By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas was yesterday urged to seize the "great opportunity" created by Donald Trump's massive visa fee hikes for foreign workers and spark its long-held ambitions to become a technology hub.

Local technology executives told Tribune Business that this nation must "leverage" the fall-out caused by the US president's decision to hike the application fee for H-1B visas - the permits that skilled foreign workers must possess to live and work legally in the US - more than 60 times' their previous level to $100,000 per person.

With multiple companies, ranging from the very largest to small start-ups, now scrambling to adjust to the sudden fee hike and its impact on their ability to afford specialist foreign labour, they added that The Bahamas' close proximity and attractive 'sun, sand, sea' lifestyle features can prove attractive for firms seeking to relocate or "offshore" key staff just outside the US 

Keith A. Roye II, Plato Alpha's chief operating officer and a Tribune Business columnist, told this newspaper that The Bahamas "can definitely leverage" Mr Trump's decision to attract technology companies and their foreign staff to "set up shop here" and, in so doing, revive ambitions that have existed since at least 2018 to transform this nation into a technology hub.

Pointing out that companies re-domiciling to The Bahamas will still be able to export their services to the US and other countries, he added that their presence - and that of their staff - will increase economic activity and spending throughout this nation's economy, leading to the creation of jobs in other industries and increased tax and fee revenue for the Government.

"Absolutely 100 percent we should look at it. We can look at that to facilitate this whole technology hub scenario that we've been trying to grow here," Mr Roye added. "It will be good to have more companies like that join in with what we're doing locally. We are obviously a ripe market for companies wanting to set up in The Bahamas.

"We have the great advantage of being close to the US while also allowing people to enjoy the lifestyle - sun, sand and sea - that The Bahamas has to offer. In the technology space, it's very easy to work remotely."

Mr Roye explained that, even if technology companies themselves elected to remain in the US in the face of Mr Trump's visa hikes, they could easily relocate key foreign staff to countries such as The Bahamas to keep them in close proximity. During the COVID-19 pandemic, The Bahamas enjoyed some success in attracting so-called 'digital nomads' - technology workers who can work remotely.

Noting that parent companies may also elect to establish subsidiaries in The Bahamas, he added: "The most important thing for us is to leverage this so more companies set up shop here. That adds to what we need here in The Bahamas, and from there we can see where the market takes us."

The Bahamas, though, must also ensure its citizens benefit from the arrival of foreign technology companies and investment. Mr Roye said knowledge transfer, and creating a domestic Bahamian technology workforce, are key goals that that country must also attain as it seeks to capitalise on the US skilled worker visa changes.

"Obviously the first thing we'd want to do is ensure companies that are setting up shop here, they have to hire at least a certain level of Bahamian talent to work in our local environment," he told Tribune Business.

"What we'll need to do is ensure, from a government standpoint, that these companies commit to hiring local talent to work at their companies, and they train students and people with the skills to work in those positions. 

"AI (artificial intelligence) is becoming very popular and growing very swiftly, so there will be a lot of these AI and technology companies looking at The Bahamas. We want to ensure we have the talent here locally to fill these positions and be paid properly for it." 

Scott MacKenzie, chief executive of Cloud Carib, the Bahamas-based cloud services and cyber security provider, echoed Mr Roye by telling Tribune Business that every Silicon Valley executive he is speaking to is looking at alternative jurisdictions to the US as a base of operations - at least for foreign staff.

"I think every opportunity needs to be leveraged, and I think the H1B visa thing will definitely put companies on the back foot because it's such a huge impact across the board," he argued. "It's a great opportunity for countries in the Caribbean, and especially The Bahamas, to look at that as an offshoring mechanism.

"I know there will be some hesitancy from some people about bringing more foreign workers into the country, but if you look at Singapore and Ireland as examples, it brings in people with the knowledge and expertise to matriculate to the next generation. The Bahamas is so close to the US, it's a great opportunity to leverage that. At $100,000 per head, that's a lot.

"The people I talk to in Silicon Valley are all saying the same thing," Mr MacKenzie added. "Everybody is looking for alternatives right now. Some companies will pay for top-tier talent, and that's a huge cost." The Cloud Carib chief referred to the '80/20' rule, suggesting that some foreign worker skills sets are "so unique" that firms such as Meta and Google will be prepared to absorb Mr Trump's fee hike.

However, he added that only 20 percent of skilled foreign workers likely fall into that category. For the remaining "80 percent', Mr MacKenzie said their employers are seeking to relocate them to jurisdictions such as the UK and Canada - "anywhere but the US".

"There's definitely a good opportunity for The Bahamas," he said. "The Bahamas is so close. It's a 35-minute flight from Miami. The technology sector has developed quite a bit in Miami, it's developed quite a bit in Texas. Both are quite close to the Caribbean. I think it's a great opportunity."

The Bahamas, though, will have to move quickly if it is to truly capitalise on Mr Trump's decision. And it may already be behind, with the UK already said to be considering reduced visa application fees and make it easier for foreign academics and digital experts to relocate to that country.

Similar strategies were hatched by The Bahamas during the first Trump administration, when restrictions on the number of H-1B visas issued by the US were mulled then. This nation, under the former Minnis administration, explored the creation of a Bahamas equivalent - the 'BH1B visa - in a bid to attract skilled foreign workers and their employers to these shores.

This came from a recommendation by the Grand Bahama Technology Steering Committee, which was set up to explore what was required for Freeport and the rest of the island to become a technology hub. The 'BH1B' visa was seen as a key incentive for enticing companies to the island since - when paired with the Commercial Enterprises Act - it would facilitate the entry of the skilled workforce they need.

The committee’s January 2018 report, which set out the broad legislative, infrastructure and enabling environment required to establish Grand Bahama as a potential “technology hub”, identified the BH-IB visa’s creation as being among the “immediate opportunities” for The Bahamas.

It was viewed as a way to target US technology companies that are heavily reliant on the H-1B visa workers impacted by Mr Trump’s then-Immigration crackdown. This made it difficult for persons to apply for, or renew, these visas, which facilitate the hiring of specialist foreign workers by US companies, and entry of persons with advanced degrees.

Such workers are in high demand among technology companies, and the committee’s thinking was that The Bahamas offers a convenient offshore base in close proximity to the US should such firms have to relocate H-1B personnel or themselves.

“The current cap of H-1B visas in the US represents an opportunity for The Bahamas to attract skilled workers and the companies that want to hire them. This could be a great opportunity to re-locate company teams/divisions to the Bahamas who have H-1B visas that are set to expire soon,” the committee’s report enthused.

However, it immediately noted that Immigration and work permit reforms would be required to facilitate such an effort. The committee suggested that H-1B permit holders “be fast-tracked and receive comparable Bahamas work permits”, provided such applications are sponsored by a company domiciled in this nation.

The Davis administration, though, elected to go in a different direction with its plans to establish Grand Bahama as a technology hub. It launched its Innovate 242 initiative, which is seeking to establish technology hubs on different islands.