Bahamian marinas were yesterday said to be facing “the worst US Labour Day weekend we’ve seen in the last decade” with electricity costs up 25 percent “over usage” under BPL’s new rate structure.
Peter Maury, the Association of Bahamas Marinas (ABM) president, told Tribune Business that the industry is “hanging in there” amid ever-escalating cost and booking fall-off pressures while describing present business volumes as “very slow”.
With larger marinas, which rely more heavily on transient boats passing through, “not seeing the numbers they have in the past”, he explained that this did not bode well for ABM members and others in the central and southern Bahamas because they are typically “fed” by their Nassau counterparts.
Mr Maury blamed the drop-off on several factors, telling this newspaper
that increased fuel, utility and grocery costs were likely making US boaters question whether visiting The Bahamas is “just too expensive now” especially when combined with the increase in foreign yacht charter fees/taxes and the cumbersome process involved in clearing and entering this nation.
“I think I can safely say this is probably going to be the worst Labour Day
we’ve seen so far in the last decade for sure,” the ABM president told Tribune Business. “All you’ve got to do is look around the marinas. There’s not a lot of boats in The Bahamas right now.
“The big transient marinas that support the boats that travel to the Out Islands, the island groups, are definitely down for this summer. From here in Nassau, in the central
Bahamas and southern Bahamas, for Labour Day it’s going to be very slow.
“You have boats that stay here typically at a lower rate on longer stays, but the bigger marinas as far as rates go depend on the transient boats coming in and spending time, and they are definitely a lot less. We know that the transient marinas, which depend on
Ocean Club plans 30-day temporary closure
By FAY SIMMONS Tribune Business Reporter
A HIGH-END Paradise Island resort is set to temporarily close for 30 days to permit upgrades to two restaurants, it was revealed yesterday.
Darrin Woods, the Bahamas Hotel, Catering and Allied Workers Union’s (BHCAWU) president, confirmed to Tribune Business that the Ocean Club, a Four Seasons-branded property, will soon close to guests for around four weeks with the majority of staff asked to take their vacation entitlement during this period. The Ocean Club has yet
to confirm the closure dates for when the work will be carried out or provide further details. This newspaper made numerous attempts to reach John Conway, the Ocean Club’s general manager, for
AUTO CHIEF: NO ALARM ON ‘30% DIP’ IN USED CARS
back-to-school as tourism enters its slower season.
* Move to enable restaurant upgrades
* Union: Most staff told to take vacation
* BHCAWU to ‘monitor’ 4-week shutdown
comment but no reply was received before press time last night.
However, Mr Woods, whose union is the bargaining agent for the property’s line staff, said some employees will continue to work on-site during this temporary closure although no guests will be present.
“Some persons are still going to be working,” said Mr Woods. “They have a small crew of persons that will be working in areas
like the cooks, some of the engineers and, of course, some of the housekeeping people.”
He explained that these workers will handle essential tasks such as clearing and breaking down rooms, and preparing them for reconfiguration. “Persons will have to stay behind to clear up and break down the rooms, and then some people will have to come back earlier in order to set the rooms back up and the area,” Mr Woods added.
“So, while they say four weeks, that means that no guests will be in that space for that period, but employees will still be working.” Mr Woods said the majority of employees will be taking vacation during this period, and his members will not “lose” anything as the temporary closure will align with their scheduled vacation period.
“Mainly persons who don’t have sufficient
By NEIL HARTNELL
A TRADE union leader yesterday defended the near-$1.9m total damages awarded to five former Gaming Board staff for wrongful and unfair dismissal as “not out of whack”.
Obie Ferguson KC, the Trades Union Congress (TUC) president who served as their legal representative in the dispute with the casino and web shop regulator, told Tribune Business the award by the Supreme Court was “very reasonable” despite representing another liability that either the Gaming Board’s licensees or Bahamian taxpayers must pay.
The five - Kayla Ward, Georgette Johnson, Latoya Knowles, Dwaynel Archer and Hope Miller - were among 24 former Gaming Board employees who thensenior justice Indra Charles ruled were wrongfully and unfairly dismissed between October 2017 and February 2018 following the Minnis administration’s election to office.
Edmund Turner, the Supreme Court’s deputy registrar, in a June 6, 2024, verdict found the five were entitled to a combined $1.895m as compensation for the loss and damages they had suffered, with that figure also including interest on the sums awarded.
Breaking this down, he awarded Ms Ward some $442,363 in damages plus just over $150,000 in interest for a total payout of
THE Bahamas Motor Dealers Association’s (BMDA) president yesterday said a recent “30 percent dip” in his firm’s used vehicle sales is no cause for alarm amid plans to close 2024 “with a bang”. Ben Albury, also Bahamas Bus and Truck’s general manager, told Tribune Business that the drop in his dealership’s pre-owned vehicle sales over the past two months is “where we expect it to be at this time of year” as potential buyers switch their priorities to financing
Voicing optimism that the annual Auto Show at the Mall at Marathon, scheduled for October 18-19, will generate renewed consumer demand through the remainder of 2024, he added that industry-wide new car sales remain “definitely ahead of last year” with the latest figures set to be produced imminently.
However, Mr Albury told this newspaper that a everescalating costs - including “outrageous” shipping fees and “probably a 30 percent increase” in energy costs under Bahamas Power &
SHIPYARD TO GENERATE 1,200 JOBS WITH $665M EXPANSION
industry and boost the island’s economy via $350m in “total economic output”.
