Are you curious about how the beautiful Bahamas became a world-renowned tourist destination? The history of tourism in the Bahamas is a fascinating journey that began in the mid-19th century and continues to evolve. SIXT.VN is here to guide you through the captivating story of how this island nation transformed itself into a paradise for travelers. Explore the key factors, pivotal moments, and visionary leaders who shaped the Bahamian tourism industry, offering you insights into its rich heritage and vibrant culture, all while making your travel dreams to Vietnam a reality with our expert travel services and seamless experiences. Discover hidden gems and cultural treasures with Vietnam vacation packages, airport transfers, and hotel bookings.
Contents
- 1. What Were The Earliest Attempts To Promote Tourism In The Bahamas?
- 1.1. The Tourism Encouragement Act
- 1.2. Investing in Infrastructure
- 1.3. Partnerships with Steamship Lines
- 1.4. Construction of the Royal Victoria Hotel
- 1.5. Limited Growth After the US Civil War
- 2. How Did The Bahamas Revitalize Tourism In The Early 1900s?
- 2.1. New Legislation to Stimulate Tourism
- 2.2. Opening of The Hotel Colonial
- 2.3. Flagler’s Steamship Line
- 2.4. Establishment of the Tourism Development Board
- 2.5. Introduction of Air Service
- 2.6. Expansion to The Out Islands
- 2.7. Pan American’s Daily Air Service
- 2.8. Construction of New Hotels
- 2.9. Impact of the Great Depression
- 3. How Did External Factors Influence The Bahamian Economy and Tourism?
- 3.1. Economic Mirroring of Tourism
- 3.2. The US Civil War
- 3.3. Pineapple Plantations
- 3.4. The Prohibition Era
- 3.5. Collapse of the Sponging Industry
- 3.6. The Importance of Natural Sponges
- 4. What Strategies Did The Bahamas Adopt to Develop a Year-Round Tourism Industry?
- 4.1. Government’s Commitment to Tourism
- 4.2. Focus on Economic Stability
- 4.3. Limited Tourism Before Expansion
- 4.4. Hotels Encouragement Act
- 4.5. Revitalization of the Tourism Development Board
- 4.6. Growth in Tourist Arrivals
- 4.7. Expansion in Grand Bahama
- 4.8. Impact of the Nassau Taxi Strike
- 5. What Role Did The US Embargo On Cuba Play In The Bahamas’ Tourism Boom?
- 5.1. Impact of the US Embargo on Cuba
- 5.2. Cuba as a Popular Vacation Destination
- 5.3. Shift of Tourism Traffic to The Bahamas
- 5.4. The Hawksbill Creek Agreement
- 5.5. Agreement with the Government
- 5.6. Terms of the Agreement
- 5.7. Development of Freeport
- 5.8. Expansion of Hotel Capacity
- 5.9. Casino Expansion in Nassau
- 5.10. Milestone of One Million Visitors
- 5.11. Political Changes
- 5.12. Pindling’s Speech in Freeport
- 6. What Factors Contributed to Tourism Growth Beyond Government Policies?
- 6.1. Government’s Active Role
- 6.2. Marketing Efforts
- 6.3. Economic Expansion
- 6.4. Introduction of Economical Long Haul Jet Service
- 6.5. Limited Competition
- 6.6. Beneficial Transfer of Business from Cuba
- 7. How Did Independence and Economic Challenges Impact Tourism in The 1970s?
- 7.1. Unraveling of Favorable Conditions
- 7.2. Achievement of Independence
- 7.3. Uncertainty in the Investment Community
- 7.4. Collapse of Bahamas Airways
- 7.5. Changing Local Attitudes
- 7.6. The Oil Crisis
- 7.7. Recovery in the Late 1970s
- 7.8. Hotel Expansions
- 7.9. Development in The Out Islands
- 8. How Did Cruise Traffic and Increased Competition Affect Tourism in The 1980s?
- 8.1. Another Oil Crisis
- 8.2. Growth in Visitor Numbers
- 8.3. Shift to Cruise Visitors
- 8.4. Disproportionate Spending
- 8.5. Conversion to Cruise Visitors
- 8.6. Hotel Industry Difficulties
- 8.7. Increased Competition
- 8.8. Limited Hotel Construction
- 9. How Did The Gulf War and Economic Recession Affect The Bahamas in The 1990s?
