NASSAU, BAHAMAS — The total cost of the impact and effect of COVID-19 on The Bahamas is estimated at $9.5 billion, with the Bahamian economy expected to return to its pre-pandemic level by 2024.
The report by the Inter-American Development Bank (IDB) and the UN Economic Commission for Latin America and the Caribbean (ECLAC) titled, “Assessment of the Effects and Impacts of the COVID-19 Pandemic in The Bahamas,” noted that the pandemic resulted in tens of thousands of job losses and long-lasting effects on the country’s tourism sector.
According to the report, losses in tourism were estimated at almost $7.9 billion, largely due to the drop-off in stopover visitors. The report noted that the economy is expected to return to its pre-pandemic level by 2024, mainly due to the gradual pace of recovery in the tourism sector and the long-lasting effects of COVID-19 in this sector.
“Most of the consequence from the fall in stopover visitors, about BSD $6.4 billion,” it read.
“Also, The Bahamas got a severe blow from the temporary cessation of operations of the cruise lines, which produced over BSD $1 billion in losses. The rest of the lost income corresponds to boat stopover and excursionist, totaling BSD $373 million. The additional costs total BSD $87 million,” the report stated.
The total losses in the commercial sales to residents due to the COVID-19 pandemic are estimated at BSD $823 million.
“A portion of this is related to the fact that residents’ spending got impacted first due to the curfews and lockdowns, and then due to a decline in household income. Another part of this is directly related to tourism, which experienced a great decline during the first year of the pandemic.”
It was noted that the COVID-19 impact represents more than two-and-a-half times the $3.5 billion estimated cost of damage and losses due to Hurricane Dorian, which occurred just six months prior to the pandemic. The two disasters are estimated to have cost the country a combined $13.1 billion.
It was also noted that the pandemic in The Bahamas has affected more women than men, with women accounting for 53 percent of the total confirmed cases. Around 43 percent of the cases reported were people between 20 and 39 years old.
Additional costs of the health sector related to COVID-19 were approximately BSD $50 million at 2021 prices. The losses in the education sector are estimated at a total of BSD $48.2 million, 51 percent of which was due to the reduction in days of classes and 49 percent because of tuition fees lost in the private sector. Additional costs have been estimated at about BSD $2.4 million.
“The COVID-19 pandemic disrupted the world’s economic order and global public health,” the report continued.
“Social distancing measures to curb the spread of the virus created significant challenges for global economic activity. Sectors such as tourism–which depend on the movement of people–virtually shut down,” said Daniela Carrera-Marquis, IDB Country Representative.
“The economy of The Bahamas is heavily reliant on tourism, which accounts for half of the country’s Gross Domestic Product (GDP). The pandemic also highlighted the country’s socio-economic vulnerability as businesses and citizens were hit hard.”
Responding to the COVID-19 crisis represented an unprecedented challenge for most governments, particularly those whose economies are heavily dependent on external factors such as tourism, said Carrera-Marquis.
Since the pandemic began, the IDB has provided The Bahamas with $200,000 in technical assistance and $60 million in loans for projects to reduce COVID-19-caused morbidity and mortality and mitigate other indirect impacts of the pandemic on health. These programs also aim to prepare the country’s health system for future risks.
The projects have also focused on designing a strategy to integrate primary health care services to enhance quality care; establish adaptable and climate-resilient clinics to provide primary care services; improve emergency response capacity; and design a roadmap for digitally transforming the health system, including by offering electronic health records and telemedicine services.
The report has recommended the implementation of a comprehensive framework for resilient recovery from the COVID-19 pandemic, which will require a combination of structural and non-structural measures to reduce socio-economic, environmental, institutional, and human vulnerabilities in the long term.
