Inagua May 5 2008 Final Ppp Reformatted

Opportunities – Challenges – RecommendationsOpportunities – Challenges – Recommendations

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• Present Findings from two IDB-supported tourism projects in Inagua

• Present Lessons Learned, Recommendations and proposed Next Steps

• Solicit feedback and inputs from you

Purpose of PresentationPurpose of Presentation

LocationLocation

InaguaInagua

Inagua National ParkInagua National Park

Background

• Initial Assessment: June-Oct. 2004

• Sustainable Tourism Project: June 2006 – Present

• Tourism Master Plan and Land Use Plan: April 2007 – Present

• No additional studies needed – time to take action

Sustainable Tourism ProjectSustainable Tourism Project

• IDB, MOT, BNT ActivitiesIDB, MOT, BNT Activities• Business planningBusiness planning• SME technical assistanceSME technical assistance• Investment promotionInvestment promotion• TrainingTraining• MarketingMarketing• Website and collateral materialsWebsite and collateral materials• Capacity building – ITACapacity building – ITA• Study toursStudy tours• Familiarization toursFamiliarization tours

Tourism Master Planning ProjectTourism Master Planning Project

• Assess the tourism potential of InaguaAssess the tourism potential of Inagua

• Assess infrastructure requirementsAssess infrastructure requirements

• Propose a Master Land Use plan for the Propose a Master Land Use plan for the IslandIsland

• Define, in collaboration with the local Define, in collaboration with the local community, a Tourism Development community, a Tourism Development StrategyStrategy

• Propose Action Plans for implementationPropose Action Plans for implementation

Findings and RecommendationsFindings and Recommendations

• Since projects overlapped, a significant effort Since projects overlapped, a significant effort was made to integrate them.was made to integrate them.

• The following slides The following slides present the projects’ joint present the projects’ joint conclusions and conclusions and recommendations.recommendations.

Inagua Tourism ResourcesInagua Tourism Resources

• The “Outback” of the CaribbeanThe “Outback” of the Caribbean

• Over 500 square miles of uninhabited wildernessOver 500 square miles of uninhabited wilderness

• Abundant wildlife, untouched nature, interesting Abundant wildlife, untouched nature, interesting

history, salt workshistory, salt works

• Some of the Caribbean’s best beaches, coral Some of the Caribbean’s best beaches, coral

reefs, and marine fisheriesreefs, and marine fisheries

Inagua Tourism ResourcesInagua Tourism Resources

• A highly skilled workforce, with an entrepreneurial A highly skilled workforce, with an entrepreneurial spirit.spirit.

• With the right kind of support and tourism-related With the right kind of support and tourism-related technical assistance, they have the capacity to do technical assistance, they have the capacity to do great things.great things.

Vision for Sustainable Tourism DevelopmentVision 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.”

Bahamas Tourism – A Mature IndustryBahamas Tourism – A Mature Industry

Stopover Arrivals, 1988-2006

Green Travel GrowthGreen Travel Growth

• Global travel market growing 4-5% per year

• Traditional Sun, Sand and Sea destinations

growing 2-3%; most of that growth down market

• Green Travel growing 15-25% per year; heading

more up-market

• Nassau is a mature, slow growth destination

• Inagua and the Out Islands are Greenfield, and

well-positioned to exploit the growth in Green

Travel

Inagua Target MarketsInagua Target Markets

• Sustainable TourismSustainable Tourism• BirdwatchingBirdwatching• Sport FishingSport Fishing• Nature and AdventureNature and Adventure• SAVESAVE• DivingDiving• RomanceRomance

Inagua (Out Islands) Development ChallengesInagua (Out Islands) Development Challenges

• Accommodations Capacity (6 properties, 28 rooms)

• Project Financing

• Tourism-related Services

• Distance from Nassau

• Airlift

• Unknown Destination

• Lack of Industry Knowledge and Know How

• Interpretation and signage

• Landscaping and beautification

• Accommodations Capacity is the most important obstacle

to tourism development in Inagua. Most other challenges

are directly tied to lack of hotel rooms.

• Hotel investment catalyzes other forms of tourism

investment, related business opportunities, and provides

marketing support.

• Inagua needs the right kind of hotels to exploit its

development potential. Cultural Gap to be bridged.

• Efforts underway to expand room supply, but a number of

obstacles hinder progress.

Importance of Hotel DevelopmentImportance of Hotel Development

Case Study: Ventalina EcoResortCase Study: Ventalina EcoResort

• Solimar working with Farquharson family to develop 22-Solimar working with Farquharson family to develop 22-

room, luxury ecoresort.room, luxury ecoresort.