- 9.1. Impact of the Gulf War and Recession
- 9.2. Peak in Tourist Numbers
- 9.3. Decline in Stopover Visitors
- 9.4. Growth in Cruise Traffic
- 9.5. Aging Hotel Plant
- 9.6. Reputation as a Cruise Port
- 9.7. Hotel Industry Crisis
- 9.8. Airline Industry Losses
- 9.9. Low Hotel Occupancy Rates
- 9.10. Decline in Room Rates
- 9.11. Drop in Gross Rooms Revenue
- 9.12. Impact on Employment
- 9.13. Change in Government
- 10. What Strategies Led to The Turnaround of The Bahamian Tourism Industry in The Mid-1990s?
- 10.1. Government’s Decision to Exit the Hotel Business
- 10.2. Government-Owned Hotels
- 10.3. Revamping the Ministry of Tourism
- 10.4. Focus on Transformation
- 10.5. Low Point in Tourism
- 10.6. Sale of Resorts International’s Paradise Island Hotel
- 10.7. Transformation of the Property
- 10.8. Sale of the Ambassador Beach Hotel
- 10.9. Sale of the Royal Bahamian Hotel
- 10.10. Sale of the Crystal Palace Hotel
- 10.11. Acquisition of the Nassau Beach Hotel
- 10.12. Sun International’s Expansion
- 10.13. Further Developments by Sun International
- 10.14. Renovation of the British Colonial Hotel
- 10.15. Upgrades to Other Hotels
- 10.16. Refurbishment of the Paradise Island Fun Club
- 10.17. Return of Scheduled Airlift
- 10.18. Jump in Tourist Expenditures
- 10.19. Hutchison Whampoa’s Investment in Grand Bahama
- 10.20. Renovation and Expansion in Grand Bahama
- 10.21. Sale and Renovation of the Princess Property
- 11. How Did The Out Islands Fare During The Tourism Revival?
- 11.1. Limited Changes in The Out Islands
- 11.2. Hindrance of Bahamasair Performance
- 11.3. Construction of Small Hotels
- 11.4. Impact of Hurricane Floyd
- 11.5. Recovery in Abaco
- 11.6. Closure of Club Med in Eleuthera
- 12. How Did The Cruise Industry Adapt and Contribute to Tourism in The Late 1990s?
- 12.1. Contraction in the Mid-1990s
- 12.2. Shift in Cruise Itineraries
- 12.3. Shorter Stays in Port
- 12.4. Government Incentives
- 12.5. Reversal of Decline
- 12.6. Impact of Disney Cruises
- 12.7. Development of Castaway Cay
- 12.8. Holland America’s Private Island
- FAQ: The History of Tourism in The Bahamas
- 1. When did The Bahamas first recognize the potential of tourism?
- 2. What was the purpose of the Tourism Encouragement Act of 1851?
- 3. What infrastructure investments were made to support early tourism efforts?
- 4. How did Samuel Cunard contribute to the early tourism industry in The Bahamas?
1. What Were The Earliest Attempts To Promote Tourism In The Bahamas?
The earliest attempts to promote tourism in The Bahamas date back to the mid-19th century, with the government recognizing the potential of this industry as early as 1851. This marked the initial steps towards establishing The Bahamas as a sought-after tourist destination.
1.1. The Tourism Encouragement Act
In 1851, the government of The Bahamas passed the Tourism Encouragement Act, signaling the first official recognition of tourism’s potential. This was followed by a second act in 1854, further emphasizing the government’s commitment to fostering the industry.
1.2. Investing in Infrastructure
The third act, passed in 1857, authorized the government to purchase land for constructing a grand hotel. This investment in infrastructure aimed to attract more visitors by providing high-quality accommodations.
1.3. Partnerships with Steamship Lines
In 1859, the government partnered with Samuel Cunard, owner of a famous steamship line, to guarantee regular service to the islands. This partnership, costing three thousand pounds annually, ensured reliable transportation for tourists.
