Business

Central Bank of Barbados Stands by its Economic Reviews

In response to a letter published in the Saturday Sun on August 17 questioning the Central Bank of Barbados’ economic report and analysis, the Bank reiterates its unwavering commitment to accuracy, transparency, and public trust – values that have been at the core of our institution throughout its 50- plus-year history. The Bank recognises the critical role that accurate, transparent, and objective economic reporting plays in maintaining public confidence, and takes considerable care to ensure that the information we publish is both reliable and reflective of current economic realities.

The economic data, including statistics on economic growth, nominal GDP, inflation, and unemployment, are produced following best practices. While the Barbados Statistical Service (BSS) is responsible for producing much of this data, we rigorously interrogate their submissions to ensure thoroughness and reliability. Our reports are grounded in robust statistical frameworks, supported by rigorous analysis, and are frequently reviewed by international partners such as the International Monetary Fund (IMF) to ensure accuracy.

The 2023 GDP estimates, produced by the BSS and reported by the Central Bank, have been reviewed and validated by an IMF technical assistance mission. This external review provides additional assurance of the validity of our data, which we stand by confidently.

Specific concerns were raised about our estimates of tourism earnings and their contribution to GDP. To clarify, the estimated performance of tourism earnings in the first half of 2024 is comparable to that of the first half of 2007, a period when Barbados also hosted a major international cricket event. In both instances, we observed a significant increase in the ratio of tourism earnings to gross domestic product – rising from 15.9 percent in 2023 to 20.9 percent in 2024. This is consistent with the increase observed from 22.7 percent to 27.5 percent between 2006 and 2007.

Tourism estimates for the first half of 2024 are supported by several key indicators:

Long-stay arrivals increased by 17.9 percent over the first half of 2023 (source: Barbados Statistical Service).
Hotel room rates rose by an average of 10 percent, with the second quarter showing a particularly strong increase of 13.3 percent over the second quarter of 2023 (source: Smith Travel Report).
Cruise arrivals recorded a 17.9 percent increase, with cruise calls rebounding significantly in the second quarter of 2024 (source: Barbados Statistical Service).
Food prices experienced a general increase of 5.3 percent, indicating that visitors paid more for food, contributing to higher tourism spending.
These data points collectively underpin our estimate of a 4.5 percent economic growth rate for the first half of 2024. We remain confident in our assessment, which reflects a strong recovery in the tourism sector post-COVID, driving economic expansion across other sectors.
We acknowledge the concerns raised by some Barbadians regarding the perceived disconnect between the economic reports and the actual conditions they experience. It is important to understand that while the economy may be growing, it can take time for the benefits of this growth to be felt by every member of society – a phenomenon observed globally, including in advanced economies like the United States. This is why we have consistently emphasised in our economic reviews the need for increased investments to achieve sustainable and inclusive economic growth that will improve the lives and livelihoods of all Barbadians.
We welcome public discourse on our economic reviews and are committed to engaging with stakeholders to address any genuine concerns. If discrepancies exist between our reported data and independent analyses, we invite dialogue to assess and verify these numbers. Our primary objective is to provide the most accurate and comprehensive picture of Barbados’ economic performance, even as we acknowledge the inherent challenges in producing projections in a dynamic and uncertain global environment.
We assure all Barbadians that there is no intent to manipulate or distort economic data. We will continue to refine our models and methodologies, ensuring that the Central Bank remains a trusted source of clear and accurate economic information.
Once again, we thank you for your concerns and look forward to opportunities to strengthen our processes and our relationship with the public. (PR)

Business

Trust Fund Ltd. To Launch New Initiative Early Next Year

The Barbados Trust Fund Limited (BTFL) will launch a new initiative early next year to empower its clients in the services sector.

General Manager of the BTFL, Jerry Amos, made the disclosure on Friday afternoon as he addressed the Staff Luncheon and Awards Ceremony for some clients, at Accra Beach Hotel and Spa.