• Drafted business plan, financial analysis, recruited Drafted business plan, financial analysis, recruited

philanthropic and other investors, securing debt financing, philanthropic and other investors, securing debt financing,

providing preliminary land use and design providing preliminary land use and design

recommendations, etc.recommendations, etc.

• Farquharsons owned part of the required land, additional Farquharsons owned part of the required land, additional

acreage, marked as Crown Land on L&S maps, requested acreage, marked as Crown Land on L&S maps, requested

from Government.from Government.

Case Study: Ventalina EcoResortCase Study: Ventalina EcoResort

• 12 months later, land is approved, except that L&S realizes it 12 months later, land is approved, except that L&S realizes it

does not actually own a large parcel necessary for project does not actually own a large parcel necessary for project

development (the beach).development (the beach).

• Parcel granted to Morton in the 1960’s. Morton unaware that Parcel granted to Morton in the 1960’s. Morton unaware that

it even owned the land.it even owned the land.

• Request submitted to Morton in November. Request submitted to Morton in November.

• Farquharsons and investors have now waited 18 months for Farquharsons and investors have now waited 18 months for

project start up. New investors will soon be required if there project start up. New investors will soon be required if there

is no forward progress.is no forward progress.

Accommodations Development ChallengesAccommodations Development Challenges

• Difficulty of acquiring Crown Land – long process and Difficulty of acquiring Crown Land – long process and

outdated mapsoutdated maps

• Land tenureLand tenure

• Crown land provided without requiring well-conceived Crown land provided without requiring well-conceived

business plans business plans

• Lack of project financeLack of project finance

• No technical assistance availableNo technical assistance available

• Lack of industry knowledgeLack of industry knowledge

• End result – lack of hotel rooms, failed or unfinished End result – lack of hotel rooms, failed or unfinished

projects, foreigners owning the Bahamian hotel industryprojects, foreigners owning the Bahamian hotel industry

Importance of Small Bahamian-owned HotelsImportance of Small Bahamian-owned Hotels

• Best opportunity for wealth creation – Crown land Best opportunity for wealth creation – Crown land as Bahamian Equityas Bahamian Equity

• Creates capacity for Out Islands tourism Creates capacity for Out Islands tourism developmentdevelopment

• Catalyzes other business opportunitiesCatalyzes other business opportunities

• Small is Beautiful – there is a large and growing Small is Beautiful – there is a large and growing market for small, environmentally friendly, locally market for small, environmentally friendly, locally owned hotelsowned hotels

• But they have to be properly designed and But they have to be properly designed and managedmanaged

RecommendationsRecommendations

• Establish Project Development Facility - TAEstablish Project Development Facility - TA

• Update/digitize Crown Land Maps; Untangle Update/digitize Crown Land Maps; Untangle

Land Tenure Land Tenure

• Streamline the approvals process, but make it Streamline the approvals process, but make it

more rigorousmore rigorous

• Create Venture Capital Fund/CompetitionCreate Venture Capital Fund/Competition

• Promote JV InvestmentPromote JV Investment

• Provide training, marketing support and Provide training, marketing support and

reservations systemreservations system

Project Development Facility (PDF)Project Development Facility (PDF)

• Can be focused on more than hotelsCan be focused on more than hotels

• PPP – government agency won’t workPPP – government agency won’t work

• One-stop shop for Bahamian investorsOne-stop shop for Bahamian investors

• Recruit industry professionals to mentor Recruit industry professionals to mentor

developers and provide technical assistancedevelopers and provide technical assistance

• ESC, TDC, BHA, universities, competitions, all ESC, TDC, BHA, universities, competitions, all

potential sources of mentors and TApotential sources of mentors and TA

• Create incentives for participantsCreate incentives for participants

Tourism Venture Capital FundTourism Venture Capital Fund

• Linked to (or part of) PDFLinked to (or part of) PDF

• Source of Debt and Equity FinancingSource of Debt and Equity Financing

• Provide feasibility analysis and other servicesProvide feasibility analysis and other services

• Integrated approach the key to successIntegrated approach the key to success

• Could be seeded with IDB loanCould be seeded with IDB loan

Proposed Project Development ProcessProposed Project Development Process

BEST

Investment Board BEST

Airlift – Not a significant challenge. More hotel

rooms will bring more lift.

Recommendations:

• BahamasAir could improve lift significantly over

nighting plane in Inagua.

• Discuss with Lynx Air its willingness to provide

direct service from Ft. Lauderdale. More hotel

rooms will likely be needed first.