1.4. Construction of the Royal Victoria Hotel
Funded by the government at a cost of 25 thousand pounds, the Royal Victoria Hotel opened in 1861. This high-quality hotel in Nassau quickly became a landmark, offering luxurious accommodations and cementing The Bahamas as a premier destination.
1.5. Limited Growth After the US Civil War
Despite these early efforts, tourism growth remained slow. By 1873, The Bahamas only received about 500 tourists annually, indicating that more significant developments were needed to boost the industry.
2. How Did The Bahamas Revitalize Tourism In The Early 1900s?
The Bahamas revitalized its tourism industry in the early 1900s through strategic legislation and the introduction of key infrastructure, setting the stage for future growth. These initiatives included the construction of beachfront hotels and the establishment of a dedicated tourism development board.
2.1. New Legislation to Stimulate Tourism
In 1898, the government passed new legislation designed to stimulate tourism, demonstrating a renewed commitment to developing the industry.
2.2. Opening of The Hotel Colonial
Henry Flagler opened The Hotel Colonial in Fort Nassau in 1900, marking the first beachfront hotel in the country. This hotel, located on the site of the present British Colonial Hotel, offered a new level of luxury and convenience.
2.3. Flagler’s Steamship Line
Flagler also started his own steamship line to transport tourists between Florida and Nassau, further improving accessibility and attracting more visitors.
2.4. Establishment of the Tourism Development Board
In 1914, the Tourism Development Board was set up with the power to advertise and market The Bahamas. With an annual budget of three thousand pounds, this board was the forerunner of today’s Ministry of Tourism.
2.5. Introduction of Air Service
The first air service to Nassau commenced in 1919 with Chalk’s seaplane service between Florida and The Bahamas, making the islands more accessible and appealing to a wider range of travelers.
2.6. Expansion to The Out Islands
The opening of the Bimini Rod and Gun Club in 1924 marked the beginnings of tourism in The Out Islands, expanding the industry beyond Nassau.
2.7. Pan American’s Daily Air Service
Pan American added its daily air service between Florida and Nassau in 1929, providing further transportation options and increasing tourist arrivals.
2.8. Construction of New Hotels
The 1920s saw significant growth with the rebuilding of the British Colonial Hotel in 1923, after a fire, and the construction of the Hotel Fort Montague in 1926, enhancing the accommodation options available.
2.9. Impact of the Great Depression
The solid growth of the 1920s came to a halt during the Great Depression of the 1930s, causing the tourism industry, along with other economic activities, to stagnate. This period highlighted the vulnerability of the industry to global economic downturns.
3. How Did External Factors Influence The Bahamian Economy and Tourism?
External factors significantly influenced The Bahamian economy and tourism, causing periods of boom and bust tied to international events and economic shifts. These included the US Civil War, Prohibition, and the collapse of the natural sponging industry.
3.1. Economic Mirroring of Tourism
Between the 1850s and 1930s, the overall economy of The Bahamas mirrored that of tourism, experiencing sharp bursts of activity followed by long periods of economic stagnation.
3.2. The US Civil War
In the early 1860s, Nassau was a main center for blockade running into the southern states during the Civil War, resulting in substantial revenues. This boom ended abruptly with the war’s conclusion in 1865.
3.3. Pineapple Plantations
In the late nineteenth century, The Bahamas invested heavily in pineapple plantations, but this success was short-lived as production shifted to Hawaii, which offered better quality at lower costs.
3.4. The Prohibition Era
During the 1920s, Nassau profited from rum running due to the prohibition of alcohol in the United States. This lucrative trade collapsed once prohibition was repealed in 1933.
3.5. Collapse of the Sponging Industry
The economic difficulties of the 1930s were compounded by the collapse of the Bahamian natural sponging industry in 1938, when the sponge crop was wiped out by disease.
3.6. The Importance of Natural Sponges
Natural sponges, widely used for personal washing before synthetic alternatives, had been a lucrative source of income for many Bahamians, making the industry’s collapse a significant economic blow.
4. What Strategies Did The Bahamas Adopt to Develop a Year-Round Tourism Industry?
To develop a year-round tourism industry, The Bahamas adopted strategies focusing on government commitment, hotel encouragement acts, and aggressive marketing efforts, aiming to stabilize and grow the economy. These efforts were designed to attract a broader range of visitors and extend the tourist season beyond the traditional winter months.
