By FAY SIMMONS

TRIBUNE Business Reporter

jsimmons@tribunemedia.net

The Ministry of Finance’s top official yesterday defended the growing role of cruise line-owned private destinations in The Bahamas, arguing they are creating significantly more value for Bahamian businesses and government revenues than many critics admit.

Simon Wilson, the financial secretary, speaking at the Rotary Club of West Nassau, said the country's tourism recovery continues to support the Government's improving fiscal position, with cruise visitors increasingly spreading economic activity beyond New Providence.

"Underpinning all of this is the extraordinary recovery of tourism," he said. "Our cruise tourism is providing more value and driving growth - not just in Nassau, but in the Family Islands."

Mr Wilson pointed to developments such as Carnival’s $600m Celebration Key, Royal Caribbean's Royal Beach Club and other private destinations as evidence of changing visitor spending patterns.

"Yes, there are some downsides to private destination operations, but overall these private destinations drive economic growth," he said. Mr Wilson also challenged the long-standing tourism industry belief that it takes ten cruise visitors to generate the same economic impact as one stopover visitor.

"I don't think that applies any more," Mr Wilson said. "The money is when you hit the ground." He argued that businesses supplying cruise destinations are benefiting in ways that are often overlooked.

"People who are supporting the industry are making real, real money," he said. Mr Wilson cited Bahamian suppliers providing products and services to Celebration Key and other cruise developments, adding that the resulting increase in business activity is reflected in tax collections and commercial investment.

He also pointed to changing dynamics on Bay Street, arguing that increasing commercial rents and new business investment demonstrate that tourism-related businesses continue to see strong earning potential.

While acknowledging calls for greater Bahamian participation in tourism, Mr Wilson said the opportunity now is for more local entrepreneurs to invest in higher-value tourism services rather than viewing the sector as a low-margin business. Cruise visitors account for more than 80 percent, or close to 10m, of all visitors to this nation.