Business

The Bahamas has an open, two-sector, service-based economy with a traditionally stable economic environment. Tourism is the leading sector and employs half the labour force. It directly or indirectly accounts for about 60% of the Gross Domestic Product (GDP). Financial services is the second largest sector and employs 10% of the population while generating 10-15% of GDP.

“Small Island Developing States (SIDS) are low-lying coastal countries that tend to share similar sustainable development challenges, including small but growing populations, limited resources, remoteness, susceptibility to natural disasters, vulnerability to external shocks, excessive dependence on international trade, and fragile environments. Their growth and development is also held back by high communication, energy and transportation costs, irregular international transport volumes, disproportionately expensive public administration and infrastructure due to their small size, and little to no opportunity to create economies of scale.” Wikipedia

Despite our limited resources, we capitalize on the ‘sun, sand, and sea’ afforded by our geographical location. The country’s beauty is a natural tourist draw and after the government, Atlantis is the largest single employer in the Bahamas (employing over 8000 people).

Our second major sector is financial services, mostly due to our unique status as an offshore banking location and tax haven.

As many Bahamians know, ownership in both sectors is concentrated among a few foreign investors. Although the Bahamas is one of the richest Caribbean nations, most of the wealth does not go to Bahamian citizens.

Core services / utilities are provided by the following companies:

• Bahamas Electricity Corporation / Bahamas Poweer and Light
• Bahamas Telecommunications Corporation
• Water and Sewage Corporation

http://www.bahamaselectricity.com/ http://www.wsc.com.bs/

Most Bahamians use the services of these companies and there are few, if any, alternatives. Inefficiencies, shutdowns, and errors are common as is the resulting frustration with these services by the Bahamian people.

“The recent international financial crisis and subsequent economic slowdown have illuminated the structural weaknesses in the Bahamian economy due to its substantial reliance on a single sector – tourism – and the substantial reliance within this sector on a single country – the United States – for its prosperity. As a result, the economic downturn in the U.S. has caused an even greater slowdown in the Bahamian economy. It could be said that the worsening economic situation of The Bahamas has in turn caused an increase in social disruption, poverty and crime.” State of the Nation Report, page 60

Doing business in the Bahamas can be quite difficult for reasons discussed more on the Doing Business page.