4.1. Government’s Commitment to Tourism
The 1930s demonstrated the potential of a viable tourism industry. By 1938, The Bahamas received 57,394 tourists, with 10,000 stayovers.
4.2. Focus on Economic Stability
In the late 1940s, following World War II, the government aimed to develop two primary economic sectors: a year-round tourism industry and an offshore financial services sector, seeking to create a stable economy.
4.3. Limited Tourism Before Expansion
In 1949, The Bahamas received just 32,000 tourists, highlighting the need for strategic development. At that time, tourism was limited to a short season and catered mainly to affluent visitors escaping winter weather.
4.4. Hotels Encouragement Act
The government passed a Hotels Encouragement Act in 1949, substantially amended in 1954, to stimulate hotel construction by offering refunds on custom duties and other concessions.
4.5. Revitalization of the Tourism Development Board
In 1950, Sir Stafford Sands revived the Tourism Development Board, allocating a budget of $500,000 for extensive advertising and the opening of five overseas offices in North America and Europe.
4.6. Growth in Tourist Arrivals
During the 1950s, the construction of new hotels and the growing US economy led to increased business. Visitor numbers rose from 51,975 in 1950 to 142,689 by 1954.
4.7. Expansion in Grand Bahama
Billy Butlin developed a 250-room hotel in Grand Bahama, catering to middle-income Americans. Though initially unsuccessful, it reopened in 1955 and later became part of the Jack Tar group.
4.8. Impact of the Nassau Taxi Strike
Nassau’s industry faced a setback in 1958 when a taxi strike escalated into a 19-day general strike, causing many tourists to cancel their trips.
5. What Role Did The US Embargo On Cuba Play In The Bahamas’ Tourism Boom?
The US embargo on Cuba in 1961 played a pivotal role in The Bahamas’ tourism boom by redirecting American tourists who had previously frequented Cuba’s casinos and nightlife to The Bahamas. This influx significantly boosted the Bahamian tourism industry.
5.1. Impact of the US Embargo on Cuba
The main stimulus to the tourism industry was the US government’s trade embargo on Cuba in 1961, following Castro’s overthrow of the Batista government.
5.2. Cuba as a Popular Vacation Destination
In the late 1950s, Cuba had been an enormously popular vacation destination for Americans, known for its casinos and nightlife.
5.3. Shift of Tourism Traffic to The Bahamas
The embargo prevented Americans from traveling to Cuba, forcing the tourism industry to find alternative destinations, with much of this traffic shifting to The Bahamas.
5.4. The Hawksbill Creek Agreement
In 1946, Wallace Groves purchased a lumber company in Grand Bahama and expanded its operation. By 1954, he created the Grand Bahama Port Authority Ltd to develop a major port and industrial center.
5.5. Agreement with the Government
In August 1955, Groves and the Bahamian government signed the Hawksbill Creek Agreement, granting the Port Authority 50,000 acres of crown land to create a port and industrial community.
5.6. Terms of the Agreement
The agreement guaranteed no import duties or real estate taxes for a period of 99 years and allowed the Port Authority to administer the port area and license businesses.
5.7. Development of Freeport
A deep-water port was created, and work started on downtown Freeport in 1959. However, Grand Bahama shifted focus to tourism, opening casinos like the Lucayan Beach Hotel in 1963.
5.8. Expansion of Hotel Capacity
The Lucayan Beach Hotel was followed by a 500-room Holiday Inn and the 800-room Kings Inn (later Princess Hotel), all with casinos, boosting Grand Bahama’s tourism capacity.
5.9. Casino Expansion in Nassau
Nassau soon followed, with casinos opening on Paradise Island and Nassau by the end of the 1960s, further capitalizing on the shift in tourism.
5.10. Milestone of One Million Visitors
By 1968, The Bahamas had experienced its first one million-visitor year, marking substantial growth from 32,000 visitors in 1949.
5.11. Political Changes
In 1967, the ruling minority party was defeated by the Progressive Liberal Party (PLP) in a general election, leading to shifts in government policies.
5.12. Pindling’s Speech in Freeport
In 1969, PLP leader Sir Lynden Pindling made a speech in Freeport, pledging that Grand Bahama would either bend to the wishes of the new government or be broken, which led to investment drying up and stagnation in the island’s tourism industry.
