend a lot of their time online.
"Social media has helped hundreds of millions of people connect in new ways over the last two decades," Schumer said. "But there are also new and sometimes serious health risks that come along with those benefits. We cannot set these risks aside. On this issue, we desperately need to catch up."
The online safety bill, which the Senate will consider along with a separate bill to update child online privacy laws, would be the first major tech regulation package to move in years. While there has long been bipartisan support for the idea that the biggest technology companies should face more government scrutiny, there has been little consensus on how it should be done. Congress passed legislation earlier this year that would force Chinese-owned social media company TikTok to sell or face a ban, but that law only targets one company.
The bill's prospects in the House are so far unclear. But if it passes the Senate with an overwhelming bipartisan vote — as it is expected to — advocates
hope it will put pressure on House Speaker Mike Johnson, R-La., to bring it up before the November election or the end of the session in January.
"I think a strong vote in the Senate helps to move it quickly in the House," said Tennessee Sen. Marsha Blackburn, a Republican who wrote the bill with Democratic Sen. Richard Blumenthal of Connecticut.
The child safety bill came together as Blumenthal and Blackburn have worked together and with advocacy groups for several years on compromise legislation that is designed to hold companies more responsible for what children see online while also ensuring that Congress does not go too far in regulating what individuals post.
The legislation would create what is called a "duty of care" — a legal term that requires companies to take reasonable steps to prevent harm on online platforms minors will likely use. The companies would be required to mitigate and even prevent harms to children, including bullying and violence, the promotion of suicide, eating disorders, substance abuse, sexual exploitation and
Visa's fiscal third-quarter profits rise 9% as payments become increasingly digital
By KEN SWEET AP Business Writer
PAYMENT processing
giant Visa Inc. said Tuesday that its fiscal third-quarter profits rose 9% on an adjusted basis, as it benefits from consumers and businesses moving their payments from cash to credit and debit cards. The San Francisco-based company said it earned $4.87 billion, or $2.40 a share, compared to a profit of $4.16 billion, or $2.00 a share, in the same period a year earlier. Excluding one-time items, Visa earned $2.42 a share, which was in line with what analysts had expected, according to FactSet.
Visa processed $3.325 trillion in transactions on its network during the quarter, up 7.4% from a year earlier. Much of the payments growth came from Europe and Latin America, but U.S. payments grew by 5.1%, which is faster than U.S. economic growth. Visa earns a fee from every transaction processed on its network. That fee varies from industry to industry, and whether it's done with a credit or debit card, but generally it is somewhere between 1% to 4%. Since the pandemic, more consumers globally have been shopping online for goods and services, which has translated into
more revenue for Visa in the form of fees. Even traditionally cashheavy businesses like bars, barbers and coffee shops have started accepting credit or debit cards as a form of payment. But while the world continues to move toward digital payments, the pace of adoption may be slowing slightly. Visa reported that credit and debit card payment volumes growth slowed from 8% to 7%. That may be partially due to the size of Visa's market getting too big to grow as quickly as it once did, but it also could be because there are fewer new industries for Visa to switch over to digital.
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in terms of giving persons access to their systems.”
Calling for companies to maintain a “zero trust” stance when it comes to access to their data and systems, he added that the private sector may also need to consider outsourcing IT functions if they lack the necessary in-house expertise and resources.
“It is always important, and gets even more important as your company grows and you start to service more and more customers,” Mr Roye said. “When a company starts out, you may not have the resources to hire an internal IT team.
“But as time goes on and your revenue increases, company heads must put
serious thought into hiring full time competent IT staff. It is also prudent to know where your team is strong and where you may have to continue outsourcing to external service providers.
“Data security is very important,” he added “Not only that but data ownership and system control. By doing this you then limit the damage an issue like this would cause. You wouldn’t allow auto updates to all of your systems, like what happened to many companies in this case, even if they are a trusted vendor without first persons on your internal staff reviewing and verifying the update.”
advertisements for illegal products such as narcotics, tobacco or alcohol.
To achieve that goal, social media platforms would have to provide minors with options to protect their information, disable addictive product features and opt out of personalized algorithmic recommendations. They would also be required to limit other users from communicating with children and limit features that "increase, sustain, or extend the use" of the platform — such as autoplay for videos or platform rewards.