THE majority of the 1,200 jobs set to be created by the Grand Bahama Shipyard’s $665m dock expansion will go to fulltime Bahamian workers, the Prime Minister said yesterday. Speaking at the Government’s signing of a Heads of Agreement for the redevelopment, Philip Davis KC said the $665m capital investment by the Shipyard and its shareholders will “reaffirm” Grand Bahama’s place in the maritime
“This is an investment that will repair crucial infrastructure, catalyse the island’s economy and reaffirm this very special island’s prominent role in the maritime industry. We are re-establishing Grand Bahama as a regional and trans-Atlantic shipping hub, ranked among the top shipping operations in the world,” he added. The project is expected to generate billions of dollars in economic impact for
DARRIN WOODS
Consequences of contractual hiring
By IAN FERGUSON
OVER the past 30 years, many companies in both the private and public sectors have struggled with whether they should hire full-time permanent and pensionable employees or engage contractual staff on a short-term basis. Our column today addresses the drawbacks of contractual work for the impacted team member, as well as the benefits to companies from hiring contracted employees.
Disadvantages:
* Lack of Job Security
Work is supposed to provide people with some sense of security. No one wants to live not knowing whether their financial status will, or can, change at the drop of a hat.
* Inconsistent Income Sometimes contractual work is for short periods, or occurs sporadically when a specific project arises. Bills and overhead expenses, however, are constant.
* Limited Career Progression Consultants and contracted workers are just that. There is usually no clear path towards upward workplace mobility in these roles. This can certainly create a strong sense of dissatisfaction for the worker.
* Isolation and Lack of Team Integration In situations where a company has both pensionable and contracted employees, there often exists an ‘us versus them’ scenario. Contracted employees usually find themselves on the outside looking in without
benefits or any real degree of stability. Contention and discontent breeds.
* Legal and Regulatory Challenges
Because contracted workers are not governed entirely by the company’s culture, handbook and regulations, there may arise some protocol breaches that result in legal and regulatory challenges. Naturally, the greatest benefit to contractual employees is the level of flexibility that consultative work provides. Many people dislike being confined to desks, or restrictive long-term work engagements. Additionally, there are many benefits to the company. Here is a short list:
* Reduced long-term labour costs
Contract employees are a temporary solution, and do not require an annual
salary. You can manage your staffing budget more carefully when you hire workers as you need them.
* Shorter hiring process
Sometimes the onboarding process for long-term employees can be exhaustive. Short-term contractual engagements are less tedious and can be expedited rather quickly.
* Fresh perspectives
The new injection of fresh eyes and minds can give the company a different perspective on how you do business. This is why meaningful college internship engagements and other similar programmes are so encouraged.
* Highly skilled, niche experience
Your company can experience an immediate impact when you have the ability to contract specialised skills for a specific period of time.
The firm may not have the scale to hire a fulltime lawyer, accountant or human resources professional, but you can certainly benefit quickly by placing one on a retainer for weekly or monthly consultation. a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organisations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@ coralwave.com
Tourism arrivals jump 14% to 5.7m for 2024 half-year
THE Bahamas enjoyed a 14 percent year-over-year increase in total visitor arrivals to 5.7m for the 2024 half-year, it was disclosed yesterday.
The Ministry of Tourism, Investments and Aviation revealed the statistics in a statement issued ahead of its participation in next week’s State of the Tourism Industry Conference (SOTIC) where it pledged to tout this performance amid expectations that The Bahamas will beat last year’s 9.6m visitor arrivals for the 2023 full-year.
The SOTIC summit will be held from September 2-6 at the Westin Grand Cayman Seven Mile Beach Resort & Spa.
The Ministry, pointing out that 2023’s sea arrivals jumped by 43 percent to
a record 7.9m, said: “This upward trend has continued into 2024, with a notable 14 percent increase in foreign air and sea arrivals from January to June compared to the same period in 2023, translating to more than 5.7m visitors in six months.”
The focus on arrivals numbers has come under fire from Michael Pintard, the Opposition’s leader, and others who have argued that the key to assessing tourism performance is overall visitor spending, how this is distributed and whether it is being felt by industry employees and the wider economy.
The Government, though, has pegged visitor spending at $6bn.
However, concerns have also been voiced that the growth in arrivals figures
was driven through 2023 and past years solely by cruise arrivals whose average per capita spend is 28 times’ less than that of higher-yielding stopover visitors.
The tourismanalytics. com website shows total air arrivals to The Bahamas for the first five months of 2024 through May increased by 3.9 percent year-over-year, rising from 790,368 for the same period in 2023 to 821,334 this time around.
However, basing its analysis on data provided by the Ministry of Tourism and Lynden Pindling International Airport (LPIA), the site continues to show a 2.8 percent year-over-year decline in stopover visitorsthose that spend more than one night in the destination - from 669,161 to 650,371
- for the first four months of 2024.
The decline was shown to have been driven solely by a fall-off in US stopovers, which represented 82.3 percent or more than four out of every five visitors. Their numbers fell by 8.9 percent year-over-year, from 587,790 in 2023 to 535,344 for the first four months of 2024, while all other source markets - Europe, Canada and the UK - expanded.
Cruise arrivals, meanwhile, expanded by 16 percent for first port of entry during the first five months of 2024, increasing from 3.385m in 2023 to 3.929m this time around.
“To drive continued growth in both new and repeat visits, we have implemented a strategy tailored to the evolving expectations
of today’s travelers,” said Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, in yesterday’s Ministry release. “Apart from the recent launch of direct flights from major markets across the US to not only Nassau but across the destination, the continued expansion of our cruise ports and the beautification of downtown, among other strategic developments, all solidify
The Bahamas’ place as a leading tourist destination.”
Latia Duncombe, the Ministry of Tourism’s director-general, added:
“Our success is built on a foundation of innovation, collaboration and unwavering commitment to continually enhancing our diverse tourism offerings,
ensuring that visitors are eager to return.
