Monthly Economic and Financial Developments, March 2015

Published: Thursday May 7th, 2015

Indications are that the Bahamian economy’s positive, but mild growth momentum was sustained during the review month, amid stable gains in tourism output and foreign investment related construction activity. Some firming in fuel costs was noted, although, on average, energy prices remained below their prior year’s levels. On the monetary front, the modest expansion in both bank liquidity and external reserves was associated with net receipts from the real sector.

Based on preliminary data from a sample of large properties in New Providence and Paradise Island, sustained economic growth in several key source markets, combined with a modest reduction in capacity due to hotel renovations and other activities, boosted room revenue by 4.0% in March. Both the average daily room rate (ADR) and the average occupancy rate improved, by 8.2% to $313.64 and 5.4 percentage points to 85.5%, respectively. The first quarter performance registered an estimated 8.0% gain in total room revenue, as the ADR rose by 8.3% to $285.79, and the average occupancy rate grew by 7.3 percentage points to 75.7%.

In March, the average prices of both diesel and gasoline increased by 6.1% to $3.98 and $4.18 per gallon—a respective 22.5% and 21.2% below the prior year. However, the pass-through effects of lower global oil prices reduced the Bahamas Electricity Corporation’s fuel charge, by 8.0% month-on-month and by 14.9% over the prior year, to 20.23 cents per kilowatt hour (kWh).

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