By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas must "build back better" following Hurricane Dorian and COVID-19 to boost its competitiveness given that 83 percent of the tourism economy is exposed to Category Five storm surge.

The Inter-American Development Bank (IDB), in unveiling a $200,000 technical co-operation project with the Ministry of Tourism and Aviation, warned that "resilience and sustainability" are critical for the country's major job creator given that so much of its resort and tourism product is vulnerable to hurricane-related flooding.

"Recent market trends suggest that sustainability and the adequate use of natural resources will be more valued by tourists in the post-pandemic scenario," an IDB report urged. "In the Bahamas, many tourism properties currently lie in a storm surge zone, and the extent of properties at risk increases with a future scenario of a one metre rise in sea level.

"While sea level rise (SLR) by itself only threatens a small number of properties, when combined with weak (Category 1), moderate (Category 3) and strong (Category 5) storms, the resulting coastal flooding impacts 34 percent, 69 percent and 83 percent of the tourism infrastructure (hotels and resorts), respectively.

"Therefore, resilience and sustainability arise as key factors to provide competitiveness and longevity for The Bahamas tourism sector." The IDB project is focused on helping the ministry, and Tourism Development Corporation, to build on work already done in developing and implementing a "sustainable and climate resilient tourism certification programme".

A governance framework to oversee this is also part of the project, with the IDB adding: "Sustainable and climate resilient tourism certificates are an adaptable tool that can positively complement environmental regulation and increase the attractiveness of destinations to a discerning public.

"In The Bahamas, these certificates could be an important element in 'building back better' the tourism sector post-COVID-19. The Bahamian economy is highly dependent on tourism: In 2019, 43.3 percent of the country's GDP was related to tourism and travel activities, and international visitors expenditures in The Bahamas accounted for more than 80 percent of its total exports.

"The concentration of The Bahamian economy in the tourism sector and its lack of diversification makes the country highly vulnerable to crises such as COVID-19, and the local economy is estimated to shrink by as much as 14 percent to 20 percent overall in 2020."

Extolling the project's virtues, the IDB continued: "Eco-labels and sustainable certifications have been more popular in the tourism sector in the last decade..... They might be an effective component of a policy, if coupled with environmental regulations.

"Sustainability certification may also be a tool for improving the competitiveness of destinations and lessening the environmental impacts of tourism development. They can also be a stepping- stone for local enterprises to put the principles of sustainability into action.....

"Aware of the changes in the hospitality industry driven by a discerning travelling public that is demanding better stewardship of the environment, The Bahamas government has been implementing actions aimed at increasing the sector’s resilience and sustainability."

This, the IDB added, included the Tourism Development Corporation's creation with part of its mandate involving the "design and future implementation of sustainable tourism certification programmes, aimed at providing guidelines for businesses and attractions to improve their environmental sustainability and their resilience to climate change and crises.

"With the proper set of guidelines and reinforcement tools, along with the adequate environmental legislation, certifications may be an effective complement on the pathway towards sustainability and resilience in The Bahamas tourism sector. In this context, the Ministry of Tourism and Aviation of The Bahamas has asked the support of the Bank to develop guidelines that allow this effort to take place," the IDB revealed.

The project will involve an analysis of existing sustainable tourism certification initiatives as well as recommendations on what The Bahamas should craft to suit its own purposes. A governance and operational framework to oversee the scheme will also be created.