“As we continue to break records and set new standards, we are not only responding to the needs of today’s travellers but also shaping the future of tourism in The Bahamas. SOTIC provides an invaluable platform for sharing insights, forging partnerships and driving the regional strategies that will ensure our continued success in a competitive global market.”
The Bahamas saw 9.6m total visitors in 2023 which represented a 38 percent jump from 2022, and a 33 percent increase compared to 2019. While foreign air arrivals rose 17 percent to 1.7m in 2023, sea arrivals that year surged 43.5 percent to 7.9m.
GB BUSINESSMAN FEARS KEY BRIDGE NOW ‘AT 50%’
By FAY SIMMONS Tribune Business Reporter
A GRAND Bahama business proprietor yesterday voiced fears that a key bridge for many businesses and residents is “at 50 percent” and “could collapse any time on the western side”.
Tony “Zip” Hanna, owner of Tony Macaroni’s Conch Experience, said the dilapidated Taino Bridge, the only connection between ‘mainland’ Freeport and his Taino Beach business, has been steadily deteriorating for the past
30 years and argued that the Grand Bahama Port Authority (GBPA) and its affiliates have not done enough to arrest it.
“The bridge started to deteriorate about 30 years ago, with two boats hitting the bridge. The Port Authority didn’t do anything about it then, and they’re still not doing anything about it now,” said Mr Hanna.
“Over the past 20 years, the bridge has gone from 90 percent to - right nowit’s a 50 percent. It is going to collapse on the western side, which is on the Lucaya side. It could collapse any
time, because water settling there right now.”
Mr Hanna argued that the bridge’s foundation is damaged due to the surrounding vegetation’s growth. “About 25 years ago, the pine trees and the bush start to grow on the bridge,” he explained.
“They removed the trees, but they cut the trees to the point where the roots were not destroyed.
“So the trees continued to grow under root and, about five years later, they started growing again. The bridge started to crack from the tree roots invading the cement. After that point,
there was no turning back to the bridge. It was simply a matter of deteriorating over time.”
Mr Hanna said if the bridge collapses, or has to be closed, it will not only affect businesses on Taino Beach but around 40 homeowners. He added that water and electricity connections will be lost too.
“There will be no water, the power is connected there,” he added. “The poles around that bridge will go with the bridge when it goes down. The people who live in Sweeting’s Point are going to be totally affected by that. The 40 homeowners who are on this island, along with the apartment owners, we’re in serious trouble if that bridge goes.”
Mr Hanna said the GBPA must do better in maintaining Freeport’s infrastructure. “They’ve been superficial in proclaiming they’re doing something. They give you this superficial stuff... Oh, the Government is doing this, and the Port is trying to do this,” he added.
The GBPA and its affiliates, namely the Grand Bahama Development Company (DevCO) and Lucaya Service Company (LUSCO), are being urged to undertake extensive and immediate repairs to the Taino Bridge.
LUSCO, in a notice issued on August 20, 2024, warned boaters that the “water passage” beneath Taino Bridge was closed due to the need to effect repairs. “LUSCO advises operators of marine vessels of all types that, as a preventative measure and safety precaution, the Taino Bridge water passage is closed due to repairs required to the Taino Beach Bridge,” it added.
“Mariners in the Fortune Bay area may exit the Fortune Bay canal entrance and navigate along the southern shore of the island to the Bell Channel Bay entrance and vice versa until the repairs are completed.” Research by Tribune Business shows that LUSCO was aware of Taino Bridge’s growing problems more than one year ago.
“An initial assessment was conducted by the Building and Development Services Department (BDS) of the Grand Bahama Port Authority and, out of an abundance of caution, the western half of the bridge will be closed to swiftly facilitate the necessary repairs,” it said in an August 24, 2023, statement.
“The eastern half of the bridge will be converted to a dual carriageway to allow the public to safely traverse while we immediately begin
the remediation process. We have already conducted the initial inspection. An independent engineering firm will be engaged within two weeks to prepare the scope of work, design and finalise the repair plan and timeline.
“We anticipate that repairs will commence within four to six weeks with the duration to be determined pending the scope of the work.”
LUSCO said then that it had been in communication with all key stakeholders over its plans and the need for repairs.
The bridge represents the only transport link to attractions and businesses such as Smith’s Point Fish Fry, Pirate Cove Zip Line and Water Park, the Dolphin Experience, Stoned Crab Restaurant and Tony Macaroni’s Conch Experience. However, repair progress has been slow.
Charisse Brown, DevCO’s chief executive and legal counsel, was quoted in May 2024 as saying: “The bidding process to select a contractor for the project is currently underway, with the selection expected in June. We reassure residents that the bridge’s condition, particularly the underside, is monitored by a contracted structural engineering firm to prevent further deterioration.”
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE Prime Minister says it is “truly invigorating” to see Carnival’s $600m Celebration Key cruise port transitioning from concept to physical reality.
Speaking during a recent tour of the cruise line’s Grand Bahama port destination, which is set to start accepting passengers next year, Philip Davis KC said: “This is something that’s been on the drawing board for many years, and to see it coming out of the ground in the fashion it is truly, truly invigorating to me. Economic impact is already being seen.”
He added that the construction project employs more than 200 workers daily, with a significant portion being Bahamian. “We
have at least 32 sub-contractors, of which at least 29 are Bahamians, building these buildings and working which is, again, the idea of my government to ensure that Bahamians are involved in building,” Mr Davis added. He said Carnival had signalled some parts of the development, such as the pier construction, are ahead of schedule.
“I’m advised by the developers that they’ve been pleased with work that the Bahamians have been doing, and they are really impressed by their work,” Mr Davis said.
