Inagua May 5 2008 Final Ppp Reformatted


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Inagua May 5 2008 Final Ppp Reformatted

  1. 1. Opportunities – Challenges – Recommendations
  2. 2. Purpose of Presentation <ul><li>Insert text here </li></ul><ul><li>This is your sample text </li></ul><ul><li>Look at it carefully and see how you want to do it </li></ul><ul><li>May want to put bullets or other things </li></ul><ul><li>Also need to look at size of text </li></ul><ul><li>Present Findings from two IDB-supported tourism projects in Inagua </li></ul><ul><li>Present Lessons Learned, Recommendations and proposed Next Steps </li></ul><ul><li>Solicit feedback and inputs from you </li></ul>
  3. 3. Location
  4. 4. Inagua
  5. 5. Inagua National Park
  6. 6. Background <ul><li>Initial Assessment: June-Oct. 2004 </li></ul><ul><li>Sustainable Tourism Project: June 2006 – Present </li></ul><ul><li>Tourism Master Plan and Land Use Plan: April 2007 – Present </li></ul><ul><li>No additional studies needed – time to take action </li></ul>
  7. 7. Sustainable Tourism Project <ul><li>IDB, MOT, BNT Activities </li></ul><ul><ul><li>Business planning </li></ul></ul><ul><ul><li>SME technical assistance </li></ul></ul><ul><ul><li>Investment promotion </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Marketing </li></ul></ul><ul><ul><li>Website and collateral materials </li></ul></ul><ul><ul><li>Capacity building – ITA </li></ul></ul><ul><ul><li>Study tours </li></ul></ul><ul><ul><li>Familiarization tours </li></ul></ul>
  8. 10. Tourism Master Planning Project <ul><li>Assess the tourism potential of Inagua </li></ul><ul><li>Assess infrastructure requirements </li></ul><ul><li>Propose a Master Land Use plan for the Island </li></ul><ul><li>Define, in collaboration with the local community, a Tourism Development Strategy </li></ul><ul><li>Propose Action Plans for implementation </li></ul>
  9. 11. Findings and Recommendations <ul><li>Since projects overlapped, a significant effort was made to integrate them. </li></ul><ul><li>The following slides present the projects’ joint conclusions and recommendations. </li></ul>
  10. 12. Inagua Tourism Resources <ul><li>The “Outback” of the Caribbean </li></ul><ul><li>Over 500 square miles of uninhabited wilderness </li></ul><ul><li>Abundant wildlife, untouched nature, interesting history, salt works </li></ul><ul><li>Some of the Caribbean’s best beaches, coral reefs, and marine fisheries </li></ul>
  11. 13. Inagua Tourism Resources <ul><li>A highly skilled workforce, with an entrepreneurial spirit. </li></ul><ul><li>With the right kind of support and tourism-related technical assistance, they have the capacity to do great things. </li></ul>
  12. 14. Vision for Sustainable Tourism Development To create a world-class destination that will help tell the story of the Inaguas, preserve biodiversity for future generations, and create meaningful economic opportunities for local residents.”