Mr. Amos told the gathering: “Starting in the first quarter of the next financial year, we will launch STI-FEST – Service Technology Innovation Fest.
This initiative will blend technology and innovation to empower our clients in the services sector, equipping them with tools and insight to thrive in a rapidly evolving market.”

In highlighting some of the Fund’s accomplishments over its six years of existence, he pointed out that an online Loans Management System (LMS) was launched in 2024. He said the system has transformed the operations of the BTFL, as the loans process has been streamlined and is entirely online.

“Once the payment sections are completed, we will have a complete end-to-end system, making it easier for our clients to access and manage their financial services with us….

“We are not stopping there. In the second phase of development of the LMS solution, we will introduce artificial intelligence and data analytics to enhance the system’s capabilities.

“These advancements will allow us to better anticipate and respond to clients’ needs, as well as provide valuable insight that will help us refine and improve our services. This is about more than technology; it’s about using innovation to deliver even greater value to our clients,” he stressed.

Mr. Amos said recent public discussions about the Fund’s $5,000 loan offering had sparked reflection within the organisation. He insisted that such an amount could deliver the remarkable outcomes showcased by BTFL.

“When paired with guidance and resources, $5,000 can be the seed that transforms a dream into reality. That being said, we also recognise that some businesses require more than the $10,000 that we offer as a second loan, after the first $5000.00 loan is successfully repaid.

“We will continue to champion grant funding for potential entrepreneurs at the pre-seed stage, ensuring that ideas can grow into enterprises. Our work must not only fund businesses but nurture them to succeed,” he emphasised.

The General Manager praised the staff for their commitment, describing them as enablers of dreams, architects of change, and the backbone of the organisation’s success. He also congratulated the 27 clients who received awards for their hard work and dedication.

Permanent Secretary in the Ministry of Energy and Business, Kevin Hunte, underscored the importance of the entrepreneurs and Trust Fund celebrating their achievements. He encouraged them to map out and list their achievements.

“We need to wave them high, especially in these days where negative news seems to be taking the predominance. And, so I want to encourage you both – Trust Fund as well as the awardees – to tell your story … as widely as you can, as loudly as you can, and with as much detail as you can, because your success is Barbados’ success,” Mr. Hunte said. (PR/GIS)

Caption: Collis Lowe of Gratitude Enterprises accepting her award from Permanent Secretary in the Ministry of Energy and Business, Kevin Hunte

Business

Balancing Cruise & Cargo Operations At Bridgetown Port

As a multipurpose port, the Port of Bridgetown is focused on balancing the needs of both cargo and cruise customers, while minimising berthing conflict and ensuring delivery on customer expectations.

The Port of Bridgetown yesterday, December 10, 2024, welcomed four cruise ships. Seabourn Ovation sailed in with 532 passengers and Explora I with 900 passengers. The Resilient Lady made her inaugural visit with 2,245 passengers, as well as MSC Virtuosa with 5,083 passengers. MSC Virtuosa, homeporting at Bridgetown during winter 2024/25, also took on twenty-three 40ft containers of stores.

With all berths dedicated to cruise ships, yesterday was designated a “no cargo” day i.e. a day where cargo vessels cannot discharge or load cargo during the day i.e 0700 hrs to 1900 hrs,as all berths are occupied by cruise.

There are forty-two “no cargo” days anticipated during the peak season October 2024 and April 2025, of which vessel agents are advised and should reference as a vessel operations planning tool.

As a multipurpose port, inevitably some conflicts will occur. These however are resolved in the context of an age-old stated national policy where cruise vessels are accorded priority over cargo ships and cargo lines are aware that they have to plan around this mandate.

In addition to the policy, the Operations Team at the Port hosts daily briefing meetings focused on vessel planning at which agents and vessel representatives are present. These meetings are key to ensuring smooth operations, as the Port continues to serve both cargo and cruise lines, through the winter cruise season.

