The Central Bank Of The Bahamas’ Contribution To The
2016-2017 Budget Communication
declined by 5.1% to 4.7 million visitors, a reversal from a 2.2% increase in 2014, resulting in a
Annex A
decrease in overall arrivals by 3.3% to an estimated 6.1 million, vis-à-vis a 2.8% expansion in
2014.
By major ports of entry, visitors to New Providence fell by 7.1% to 3.3 million, after the
previous year’s slight 0.6% uptick, as the 10.0% reduction in sea arrivals, outweighed the 0.2%
rise in air passengers. Similarly, the Family Island market decreased by 6.7% to 1.9 million, vis-àvis a 7.5% gain in 2014, due primarily to an 8.3% contraction in sea traffic, which overshadowed
the 6.9% increase in the air segment. In contrast, buoyed by sustained public/private sector
marketing initiatives, Grand Bahama experienced a sharp 22.9% growth in visitors to 0.9 million,
exceeding the 0.9% uptick a year earlier, owing to a surge in both air and sea passengers by
24.9% and 22.5%, respectively.
With regard to hotel performance in 2015, preliminary data revealed a 3.0% rise in total
room revenues, exceeding the previous year’s 1.0% gain. The outturn was underpinned by a 2.5
percentage point firming in the hotel occupancy rate to 69.2%, and a 6.0% increase in the
average daily room rate (ADR) to $253.88, following the 1.5% rise in the previous year.
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2016/2017
DRAFT
ESTIMATES
OF REVENUE &
EXPENDITURE
CONSTRUCTION
During 2015, the sharp falloff in foreign investment inflows resulted in a contraction in
construction sector output. Domestic activity recorded mixed signals, as despite increased
support from financing flows, valuations on new projects—partly signaling potential forward
looking momentum—stalled.
Total domestic mortgage loan disbursements for new construction and building
repairs—as reported by banks, insurance companies and the Bahamas Mortgage Corporation—
expanded by 23.8% to $120.8 million during the year, exceeding the 8.9% growth reported in
2014. This outturn was due primarily to the recovery in the residential component, which grew
by $28.6 million (34.7%) to $111.0 million, a reversal from an 8.1% reduction in the prior year.
In contrast, the commercial segment contracted sharply by 35.4% to $9.9 million, following
disbursements of $15.3 million in 2014.
In the twelve-month period ending September 2015, the latest period for which data is
available, construction starts in New Providence and Grand Bahama contracted, with the total
number of projects decreasing by 26.1% to 394 and the associated value by 16.2% to $113.9
million. Specifically, residential construction, which constituted 86.3% of the total, declined by
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