  13. 15. Bahamas Tourism – A Mature Industry Stopover Arrivals, 1988-2006
  14. 16. Green Travel Growth <ul><li>Global travel market growing 4-5% per year </li></ul><ul><li>Traditional Sun, Sand and Sea destinations growing 2-3%; most of that growth down market </li></ul><ul><li>Green Travel growing 15-25% per year; heading more up-market </li></ul><ul><li>Nassau is a mature, slow growth destination </li></ul><ul><li>Inagua and the Out Islands are Greenfield, and well-positioned to exploit the growth in Green Travel </li></ul>
  15. 17. Inagua Target Markets <ul><li>Sustainable Tourism </li></ul><ul><li>Birdwatching </li></ul><ul><li>Sport Fishing </li></ul><ul><li>Nature and Adventure </li></ul><ul><li>SAVE </li></ul><ul><li>Diving </li></ul><ul><li>Romance </li></ul>
  16. 18. Inagua (Out Islands) Development Challenges <ul><li>Accommodations Capacity (6 properties, 28 rooms) </li></ul><ul><li>Project Financing </li></ul><ul><li>Tourism-related Services </li></ul><ul><li>Distance from Nassau </li></ul><ul><li>Airlift </li></ul><ul><li>Unknown Destination </li></ul><ul><li>Lack of Industry Knowledge and Know How </li></ul><ul><li>Interpretation and signage </li></ul><ul><li>Landscaping and beautification </li></ul>
  17. 19. Importance of Hotel Development <ul><li>Accommodations Capacity is the most important obstacle to tourism development in Inagua. Most other challenges are directly tied to lack of hotel rooms. </li></ul><ul><li>Hotel investment catalyzes other forms of tourism investment, related business opportunities, and provides marketing support. </li></ul><ul><li>Inagua needs the right kind of hotels to exploit its development potential. Cultural Gap to be bridged. </li></ul><ul><li>Efforts underway to expand room supply, but a number of obstacles hinder progress. </li></ul>
  18. 20. Case Study: Ventalina EcoResort <ul><li>Solimar working with Farquharson family to develop 22-room, luxury ecoresort. </li></ul><ul><li>Drafted business plan, financial analysis, recruited philanthropic and other investors, securing debt financing, providing preliminary land use and design recommendations, etc. </li></ul><ul><li>Farquharsons owned part of the required land, additional acreage, marked as Crown Land on L&S maps, requested from Government. </li></ul>
  19. 21. Case Study: Ventalina EcoResort <ul><li>12 months later, land is approved, except that L&S realizes it does not actually own a large parcel necessary for project development (the beach). </li></ul><ul><li>Parcel granted to Morton in the 1960’s. Morton unaware that it even owned the land. </li></ul><ul><li>Request submitted to Morton in November. </li></ul><ul><li>Farquharsons and investors have now waited 18 months for project start up. New investors will soon be required if there is no forward progress. </li></ul>
  20. 22. Accommodations Development Challenges <ul><li>Difficulty of acquiring Crown Land – long process and outdated maps </li></ul><ul><li>Land tenure </li></ul><ul><li>Crown land provided without requiring well-conceived business plans </li></ul><ul><li>Lack of project finance </li></ul><ul><li>No technical assistance available </li></ul><ul><li>Lack of industry knowledge </li></ul><ul><li>End result – lack of hotel rooms, failed or unfinished projects, foreigners owning the Bahamian hotel industry </li></ul>
  21. 23. Importance of Small Bahamian-owned Hotels <ul><li>Best opportunity for wealth creation – Crown land as Bahamian Equity </li></ul><ul><li>Creates capacity for Out Islands tourism development </li></ul><ul><li>Catalyzes other business opportunities </li></ul><ul><li>Small is Beautiful – there is a large and growing market for small, environmentally friendly, locally owned hotels </li></ul><ul><li>But they have to be properly designed and managed </li></ul>
  22. 24. Recommendations <ul><li>Establish Project Development Facility - TA </li></ul><ul><li>Update/digitize Crown Land Maps; Untangle Land Tenure </li></ul><ul><li>Streamline the approvals process, but make it more rigorous </li></ul><ul><li>Create Venture Capital Fund/Competition </li></ul><ul><li>Promote JV Investment </li></ul><ul><li>Provide training, marketing support and reservations system </li></ul>
  23. 25. Project Development Facility (PDF) <ul><li>Can be focused on more than hotels </li></ul><ul><li>PPP – government agency won’t work </li></ul><ul><li>One-stop shop for Bahamian investors </li></ul><ul><li>Recruit industry professionals to mentor developers and provide technical assistance </li></ul><ul><li>ESC, TDC, BHA, universities, competitions, all potential sources of mentors and TA </li></ul><ul><li>Create incentives for participants </li></ul>
