By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Economic Recovery Committee’s co-chair yesterday predicted there will be “substantial appetite” for The Bahamas’ proposed annual work/study visa even though it lags rivals such as Barbados.

Marlon Johnson, who is also the Ministry of Finance’s acting financial secretary, argued that while its southern Caribbean competitor had the advantage of being first into this space The Bahamas’ traditional advantages of US proximity and Internet access would leave it well-positioned to attract its target market.

He spoke out after the committee, in a statement, said the Minnis Cabinet had given approval to the concept of The Bahamas’ Extended Stay Visa Programme for persons wishing to work or study from this nation for a year as part of wider COVID-19 economic recovery strategy.

The initiative, though, mirrors the Barbados Welcome Stamp proposal that was unveiled by that Caribbean nation in early July amid much global media publicity and interest. That product was designed to allow tourists to stay in Barbados for 12 months, working remotely from hotels, condos, rental villas and other accommodations. Work spaces would also be made available.

The move represented Barbados’ response to the loss of its traditional leisure tourism market due to the COVID-19 pandemic, and it has gained several months’ head-start on The Bahamas as the committee’s release made clear that this nation’s product will only be launched once the borders re-open to international commerce - a date that has yet to be determined amid the latest lockdown.

Mr Johnson told Tribune Business that the committee’s proposed visa effectively represented an extension of The Bahamas’ existing annual residency permit, with the aim being to make the application and approval process much simpler, quicker and efficient.

Acknowledging that it effectively represented low-hanging fruit, or a “ready opportunity”, he added that foreign workers and students who qualify for the permit will NOT be allowed to participate in the domestic economy as a condition of its granting. Students must be registered with, and studying online, at a foreign university, while workers must be employed - and paid by - an overseas company.

Such restrictions are designed to reassure Bahamians that local jobs will be protected, especially with an unemployment rate approaching 50 percent due to COVID-19. The visa is effectively aiming to attract a different type of visitor, with the hope that ultimately these persons - and their employers - re-domicile to The Bahamas permanently rather than just providing a short-term post-COVID boost.

Asked whether The Bahamas had taken too long, and will now have to play catch-up to Barbados, Mr Johnson replied: “The important thing to remember is we have always had a residency visa. That’s something we have, and which people apply for from time to time. We’re now extending it and looking to simplify it. This is really a revamp of that.

“As far as timing is concerned, there’s substantial appetite. We’re next to the US and Canada, and a destination in demand with multiple islands. It will be interesting to see the appetite generated, and people working and studying overseas. We think there will be substantial appetite. The advantages that The Bahamas has today remain.

“The first mover always has an advantage, but you’re dealing with a vast market of 300m individuals in North America and that does not include Europe. There’s room for several players, and the attraction of The Bahamas is its proximity, level of infrastructure development, quality of Internet service. Those things augur well for the type of businesses and jobs we want to attract.”

Mr Johnson told Tribune Business that “more marketing” resources will be placed behind the proposed visa to promote it and ensure its target market is made aware. He added that meetings were planned with the Ministry of Tourism, private sector stakeholders and other government agencies on this issue once the product was “more clearly defined”.

The Committee’s release made clear the visa’s specifics, and details of the application process, are still being determined. It said responses to applications will be provided “in a matter of days”, which is likely to raise scepticism among some observers, with persons able to apply online.

Mr Johnson said the Government-appointed committee will also seek to “refine” the projected economic impact from the visa, which is designed to inject spending by successful applicants into the domestic economy via landlords (rent); car rentals; retailers; restaurants and a host of other sectors.

Kenwood Kerr, Mr Johnson’s fellow Committee co-chair, said: “If we get to 1,000 successful applicants and they spend $30,000 on average within the economy on rent, food, and entertainment, that is equal to a much needed $30m injection into the economy.

“Moreover, our marketing will showcase our Family Islands where the potential impact on those smaller island economies will be even more pronounced.” Mr Johnson said Mr Kerr’s estimates are “conservative”, with the Committee expecting the visa will be “a net add” for a depressed Bahamian economy that needs all the help it can get.

“We think it will be an excellent value-added to our existing range of products,” Mr Johnson told Tribune Business. “The key thing is we think it opens opportunities for boutique firms to move their entire operation to The Bahamas, and that will be an element of marketing to see if firms, or units of firms, want to live in The Bahamas and do work remotely.

“We have the Internet infrastructure people expect, and all the infrastructure amenities people would expect to have. We have the Family Islands for people wanting to get off the beaten path. We believe we have a very interesting proposition to present to the global marketplace so it will be interesting to see how it plays out.

“The approach is how do we maximise and leverage what we have in The Bahamas to get persons here, and add value for them and add value for The Bahamas.”

He added that the Committee had not directly linked the visa to the Commercial Enterprises Act, which was intended to liberalise the Immigration regime by allowing high-level executives and managers of firms relocating to The Bahamas in targeted industries to enter the country without first obtaining approved work permits.

And the visa’s emphasis on remote working could also tie into efforts to revive the Government’s Grand Bahama “technology hub” initiative, which appeared to have stalled even prior to COVID-19.

“Given the move to remote work and study from home protocols in response to COVID-19, the Committee saw an opportunity to recast the programme - and to expand it to accommodate university students whose schools will be offering remote learning for the upcoming academic year,” said Mr Kerr.

Mr Johnson added: “In addition to the visa initiative, the Committee will be providing recommendations to the Government regarding the next phase of the reopening of the economy.

“It will also submit an interim report by the ‘Orange Economy’ sub-committee, with recommendations on how the Government can boost the viability of the creative and cultural arts as a direct contributor to the economy.”