BAHAMAS MONTHLY -- JUNE 2009

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SIPDIS

E.O. 12958: N/A
TAGS: ECON EFIN PGOV PREL BF
SUBJECT: BAHAMAS MONTHLY -- JUNE 2009


1. This is a monthly report on a variety of topics of interest
which do not merit full reporting cables.

-- IMF Recommends Increasing Revenue by 1.75 Percent
-- Admission Applications for College of The Bahamas
Increases by 20 Percent
-- 10,000 Bahamians Apply for Unemployment Benefits
-- April Tourism Numbers: Flying is Out, Cruising is In
-- The Curious Case of the Missing Speedboats

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IMF Recommends Increasing
Revenue by 1.75 Percent
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2. The International Monetary Fund (IMF) recommended that the
Government of The Bahamas (GCOB) adopt more aggressive fiscal reform
by increasing revenue by an amount equivalent to 1.75 percent of GDP
between the 2011-2012 and 2012-2013 fiscal years. The IMF
recommended this step following the announcement that the current
national debt level in The Bahamas is nearly 39 percent -- a level
too close for comfort to the generally accepted 'danger' level of 40
percent. International agencies and Bahamians alike are worried
that the increasing national debt could lead to a negative credit
rating in the future.

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Admission Applications for
College of The Bahamas
Increase by 20 Percent
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3. The College of The Bahamas (COB) reported a 20 percent increase
in admission applications this year, receiving 400 more applications
in 2009 than in 2008. A COB spokesperson noted that this increase
is likely due to the unemployment spike in The Bahamas that has
resulted from the economic recession. Many Bahamians are unable to
afford sending their children to U.S. or Canadian colleges or
universities, resulting in a renewed interest in COB. The COB
spokesperson indicated that the majority of this year's applications
are from recent high school graduates, but that a small portion are
being sent from students who had been studying abroad and now need
to return home to finish their education.

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10,000 Bahamians Apply for
Unemployment Benefits
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4. Minister of Labor and Social Development Dion Foulkes told local
media that nearly 10,000 Bahamians have applied for the newly
established unemployment benefits program since its inception in
late April. Foulkes said over 7 million USD has already been
disbursed to qualified registrants, representing over 19,000 checks
to date. Foulkes encouraged those still in need to step forward and
apply, noting that the number of unemployment applications received
was smaller than anticipated.

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April Tourism Numbers: Flying
is Out, Cruising is In
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5. New arrival numbers for April released by the Ministry of
Tourism and Aviation (MOTA) show total arrivals for Nassau up by 12
percent over the year-ago period. A MOTA representative told local
media the climb is largely due to an increase in sea arrivals.
April numbers show there was a decrease of 0.4 percent of visitors
flying into Nassau, but a 21.8 percent increase in those opting to
arrive by sea. Grand Bahama, on the other hand, saw a 5.9 percent
decline in total visitors, representing some 2,360 less visitors
that came to the island in the same period in 2008. Overall, The
Bahamas suffered a decline of 1.2 percent in visitor arrivals in the
year-to-date numbers, though April arrivals saw a 4.5 percent
increase compared to April 2008.

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The Curious Case of the
Missing Speedboats
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6. Two valuable, high powered speedboats were stolen from a marina
on the island of Abaco within hours of their arrival on June 7.
These are the latest in a series of recent boat thefts in The
Bahamas, including the theft and return of the Prime Minister's
fishing boat (which was likewise docked at an Abaco marina) in
March. News of the potentially unsafe docking locations in The
Bahamas spread quickly, and locals have called on the Royal Bahamas
Police Force (RBPF) to take more action to ensure security at these
facilities. Many in The Bahamas are worried about the ripple effect
the increase in boat crime will have on the tourism sector. Boaters
have already reported increased insurance rates for those choosing
to dock their vessels in The Bahamas. In the meantime many marinas

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have employed their own local security forces in an effort make
their establishments more secure.

ZUNIGA-BROWN