In general, online platforms would have to default to the safest settings possible for accounts they believe belong to minors. The idea, Blumenthal and Blackburn have said, is for the platforms to be "safe by design."
The senators have worked closely with the parents of children who have died by suicide after cyberbullying or otherwise been harmed by social media, including dangerous social media challenges, extortion attempts, eating disorders and drug deals. Schumer appeared with some of them Tuesday at a tearful news conference,
to have enough bipartisan support to pass, though whether it actually will remains uncertain.
choking up a bit himself as some of the mothers held up photos of their children.
Maurine Molak, the mother of a 16-year-old who died by suicide after "months of relentless and threatening cyberbullying," said at the news conference that she believes the bill can save lives. She urged every senator to vote for it.
"Anyone who believes that children's well-being and safety should come before big tech's greed ought to put their mark on this historic legislation," Molak said.
Some tech companies, like Microsoft, X and Snap, are supporting the bill. Opponents, however, fear it would violate the First Amendment and harm vulnerable kids who wouldn't be able to access information on LGBTQ issues or reproductive rights — although the bill has been revised to address many of those concerns, and major LGBTQ groups have decided to support the proposed legislation. With 70 senators already backing the legislation, it is almost certain to pass overwhelmingly.
ISABELLA CIMATO, 17, from left, Arianna Schaden, 14, and Sofia Harrison, 15, check their phones at Roosevelt Field shopping mall in Garden City, N.Y., on July 27, 2015. The last time Congress passed a law to protect children on the internet was in 1998, before Facebook, the iPhone and long before today’s oldest teenagers were born. Now, a bill aiming to protect kids from the harms of social media, gaming sites and other online platforms appears
Photo:Seth Wenig/AP
SEVERAL VISA and MASTER credit cards are shown in Buffalo Grove, Ill., Feb. 8, 2024. Visa reports earnings on Tuesday, July 23, 2024.
Photo:Nam Y. Huh/AP
Tesla’s 2Q profit falls 45% to $1.48 billion as sales drop despite price cuts and low-interest loans
By TOM KRISHER AP Auto Writer
TESLA'S second-quarter net income fell 45% compared with a year ago as the company's global electric vehicle sales tumbled despite price cuts and lowinterest financing.
The Austin, Texas, company said Tuesday that it made $1.48 billion from April through June, less than the $2.7 billion it made in the same period of 2023. It was Tesla's second-straight quarterly net income decline.
Second quarter revenue rose 2% to $25.5 billion, beating Wall Street estimates of $24.54 billion, according to FactSet.
Excluding one time items, Tesla made 52 cents per share, below analyst expectations of 61 cents.
Shares of Tesla fell about 8% in trading after Tuesday's closing bell. The shares had been down more than 40% earlier in the year, but have since recovered most of the losses.
Earlier this month Tesla said it sold 443,956 vehicles from April through June, down 4.8% from 466,140 sold the same period a year ago. Although the sales were were better than the 436,000 that analysts had expected, they still were a sign of weakening demand for the company's aging product lineup.
For the first half of the year, Tesla has sold about 831,000 vehicles worldwide, far short of the more than
1.8 million for the full year that CEO Elon Musk has predicted.
The company's widely watched gross profit margin, the percentage of revenue it gets to keep after expenses, fell once again to 18%. A year ago it was 18.2%, and it peaked at 29.1% in the first quarter of 2022.
Tesla said it posted record quarterly revenue "despite a difficult operating environment." The company's energy-storage business took in just over $3 billion in revenue, double the amount in the same period last year.
CEO Elon Musk, who has tried to portray Tesla as an autonomous vehicle,
robotics and artificial-intelligence company, told analysts on a conference call that the company's "Full Self Driving" system should be able to run without human supervision by the end of this year, although he acknowledged that his predictions "have been overly optimistic in the past."
At present, "Full Self Driving" is being tested on public roads by some Tesla owners. The company says it cannot drive itself and human drivers must be ready to intervene at all times.
For many years Musk has said the system will allow a fleet of robotaxis to generate income for the company
US is investigating Delta’s flight cancellations and faltering response to global tech outage
and Tesla owners, making use of the electric vehicles when they would have been parked. Musk has been touting self-driving vehicles as a growth catalyst for Tesla since "Full Self Driving" hardware went on sale late in 2015.