6. What Factors Contributed to Tourism Growth Beyond Government Policies?
Beyond government policies, the tourism growth in The Bahamas was fueled by economic expansion in the US and worldwide, improvements in international travel, and limited competition from other Caribbean countries. These elements collectively fostered a conducive environment for tourism development.
6.1. Government’s Active Role
The government aggressively pursued a policy of active tourism development, establishing the Tourism Development Board and introducing the Hotels Encouragement Acts of 1949 and 1954.
6.2. Marketing Efforts
The government marketed The Bahamas aggressively during the 1960s, promoting its wonderful climate, beaches, and proximity to Florida.
6.3. Economic Expansion
A strong expansion in the US and world economies, recovering from the war, led to dramatic improvements in the standard of living.
6.4. Introduction of Economical Long Haul Jet Service
The introduction of economical long-haul jet service led to substantial overall increases in international vacation travel, making destinations like The Bahamas more accessible.
6.5. Limited Competition
Many other Caribbean countries ignored tourism, preferring to rely on agriculture, mining, or oil income, resulting in very limited competition for The Bahamas.
6.6. Beneficial Transfer of Business from Cuba
The unforeseen and beneficial transfer of business from Cuba also fueled the expansion of the Bahamian tourism industry.
7. How Did Independence and Economic Challenges Impact Tourism in The 1970s?
The 1970s brought significant challenges to tourism in The Bahamas due to independence, economic uncertainties, and global crises. These factors led to investment pullouts, operational difficulties, and shifts in local attitudes towards the service industry.
7.1. Unraveling of Favorable Conditions
Many of the favorable conditions of the 1950s and 1960s unraveled in the 1970s, presenting new challenges for the tourism industry.
7.2. Achievement of Independence
In 1968, The Bahamas achieved majority rule with the election of the Lynden Pindling Progressive Liberal Party. By 1973, the islands achieved independence from the United Kingdom, becoming a self-governing country.
7.3. Uncertainty in the Investment Community
Independence created uncertainty in the investment community, leading many investors to pull out. The government had to take over several hotels to maintain employment levels.
7.4. Collapse of Bahamas Airways
Bahamas Airways collapsed in 1970 and was replaced by Bahamas World Airways, which failed in 1972. Bahamasair was created in 1973 to address the need for a national airline.
7.5. Changing Local Attitudes
Local attitudes among some service personnel worsened as many felt that a service-based economy was inappropriate for their newly independent status, blurring the line between providing service and servitude.
7.6. The Oil Crisis
The world experienced its first oil crisis when the price of oil quadrupled due to OPEC’s actions, leading to enormous economic recession and dislocation.
7.7. Recovery in the Late 1970s
Despite these difficulties, tourism showed some recovery in the late 1970s, with major hotel projects implemented and tourist arrivals reaching two million by 1982.
7.8. Hotel Expansions
The 350-room expansion of the Coral Towers on Paradise Island was completed by 1982, as was the 360-room Grand Hotel. The government also constructed the 690-room Cable Beach Hotel, which opened in 1984.
7.9. Development in The Out Islands
In Eleuthera, the 130-room Cape Eleuthera Hotel opened in 1983, as did the 100-room Treasure Cay Hotel in Abaco, expanding tourism beyond the main islands.
8. How Did Cruise Traffic and Increased Competition Affect Tourism in The 1980s?
In the 1980s, The Bahamas faced challenges from a global recession, increased cruise traffic, and growing competition from other Caribbean destinations. This combination of factors strained the hotel industry and shifted the focus from hotel stays to cruise visits.
8.1. Another Oil Crisis
OPEC held the world hostage again in 1979, creating a further oil crisis that plunged the world into recession in 1980, marked by fierce inflation.
8.2. Growth in Visitor Numbers
The growth in the late 1970s and the opening of new hotels resulted in The Bahamas receiving two million visitors a year by 1982.
8.3. Shift to Cruise Visitors
Of these two million visitors, 1.1 million were stopovers (staying 24 hours or more), while over 700,000 were cruise visitors, highlighting a growing reliance on cruise traffic.
