ABACO is the fastest growing Family Island in the Bahamas and Abaco real estate has developed into a key industry.
Many of the movers and shakers in the Bahamas live or have second homes in Abaco. The Prime Minister of the Bahamas, Hubert Ingraham, is from Cooper’s Town, Abaco.
Mike Lightbourn, president of Coldwell Banker Lightbourn Realty, has a second home in Abaco.
Bahamas Investment Authority statistics show that for the 12 month period leading up to May, 2008, approvals for the sale of Abaco real estate, among foreign sellers and purchasers, was valued at more than $91 million. This figure includes $3½ million in inherited property.
And approvals to sell $34 million worth of Bahamian-owned real estate to international persons were given during the same period.
According to the Central Bank of the Bahamas, there were actual net investment flows to the Abaco economy of $107.86 million with capital transfers among non-resident investors of approximately $36.66 million during the 12-month period ending in May, 2008.
As Abaco has developed over the years, a significant number of the descendents of the people have returned to make this island their home. Drawn by the peaceful, laid-back existence, the absence of traffic jams and urban-related issues, Bahamians have left Nassau to start their own businesses on this large island.
Banks and insurance companies have opened branches. There’s a well stocked supermarket, smaller food stores, restaurants, pubs and Abaco real estate offices. In fact, there are an estimated 70 Abaco real estate agents.
Over the years, Abaco has benefited from a fairly successful mix in its economy, including tourism, fisheries and the second home market.
Abaco is a major tourist destination. It’s extremely popular with yachtsmen lured by the hundreds of private inlets and bays, and the charm of the old Loyalist settlements. Businesses such as marinas, air charter services, arts and craft, restaurants and so on have been built around the tourist industry.
In 2007, Abaco recorded 110,738 stopover visitors. By the end of February, 2008, air and sea arrivals increased by 20% over the comparable period in 2007—39,207 as opposed to 32,686 visitors.
Abaco enjoys a healthy share of repeat visitors. The number is expected to grow as a result of timeshare and fractional ownership.
This, according to Prime Minister Ingraham, bodes well for employment and business.
Abaco has the third largest population and the third largest economy in the Bahamas, following New Providence and Grand Bahama. Mr Ingraham says the strength of the economy is transforming Abaco into an economic and employment centre.
Until recently, the tourist and real estate developments were low impact enough not to cause serious environmental concerns.
However, Mr Ingraham has warned that the environmental footprint is growing at a challenging rate in Abaco.
Ingraham, who was born and raised in Abaco and has represented North Abaco in Parliament since 1977, says he feels a tremendous responsibility to do good for the people there.
“So when you speak of the concerns of the people of Abaco over the threats to the environment posed by large scale development, you have my ear,” he told residents.
While assuring them that his government is committed to the sustainable use of the environment, Mr Ingraham noted that growing pains have accompanied the implementation of his government’s policy.
He sees partnerships with international and Bahamian environmental groups as crucial to continued and future success in sustainability efforts.
Special attention has been given to environmental standards at two tourism developments in Abaco, Winding Bay near Cherokee Sound, and at Baker’s Bay in Great Guana Cay, according to Mr. Ingraham.
One of the significant employers in Abaco is Winding Bay where Ritz-Carlton now owns the Abaco Club. Approval has been given to expand the development, with 260 more mixed use units, single family homes, condominiums and fractional ownership units.
Already opened, the expansion is expected to be completed in 2010. Currently over 200 Bahamians are employed at the resort and the workforce is expected to double once the project is completed.
Also, Mr Ingraham believes that in spite of the persistent opposition by ‘a small number’ of persons to the development, the standards being observed by the Baker’s Bay developer fully meet standards promoted by leading environmental protection bodies and international organisations.
About 125 Bahamians are employed in the management and operation of Baker’s Bay.
New owners have been approved to purchase the Walker’s Cay Resort, which closed after the harsh 2005 hurricane season.
And in Treasure Cay, North Abaco, the Bahama Beach Club completed the last 47 luxury units of its 88 unit condo hotel.
Also in Treasure Cay, the Phillips Property International received approval to build a 34 condominium enclave with private dock.
In South Abaco, a low-impact resort and residential development has been approved at Schooner Bay. The development seeks to replicate the Colonial villages of old.
These are just some of the developments which have been approved, or are ongoing, and which are expected to increase business opportunities in Abaco.
The government’s preference for smaller, mixed-use and environmentally-sensitive resorts appears to becoming more popular with investment groups.
Mr. Ingraham says investors are trending away from traditional mega-hotels. This, he says, is more in keeping with his government’s desire to respect the sensitive eco-systems of the islands of the Bahamas.
The government hopes that smaller development will increase employment levels and business opportunities in Abaco. At the same time, it’s hoped that they’ll offer a more intimate, culturally rich and less environmentally intrusive experience to visitors and home owners on Abaco.
(C)Athena Damianos
ABACO MARKETS QUARTERLY REPORT
Abaco Markets Ltd’s second quarter results for the period ending July 31, 2008, show a net profit of $162k compared to $510k during the comparable period of the previous year.