Our comprehensive assessment of the Bahamas' operating environment and the outlook for its leading sectors are formed by bringing together a wealth of data on global markets that affect the Bahamas, as well as the latest industry developments that could impact the Bahamas' industries. This unique integrated approach has given us an impeccable track-record for predicting important shifts in the markets, ensuring you’re aware of the latest market opportunities and risks in the Bahamas before your competitors.
Bahamas Industry Coverage (5)
Food & Drink
Bahamas Food & Drink
BMI View: We are turning more positive regarding economic growth in the Caribbean, as structural and financial reforms take hold in the region, tourism numbers pick up and growth becomes stronger in key markets like the US. The Dominican Republic will outperform other regional markets over the next five years. Nonetheless, small consumer bases will limit long-term investment opportunities, especially in the food retail sector.
|Dominican Republic The Regional Outperformer|
|Select Countries - Food Sales (% chg y-o-y, USD terms)|
BMI View: Currency weakness will continue to plague the dollar terms returns of many of the Caribbean insurance sectors covered in this report. Offshore business in Barbados and the Cayman Islands, amounting to around USD45bn annually, dwarf the domestic sectors in the region. Health insurance, an underdeveloped line of business, is likely to outperform in many of these markets over the five-year forecast period.
The insurance markets of the Caribbean, particularly offshore business in Barbados and the Cayman Islands, but also domestic sectors, are heavily tied to the economic fortunes of the United States and, to a lesser extent, Canada. The ongoing recovery in both major North American markets should boost the fortunes of the region's insurers, driving demand for offshore reinsurance and captives, as well as boosting domestic economies. On the whole, regulation...
BMI View: We extend our generally favourable outlook for the Bahamas insurance sector overall in our latest quarterly report update. The non-life sector is poised to outperform the mature stable yet mature life sector. The overall insurance density in the Bahamas is now higher than USD2,089 per capita in 2016 and insurance premiums are about 8.3% of GDP, leading us to the conclusion that the sector is a whole is rather well developed. Looking forward into 2016 and beyond, we believe that rising incomes will lead to a stable uptick in life insurance premiums out to 2020 and beyond. Furthermore, rising incomes, growing household spending powers and increasing private consumption levels will support relatively stronger non-life subsector growth. The primary drivers on non-life growth will be motor vehicle...
BMI View: Increasing competition in the Caribbean telecoms markets has potential to enhance innovation and improve customer choice. The announcement in May 2016 that Jamaica had launched a third mobile operator, increases the prospects of competition in that market. Jamaica's mobile market is currently a duopoly between Digicel and LIME. Although the arrival of a third mobile operator would help to shake up the Trinidad & Tobago mobile market, we still expect the process to take years to play out, as licence fees are agreed,...
BMI View: Arrivals growth in the Caribbean will pick up to 2.5% in 2016, reflecting improved visitor numbers from Europe and North America. The Dominican Republic, St Eustatius and Cuba are expecting the highest rate of arrivals growth, but all tourism markets except St Vincent will experience growth in 2016. However, the outbreak of the Zika virus from late 2015 could pose downside risks to 2016 arrivals forecasts.
We currently expect arrivals to the Caribbean to grow by 2.5% in 2016, to 33.5mn, reflecting an improvement from growth of only 0.7% in 2015. We expect the Dominican Republic, Cuba, St Eustatius and St Lucia to post the highest level of arrivals growth in 2016, at around 6%, but we note the positive sign that all Caribbean countries except St Vincent will experience...