“They’re on time, most of them. I’m advised that the pier is ahead of schedule.
“People say nothing is happening in Grand Bahama but there’s a need to come and see, and see that it’s not just happening
in Grand Bahama; it’s happening for Grand Bahamians. I’m relying on my Bahamian contractors who Carnival has put much confidence in to deliver on time for them.”
Chester Cooper, deputy prime minister, and minister of tourism, investments and aviation, said Carnival’s project is a “demonstration of investor confidence” that will boost the tourism product in Grand Bahama.
“This is good for a demonstration of investor confidence in our country, but also I am enthusiastic and optimistic about what it could mean for tourism,” said Mr Cooper.
“The millions that will come and go outside the gates to really enjoy the product that Grand Bahama has to offer. So, I’m looking forward to completion.
“I’m excited about the progress, but I’m looking forward to the day when we can actually come and cut the ribbon. I’m forward looking on it.”
Mr Cooper further emphasised the broader impact of the project, noting that it represents a significant boost to the entire island. “When we talk about Grand Bahama, we’re no longer just talking about Freeport,” he added.
“We’re talking about the East End, where this project is generally located. But also we celebrate the authenticity of the western end of Grand Bahama. But this is a great boost to the overall island.”
Marinas brace for ‘worst Labour Day in a decade’
FROM PAGE 22
the visiting boats, they’re not seeing the numbers they have in the past.” Mr Maury said he was unable to give figures or percentages for the drop-off in boating/yachting business ahead of this weekend’s US Labour Day holiday, which marks both one of the busiest periods in - and the end to - The Bahamas’ summer boating season ahead of peak hurricane season and the return to school.
Affirming that his statements were based on his personal observations at many marinas, as well as speaking to multiple industry counterparts, he added: “I would say it’s down quite a bit compared to last year. Compared to last year, it’s down pretty high. We’ve had some things happen in the industry.”
Mr Maury said potential uncertainty caused by the upcoming US presidential election may also be a factor keeping some boaters at home, but added: “Some of the difficulties with entry and the bookings and stuff, and everything is going up; fuel, groceries and everything else, so The Bahamas is becoming a very expensive place for these guys to visit.
FROM PAGE 22
Grand Bahama’s economy over the next 25 years, with the Shipyard becoming the largest cruise ship repair facility in the world. Carnival and Royal Caribbean, the two leading cruise lines, both own 40 percent of the Shipyard with the Grand Bahama Port Authority (GBPA), through its Port Group Ltd affiliate, holding the other 20 percent.
“The Grand Bahama Shipyard will finally see its dry docking facilities not just restored, but expanded,” said Mr Davis. “Two new docks will be built capable of servicing Icon and Oasis class cruise ships. Based on its capacity, this operation will be the top cruise ship and large vessel repair facility in the world.
“The investment and expansion means that Grand Bahama will return to its glory as a leader in the maritime industry.” The Prime Minister said the project will create about 1,200 jobs over the next five years and pledged that his administration will work to ensure working conditions are fair for seasonal employees.
“In five years, we anticipate some 1,200 employees will benefit from gainful employment at the Shipyard, the majority of whom will be full-time Bahamian workers,” said Mr Davis.
“My government remains attentive to the issues surrounding seasonal labour, and so we are working carefully to ensure working conditions are just and fair as we welcome this new, auspicious chapter for Grand Bahama. Once fully up and running, the Shipyard is expected to provide a total economic output of $350m.” Ginger Moxey, minister for Grand Bahama, said the project strengthens Grand Bahama’s position as the “home of maritime and logistics” and the Shipyard’s status as the island’s largest private non-tourism employer.
“Since its inception, the Grand Bahama Shipyard has been a cornerstone of our local economy, and this ambitious project will undoubtedly inject new vitality into it,” said Mrs Moxey.
“As the largest private non-tourism employer in Grand Bahama, you already play a crucial role in our community. And… with this project, I anticipate even more opportunities for Grand Bahamians and local businesses alike.”
Mrs Moxey said the Shipyard has also expanded its four-year apprenticeship programme and is expected to bring in 20 apprentices annually. “I am particularly pleased to hear about the
“It’s starting to definitely affect our occupancies for sure. They’re not seeing the numbers they did before, which were keeping a lot of things going. If boats don’t get the charters they are unable to cover their expenses, and a lot of them are asking for discounts from the marinas. Say they used to do 20 charters a year and are now doing 12, that’s a big expense to cover, bridge and pay.”
Bahamas Power & Light’s (BPL) new equity rate adjustment (ERA) tariff structure has increased base electricity rates for the utility’s largest customers, which is says number no more than 400. Mr Maury, though, told Tribune Business that marinas were included in that number as among the biggest energy consumers, and the new rate structure’s implementation from July 1 had forced the sector to raise its costs.
“Most marinas have had to go up on their utilities because of power,” he explained. “As far as business goes, marinas probably use more power than others per capita than others through plugging the boats in. They use a lot of electricity.
“Whatever formula they [BPL] are using, we are
expansion of your four-year apprenticeship programme, which aims to bring in 20 new apprentices annually,” said Mrs Moxey. “This initiative will cultivate the technical skills needed in the Shipyard, affirming our belief that education is the great equaliser.”
Grand Bahama Shipyard has been relegated for almost five years to a one-dock operation after it lost two of its three docking facilities to a combination of Hurricane Dorian and an industrial accident on April 1 in that same year of 2019. The loss of its then-biggest dock cut the Shipyard’s revenues by 50 percent. The first of the two replacement docks, which are being manufactured in China, is set to arrive at the Shipyard in the 2025 fourth quarter and receive its first vessel on New Year’s day 2026. And the second, larger “mega dock” facility that is capable of accommodating the Icon of the Seas, the world’s largest cruise ship, will be received in the 2026 third quarter and go into service before that year’s end.
