WITH THE BUDGET DUE for presentation next week, the Government must be heartened by developments in the tourism sector, the rapid sale of savings bonds and some news coming out of recent Canadian Senate debate.
Tourism is reported by official sources to have expanded by 15.1 per cent during the first quarter of 2015. This is good news because we have accepted that tourism is one of those areas of economic activity that must improve if we are going to get some growth in the economy.
Even if there are sound arguments that this figure for arrivals should be revised downwards in light of the estimated numbers who stayed with friends and not in hotels, it must still be conceded that at least there was an estimated increase of 11.5 per cent in the first quarter of this year.
However one looks at these reports, tourism activity must be encouraged and the authorities must continue to do whatever they consider to be the source of these results because the country must have benefited from increased foreign exchange spending and generally increased economic activity during the quarter.
In any event, whatever the statistics say, the general impression created – especially with the Test match played here supported by thousands of cricket-loving visitors – gave the general feeling that there was increased tourism activity. The number of cruise ships sailing into the Bridgetown Harbour suggested that the impression was indeed the reality.
What we urge the Government to do is to maximise its efforts as best it can so that the second quarter’s results, even if they do not match the first quarter’s show a trend which suggests that the light is still flickering and that it promises to grow brighter.
Without descending into the political quagmire, it is clear that confidence is a key factor in political economy and the increased presence of tourists in our midst can be a sign of some confidence returning to our economic situation. We all hope so.
While other factors may have had their influence, the successful floating of a $10 million issue of savings bonds by the Central Bank, which was fully subscribed in three days, must have had a reassuring impact on local economic planners. It may speak volumes about how those who have money for investment are reading the economic tea leaves, even if others may feel that the bonds are the best bet in a generally depressed investment climate.
But there can be no doubting the confidence-boosting impact of a recent speech by Senator Percy Mockler in the Canadian Senate. The senator described Barbados as an “icon among global international financial centres”. He went on to describe the island as having “an enabling climate, a well regulated transparent and supportive environment for business.”
What is more, he said Barbados was the third choice for foreign direct investment after the United States and Europe, and that many billions of dollars flow through Barbados to enhance the Canadian economy.
This powerful endorsement could not have been better timed. It will boost confidence in a critical offshore market. But at the same time there are some underlying problems in the local economy that need to be dealt with. And hopeful as all Barbadians would wish to be about sustained economic recovery, we recognise that one swallow does not make a summer, and that the battle for economic recovery must continue.