By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Economic Recovery Committee's co-chair yesterday said the proposed work/study visa was "never intended to be a needle mover" that would replace lost multi-billion tourism earnings.

Marlon Johnson, who is also the Ministry of Finance's acting financial secretary, told Tribune Business that the visa plan was put forward as an advance recommendation because it was "time sensitive" given the need to put enabling infrastructure in place prior to The Bahamas' borders re-opening to international commercial travel.

Speaking after Rupert Pinder, an economist who lectures at the University of The Bahamas, told a webinar earlier this week that the work/study visa's projected impact was likely to pale when set against $1bn-$2bn in lost tourism earnings, Mr Johnson retorted: "We're not inclined to get into public debate on the merits of any particular recommendation.

"That recommendation was put forward because it is time sensitive, and we wanted the Government to review it so that if it was accepted the enabling infrastructure could be put in place for the substantial re-opening of the tourism sector.

"It wasn't put there by any means to jump start the tourism sector or as a replacement for lost income," he continued. "It was accelerated because of the time sensitivities with it. That's what the group responsible for the implementation is seeking to do: Get it sorted so by the time we get to a full re-opening of the economy it will be in place.

"It was not intended to be a needle mover. A good start would be if we were able to get 1,000 applicants spending $30,000 each. That would be a $30m boost for the economy. It's a nice value-added, and if it proves to be a successful programme then obviously it's something the Government could elect to keep in place to provide longer says for persons who want to come in."

Mr Johnson said the Immigration Department, and the Ministry of Financial Services, Trade and Industry and Immigration, were the primary agencies charged with implementing the necessary infrastructure and digital systems to make the application process work and deliver on The Bahamas' promises.

"It will be a fully online process," he added, saying reports suggested everything "will be launched in time for the full opening of the tourism sector". The Ministry of Tourism will be involved in marketing and promoting the work/study visa, with one spin-off goal being to "showcase" the Family Islands and show The Bahamas is more than just Nassau.

Another objective is to encourage those who obtain the year-long work/study visa to put down more permanent roots in The Bahamas, especially if they establish or seek to bring with them operating businesses. The University of The Bahamas is also involved in providing work facilities for students at overseas colleges and universities who wish to study from here.

"We're at arm's length," Mr Johnson said, "but we know anecdotally that once we pushed the visa out into the social media space, and the Ministry of Tourism started to talk to their folks, there's been some interest generated. We feel confident this will bear some fruit. We feel that once the marketing starts in earnest we will gain good traction."

The Bahamas’ Extended Stay Visa Programme is targeted at persons wishing to work or study from this nation for a year as part of wider COVID-19 economic recovery strategy. It represents 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.

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.

However, Mr Pinder this week argued that the planned visa will come nowhere near to compensating for the "huge economic hit" delivered by the pandemic.

"When I look at it in the context of the Economic Recovery Committee, where I have a challenge with that is we're going to lose roughly between $1.7bn and $2bn in tourism receipts because of the COVID-19 pandemic. That's a huge hit with respect to the economy," he argued.

"This work visa, with respect to the preliminary numbers put up, with 1,000 people spending $30,000 each for $30m, that is not a needle mover in terms of what we're dealing with in disruption to the economy. It's not a needle mover.

"For me, the short to medium-term is how we re-open the economy in a safe and responsible manner. Diversification is medium to long-term. The problem I have with the work visa is this is not a needle mover with respect to then share of the economy we've lost to lockdowns and the pandemic. It's not a needle mover in terms of where we're at, and what sort of revenue we need to make up for."