Linda Turnquest, the Shipyard’s chief financial officer, told the Grand Bahama Business Outlook conference earlier this year that the company is aiming to more than triple its annual turnover to $250m within five years through its investment in the new
at the peak. We’ve had to increase our electricity costs. The boats are plugged in every day, using the power, and are not getting the charters. We’ve had to drop our dockage rates [to compensate]. We warned about this two years ago. The increase, even in grocery bills, at some point becomes not worth being here. It’s just adding up.”
Mr Maury said that marinas, unlike other businesses and homes, do not have the luxury of turning electrical supply to their docks off as they must keep them fully powered even when boating numbers are down. “I think a lot of us were shocked when we saw our bill,” he told this newspaper of the BPL bills issued post-July 1.
“It went up quite a bit. For us, the increase over usage was probably 25 percent. We have to have power on all the time. It’s not always getting used. Docks, even if you do not have boats, we still have to provide power. We have transformers that are on using heavy power.
“It’s not like a house. These things burn energy sitting there. It’s like a power plant. I cannot turn off part of any dock; I have to have the whole thing running even if I have only one boat there. I cannot turn
docks. She added that this will leave the Shipyard “poised to revolutionise the landscape of ship repair” and exploit a market that is “not only stable but thriving”.
Disclosing that the Freeport-based ship repair yard has only “a mere 90 days of” repair dock space to sell this year, she added that for “2025 and beyond our dock is already booked solid with firm reservations stretched out to 2029” by the cruise lines and other vessel types. And the Shipyard already has more cruise vessels booked for 2026 than the 21 it handled during its previous busiest year of 2018.
“We project that our $80m turnover today will grow to $250m within the next five years. This growth is not wishful thinking. It is grounded in the reality of an expanding cruise ship industry demand and the increased demand for LNG (liquefied natural gas) tanker dockings and repairs,” Ms Turnquest said.
“More so, our reputation as being the most efficient ship yard in the Caribbean and on the US eastern seaboard positions us as a prime destination for ship repair and maintenance. The market is not only stable but it is thriving. In 2024, we find ourselves with a mere 90 days of repairs to sell,” she continued, “a testament to the incredible demand for our services.
it off. If I have a dock for ten boats, three are there and I had eight the year before, the dock is using more energy even with only three boats,” Mr Maury continued.
“It’s a very confusing number to put your finger on. Where some businesses may have seen an increase of 20 percent, we’re seeing higher even though we’ve not sold all the slips because we are still using energy. It can get costly.:
Voicing fears that The Bahamas could ultimately hit a so-called tipping point for boaters on overall costs, Mr Maury said: “Our biggest question mark is just at what point are the customers going to say it’s just too expensive now and we will spend less time going to The Bahamas.
“That cannot work for us. A lot of marinas need boats all the time. As costs go up, they will go back to the US and wait for a charter. It’s not just the marina business that is affected; it’s the businesses around it. The grocers, the restaurants, the provisioners, all those Bahamian businesses are beginning to suffer.
“We’re hanging in there and will see what the next cycle brings, I guess. Hopefully fuel goes down, our utilities go down and we
“Looking ahead to 2025 and beyond, our dock is already booked solid with firm reservations stretching out to 2029.” And while the previous annual record for cruise ships serviced was 21, Ms Turnquest said that “I can tell you by 2026 we currently have more than 21 named cruise ships scheduled for the docks that have not even arrived yet. I think we are world class even as we wait.”
The first, smaller dock, named 2XL, will have the capacity to lift ships weighing up to 93,500 tonnes and accommodate those up to
get people back over here. Right now, it’s very slow... I’m sure the hotels are seeing some of the same thing. Some of them are seeing lower occupancies, they’re adjusting their room rates, and some of the bigger hotels are doing less than they were at this time last year,” he added. “The hotels are in competition now and, like the marinas, when we start cannibalising each other for rates that’s never a good thing. It’s pretty slow and I know some of the other marinas are complaining. The Nassau marinas are where a lot of boats come. All those marinas in Eleuthera and Exuma are fed out of here.
“They may not see it in Bimini, as those are small boats that run across for the weekend and don’t spend a lot of time here, but for the central and southern Bahamas marinas it’s definitely down. It’s not just a couple of marinas; it’s definitely all of them.”
Mr Maury said there has yet to be any contact between the ABM and DigieSoft Technologies, the company contracted for $3.65m to develop a new online portal to facilitate the clearance of visiting boats into The Bahamas and their payment of
357.39 metres long. Grand Bahama Shipyard’s previous largest dock could only lift 82,000 tonnes, and Ms Turnquest said: “This dock will be able to dock 90 percent of the existing cruise ship fleet in the world.
“Let me put a little nugget in there. I’m saying this smaller dock. This will be the biggest dock in this hemisphere.
“It will arrive in Freeport in the fourth quarter of 2025, and we will dock the first ship in it on January 1, 2026.”
However, it will only be the largest until the
the associated fees, even though the necessary project funding has been allocated and released in the 2024-2025 Budget.
“It seems like the Government really came down on this industry a lot,” he added. “It’s not just the taxes. It’s getting harder and harder to clear boats in. It’s the whole process. The portal was supposed to make everything easier. They keep saying they’re going to do it but nothing is ever done.”
The ABM created its own online portal, SeaZPass, to facilitate fee payment and entry by visiting boaters but it was told to close this by the Ministry of Finance following the Davis administration’s election amid a dispute with the company that was facilitating payment of the fee income to the Public Treasury.
