Small and medium-size enterprises (SMEs) are at the forefront of the tourism sector in The Bahamas, but face certain systemic problems, according to sustainable tourism specialist Dr T Jennifer Edwards.

Edwards is project manager for the Sustainable Tourism Entrepreneurial Management and Marketing (STEMM) Project, which launched in The Bahamas in 2006 with the aim of providing support for small and SMEs in the tourism sector. The initiative is being partly funded by the Inter-American Development Bank.

The sustainable tourism consultant, who has worked with both the Ministry of Tourism and Aviation and the Bahamas Hotel Association, said SMEs contribute over 20 per cent to the country’s economic activity, with small hotels–those with four to 75 rooms–comprising 90 per cent of the entire hotel sector.

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A fashion event that draws designers from across the globe has announced significant changes to its production and format heading into its fifth year.

Organizers of the award-winning Islands of the World Fashion Week , Mode Îles Ltd, said its signature event is now to become known as Islands of the World Fashion Showcase (IWFS). The event will be held twice a year in May and November.

Nick Verreos and a model on the catwalk at World Fashion Week. Verreos, a designer based in Los Angeles, was a contestant on the reality TV series Project Runway several years ago. (Photo courtesy Mode Îles, Ltd)

Each event will be hosted for two days with participation limited to ten designers per event. The event in May will highlight designer resorts, sports and swimwear and accessories. November’s event will feature designer couture, prêt à porter, casual wear and accessories.

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The Bahamas government signed an Economic Technical Cooperation Agreement with the People’s Republic of China this week, bringing the total value of bilateral technical agreements between the two countries to around $30 million.

Wang Qishan, Vice Premier of the State Council of the People’s Republic of China, arrived in Nassau last weekend to meet with Deputy Prime Minister Brent Symonette and discuss grant funding for projects in The Bahamas. The agreement, which was officially signed at a ceremony at Atlantis Paradise Island, allows for up to $5 million in funding to support infrastructure projects.

Speaking at the signing ceremony Vice Premier Wang Qishan said: “China values its friendship with The Bahamas and we stand ready to have even closer high-level exchanges deepened in practical cooperation in the various fields.

“[We want to] make sure there is a favourable environment for the execution of projects.”

China has already invested heavily in The Bahamas–providing a $58-million loan for the Nassau Airport Gateway project, the $30 million Thomas A Robinson Stadium and a $2.4-billion loan from the Export-Import Bank of China for the Baha Mar development on Cable Beach.

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The Department of Statistics has published the collated figures from the Labour Survey 2011, which it conducted April 25 to May 1 this year.

Due to the 2010 Census of Population and Housing, a survey was not conducted in 2010, therefore the labour force components cover a two-year period during which time the number of persons in the labour force increased by 6,055 or 3.3 per cent, totaling 190,075 persons.

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The Central Bank of The Bahamas has released its monthly report for July on economic and financial sector developments in the jurisdiction.

Preliminary indications are that the momentum of the recovery in the domestic economy was sustained during July.

Anecdotal evidence on tourism sector performance suggests improved results, after a relatively slow start to the year. In addition to the main US market, where the group segment has shown signs of revival, sectoral improvements have been noted in the Latin American market, due to increased airline capacity.

Construction output continued to benefit from a stable contribution from public sector infrastructural investments, alongside foreign investment related projects, led by the commencement of the “core” phase of the Baha Mar mega resort project on Cable Beach, New Providence.

Central Bank monitors economic conditions as part of its monetary policy mandate, to assess whether money and credit trends are sustainable relative to levels of external reserves required to protect the value of the Bahamian dollar and, if not, the degree to which credit policies ought to be adjusted.

Download a PDF of the Central Bank’s Monthly Economic and Financial Developments Report July 2011 here.

Moody’s rating agency announced last week that it would maintain The Bahamas A3 credit rating, but would downgrade the jurisdiction’s economic outlook from “stable” to “negative,” in light of the global downturn and increasing government debt.

An official communique from the government announced that “the government of The Bahamas is pleased to learn that Moody’s has affirmed The Bahamas’ A3 bond ratings, which reaffirms the credit profile of the country. The government also acknowledges the rating agency’s revised outlook of the Bahamian economy from stable to negative.

“The recent global economic and financial crisis profoundly impacted the Bahamian economy and required extraordinary levels of spending on the part of the government to safeguard the financial system, boost economic activity and provide assistance to Bahamians badly in need of help in these trying times, this at a time when government revenue experienced precipitous declines. The unusually high rise in debt levels therefore was not surprising and in fact forecasted by the government in light of the worse global economic and financial crisis since The Great Depression. Despite this, we maintain in the circumstances a debt-to-GDP ratio that is one of the lowest in our region.”

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She provided dynamic leadership during one of the most trying economic periods in history and now Wendy Warren is stepping down from her 11-year tenure as chief executive officer and executive director of the Bahamas Financial Services Board (BFSB).

Since 1998, the board has been at the forefront of the country’s financial services sector, helping to create new legislation, revamp existing ones and promote The Bahamas as the ideal place for offshore investors to do business.

“The strength and stature of the BFSB as a representative of the country’s financial services industry, both domestically and internationally, is in very large part due to Wendy’s relentless determination for the industry to succeed, particularly during a period characterized by incessant international and economic pressures,”?said BFSB chairman Paul Winder in a press statement released Tuesday.

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An international tourism expert has predicted the sector will continue to grow worldwide and evolve to address challenges in the market in the upcoming years.

The global tourism industry is proving extremely resilient despite an unstable economy and shaken customer confidence, according to Carlos Vogeler, the United Nations World Tourism Organization’s (UNWTO) regional director for the Americas.

“Tourism is resilient. It has a tremendous capacity for recovery that demonstrates what a dynamic sector it can be,” he said.

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Small and medium-sized enterprises (SMEs) are key to the success of the Bahamian tourism industry, according to Minister of State for Tourism and Aviation Vincent Vanderpool-Wallace.

However, in order to harness their potential in the sector, there needs to be more emphasis on public-private partnership, greater use of technology and enhanced marketing. The Minister made the comments as he opened the First Regional Seminar on Tourism: SMEs and Tourism Development in the Caribbean Region, today in Nassau.

The two-day event, which is being held at the Sheraton on Cable Beach, has attracted tourism representatives from across the Caribbean and is co-sponsored by the Caribbean Community (CARICOM).

“When we talk about SMEs being the engine for long-term growth [in tourism], we have the resolve to make it come true. We are committed to this idea that SMEs are very important to us,” said the Minister, who went on to highlight the marketing gap for smaller hotels in The Bahamas, saying they needed to reach customers online.

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The Bahamas has to boost its recovery of losses in insolvency cases, says Edmund Rahming, managing director of Krys Global, a multi-jurisdiction financial services firm specializing in insolvency, fraud and forensic accounting matters.

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