But in investigative documents, the U.S. National Highway Traffic Safety Administration said it found 75 crashes and one death involving "Full Self Driving." It's not clear whether the system was at fault.
Later, Musk said he did not think approval by government regulators would be a limiting factor in deploying robotaxis. "If you've got billions of miles
By DAVID KOENIG and MATT OTT AP Business Writers
U.S. regulators are investigating why Delta Air Lines failed to recover as quickly as other airlines from a global technology breakdown and whether Delta's treatment of passengers stranded by canceled and delayed flights violated federal rules.
THE TESLA logo appears on an unsold 2020 Model X at a dealership, Feb. 2, 2020, in Littleton, Colo. Tesla’s second-quarter net income fell 45% compared with a year ago as the company’s global electric vehicle sales tumbled despite price cuts and lowinterest financing.
that show that in the future, unsupervised FSD is safer than humans, what regulator could really stand in the way of that?" he asked.
Musk told analysts he postponed the company's August robotaxi unveil until Oct. 10 to make changes to improve the vehicle. He also said Tesla will show off a "couple of other things" at the event.
Musk said he expects Tesla to begin limited production of the Optimus humanoid robot early next year for use by Tesla. The robot already is doing work at a factory. In 2026, production would ramp up more to send robots to outside customers, he said.
Musk also said the company is on track to deliver its new more affordable vehicle in the first half of next year. The company, he said, wants to wait until after the U.S. presidential election before deciding whether to build a new factory in Mexico. Republican nominee Donald Trump has threatened to slap tariffs on autos made in Mexico, so it wouldn't make sense to build there in that case, Musk said. Musk has endorsed Trump.
Morningstar analyst Seth Goldstein attributed the large stock drop to Tesla giving little new specific
Transportation Secretary Pete Buttigieg on Tuesday announced the investigation into Delta's response to the outage, which he said has affected more than half a million of the airline's passengers.
A Delta official said the airline expects to return to normal operations by the end of the week.
Delta and its Delta Connection partners canceled more than 500 flights Tuesday. That was down by more than half from Monday but still accounted for nearly two-thirds of all canceled flights in the United States, according to tracking platform FlightAware.
Many airlines were affected when cybersecurity company CrowdStrike sent a faulty update to more than 8 million Microsoft computers around the world late last week. Most of them reduced cancellations to roughly normal levels by the end of the weekend.
Atlanta-based Delta and its partners have canceled more than 6,500 flights since Friday, far more than any other airline, according to figures from FlightAware and travel-data provider Cirium.
Buttigieg said his department will investigate "how it could be that days after the other airlines are back to normal, Delta is still canceling hundreds of flights."
At a news conference, Buttigieg said the Transportation Department will also examine Delta's customer service, including "unacceptable" lines for customer service and reports that unaccompanied minors were stranded at airports. He said the department has received more than 3,000 complaints about the airline's breakdown.
Delta said it was cooperating with the investigation.
Photo:David Zalubowski/AP
information on vehicles or tangible financial targets. "Maybe some investors are saying 'you know, we didn't get more details from management,'" Goldstein said. Although the next scheduled catalyst that could move the stock is now the robotaxi event in October, Goldstein said Musk could share details of new products on X, his social media platform. "Elon Musk could share details of Tesla's progress," he said. "That could be a catalyst for the stock on any given day."
During the quarter, Tesla's revenue from regulatory credits purchased by other automakers who can't meet government emissions targets hit $890 million for the quarter, double Tesla's amount of most previous quarters.
The company reported $622 million in "restructuring and other" expenses for the quarter, when it laid off over 10% of its workforce.
Tesla said in a note to investors that it's between two major growth waves, with the next one coming through advances in autonomous vehicles and new models. But the company reiterated caution that its sales growth "may be notably lower than the growth rate achieved in 2023."
"We remain entirely focused on restoring our operation after cybersecurity vendor CrowdStrike's faulty Windows update rendered IT systems across the globe inoperable," an airline spokesperson said in a statement. "Across our operation, Delta teams are working tirelessly to care for and make it right for customers" affected by the disruptions. John Laughter, Delta's chief of operations, said the airline was moving planes, pilots and flight attendants "to where they need to be so we can return to normal operations by the end of the week."
The collapse at Delta has been stunning for an outfit that was widely viewed as the best big U.S. airline — the most profitable before and after the pandemic, and the best-run. In recent years, Delta has almost always ranked near the top among all U.S. carriers for on-time performance.