“The Prime Minister came out and said he wanted to make The Bahamas a larger yacht registry. It would be great because there are shore side businesses in The Bahamas that would benefit from it, but we’re just not finding that support for what his intentions were,” Mr Maury added. “I don’t know what it is. I don’t want to speculate. I don’t know if there’s a reason for it.”
“mega dock” arrives. That will have the ability to lift 130,000 tonnes and accommodate ships up to 413.96 metres long. Each will come with four Liebharr cranes. The “footprint” for the new docks is already being dredged, and the $600m project will also see the installation of new mooring pilings to protect them against Category Five strength hurricanes as well as the extension of the Shipyard’s existing finger pier to 722 feet. Power, water and piping upgrades are also required.
‘Not out of whack’: Fired Gaming Board staff win $1.9m damages
$593,784. The interest was calculated at 3 percent for the period between Ms Ward’s redundancy, which occurred on November 30, 2017, to the February 17, 2020, date of Justice Charles’ ruling. The rate was raised to 6.25 percent from the date of the judge’s ruling to Mr Turner’s assessment.
Ms Johnson secured the highest total award of $611,944, which represented $452,620 in assessed damages and over $159,000 in combined interest on this sum. Ms Knowles and Ms Miller were awarded a total of $261,055 and $242,912, respectively, while Mr Archer gained $185,036.
Confirming the figures are correct, Mr Ferguson yesterday told Tribune Business that while his clients have yet to receive these payments the Government/Gaming Board have sufficiently deep pockets to cover the awarded damages and interest.
“We are just in the vineyard of doing what we have to do in the interests of the workers,” he said. “I think the award was very appropriate, and I am very pleased that the workers are the beneficiaries of it.
The Government is doing extremely well financially, the workers are the ones suffering, so $1.9m is not considered out of whack.
“They went through quite a bit, and the law is the law. The Government has a deep bench and means of raising funds. The Supreme Court made a ruling, and the Government didn’t appeal. If they didn’t appeal it, on what basis could they go any further with that”
and challenge the damages award.
“In my view I think it was very reasonable,” Mr Ferguson added of the deputy registrar’s assessment. “I’m very pleased that the workers are beginning to be noted for their hard work and following the law. The question is not ‘so much’ but whether it was legal.
“The award is really predicated on what the workers are entitled to bearing in mind you have the right to bring an action for wrongful and unfair dismissal. When you consider them, and put all the pecuniary benefits together, one can understand why unions, employers and workers should find ways to meet, be reasonable and reach understandings acceptable to both sides, not to take intransigent and unreasonable positions and be faced with the hard face of the law.”
Mr Ferguson said this was the main lesson to take away from both Justice Charles’ original verdict and subsequent damages assessment. “What we should do is meet and discuss, look at the interests of both parties, employer and labour, and come to an agreement that is reasonable, that is sensible and that is cost-effective,” he added.
Justice Charles, in her initial February 2020 verdict, slammed the Gaming Board’s failure to follow “clearly set out” employment law procedures when it dismissed the workers as “mind boggling”.
She suggested that the casino and web shop regulator had failed to adhere to modern industrial relations practices requiring employers to be candid and forthright with staff as it never showed how those
workers were “chosen to be made redundant”.
And Justice Charles also ruled that the Gaming Board had failed to comply with both the Bahamas Public Services Union (BPSU) industrial agreement, which governed the impacted line staff, plus the 2017 reforms to the Employment Act that mandated “consultation must take place” with the affected workers and their representatives when more than 20 are being terminated.
The Gaming Board had pressed ahead with the redundancies despite its then-chairman, Kenyatta Gibson, being told of the need to adhere to these procedures by BPSU and worker representatives. However, Justice Charles later ruled in January that it was not “practical” to reinstate the terminated employees, including Mr Ferguson’s clients, to their former jobs - a verdict that ultimately led to the damages claim.
Justice Turner, in his damages assessment, said the five were seeking compensation under common law - rather than statute law - for wrongful dismissal. While the Gaming Board had paid them their statutory entitlement, as set out in the Employment Act’s section 29, the former employees were demanding “notice pay and all pecuniary benefits” under the precedents established by common law.
And, based on Justice Charles’ separate finding of unfair dismissal, he added that each was entitled “to basic and compensatory damages up to a maximum of two years”. Mr Turner added: “In the final analysis, it can be seen that the
predominant evidence of all the claimants is that they were called to the Gaming Board office and were each given letters of termination.
“It is because of a lack of reasonable notice that Justice Charles found a case for wrongful dismissal, and hence the claimants are entitled to notice pay and all pecuniary benefits associated with the same. As a result, the court is of the view that the claimants are entitled to the common law amount for wrongful dismissal, factoring in the notice period.”
Ms Ward, who began her public service career with the Ministry of Tourism in 1990, said she was transferred to the Prime Minister’s Office in August 2012 before joining the Gaming Board in November 2014. “She also gave evidence to the fact that she was made permanent and pensionable in June 2015,” Mr Turner wrote.
“Ms Ward also gave evidence that, at the time, she had 25 years of diverse technology experience prior to joining the Gaming Board. Her employment by the Gaming Board was as an assistant secretary in information technology and facilities management division, which included information technology, facilities management, statistics, security administration and custodial services.”
Ms Ward initially sought $531,413 in total damages, while Ms Knowles had demanded $235,407. The latter had joined the Gaming Board on March 1, 1999, as an assistant manager. “She gave evidence that she was called to the office on February 16, 2016, where she was summarily terminated. At the time she
was 43 years of age and had served 19 years with the Gaming Board,” Mr Turner added.