  24. 26. Tourism Venture Capital Fund <ul><li>Linked to (or part of) PDF </li></ul><ul><li>Source of Debt and Equity Financing </li></ul><ul><li>Provide feasibility analysis and other services </li></ul><ul><li>Integrated approach the key to success </li></ul><ul><li>Could be seeded with IDB loan </li></ul>
  25. 27. Proposed Project Development Process BEST Investment Board BEST
  26. 28. Other Development Challenges <ul><li>Airlift – Not a significant challenge. More hotel rooms will bring more lift. </li></ul><ul><li>Recommendations: </li></ul><ul><li>BahamasAir could improve lift significantly over nighting plane in Inagua. </li></ul><ul><li>Discuss with Lynx Air its willingness to provide direct service from Ft. Lauderdale. More hotel rooms will likely be needed first. </li></ul>
  27. 29. Other Development Challenges <ul><li>Unknown Destination – Also not a significant challenge. More hotels (the right kinds of hotels) will help generate awareness </li></ul><ul><li>Recommendations: </li></ul><ul><li>Provide seed capital to the Inagua Tourism Association </li></ul><ul><li>It could then implement the marketing strategy that has been developed </li></ul>
  28. 30. Other Development Challenges <ul><li>Landscaping and beautification – Would improve local business climate, make Inagua more competitive. </li></ul><ul><li>Recommendations: </li></ul><ul><li>Will require a community effort, with support from Government, Morton, and others. Voluntourism program an option. Funding in part through IDB loan. </li></ul>
  29. 31. <ul><li>Insert text here </li></ul><ul><li>This is your sample text </li></ul><ul><li>Look at it carefully and see how you want to do it </li></ul><ul><li>May want to put bullets or other things </li></ul><ul><li>Also need to look at size of text </li></ul>Land Planning and Infrastructure <ul><li>Summary of Findings: </li></ul><ul><li>More detailed (digital) mapping needed </li></ul><ul><li>A Marine Reserve would help protect marine biodiversity and improve the Island’s appeal </li></ul><ul><li>Significant opportunities to renovate and reuse Historic Structures </li></ul>
  30. 32. <ul><li>Insert text here </li></ul><ul><li>This is your sample text </li></ul><ul><li>Look at it carefully and see how you want to do it </li></ul><ul><li>May want to put bullets or other things </li></ul><ul><li>Also need to look at size of text </li></ul>Land Planning and Infrastructure <ul><li>Summary of Findings: </li></ul><ul><li>Roads in good condition (except in Matthew Town), part of the attraction </li></ul><ul><li>Solid waste a relatively minor issue in health terms, but needs addressing in tourism terms </li></ul><ul><li>Liquid waste primarily a maintenance issue </li></ul>
  31. 33. <ul><li>Insert text here </li></ul><ul><li>This is your sample text </li></ul><ul><li>Look at it carefully and see how you want to do it </li></ul><ul><li>May want to put bullets or other things </li></ul><ul><li>Also need to look at size of text </li></ul>Land Planning and Infrastructure <ul><li>Summary of Findings: </li></ul><ul><li>Expansion of Port Facilities needed, but not critical for tourism development </li></ul><ul><li>Electrical generation both an obstacle and opportunity </li></ul>
  32. 34. Inagua Sustainable Tourism <ul><li>Insert text here </li></ul><ul><li>This is your sample text </li></ul><ul><li>Look at it carefully and see how you want to do it </li></ul><ul><li>May want to put bullets or other things </li></ul><ul><li>Also need to look at size of text </li></ul>Land Use Planning <ul><li>Land use planning not critical at this stage. No development activity planned or envisioned, other than two small ecoresorts. </li></ul><ul><li>To prepare a more detailed land use plan digital maps are needed. </li></ul><ul><li>IDB-funded GIS mapping project covered Inagua, but only (apparently) Matthew Town. </li></ul>
  33. 36. Marine Reserve <ul><li>To exclude or limit commercial fishing (no impact on local fishermen) </li></ul><ul><li>Bahamian commercial fishing boats beginning to show up </li></ul><ul><li>More protection of fisheries needed (foreign poaching). Expanded BDF presence. </li></ul><ul><li>Man of War Bay would be a good place to start (no barrier reef protection). </li></ul>