Other Development ChallengesOther Development Challenges

Unknown Destination – Also not a significant

challenge. More hotels (the right kinds of hotels)

will help generate awareness

Recommendations:

• Provide seed capital to the Inagua Tourism

Association

• It could then implement the marketing strategy

that has been developed



Landscaping and beautification – Would improve local business climate, make Inagua more competitive.

Recommendations:• Will require a community effort, with support from

Government, Morton, and others. Voluntourism program an option. Funding in part through IDB loan.






Land Planning and InfrastructureLand Planning and Infrastructure

Summary of Findings:Summary of Findings:

• More detailed (digital) mapping neededMore detailed (digital) mapping needed

• A Marine Reserve would help protect marine biodiversity A Marine Reserve would help protect marine biodiversity

and improve the Island’s appealand improve the Island’s appeal

• Significant opportunities to renovate and reuse Historic Significant opportunities to renovate and reuse Historic

StructuresStructures








• Roads in good condition (except in Roads in good condition (except in

Matthew Town), part of the attraction Matthew Town), part of the attraction

• Solid waste a relatively minor issue Solid waste a relatively minor issue

in health terms, but needs in health terms, but needs

addressing in tourism termsaddressing in tourism terms

• Liquid waste primarily a Liquid waste primarily a

maintenance issuemaintenance issue








• Expansion of Port Facilities needed, but not critical for Expansion of Port Facilities needed, but not critical for

tourism developmenttourism development

• Electrical generation both an obstacle and opportunityElectrical generation both an obstacle and opportunity






Inagua Sustainable Tourism Land Use PlanningLand Use Planning

• Land use planning not critical at this stage. No Land use planning not critical at this stage. No development activity planned or envisioned, other development activity planned or envisioned, other than two small ecoresorts.than two small ecoresorts.

• To prepare a more detailed land use plan digital To prepare a more detailed land use plan digital maps are needed.maps are needed.

• IDB-funded GIS mapping project covered Inagua, IDB-funded GIS mapping project covered Inagua, but only (apparently) Matthew Town.but only (apparently) Matthew Town.

Marine ReserveMarine Reserve

• To exclude or limit commercial fishing To exclude or limit commercial fishing (no impact on local fishermen)(no impact on local fishermen)

• Bahamian commercial fishing boats Bahamian commercial fishing boats beginning to show upbeginning to show up

• More protection of fisheries needed More protection of fisheries needed (foreign poaching). Expanded BDF (foreign poaching). Expanded BDF presence.presence.

• Man of War Bay would be a good place Man of War Bay would be a good place to start (no barrier reef protection).to start (no barrier reef protection).

Historic StructuresHistoric Structures

• There are several, inside and outside Matthew Town.There are several, inside and outside Matthew Town.

• The two most significant are the Salt House and the The two most significant are the Salt House and the 1919thth century Anglican Church in MOW Bay. century Anglican Church in MOW Bay.

• The Salt House has significant potential for adaptive The Salt House has significant potential for adaptive reuse.reuse.

• Owned by Morton and used, in Owned by Morton and used, in part, for warehousing.part, for warehousing.

• For Church, all that is needed For Church, all that is needed is money.is money.

RoadsRoads

• Matthew Town roads are in poor condition. Asphalting Matthew Town roads are in poor condition. Asphalting required.required.

• Roads outside of town are in very good condition, and add Roads outside of town are in very good condition, and add a great deal to the sense of adventure. Morton maintains a great deal to the sense of adventure. Morton maintains most of them.most of them.

Solid and Liquid Waste Solid and Liquid Waste

• New land fill being developed. Lots of scattered New land fill being developed. Lots of scattered solid waste (Matthew Town) that should collected solid waste (Matthew Town) that should collected and deposited, recycled, or exported. and deposited, recycled, or exported.

• Morton should be recruited to assist, and has its Morton should be recruited to assist, and has its own solid waste issues to deal with.own solid waste issues to deal with.

• Need better methods for dealing with waste from Need better methods for dealing with waste from household septic systems, but not a major health household septic systems, but not a major health threat.threat.

• If port expansion executed, should include pump If port expansion executed, should include pump out and treatment station.out and treatment station.

