This is a best prospect industry sector for this country. Includes a market overview and trade data.
Tourism makes up 50 percent of the country’s GDP, rising as high as 70 percent when factoring in tourism-related services and construction, and is expected to be the lifeblood of the Bahamian economy going forward. Prior to the pandemic, over 7 million tourists visited The Bahamas every year on average. The vast majority come from the United States and Canada, with a growing number of visitors from Latin America, Europe, and China. Approximately 5.5 million of these visitors arrive by cruise ship with the balance including stopover visitors who stay in all-inclusive resorts, boutique hotels, fishing lodges, or vacation homes. The sector is vulnerable to external shocks, but prospects remain solid, and the government is supportive of new entrants.
Promising sub-sectors include hurricane-sustainable construction materials for new hotel and second home construction; hotel equipment; restaurant equipment; airport and infrastructure development; and goods and services for the marine and yatching industry. Most of the equipment, construction materials, and furnishings for resort hotels are sourced in the United States.
There are several-million-dollar projects under development throughout the archipelago, including a $250 million Nassau Cruise Port redevelopment project, a $400 million Disney Cruise Line Lighthouse Point development, a $200 Carnival Cruise port on Grand Bahama, a $200 million Ritz Carlton development, a $100 million Half Moon Cay development, and Sterling Global Financials’ $250 million Hurricane Hole mega-yacht facility on Paradise Island. In addition to these significant investments, there are also efforts to diversify the tourism product away from mega-resorts and cruises by promoting boutique hotels and Air BnB-style accommodations and homestays on smaller islands. There are also efforts to promote niche tourism such as medical, health and wellness, religious, culinary, and environmental tourism. The government is supportive of new entrants that contribute to the diversification. Opportunities exist for firms that provide construction-related materials, hotel and restaurant equipment and furnishings, and goods and services for the marine and yatching industry. Port development remains a government focus.