The Grand Bahama Port Authority and the Grand Bahama Development Company have been challenged to place a stronger focus on promoting the island internationally.
Grand Bahama Chamber of Commerce Vice President Dillon Knowles is of the view that since 2000 promotional activities have not been particularly effective.
He made his comments while addressing the chamber’s monthly business meeting & luncheon at the Delphine’s Room in the Canal House at Pelican Bay Hotel on Wednesday. His topic was “Does the Hawksbill Creek Agreement Matter?”
Knowles gave Chamber members a brief overview of the Hawksbill Creek Agreement stating that in 1955, satisfied that the dredging and construction of a deep water harbour and turning basin at Hawksbill Creek, and the establishment of factories and industrial undertakings would be of great economic benefit to the country, the Government entered into the Hawksbill Creek Agreement (HCA) with the Grand Bahama Port Authority (GBPA).
He listed the GBPA obligations and benefits under the agreement and pointed out that the HCA created a Free Trade Zone (FTC) in the Port Area of Freeport/Lucaya.
” There are more than 3,500 FTZs in 135 countries, and Freeport/Lucaya was a forerunner of FTZs. By the 1960s, south and east Asian countries, including communist China, were implementing their own,” the First Vice President informed.
Knowles acknowledged that the Government has commissioned a committee to review and make recommendations on the future of the Freeport model. “The GBCC, with the approval of its Board of Directors, has accepted appointment of its President to the Committee,”Knowles further disclosed.
According to the chamber’s No.2 executive, the organization intends to use this opportunity to voice the issues, concerns, and or recommendations of its members, prospective members, and the business community at large, with a view to “jump-starting” Grand Bahama’s economy in the shortest possible period of time, while creating a framework for long term sustainable economic growth and development for the entire island.
The Chamber’s recommendations are: Port Group Ltd. and Hutchison Whampoa to develop Sea/Air Business (Logistics) Centre; expansion of the Freeport Container Port’s Foreign Trade Zone to include the adjacent Sea/Air Business Center and the GB International Airport ; acquiring U.S. Customs pre-clearance of cargo from this proposed sterile zone would also be a game changer; develop an international level Maritime Programme at COB; redefine GBI Tourism product to focus on Freeport/Lucaya on upscale high density resort development; East/West GBI on niche tourism programs including cultural and eco-tourism products; establish a Domestic and International Arbitration Center; ease court burden of domestic legal disputes; provide opportunity to trade service; articulate a concrete strategic development plan such that small businesses can invest in supportive roles; encourage the Bahamas Development Bank to strategically support domestic investors proposing touristic activities/attractions that capture our cultural and environmental assets; investment in civic areas and beautification; the government should invest in beautification in East and West GB; the government should privatize maintenance in East/West GB as long term employment opportunity for small business; adequately fund schools and develop adult and technical education/Increase standards.
Knowles emphasised that the chamber recommends that the GBPA and DEVCO establish an organization to promote Grand Bahama Internationally.
” Promotional activities over the last 15 years have been tepid and ineffectual and hence this covenant should be viewed by Government as ‘un-met’ and needs to be revisited by the GBPA with the technical assistance and involvement of the Central Government, Licensees and other key stakeholders,” Knowles said.
Knowles informed that it is a chamber recommendation also that the HCA Committee be mindful of the demands being placed on the country by external agencies to comply with “international best practices” and the Government’s stated intent to accede to the World Trade Organization. He said the GBPA’s growth and development policies must be harmonious and consistent with those of the country at large.
In addition, Knowles claimed the chamber warns that the essential terms of the HCA need to be recognized, respected and preserved by the central government.
Knowles thinks of Grand Bahama as a fiscal solution for The Bahamas.
” Growth in Grand Bahama Island from HCA redefinition would significantly assist the government with its fiscal reform agenda. Freeport, alone, has the potential to comfortably facilitate up to 300,000 residents which, if realized, will cause a commensurate increase in net revenues generated for the Government. Taxing Freeport eliminates this potential,” Knowles said.
In conclusion, Knowles stated that failure to extend the Hawksbill Creek Agreement will result in a reduction in Government revenue, as critical mass has not yet reached to sustain the economy.