8.4. Disproportionate Spending
It took the spending of more than 14 cruise visitors to equal that of one hotel visitor, indicating that the rapid growth in cruise traffic did little to boost overall revenues.
8.5. Conversion to Cruise Visitors
The conversion of potential hotel visitors to cruise visitors began to negatively impact the country’s tourism industry, diverting revenue away from hotels.
8.6. Hotel Industry Difficulties
The hotel industry began to experience serious difficulties with operating costs and return on investment during the 1980s.
8.7. Increased Competition
The Bahamas faced significant competition as other destinations in the region, such as Cancun, Jamaica, Puerto Rico, and Aruba, began to develop their tourism industries.
8.8. Limited Hotel Construction
In response to the deteriorating business environment, only one major hotel was built in The Bahamas in the late 1980s: Carnival’s 867-room Crystal Palace Hotel in Nassau.
9. How Did The Gulf War and Economic Recession Affect The Bahamas in The 1990s?
The 1990s brought further challenges to The Bahamas with the Gulf War and a subsequent economic recession in North America. These events particularly impacted long-stay visitors and hotel occupancies, leading to a decline in the overall tourism industry.
9.1. Impact of the Gulf War and Recession
In 1991, the Gulf War and the subsequent North American economic recession significantly impacted the tourism industry in The Bahamas.
9.2. Peak in Tourist Numbers
Despite these challenges, the number of tourists visiting The Bahamas peaked in 1992 at 3.7 million visitors, although 2.1 million (57%) were cruise passengers.
9.3. Decline in Stopover Visitors
The war and recession had the greatest impact on long-stay stopover visitors, with numbers falling from a peak in 1989 to 1.39 million in 1992, barely ahead of 1985 levels.
9.4. Growth in Cruise Traffic
Cruise traffic, by comparison, almost doubled during the seven-year period from 1.1 million in 1985 to its peak of 2.1 million in 1992.
9.5. Aging Hotel Plant
By 1992, The Bahamas faced an aging hotel plant, virtually no new investment, and very poor returns on operations and capital invested.
9.6. Reputation as a Cruise Port
The destination gained a reputation as a cruise line port of call rather than a destination for longer vacations due to the decline in hotel quality.
9.7. Hotel Industry Crisis
The hotel industry was in a state of shock by 1992, with low occupancies and low average room rates.
9.8. Airline Industry Losses
The economic dislocation following the Gulf War forced two major carriers, Pan American and Eastern, out of business, decreasing airlift to the destination considerably.
9.9. Low Hotel Occupancy Rates
In 1992, the hotel industry of Nassau Paradise Island experienced average room occupancies of just 52%, indicating that almost half of the 8,000 rooms remained empty throughout the year.
9.10. Decline in Room Rates
The average room rate for large hotels in Nassau fell from $99.00 in 1990 to $80.00 by 1993, a significant drop due to heavy discounting to maintain some market share.
9.11. Drop in Gross Rooms Revenue
Given the combination of lower occupancies and lower room rates, the hotel industry saw gross rooms revenue drop more than 26% between 1990 and 1994.
9.12. Impact on Employment
This led to substantial operating losses for many hotels and had a serious adverse impact on employment and salaries, with many employees working just two or three days a week.
9.13. Change in Government
The tourism industry was on the brink of economic disaster, prompting the electorate to dismiss the incumbent government in 1992 and elect The Free National Movement.
10. What Strategies Led to The Turnaround of The Bahamian Tourism Industry in The Mid-1990s?
The turnaround in the mid-1990s was driven by strategic decisions, including the government’s exit from the hotel business, revitalization of the Ministry of Tourism, and significant private sector investments. These efforts aimed to transform the quality of the tourism product and attract new investment.
10.1. Government’s Decision to Exit the Hotel Business
One of the first decisions made by the new government was to no longer be in the hotel business, paving the way for private sector investment and management.
10.2. Government-Owned Hotels
In 1992, the government owned several hotels, including the Radisson Cable Beach Hotel, Ambassador Beach Hotel, Royal Bahamian Hotel in Nassau, and the Lucayan Beach Hotel and Casino, along with the Lucayan Holiday Inn in Grand Bahama.
