NASSAU, BAHAMAS — A tourism industry executive says that this nation can ill-afford to have its tourism sector rebound derailed by a significant hike in the cost of electricity, which is already a huge expense item for tourism stakeholders.
Robert Sands, the Bahamas Hotel and Tourism Associations’ (BHTA) president noted in a statement that the tourism sector, historically, has faced challenges related to the cost of doing business in The Bahamas.
“The high cost of operating in The Bahamas is directly and inextricably related to the price of a vacation in the destination,” he noted.
Sands further noted that post-COVID, the pent-up demand for travel has and will continue to fuel the momentum of this nation’s economic rebound.
HE said however that pent-up demand will eventually begin to wane, with key motivating factors, once prevalent in the face of COVID, playing less of a role in the traveler’s decision-making process.
“We must continue to offer value for money spent; we must continue to be competitive and ensure we attain our carefully constructed balance between pricing and the tourism product we provide.
“It is essential our tourism service offering must be Top-Of-Class.
“Our ability to achieve this balance will be challenged if the industry is forced to face a heightened cost of doing business,” said Sands, adding, that “all of these factors play a part”.
“We are 100 percent on the road to recovery, however, given what we have just been through, and what may lay ahead, we can ill-afford to be derailed by factors such a significant hike in the cost of electricity, which is already a huge expense item for tourism stakeholders.”
BPL CEO Shevonn Cambridge has indicated that the power company will have to increase its fuel charge and revisit its tariff rates to meet its operational demands and pay off its debt.
Earlier this year, BPL issued a statement announcing that customers’ fuel charges will increase from 10.5 cents per kilowatt-hour (kWh) to 13.7 cents per kWh.
It said customers whose average monthly consumption is 250 kWh will see a rise of about $8 in their monthly light bill and customers whose consumption is 600 kWh will see an increase of about $19 per month.
That statement was later recalled.
Sands said that tourism industry stakeholders encourage BPL to do everything within its power to mitigate increases in the cost of electricity for businesses in The Bahamas inclusive of the tourism sector.
