Baha Mar – College Essay Example

by December, 2014. The resort will encompass four hotels with around 2,200 rooms, 307 private residences, a 100,soft Casino, a 30,soft Spa and a Golf course. 2 Environment Analysis:

For a huge project like the Bah Mar resort and Casino with an approximate investment of about SUDS. 5 Billion dollars it was necessary to an analysis of the macro environment of the region. 2. 1 Political Environment: Bahamas has enjoyed political stability since it gained independence in the year 1973. The political stability has always contributed to the growth of the economy. Both the parties in the government has always welcomed and embraced legislation initiatives that have contributed towards the growth of tourism in the country. The proof of this being when the proposal to build an IR in the country was brought by

Prime Minister Perry Christie it was straightaway accepted in both the houses of Senate and House of Assembly without any stand-offs from the opposition. Not only the local political environment but also the international relations of Bahamas are influenced by the upcoming resort. The project is financed by China Exam Bank whereas the construction work is undertaken by the company China Construction of America. The involvement of China on such a huge scale in an international project has greatly influenced on the political relations between both the countries.

According to Ambassador Huh Shank, he was proud that his country was associated tit the project. On 9th June 2013 Chinese president Xi Jigging met with Bahamas Prime Minister to congratulate her on the Bah Mar project and further investment projects In ten Bananas Ana enhancing relations Detente ten two countries. 2. 2

Economical Environment: Economically the Bah Mar project is the biggest investment in the country till date. In a country where 60% of GAP depends it is predicted that the opening itself of the resort in December 2014 will further propel the GAP.

Apart from the GAP the resort will also provide Jobs to over 5000 Bohemians directly and another 3000 indirectly. It s estimated that over the next 20 years the resort will pay Bohemians over SUDSY Billion dollars in terms of wages. The Bah Mar is expected to raise revenues of up to USED 25 Billion dollar over the said period of time. The resort development also caused the local government to upgrade Nassau Linden Pending International Airport. The up gradation cost to be beard by the government is estimated at USED 400 million dollars.

This investment will make sure that the airport can handle the increase in number of visitors to the country, which is expected to swell after the Integrated Resort is fully operational. The development of the resort was extremely crucial for the stability of the Bohemian economy which has seen a slight drop in the number of international tourist due to severe competition from the neighboring Caribbean islands over the last decade. The 100,soft casino will surely help the Bahamas with competition in the Caribbean islands as it will be the biggest in the region.

As majority of tourists are from United States, the casino will be a major source of revenue for the resort. And with the involvement of China in the construction of the resort we can be assured that the number of visitors from the Breast will

also increase in the country especially the Chinese. With the Chinese being so fond of gambling the casino will be a perfect getaway for them. 2. 3 Social Environment: The society of Bahamas is varied with 85% of the population being Afro-Bohemians. 12% of the population is made up of Europeans.

The Bahamas enjoys a literacy rate of about 98%. The opening of the resort will provide Jobs to about 8000 directly and indirectly. The Bahamas have abundance of skilled workforce available especially in the services sector. The resort will make sure the unemployment rate in the country mains negligible. Although the society is not against the integrated resort but it will not be wrong to say that the society will be negatively impacted by the opening of a resort of such a huge scale. The crime rate has highly increased over the past decade.

The US government has declared the crime rate in the Paradise Island area as critical. Mostly the criminal activities involve drug abuse. The other worrying aspect is that Bahamas has the highest the number of reported rapes incident in the world according to a United Nations report on crime, violence and development trends. The Bahamas government must make take severe measure to control the law and order situation in the country before the resort opens next year and brings a huge influx of potential victims of criminal activities. 3.

Challenges: Bahamas is facing many challenges so The Bah Mar also need to address those challenges as well. 3. 1 Crime Rate: Crime in Bahamas is on the rise especially in the last decade or so. What makes matters worse is

that mostly tourists are targeted in criminal offenses as they are easier targets. Snatching and theft have become very commonplace; the increase in nee mummer AT sexual attacks on tourist Is alarmingly Sign. N All tans Incidents n negatively affected the tourism industry in the country. The number of tourists is dropping rapidly.

The Bah Mar can boom the tourism industry in the country but the crime rate should be brought under check to guarantee sustainability of the industry. 3. 2 Risk: The Bahamas tourism industry is heavily dependent on the American travelers. This over dependency on a single market is too dangerous especially in times of recession. In 2009 when America was severely hit by the recession period the tourism industry in Bahamas suffered heavy damages. Furthermore the total Bohemian economy is dependent on the tourism industry.

And the Bohemian government is taking a huge risk in overly relying on Just a single project to revive the tourism industry of the whole country. The country does not have any specific project in any sector of the economy which will keep the economy afloat in times of tourism crisis. The second biggest sector in the country is the financial services sector which accounts for 15% of the GAP. The Government make sure that they have a backup plan for the Bah Mar Project. 3. 3 Smaller Market: The tourism industry in Bahamas caters to a very small market segment.

More than 75% of the tourists are from the United States. The Bah Mar must reach out to wider market so that it can fulfill the expectations of the Bohemian economy and the tourism industry. The

resort must put in effort to reach out to especially the Far East market. As the Asians are fond of gambling particularly the Chinese the resort must make sure that its sales people must tap in into the Asian market.