10.3. Revamping the Ministry of Tourism
The Ministry of Tourism was revamped with a new Minister, Brent Symonette, and a new Director-General, Vincent Vanderpool-Wallace, both from the private sector, bringing fresh perspectives and expertise.
10.4. Focus on Transformation
Their joint view was that no improvement could come to the tourism industry until there was a transformation in the quality of the product, achievable only through new investment and ownership.
10.5. Low Point in Tourism
Tourism reached a low point in 1993/1994, with hotels in Nassau/Paradise Island experiencing average year-round room occupancies of 55% – 60% and annual average room rates of less than $80 per room per night.
10.6. Sale of Resorts International’s Paradise Island Hotel
The renaissance of The Bahamian tourism industry began in May 1994 with the sale of Resorts International’s Paradise Island hotel to Sun International, marking a pivotal moment.
10.7. Transformation of the Property
In just eight months, the property underwent a $250 million makeover and reopened in January 1995 to extensive accolades, setting a new standard for luxury in The Bahamas.
10.8. Sale of the Ambassador Beach Hotel
In 1994, the government sold the 390-room Ambassador Beach Hotel to John Issa’s Superclubs hotel chain, which closed the hotel in September 1994 and reopened it one year later as Breezes.
10.9. Sale of the Royal Bahamian Hotel
The Royal Bahamian Hotel was sold to Mr. Butch Stewart’s Sandals group in 1995, closed for 12 months, and reopened as Sandals Royal Bahamian in September 1996, further enhancing the destination’s appeal.
10.10. Sale of the Crystal Palace Hotel
Carnival sold The Crystal Palace Hotel and Casino to Mr. Ruffin in 1994, who immediately placed a Marriott flag on the property, improving its management and reputation.
10.11. Acquisition of the Nassau Beach Hotel
Mr. Ruffin later purchased the adjacent Nassau Beach Hotel from Forte hotels in 1997, consolidating his presence in the Nassau hotel market.
10.12. Sun International’s Expansion
Sun International purchased the 565-room Holiday Inn on Paradise Island in 1996, demolishing it to construct the 1,200-room Royal Tower and casino complex, which opened in December 1998 to great success.
10.13. Further Developments by Sun International
In 1998, Sun decided to close the Paradise Island Airport to further develop its property. By late 2000, they added 50 rooms to the prestigious Ocean Club and revamped the 18-hole golf course, investing close to $1 billion in Paradise Island.
10.14. Renovation of the British Colonial Hotel
In late 1998, the RHK Group out of Canada purchased the old downtown British Colonial Hotel, closing it for complete renovation in May 1998 and reopening it after a $68 million facelift in October 1999.
10.15. Upgrades to Other Hotels
Other hotels, notably the Club Med and the Sheraton Grand on Paradise Island, also invested heavily in upgrading their facilities.
10.16. Refurbishment of the Paradise Island Fun Club
In late 1999 and early 2000, the old Paradise Island Fun Club changed ownership and was completely refurbished, reopening in July 2000 as the Holiday Inn Sunspree on Paradise Island.
10.17. Return of Scheduled Airlift
As the product improved, the scheduled airlift returned, and in the late 1990s, scheduled nonstop jet service became increasingly common, improving accessibility.
10.18. Jump in Tourist Expenditures
By 2000, Nassau’s renaissance was almost complete, with tourist expenditures jumping 46% between 1991 and 1999, and the quality of visitor improved significantly.
10.19. Hutchison Whampoa’s Investment in Grand Bahama
The turnaround in Grand Bahama came more slowly. The government sold the Holiday Inn and Lucayan Beach and Casino to the Hong Kong company Hutchison Whampoa in 1997.
10.20. Renovation and Expansion in Grand Bahama
Hutchison also purchased the Atlantik Beach hotel, demolishing it in July 1998. The renovated 550-room Holiday Inn reopened in April 1999, and the complete 1,350-room resort was scheduled to open in December 2000.
10.21. Sale and Renovation of the Princess Property
The 965-room Princess property was sold in 1999 and underwent substantial refurbishment and renovation, further revitalizing Grand Bahama’s tourism offerings.
