Tourism is big business in The Bahamas and a mainstay of the economy. It constitutes nearly 40% of the country’s total gross domestic product. An estimated US $1.45 billion is spent annually by more than 3.4 million visitors and supports roughly half of the labour force. Both the average length of stay and hotel occupancy rates rose in 1998. An even stronger performance is expected from the tourist industry for the long-term.

The Government has embarked on an ambitious programme to revitalize the hotel development sector. This programme is characterized by privatization, generous legal incentives to attract foreign investors, and a streamlined government bureaucracy for expeditious project approval. Under the Hotels Encouragement Act, hotel developers are exempted from customs duties on construction materials and furnishings. Exemption from real property tax is also available.

The 700 Bahamian islands have retained their unspoiled and incomparable natural beauty. Offering unused beaches, rich tropical scenery and wildlife, and azure seas, eco-friendly hotel development in the Family Islands represents one of the most promising sectors for investment.

The tourism industry also benefits from a modern and improved infrastructure which includes:

• Expenditures of tens of millions of dollars since 1992 to improve roads, harbours, and water systems
• 25 international airports
• Extensive electrification
• Redevelopment of Prince George Dock in Nassau to enhance the visitor arrival area and organize easy access to land and sea tours.
• Modern and dependable communications systems