Delta appears to rely more than other airlines on systems that run on Microsoft Windows. The airline said upward of half its technology systems are Windows-based, including a key tool used to schedule pilots and flight attendants. That system could not keep up with the high number of changes triggered by the outage.
Delta said late Tuesday that a backlog of "issues" in the crew-scheduling system was reduced by 75% over the last 36 hours, and the airline was also making progress in returning lost bags to their owners.
In addition to probing the cause of Delta's collapse, investigators are likely to focus on whether Delta is complying with federal requirements such as offering prompt refunds to passengers whose flights are canceled or significantly delayed.
Photo:
A torrent of profit reports leaves Wall Street mixed as small stocks keep rising
By STAN CHOE AP Business Writer
U.S. stocks held relatively steady in a calm Tuesday on Wall Street, as earnings reporting season ramped up for big companies.
The S&P 500 slipped 8.67 points, or 0.2%, to 5,555.74.
The Dow Jones Industrial Average edged down by 57.35, or 0.1%, to 40,358.09, and the Nasdaq composite dipped 10.22, or 0.1%, to 17,997.35.
But the smaller stocks in the Russell 2000 continued their big run and rose 1%.
They've flipped the market's leaderboard recently and zoomed higher amid hopes for coming cuts to interest rates.
Comcast dropped 2.6% after reporting revenue for the spring that fell short of expectations. Its biggest declines came from lower attendance at its U.S. theme parks and from its studios business, which didn't have as big hits as last year's "The Super Mario Bros." and "Fast X" movies.
Helping to offset those losses was GE Aerospace, which flew 5.7% higher after beating analysts' forecasts for profit in the spring and raising its forecast for earnings over the full year.
stronger profit for the latest quarter than expected. It said it's seeing growth in demand for paint from new residential customers, and it expects the momentum to continue through the year.
That's despite high mortgage rates having chilled the housing industry. A report on Tuesday showed sales of previously occupied homes weakened by even more in June than economists expected. Sales slowed in part because prices for previously occupied homes are at the highest ever recorded, according to the National Association of Realtors.
Treasury yields have sunk since the spring on such expectations, and they remain below their heights reached in April. The yield on the 10-year Treasury held steady at 4.25%, where it was in late Monday trading.
UPS was one of the heaviest weights on the S&P 500 and tumbled 12.1% after delivering weaker profit and revenue for the spring than analysts expected.
But CEO Carol Tomé said the company's U.S. business delivered more packages than a year earlier, its first such growth in
The mixed trading came as dozens of companies reported their results for the spring, with the headliners of Alphabet and Tesla coming after trading closed for the day. Expectations are high, and analysts are forecasting the strongest profit growth for S&P 500 companies broadly since late 2021, according to FactSet.
nine quarters, and called it a "significant turning point for our company."
Nvidia was the stock most forcefully pushing downward on the S&P 500. Its loss of 0.8% for the day was relatively modest, but the S&P 500 gives more weight to bigger stocks, and Nvidia is worth more than $3 trillion.
Zions Bancorp. jumped 6.2% after reporting better profit for the latest quarter than expected. It and stocks of other regional banks continue to recover from the industry's mini- crisis that began in March 2023, triggered by the punishing effects of high interest rates.
Sherwin-Williams is another company that's felt the pain of high interest rates meant to get inflation under control. It climbed 6.9% after delivering
Easier times may be ahead for rates. With inflation slowing, the wide expectation on Wall Street is for the Federal Reserve to begin lowering its main interest rate in September. That would offer some relief for both the economy and financial markets after the Fed has held the federal funds rate at the highest level in more than two decades.
Hopes for coming cuts to rates have particularly helped smaller stocks recently. They can get bigger benefits from lower rates than their bigger rivals. It's a sharp turnaround for smaller stocks, which lagged badly behind their bigger rivals, headlined by a small group known as the "Magnificent Seven," for a while. Analysts see it as an encouraging signal when more stocks are participating in a rising market, rather than just a few dominant elites. Companies' profits will broadly need to hit a high bar of expectations in order to keep the U.S. stock market near its records, particularly as critics say stocks don't look cheap after rising so much.
THE NEW York Stock Exchange is shown on May 16, 2024, in New York.