As for Mr Archer, who was 37 and an assistant manager in the Gaming Board’s facilities department, he was dismissed in December 2017 after working at the regulator for just over six years. A university graduate with a degree in electronic engineering, he was certified in the computer system used by the Gaming Board, and no aspect of his financial claim for $183,163 was disputed by government attorneys.
Nor did they challenge Ms Miller, who was an administrative assistant supervisor when terminated at 50 years-old after 17 years’ service, on her $175,749 claim.
Ms Johnson, the longest-serving member of the five, had spent 35 years with the Gaming Board prior to her termination, and her financial claim was also not contested by the Government.
“She gave evidence that, on return from three weeks’ vacation, she was called to the office and was summarily terminated. At the time she was 56 years of age and had served 32 years with the Gaming Board,” Mr Turner said.
The Gaming Board, in its defence, argued that the wrongful dismissal claim had been satisfied and should not have been included in the damages assessment.
And it also alleged “that the claimants accepted their severance packages and should now be constrained from claiming wrongful dismissal damages consisting of salary for the period of reasonable notice or any other allowances”.
The regulator also asserted that Ms Johnson had already been paid $110,511, while Ms Ward had received $33,568 and Ms Knowles some $69,061, as part of their termination entitlements.
Mr Archer and Ms Miller had received $36,484 and $47,774, respectively, it claimed.
However, Mr Turner noted that Ms Johnson and Ms Knowles had already deducted some $95,875, and $46,042, respectively, from their claims, while Ms Miller, Ms Ward and Mr Archer had lowered theirs by $38,350, $22,208 and $21,545.
The Supreme Court deputy registrar then dismissed the Gaming Board’s argument that wrongful dismissal damages should not be included in the damages assessment because it had failed to appeal Justice Charles’ February 2020 verdict.
As a result, it had no choice to abide by her decision.
And he also dismissed its efforts to reduce the unfair dismissal damages payout, ruling: “In the assessment at hand, the benefits owing to the five claimants in their witness statements were not refuted or challenged by the defendant.
“From the facts at hand it can be seen that the benefits and rights conferred upon the claimants from their contracts of employment clearly ‘trump’ those granted via statute and as a result oust the same.”
The Gaming Board also argued that the five had not “taken reasonable steps to mitigate their loss” by seeking alternative employment, but Mr Turner said he took this into account in determining the damages.
Auto chief: No alarm on ‘30% dip’ in used cars
FROM PAGE 22
Light’s (BPL) new rate structure - have resulted in his company’s profitability “taking a hit”. He added that the auto industry typically “rides the roller coaster” of economic growth and contractions, and described the perception that “we print money” as a myth, with dealers always wary to ensure they “save for a rainy day”.
Describing the sector’s new vehicle sales as “stable”, Mr Albury told Tribune Business: “The last two months I’ve noticed
personally that things have dropped a bit only on the pre-owned vehicles, not the new ones. I’ve seen probably a 30 percent drop. “The only thing I can put it to is back to school, priorities have shifted, but people buying new cars are not affected as they plan their purchases over a longer period of time. From what I understand, the [preowned vehicle] imports at the port are still running very strongly.”
The BMDA chief added that the upcoming US presidential election in November, and
NOTICE
NOTICE is hereby given that JULENE ELIZABETH MUSGROVE of P.O. Box N831 St. Albans Srive off West Bay Street, New Providence, 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 30th day of August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
the uncertainty surrounding the outcome, often results in a slowdown in economic activity while, in The Bahamas, “this is a slow time for tourism especially in the Family Islands. “A number of hotels are closed or running low occupancies,” Mr Albury added, “and hotels here are also showing lower occupancies with people going back-toschool. There is nothing causing me concern yet because it’s basically where I expect to be at this time of year.”
With the auto industry’s post-COVID supply chain backlogs having eased, apart from occasional delays in obtaining certain parts, the Bahamas Bus and Truck chief added: “It definitely makes a hug difference. Customers don’t have to lose preference waiting on what they want. They feel they have a better chance of getting the vehicle they want rather than having to settle for something not in their mind.
“I intend to go out with a bang for 2024, especially with our big industry auto show, which was really productive last year as the first one since COVID. We’re looking forward to a very big show this year. I’m optimistic things are stable and going to continue strong. I know the last time I looked at the numbers things were still on a steady trajectory. “I think the demand is there. We just need tourism to pick back up, it’s the season we live in, and keep rolling. I see a lot of activity on the construction and commercial vehicles. That’s always, to me, a very important factor. They’re very strong, very strong. There’s a lot of demand, a lot of people looking, a lot of inquiries, and a lot of those are turning into sales.”
While optimistic that the industry’s new vehicle sales will exceed 2024 levels, Mr Albury nevertheless identified several factors that are dampening the sector’s financial performance.
NOTICE
NOTICE is hereby given that ROSIAS DORMEUS of Faith Avenue North, Carmichael Road, Nassau, 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 23rd day of August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
send a written and signed statement of the facts within twenty-eight days from the 23rd day of August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
“Shipping costs are still outrageous,” he confirmed. “I see fuel prices are dropping in the US so hopefully that may help things.
“I don’t have the statistics in front of me, but I just saw container costs go up again. It’s definitely not easing up there. It has a big impact because everything, it just adds up and catches up, especially when you have compound duty and markups and everything else.”
These cost increases, together with higher Business Licence and related audit fees plus rising electricity costs, are eroding profits for Mr Albury, auto dealers and other businesses. “Profits have taken a hit with the increased cost of doing business - electricity and a lot of other factors. I’ve definitely noticed that on the bottom line,” he told Tribune Business.
“There’s definitely a lot more expenses - Business Licence, audit fees, BPL. All those things are definitely making profits
taking a hit. I’d say there was probably a 30 percent increase in the electricity bill. When you have the square footage we do, lights and the computers we do, that’s a major, major factor. I’m looking forward to this reduction I’m hearing about come online soon. I’m anxiously waiting for that.”