  34. 37. Historic Structures <ul><li>There are several, inside and outside Matthew Town. </li></ul><ul><li>The two most significant are the Salt House and the 19 th century Anglican Church in MOW Bay. </li></ul><ul><li>The Salt House has significant potential for adaptive reuse. </li></ul><ul><li>Owned by Morton and used, in part, for warehousing. </li></ul><ul><li>For Church, all that is needed is money. </li></ul>
  35. 39. Roads <ul><li>Matthew Town roads are in poor condition. Asphalting required. </li></ul><ul><li>Roads outside of town are in very good condition, and add a great deal to the sense of adventure. Morton maintains most of them. </li></ul>
  36. 40. Solid and Liquid Waste <ul><li>New land fill being developed. Lots of scattered solid waste (Matthew Town) that should collected and deposited, recycled, or exported. </li></ul><ul><li>Morton should be recruited to assist, and has its own solid waste issues to deal with. </li></ul><ul><li>Need better methods for dealing with waste from household septic systems, but not a major health threat. </li></ul><ul><li>If port expansion executed, should include pump out and treatment station. </li></ul>
  37. 41. Port Facilities <ul><li>Port poorly designed, not safe for small boats during W or NW swells or storms, undersized </li></ul><ul><li>Best alternative is to expand in current location </li></ul><ul><li>Expansion would open up opportunities for larger BDF USCG presence, and related economic impacts </li></ul><ul><li>Could be done in phases </li></ul><ul><li>Estimated Phase I cost: $7.5 million </li></ul>
  38. 43. Estimated Budget
  39. 45. Electricity Generation <ul><li>Diesel-fired generators incredibly expensive to operate and major source of noise pollution </li></ul><ul><li>Long-term outlook for fuel prices unfavorable </li></ul><ul><li>Renewable energy strategies have significant potential, and likely very short payback period. </li></ul><ul><li>Wind, or Wind and Solar hybrid system, with diesel back-up the logical path. </li></ul><ul><li>Will require political will. </li></ul>
  40. 46. Electricity Generation <ul><li>Govt. claims wind studies for Inagua have been performed, and were negative. No evidence provided. </li></ul><ul><li>Wind and solar studies needed, but indirect studies and simple observation point to significant potential. </li></ul><ul><li>Wind and solar proven to be economically viable in countries where electricity sold at $.06-$.15 per kWh. Inagua cost is close to $.40 kWh. </li></ul>
  41. 47. Electricity Generation <ul><li>Inagua lower rainfall (more sunshine) than virtually any other island in the Caribbean (on par with Curacao, Bonaire and Aruba). </li></ul><ul><li>Also significant and steady trade winds. </li></ul><ul><li>Morton has operations there because of the solar and wind resources (high evaporation rates). </li></ul><ul><li>Wind and solar radiation study would require 12 months and approximately $30,000 to complete. </li></ul>
  42. 48. Electricity Generation <ul><li>Adoption of a renewable energy approach would also set Inagua apart as a sustainable tourism destination, generate positive press, and make it more competitive. </li></ul><ul><li>Could also serve as a pilot project for other Out Islands, particularly those in the south. </li></ul>
  43. 49. Inagua Sustainable Tourism
  44. 50. Inagua Sustainable Tourism
  45. 51. Electricity Generation <ul><li>Commercial wind turbines need average wind speeds of 6 m/s (approximately 11 miles per hour), to operate efficiently. </li></ul><ul><li>Inagua appears to have average wind speeds (at 50 m, below average height of wind turbine) of 7 to 9 m/s, (15-20 mph). </li></ul><ul><li>These wind and solar studies should be conducted as soon as possible. </li></ul>
  46. 52. Conclusion <ul><li>The Bahamas is a slow growth, mature tourism destination. </li></ul><ul><li>Sun, Sand and Sea is a mature, slow growth market. </li></ul><ul><li>Sustainable Tourism, Green Tourism, and Nature and Adventure travel are the growth opportunities in today’s travel market. </li></ul>
  47. 53. Conclusion <ul><li>Inagua and the Out Islands represent the Bahamas’ best opportunity to tap into that growth. </li></ul><ul><li>Modern technology has made tourism development in Inagua and other remote, sparsely populated Out Islands economically and environmentally feasible. </li></ul><ul><li>Inagua is the perfect location to test out new concepts and lay a foundation for the future. </li></ul>
  48. 54. Conclusion <ul><li>The potential of these islands to become a primary growth driver of the Bahamian economy is significant. </li></ul><ul><li>Very little additional study is needed (wind and solar). </li></ul><ul><li>Its time to act. </li></ul>
  49. 55. Thank You