11. How Did The Out Islands Fare During The Tourism Revival?
During the tourism revival of the mid-1990s, The Out Islands saw less dramatic changes but experienced improvements in product quality and increased expenditures. Challenges remained, particularly with airlift, but small hotels geared towards bonefishing emerged.
11.1. Limited Changes in The Out Islands
The Out Islands saw little change in the 1990s, although the quality of the product improved significantly, and expenditures also increased.
11.2. Hindrance of Bahamasair Performance
Part of the problem lay with the fact that Bahamasair had yet to show any substantial improvement in its performance, which significantly hindered the movement of tourists to The Out Islands.
11.3. Construction of Small Hotels
A number of small hotels were constructed in The Out Islands during the late 1990s, many geared toward bonefishing, catering to niche tourism markets.
11.4. Impact of Hurricane Floyd
In September 1999, Eleuthera and Abaco were particularly badly hit by Hurricane Floyd, causing significant devastation to beachfront properties.
11.5. Recovery in Abaco
Abaco’s tourism industry recovered quite quickly and was fully functional by mid-2000, demonstrating resilience.
11.6. Closure of Club Med in Eleuthera
The 280-room Club Med on Eleuthera remained closed due to storm damage and had yet to reopen as of December 2000, indicating ongoing challenges in some areas.
12. How Did The Cruise Industry Adapt and Contribute to Tourism in The Late 1990s?
The cruise industry adapted to changes in the late 1990s by reversing a period of contraction through government incentives and the introduction of new itineraries. The advent of Disney cruises significantly boosted business, leading to increased cruise visitors in both Nassau and The Out Islands.
12.1. Contraction in the Mid-1990s
The cruise industry went through a period of contraction during the mid-1990s, falling from 2,139,383 passengers in 1992 to 1,543,495 by 1995.
12.2. Shift in Cruise Itineraries
Ships began to develop new itineraries in the lower and Western Caribbean, and Key West opened up to short three- and four-day cruises, affecting Nassau’s cruise traffic.
12.3. Shorter Stays in Port
Ships calling at Nassau began leaving earlier in the day as cruise lines attempted to make more money onboard by opening their shops and casinos immediately after leaving port.
12.4. Government Incentives
In 1995, the government passed legislation to encourage ships to stay longer in port and increase overall traffic by offering incentives to cruise line companies.
12.5. Reversal of Decline
This legislation began to pay quick dividends and reversed the decline in traffic, revitalizing the cruise sector.
12.6. Impact of Disney Cruises
The advent of the Disney Magic in August 1998, with its twice-weekly calls on Nassau, significantly boosted business, followed by the Disney Wonder one year later.
12.7. Development of Castaway Cay
Disney purchased and completely redeveloped Castaway Cay in Great Abaco as a port of call for their ships, leading to a big jump in numbers of cruise visitors to The Out Islands.
12.8. Holland America’s Private Island
This was emulated by Holland America, which also purchased its own private island and developed it as Half Moon Cay, further enhancing cruise tourism in The Bahamas.
The journey of tourism in The Bahamas is a testament to resilience, strategic adaptation, and visionary leadership. From its humble beginnings in the mid-19th century to its transformation into a world-class destination, The Bahamas has navigated numerous challenges and capitalized on opportunities to create a vibrant and thriving tourism industry. As you plan your next adventure, remember the rich history and cultural tapestry that makes The Bahamas a truly unique and unforgettable destination. And when you’re ready to explore the beauty of Vietnam, SIXT.VN is here to make your travel experience seamless and extraordinary.
FAQ: The History of Tourism in The Bahamas
1. When did The Bahamas first recognize the potential of tourism?
The Bahamas first recognized the potential of tourism in 1851 with the passage of the Tourism Encouragement Act.
2. What was the purpose of the Tourism Encouragement Act of 1851?
The Tourism Encouragement Act of 1851 aimed to promote and encourage the development of the tourism industry in The Bahamas.
3. What infrastructure investments were made to support early tourism efforts?
The government invested in infrastructure by authorizing the purchase of land for constructing a grand hotel and financing the construction of the Royal Victoria Hotel in Nassau.
4. How did Samuel Cunard contribute to the early tourism industry in The Bahamas?
Samuel Cunard partnered with the Bahamian government to guarantee regular steamship service to the islands, ensuring reliable transportation for tourists.