Baha Mar Becomes Major Driver of Bahamian Economy

Baha Mar, the largest single-phase resort development in the Western Hemisphere, has become a powerful driver of the Bahamian economy, and accounted for an estimated 5 percent of the Commonwealth’s annual Gross Domestic Product (GDP) in 2011 and 2012, according to a comprehensive updated economic impact report (EIR) by Oxford Economics.

The report shows that since 2005, Baha Mar has accounted for an average of 3.2 percent of the Bahamian economy. This accounts for a total of $2.1 billion between 2005 and 2012. Once the $3.5 billion integrated gaming resort is up and running, it is expected to account for 12.8 percent of Bahamian annual GDP on average.

“We’ve always believed that Baha Mar would be a long-term investment that would pay off for all Bahamians, and we’re pleased to share data that show just how powerful an economic force our project has become,” said Sarkis D. Izmirlian, Baha Mar’s Chairman and Chief Executive Officer. “Whether measured in construction impact, Bahamian jobs, tax benefits, gaming revenues or visitor spending, Baha Mar is expected to generate literally billions of dollars in economic benefits. This creates real opportunities for Bahamians—jobs, training,
entrepreneurship and economic mobility.”

Since 2011, Baha Mar has awarded $230 million in local contracts. At least an additional $170 million in local contracts are expected to be put out for bid, for a total of more than $400 million in local direct impact.

From 2005 to 2012, Baha Mar has generated $719 million in additional employment income. Through direct and indirect impacts, Baha Mar has supported an average employment count of more than 3,000 jobs on a full-time-equivalent (FTE) basis.

Over a 20-year period, Baha Mar is expected to generate $12 billion in additional employment income through direct and indirect impacts, or more than $33,000 per capita. Baha Mar is expected to support an average employment count of nearly 12,000 jobs on an FTE basis, through direct and indirect impacts.

Cumulatively, over 20 years of operations, Baha Mar is expected to generate $25.3 billion in international visitor spending (measured in 2013 dollars).

After 20 years of operations, visitor spending is expected to reach nearly $1.4 billion per year (measured in 2013 dollars). More than $50 million a year is expected to be spent off site, which will benefit other Bahamian businesses.

Over the project’s 20-year time horizon, an estimated total of $5.5 billion will be generated in additional government revenues (measured in 2013 dollars).

“Baha Mar represents the largest single-phase tourism development in the history of the Caribbean,” said Minister of State for Finance Michael Halkitis. “The data reflect the short- and long-term influence of this investment, which will have a lasting effect on the Bahamian economy through higher employment income, international visitor spending and Government revenues.”

Oxford Economics is one of the world’s leading providers of economic analysis, forecasts and consulting advice. It was founded in 1981 as a joint venture with Oxford University’s business college.

Mr. Izmirlian said, “The Oxford report provides hard evidence that Baha Mar has already had a real, positive impact on the people of The Bahamas. As we move forward, Baha Mar will be responsible for employing and training thousands of Bahamians—in technology, gaming, management, hospitality and a host of disciplines—for generations to come.”

Baha Mar, on schedule to open in December 2014, is set on 3,000 feet of white-sand beach just 12 minutes from Nassau's newly expanded Lynden Pindling International Airport. The resort will feature an elite collection of hotel brands with gaming, entertainment, shopping and natural attractions that reflect an authentic Bahamian experience. The Baha Mar Casino & Hotel, with 1,000 rooms, is the centerpiece of the resort, and includes a 100,000-squarefoot Las Vegas-style casino – the largest in the Caribbean region. A 700-room Grand Hyatt, a 300-room Mondrian, and the 200-room Rosewood Hotels & Resorts® complete the extraordinary accommodations at Baha Mar.

Amenities will include the 18-hole, 72-par championship Jack Nicklaus Signature Golf Course at Baha Mar, 200,000 square feet of combined state-of-the-art convention facilities including a 2,000-seat performing arts center and an art gallery with the largest curated collection of Bahamian art; more than 30 restaurants, nightclubs and bars; two spas, including the 30,000-square-foot destination ESPA at Baha Mar; designer retail boutiques, a beachfront sanctuary with native Bahamian flora and fauna,14 distinctive pool experiences and a private island.

Source: The Bahamas Weekly