Still, Mr Albury said his future outlook for the auto industry and wider economy remains positive.
“Our population is growing, our economy is growing,” he added.
“A lot of development is going on so there’s a lot of high optimism and we could use it.
“We ride the roller coaster. People think we print money. That’s not the case. We go through rough years, we ride those out. We wait for these upturns and we hope they stay around and last long enough. You’ve got to save for a rainy day and position your business so you are prepared for those things.”
NOTICE
NOTICE is hereby given that ROBERSON JOSEPH 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 why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 30th day of August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that STEPHANIE ANTOINE of Regency Park, Freeport, 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 30th day of August, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
Stock market today: Wall Street sees mixed results after late-day selling, drop for Nvidia
By DAMIAN J TROISE and ALEX VEIGA AP Business Writers
A LATE-afternoon slide by some Big Tech companies cut into Wall Street’s gains yesterday, leading to a mixed finish for U.S. stock indexes.
The S&P 500 ended flat after giving up an earlier gain of nearly 1%. The benchmark index is about 1.3% away from its record set in July.
The Dow Jones Industrial Average managed a 0.6% gain, enough for its third all-time high since Monday. The Nasdaq composite, which is heavily weighted with technology stocks, slipped 0.2%. It had been up 1.3% in the early going.
Despite the mixed finish, gainers outnumbered decliners by roughly two to one on the New York Stock Exchange.
Nvidia, which has ridden the frenzy over artificial intelligence to become one of the S&P 500’s most influential companies, was the biggest weight on the market. Its shares fell 6.4% despite stellar results for the second quarter. The stock, with a total market value topping $3 trillion, is still up 138% in 2024.
Nvidia’s earnings beat and forecast may not have been a big enough surprise for some traders, but surging demand for its artificial intelligence chips show that “it is powering the AI revolution,” said Wedbush Securities analyst Dan Ives, in a note to investors.
“The tech stalwart delivered massive ‘drop the mic’ numbers yet again,” he said.
The market rallied earlier as encouraging data helped
OCEAN CLUB FROM PAGE
22
vacation, or don’t have any vacation time, those are the persons that would stay behind,” he explained.
“The majority of people, particularly in the service area, they normally go on vacation during September because it’s slower. It’s not that much business, so they don’t really lose anything.”
Union representatives are believed to have met with Ocean Club management earlier this week to discuss the resort’s temporary closure plans, and what is involved, after its members among the staff got wind of its intentions.
Mr Woods, though, said the Ocean Club adopted a
shift traders’ focus back on the U.S. economy. The Commerce Department upgraded its assessment of U.S. economic growth for the second quarter to 3%, compared to a previous estimate of 2.8%.
It’s another signal that the economy remains strong, despite pressure from stubborn inflation and high interest rates. Traders also had their eye on more corporate earnings.
similar approach towards undertaking renovations last year with a temporary closure. He added that the BHCAWU will be monitoring the renovation process to ensure compliance with its recently-signed industrial agreement with the Bahamas Hotel and Restaurant Employers Association, of which the Ocean Club is a member.
“Of course we will be monitoring and making sure that everything is done in accordance with our newly-signed industrial agreement,” Mr Woods said.
Howard Thompson, the Government’s labour director, told Tribune Business that the Department of Labour had not yet been informed by the Ocean Club of its plans.
CrowdStrike Holdings rose 2.8% after the cybersecurity company beat analysts’ second-quarter financial forecasts. The company had a botched software update during its most recent quarter, which triggered a technology meltdown that stranded thousands of people in airports, among other disruptions.
Dollar General slumped 32.1% after cutting its earnings forecast. Best Buy jumped 14.1% after the
nation’s largest consumer electronics chain beat Wall Street forecasts, even as sales slipped and it cut guidance for the year.
The mostly solid earnings and economic growth updates are capping off a month of encouraging reports for the broader economy. Data from various reports in August have shown that retail sales, employment and consumer confidence remain strong.
“Solid growth of consumer spending propelled
the economy forward in the second quarter, and the increase of consumer confidence in July suggests it will propel growth in the second half of the year as well,” said Bill Adams, chief economist for Comerica Bank.
The key report this week comes on Friday, when the U.S. government releases its July data on inflation with the PCE, or personal consumption and expenditures report.
Economists expect the PCE, which is the Federal
Reserve’s preferred measure of inflation, to show that inflation edged up to 2.6% in July from 2.5% in June. It was as high as 7.1% in the middle of 2022.
The solid economic data and easing of inflation have bolstered hopes for the Federal Reserve to achieve what it hopes is a “soft landing” for the economy after raising its benchmark interest rate to a two-decade high. The goal was to slow the economy and tame inflation without causing a recession.
The central bank has signaled that it intends to start cutting its benchmark interest rate.
Traders expect the first cut to happen at the next meeting in September. The market is betting that the Fed will cut its benchmark rate by 1% by the end of the year.
Anticipation for lower interest rates ahead is helping to ease some pressure on what has been a tight housing market. The average rate on a 30-year mortgage eased for the second week in a row and remains at its lowest level in more than a year.
Still, most economists expect it will take even lower rates to get wouldbe homebuyers off the sidelines.
Bond yields rose in the Treasury market. The yield on the 10-year Treasury rose to 3.86% from 3.84% late Wednesday.
All told, the S&P 500 lost 0.22 points to 5,591.96. The Dow gained 243.63 points to 41,335.05.
The Nasdaq fell 39.60 points to 17,516.43. Markets in Europe were mostly higher and markets in Asia were mixed.
