Overview

The Basics

The Bahamas are a collection of roughly 700 islands about 50 miles southeast of Florida in the Atlantic Sea. Of the 700 islands, about 30 are inhabited. The largest of these islands are New Providence and Grand Bahama. The Bahamas boast a sub-tropical climate with temperatures ranging from 21 and 24 degrees Celsius in the wintertime and between 27 and 32 degrees Celsius in summer.

The capital and largest city is Nassau, which is located on New Providence. There are two international airports in the Bahamas - one in Nassau and the other in Freeport, which is on Grand Bahama.

English is the official language and is generally used throughout the islands. However, it is not uncommon for Bahamans to speak Creole.

As of 2005, the Bahamas has a population of over 300,000. The population is concentrated in the two largest cities, Nassau and Freeport.

The first European to arrive in the Bahamas was Christopher Columbus who landed on the island of San Salvador in 1492. The islands were largely settled from South Carolina and the 17th and 18th century and became an English colony in 1718. A significant portion of the islands’ population, both white and black, emigrated from the Americas.

Nassau has been a tourist destination since late in the 19th century and currently welcomes four million tourists annually.

The Commonwealth of the Bahamas became a fully independent nation in 1973; it is still, however, a member of the Commonwealth of Nations. It is also a member of the United Nations.

Government Economy

Despite the fact that it is an independent nation, the Queen of England is still the head of state of the Bahamas and is represented by a Governor-General. The political system of the Bahamas is based upon the Westminster model and has an elected House of Assembly. It also has a Prime Minister and a cabinet of eight ministers. The Governor appoints Senate (upper house) members based upon recommendations from the Prime Minister and the Opposition Leader.

The judiciary branch is independent. English common law is the foundation of legislation in the Bahamas although the Bahamian government has added many statutes. The Supreme Court is the highest local court; there is also a Court of Appeals. Final appeals may be made to the Privy Council in London.

Despite a weak post- World War II economy, the government has successfully developed the tourist trade, which currently accounts for more than 60% of the annual GDP. Thanks to more recent efforts to encourage the financial service industry, especially banking and insurance, this industry is now also a significant component of the GPD. The final foundation of the economy is tourism, which contributes about 21% to the annual GDP.

There is a close connection between the Bahamian economy and the US economy and as such inflation rates are comparable. The Bahamas has had to deal with continuing unemployment as well as a large trade deficit, which is the result of high import levels. The Bahamas per head GDP, roughly $18,000, is above average for the region but far below other smaller and more successful jurisdictions such as the British Virgin Islands and the Cayman Islands. Nevertheless, the IMF predicts a bright future for the country and its economy has grown steadily since 2003.

Foreign Affairs

Given the Bahaman government’s eagerness to encourage tourism, tourist Visas are easily granted although people wishing to remain in the Bahamas without working for longer periods of time must obtain a residence permit from the Immigration Department. In 1993 the International Personas Landholding Act was passed with reversed a previously official deterrent stance against foreign acquisition of local resident property. Rules regulating the inheritance of Bahamian properties have also been relaxed.

It is possible to obtain a Home Owner’s Residence card. This card is available to homeowners and serves as a visa for entry and residence throughout its period of validity.

Existing owners of properties valued at more the $500,000 and major international investors benefit from accelerated treatment of residence applications.

Non-Bahamians wishing to be employed must obtain a work permit. This is usually not a problem to obtain permits for senior or specially skilled people but it is advisable to discuss the possibility of a permit for all other workers with the Bahamas Investment Authority ahead of time.

The Bahamas financial services industry has developed an immigration framework that provides a competitive advantage over other offshore financial centers for a limited pool of skilled workers. Cooperation between the Bahamas Financial Services Board (BFSB), which is charged with promoting the jurisdiction’s finance industry internationally, and the Ministry of Immigration, Labour, and Training (MILT) has led to two key “financial services industry” contacts being appointed to the Department of Immigration as well as a six-week processing period for completed FSI work permits.

Also, the MILT will consider a work permit system that is more reflective of the current labor pool and would issue short work permits for jobs in areas where there is an acute shortage of workers just in the Bahamas and medium- to long-term permits for jobs in areas where there is a global shortage of qualified workers.

Presently, employers must advertise posts locally when work permits are about to expire before the MILT is willing to grant an extension. The Ministry, however, has promised to reconsider this process and it is possible that they will guarantee favorable consideration for senior positions in an organizations. It is also to make the process for gaining temporary work permits, which are valid for up to three months, quicker and more efficient.

Experts believe that these reforms are part of a long-term process that will continually be updated in order to meet the changes and developments that are taking place in the industry.