The major influences of the war on the bahamas



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THE MAJOR INFLUENCES OF THE WAR ON THE BAHAMAS
On Wednesday March 19, 2003 the United States declared war on Iraq (It was Thursday morning, March 20, 2003 in Baghdad, Iraq at the time). Before the war began, analysts were in discussions about the possible affects of the war on the economy of the United States and of course the world. Bahamian economists also had their say on how the war would affect the Bahamian economy, which depended so heavily on Tourism.
The impact of the war was uncertain but some Bahamian economists felt that the effects of the war would not be as devastating on the Bahamas as the Gulf War of the early 1990’s. As the war continued in Iraq, some airlines began to cut back on the number of flights to certain parts of the world that were considered potentially risky due to possible terrorist activities. Cruise ships reduced the number of Mediterranean cruises and cruises in general to that region of the world.
Before the war started, foreign air arrivals to Nassau and Paradise Island were up by 7.8% for the month of March. Foreign air and sea landed arrivals to Grand Bahama were down slightly by 3.7% for March. When the war started on the 19th of March 2003, foreign air arrivals to Nassau/Paradise Island immediately declined by 10% on the 20th of March 2003. This decline in foreign air arrivals to Nassau/Paradise Island continued throughout the month of March. The decline in foreign air and sea landed arrivals to Grand Bahama also continued throughout the month of March. The decline in arrivals in March 2003 compared to March 2002 was also partly due to the fact that a part of the Easter Holiday occurred in March 2002 while during 2003 it fell in April. The Easter Holiday is normally a busy period for the hotels.
By the end of March 2003, foreign air arrivals to Nassau and Paradise Island were down by 1.8% and foreign air and sea landed arrivals to Grand Bahama were down by 10.5% (Foreign air arrivals to Grand Bahama were down by 13%).
Although foreign air arrivals to Nassau and Paradise Island were down in the month of March compared to the same period of 2002, many of the large hotels operated with hotel occupancy levels of over 70% and some even operated with occupancy levels over 90%.
March and April are usually very strong months with regard to visitor arrivals for the Bahamas. During these two months many College students from the United States go on Spring break. The average hotel occupancy for Nassau and Paradise Island combined was 82.9% and the average daily rate was $200.98 during the month of March. The average hotel occupancy in March for Nassau alone was 79.0% and for Paradise Island 87.1%. The average daily rate for Nassau was $120.33 and for Paradise Island it was $277.41.
By April 4th, 2003 there was a significant rebound in the number of foreign air arrivals to Nassau/Paradise Island. Grand Bahama Island also showed signs of rebounding. By April 21st 2003 foreign air arrivals to Nassau and Paradise Island were up by 10.5% for the month of April and the foreign air and sea landed arrivals to Grand Bahama were up by 9.3% for that month.


Ministry of Tourism Research & Statistics Department

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