The assertion however, that the JPO Aquila container ship bypassed Bridgetown yesterday because it was deemed a “no cargo” day is inaccurate.

According to its schedule, the JPO Aquila was late in arriving at Port of Spain, Trinidad and as a result had to wait one day before berthing. The vessel was in fact still berthed and being worked in Trinidad yesterday, departing in the early hours of this morning. The vessel took the decision not to call at Bridgetown in an effort to get back on schedule. Even if it was not a “no cargo” day therefore, the vessel would not have made its scheduled call at Bridgetown.

JPO Aquila was originally scheduled to arrive at Bridgetown on December 6 and because of delays experienced in previous ports, rescheduled to December 8 and later December 10, for berthing in the evening. Just a single vessel was scheduled for work from 1600 hrs yesterday and no vessels were scheduled for 2300 hrs. The vessel could also have been serviced today if it had continued to Barbados.

The Port of Bridgetown understands the need to balance services to both cruise and cargo customers both of which are very critical, for different reasons, to the economy of Barbados. And to ensure service delivery, Barbados Port Inc, (BPI) remains flexible, extending weekday opening hours and opening on weekends as required, to facilitate commercial and personal cargo collection and delivery. Yesterday 168 full containers were handled at the Port.

BPI cautions however that during the peak cruise and cargo season, some delays are to be expected. The close arrival of three cargo vessels discharging 100+ containers each in the last two days, meant containers had to be stacked high, resulting in significant shifting to retrieve those ready for delivery.

Where normally four delivery lanes are dedicated for trucks, BPI was forced to work across three lanes only, due to the congestion in Port. Peak days are characterized by personnel and heavy-duty equipment in operation, as well as ground transport— taxis and tour buses, and visitors both local and foreign, all in a single space.

Here at the Port, work is advancing on the construction of Berth 6 at a cost of $108 million and is scheduled for completion in June 2025. This will allow for simultaneous berthing of cruise and cargo vessels. The ultimate goal is to achieve a separation of cruise and cargo operations, with the construction of new cruise facilities.

The investment required for such is significant and the Port continues discussions with potential partners, investors and financiers on dedicated cruise facilities. (PR/GIS)

Business

More demand for live trees in 2024

Kooyman launches Christmas Holiday Wonderland

Live, fresh-cut Christmas trees have become the preferred option for Barbadians looking to add that special touch to their homes for the holidays. Speaking ahead of the Annual Kooyman Holiday Wonderland event at the Megastore on Saturday, December 7th, from 2:00 p.m. to 7:00 p.m., Marketing Officer Charlene Mullin says they anticipate a heightened demand in 2024.

“We anticipate an even more spectacular Kooyman Holiday Wonderland this year as we officially launch Christmas at Kooyman. Customers in recent years have been clamouring for our premium live trees, and this year, we are prepared for an even more overwhelming response. All customers purchasing live trees will receive a 10 percent discount voucher to use on our Christmas décor items, and we will have storewide special offers and deals so everyone is invited to come celebrate with us.

The Marketing Officer says in addition to emphasising Kooyman’s support for entrepreneurship and community, Holiday Wonderland brings that festive family atmosphere where the children can meet Santa, take festive photos, and enjoy face painting, balloon art, and clown entertainment.

“This year, we are featuring several activities emphasising our commitment to the community. We’ve had a fantastic response to our offer of free space for entrepreneur pop-ups, and we are looking forward to our holiday-focused adult workshops designed to inspire creativity and help participants add that festive cheer to their homes.”

Mullin said Kooyman is proud to partner with Team Mikey Charity this year to host a holiday donation drive supporting varied community initiatives.

“Kooyman is pleased to work with Team Mike Charity in keeping with our pillars of sustainability, poverty reduction, and youth and education. Throughout the year, we have continued to make donations and build partnerships in this regard, and this Christmas will be no exception as we continue to play our part.” (PR)