Bahamas Tourist Arrivals Rise 16.8% in July as Foreign Currency Demand Climbs

  • Tourism continued to underpin economic activity in The Bahamas during the summer months. Tourist arrivals to The Bahamas rose 16.8% to 1.2 million in July 2026, led by a sharp increase in cruise passengers, according to the Central Bank of The Bahamas’ Monthly Economic and Financial Developments report for August. Sea arrivals increased 18.2% to approximately 1.0 million, while air arrivals grew 10.0% to approximately 200,000. For the first seven months of 2026, total arrivals rose 14.8% to 8.5 million, with sea and air visitors up 16.4% and 5.8%, respectively.
  • Preliminary August indicators suggest that this momentum carried into the following month. International departures through Nassau rose 7.7% to 161,919, while short-term vacation rental operators sold 42,979 room nights, up 14.8% year-on-year. Average daily rates increased 5.8% to B$633.78 for entire-place listings and 5.1% to B$157.97 for hotel-comparable listings.
  • However, stronger tourism activity was accompanied by higher foreign currency demand, which weighed on external reserves. Foreign currency sales for current account transactions rose by B$200.0Mn year-on-year to B$832.5Mn in August, driven mainly by credit and debit card payments (up B$93.6Mn) and non-oil imports (up B$59.1Mn). External reserves declined by B$122.9Mn during the month to B$3.10Bn, compared with a B$77.8Mn decline in August 2025, although the Central Bank expects reserves to remain well above international standards and adequate to support the currency peg to the US dollar.
  • Domestic banking conditions softened in August, as liquidity declined and credit quality weakened. Bahamian dollar deposits fell by B$225.4Mn, largely due to private sector drawdowns of demand deposits, while excess reserves declined by B$227.1Mn to B$1.76Bn. Private sector credit rose by B$7.5Mn, as gains in consumer (B$20.1Mn) and mortgage (B$3.8Mn) lending offset a B$16.5Mn contraction in commercial loans. Consumer loan arrears increased 9.9% to B$141.6Mn, and total private sector arrears rose by B$5.3Mn to B$450.6Mn, or 7.0% of outstanding claims.
  • Looking ahead, the Central Bank remains positive on the growth outlook, although risks persist. It expects the economy to maintain its growth trajectory through 2026, supported by tourism and foreign investment projects, but cautioned that higher fuel and import prices could add to inflationary pressures, while geopolitical tensions and uncertainty over global tariff policies remain risks to travel demand.

(Source: Eyewitness News)