Bahamas

Overview

• Became an independent nation in 1973, formerly a British Colony.
• Tourism is the predominant source of industry; constituting nearly 60 percent of the GDP. Very little industry.
• Very little reported corruption within their system.
• Bahamian currency pegged to the U.S. dollar, and inflation is quite low.
• Foreign agreements include: U.S. Caribbean Basin Initiative (CBI), the European Union’s Lome IV agreement, and Canada’s CARIBVAN program.
• Politically stable developing nation with a population of approximately 300,000 - mostly middle income citizens
• The U.S. contributes up to 55 percent of the imports in the Bahamas.
• Most other imports come from third world countries and are acquired through American distribution networks.

Opportunities

• Tourism
• Agricultural Endeavors
• Manufacturing Ventures
• Financial Opportunities

Marketing Tips

• 80 percent of tourism stems from the United States with extensive support for familiar American supplies and services.
• Bahamian government owns wholesale and retail outlets, non-specialty restaurant establishments, most of the construction projects, and many small businesses.
• Most other business types may have partial foreign ownership but with local Bahamian firm as majority partner.
• Safety and pollution standards less restrictive than the United States.
• Import tariffs can be quite high, but are non-discriminatory.
• The Government Budget during 1996-97 reduced import duties on computers, computer parts, and consumer based electronic appliances.
• Goods that can be serviced easily either in Florida or in the Bahamas will enjoy a very competitive advantage over those that cannot.
  • Service agents in the Bahamas must still be Bahamian.
• Generally weak intellectual property protections.
• A special free trade zone exists in Freeport on the Grand Bahamas Island.
  • no taxes on profits, capital gains, inheritance, income, earnings, distributions, gifts, or imported and exported goods.
  • import duties and taxes on real estate waived through August 3, 2015.
• Power and service companies’ utility rates are higher than in the U.S.
• Telecommunication services are spotty, but operational enough for most routine communication needs.
• Island is extremely dependent on imports
  • Over $250 million in food products imported annually--approximately 80 percent of consumption
• Government relaxed the Lotteries and Gaming Act and the Casino Taxation Act, etc. to invigorate tourism.
  

Business Culture

• English is the national language of the Bahamas

• Business practices and customs similar to those in United States.

• General business attire mimics style of U.S. Northeast

• When speaking with others, getting to a first name basis in conversation takes longer in the Bahamas than in the U.S.

• Foreign visitors are expected to make appointments for business meetings and arrive on time--even though locals are not usually punctual for meetings.

• Business meetings tend to be very pleasant but Bahamians often end meetings feigning agreement when real differences still exist.

• Mid-level business and government workers often need final approval from superiors.
  

Legal Environment

• Based on British Common Law and colonial legislation.
  • American legal system and other models however have been adopted for certain business related areas.
• Large legal community in the Bahamas.
• Attorneys are available to help foreign businesses.
• Judicial process is fair but slower than in the U.S.