Port FacilitiesPort Facilities

• Port poorly designed, not safe for small boats during Port poorly designed, not safe for small boats during W or NW swells or storms, undersized W or NW swells or storms, undersized

• Best alternative is to expand in current locationBest alternative is to expand in current location

• Expansion would open up opportunities for larger Expansion would open up opportunities for larger BDF USCG presence, and related economic impactsBDF USCG presence, and related economic impacts

• Could be done in phasesCould be done in phases

• Estimated Phase I cost: Estimated Phase I cost: $7.5 million$7.5 million

Estimated BudgetEstimated Budget

Quays $4,500,000

Equipment $850,000

Other (incl. improvements to Govt. Basin) $450,000

Sub-total $5,800,000

Engineering and Site Investigations (12%) $696,000

Sub-total $6,496,000

Contingency (15%) $974,400

Total Estimated Cost $7,470,400

Electricity GenerationElectricity Generation

• Diesel-fired generators incredibly expensive to Diesel-fired generators incredibly expensive to operate and major source of noise pollutionoperate and major source of noise pollution

• Long-term outlook for fuel prices unfavorableLong-term outlook for fuel prices unfavorable

• Renewable energy strategies have significant Renewable energy strategies have significant potential, and likely very short payback period.potential, and likely very short payback period.

• Wind, or Wind and Solar hybrid system, with Wind, or Wind and Solar hybrid system, with diesel back-up the logical path.diesel back-up the logical path.

• Will require political will. Will require political will.


• Govt. claims wind studies for Inagua have been Govt. claims wind studies for Inagua have been performed, and were negative. No evidence performed, and were negative. No evidence provided. provided.

• Wind and solar studies needed, but indirect Wind and solar studies needed, but indirect studies and simple observation point to studies and simple observation point to significant potential.significant potential.

• Wind and solar proven to be economically viable Wind and solar proven to be economically viable in countries where electricity sold at $.06-$.15 in countries where electricity sold at $.06-$.15 per kWh. Inagua cost is close to $.40 kWh.per kWh. Inagua cost is close to $.40 kWh.


• Inagua lower rainfall (more sunshine) than Inagua lower rainfall (more sunshine) than virtually any other island in the Caribbean (on par virtually any other island in the Caribbean (on par with Curacao, Bonaire and Aruba).with Curacao, Bonaire and Aruba).

• Also significant and steady trade winds.Also significant and steady trade winds.

• Morton has operations there because of the solar Morton has operations there because of the solar and wind resources (high evaporation rates).and wind resources (high evaporation rates).

• Wind and solar radiation study would require 12 Wind and solar radiation study would require 12 months and approximately $30,000 to complete.months and approximately $30,000 to complete.


• Adoption of a renewable energy approach would Adoption of a renewable energy approach would also set Inagua apart as a sustainable tourism also set Inagua apart as a sustainable tourism destination, generate positive press, and make it destination, generate positive press, and make it more competitive.more competitive.

• Could also serve as a pilot project for other Out Could also serve as a pilot project for other Out Islands, particularly those in the south.Islands, particularly those in the south.

Inagua Sustainable TourismInagua Sustainable Tourism

Inagua Sustainable TourismInagua Sustainable Tourism


• Commercial wind turbines need average wind Commercial wind turbines need average wind speeds of 6 m/s (approximately 11 miles per speeds of 6 m/s (approximately 11 miles per hour), to operate efficiently.hour), to operate efficiently.

• Inagua appears to have average wind speeds (at Inagua appears to have average wind speeds (at 50 m, below average height of wind turbine) of 7 50 m, below average height of wind turbine) of 7 to 9 m/s, (15-20 mph).to 9 m/s, (15-20 mph).

• These wind and solar studies should be These wind and solar studies should be conducted as soon as possible.conducted as soon as possible.

ConclusionConclusion

• The Bahamas is a slow growth, mature tourism The Bahamas is a slow growth, mature tourism destination.destination.

• Sun, Sand and Sea is a mature, slow growth market. Sun, Sand and Sea is a mature, slow growth market.

• Sustainable Tourism, Green Tourism, and Nature and Sustainable Tourism, Green Tourism, and Nature and Adventure travel are Adventure travel are thethe growth opportunities in growth opportunities in today’s travel market.today’s travel market.


• Inagua and the Out Islands represent the Bahamas’ Inagua and the Out Islands represent the Bahamas’ best opportunity to tap into that growth. best opportunity to tap into that growth.

• Modern technology has made tourism development in Modern technology has made tourism development in Inagua and other remote, sparsely populated Out Inagua and other remote, sparsely populated Out Islands economically and environmentally feasible.Islands economically and environmentally feasible.

• Inagua is the perfect location to Inagua is the perfect location to test out new concepts and lay a test out new concepts and lay a foundation for the future.foundation for the future.


• The potential of these islands to become a primary The potential of these islands to become a primary growth driver of the Bahamian economy is significant.growth driver of the Bahamian economy is significant.

• Very little additional study is needed (wind and solar).Very little additional study is needed (wind and solar).

• Its time to act. Its time to act.

Thank YouThank You