2019/20 Budget Communication Final Budget Communication | Page 30

year. Nevertheless, the increase in the overall price level did not appear to have an adverse impact
on domestic consumption, as this component of GDP grew over the year, especially for households.
Data from the Central Bank reveal that domestic energy prices rose in 2018, in line
with the rise in international oil prices. Specifically, the average cost of both gasoline and diesel
rose by 11.1 percent and 15.6 percent, to $4.74 and $4.45 per gallon, respectively.
Mr. Speaker,
Tourism performance held its robust momentum into 2019, with total arrivals to the
Bahamas strengthening by 19.3 percent in January to 0.6 million, outpacing the 4.8 percent growth
registered in the same period one year ago. The high value-added air segment rose by 28.8 percent
to 0.1 million, quadrupling the year earlier 7.0 percent gain, while sea arrivals firmed by 17.1
percent to 0.5 million, registering a near four-fold increase over the 4.3 percent hike last year.
Recently approved Foreign Direct Investment (FDI) projects continue to boost
employment levels and foreign currency inflows. In fact, as of this month, approximately $8
billion has been approved in FDI projects across our archipelago of islands since May 2017.
Among these projects is the $1.5 million expansion to Rainbow Inn Boutique Resort
in Eleuthera. The project, which is anticipated to be completed in three to five years, will create
approximately 25 jobs in the construction phases and six operational jobs upon completion. The
expansion includes the addition of 20 luxury suites and the complete rebranding of the resort as
“Sunset Cove”. In addition, HAL Properties Ltd. was approved for an $80 million cruise pier to be
constructed on Half Moon Cay, as well as land side facilities.
There is also the $100 million Carnival Cruise Port for East Grand Bahama which is
expected to create 1,000 jobs for locals, as it helps to restore the nation’s second largest city. The
Shore Project that is to accompany the construction of the new port will include a 20-bed hotel, an
18-hole miniature golf course, restaurants, nightclubs, shops, among many other amenities. This
project is anticipated to run over 24 months.
Mr. Speaker,
According to the Central Bank of The Bahamas, monetary conditions in 2018 were
dominated by a decline in banking sector liquidity, as the growth of domestic credit contrasted
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