weighted score 4.4 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Bahamas
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for the Bahamas as a sourcing destination.
Labour cost competitiveness
3
High-income economy. Labour costs are among the highest in the Caribbean. Not cost-competitive for manufacturing against any mainland alternative.
Supply base depth
2
Virtually no manufacturing base. Economy is entirely services-oriented. Salt, aragonite mining, and minimal food processing are the only goods-producing activities.
Logistics & infrastructure
5
Freeport Container Port on Grand Bahama is a major transshipment hub. Nassau port handles domestic consumption. Good air connectivity to US, Canada, and Europe.
Workforce skills
5
English-speaking. Good education system. Workforce skills concentrated in hospitality, financial services, and maritime sectors. Limited technical/manufacturing skills base.
Scalability
6
Financial services and tourism can scale to a degree. Freeport transshipment can scale. No manufacturing scalability. Archipelago geography fragments logistics.
Ease of doing business
6
English common law. Transparent regulatory environment. No income tax, corporate tax, or capital gains tax. TI CPI 2025: 64. Business environment is well-regarded.
Trade access & tariffs
5
CARIFORUM-EU EPA provides preferential EU access. US proximity provides logistical advantage. CARICOM membership. No comprehensive US FTA but benefits from CBI preferences.
Sustainability baseline
5
Highly vulnerable to climate change and hurricanes. Coral reef ecosystems under stress. Renewable energy adoption is low (still heavily dependent on imported diesel for power). National climate adaptation is a priority.
Innovation & IP
2
Limited R&D capacity. Digital assets regulation (DARE Act) is notable — early mover on crypto/digital asset frameworks. No significant patent or technology activity.
Quality standards
5
Tourism and financial services operate to international standards. Freeport container port meets international maritime standards. Limited manufacturing means limited QMS adoption.
Tourism & Financial Services
Tourism & Financial Services
- Tourism dominance
- Tourism accounts for over 50% of GDP and is the primary employer. The Bahamas receives millions of visitors annually, with cruise tourism and resort tourism as the two main segments. Proximity to the US (50 miles from Florida) is a structural advantage.
- Financial services
- Offshore banking and financial services are the second economic pillar. The Bahamas has historically been a major international financial centre, though OECD pressure on tax transparency has reduced some of this activity.
- Manufacturing
- Manufacturing is negligible. The economy imports virtually all manufactured goods. Oil refining (BORCO facility on Grand Bahama) and salt production are among the few industrial activities.
Climate Risk & Infrastructure
Climate Risk & Infrastructure
- Hurricane exposure
- The Bahamas lies in the Atlantic hurricane belt. Hurricane Dorian (2019, Category 5) devastated Abaco and Grand Bahama, causing USD 3.4 billion in damages — over 25% of GDP. Climate risk is existential for the archipelago.
- US proximity
- Proximity to the United States provides logistical advantages for tourism and trade but also means the economy is highly correlated with US economic cycles.
- Population
- Approximately 400,000 people spread across an archipelago of 700 islands. Population concentration in Nassau/New Providence and Grand Bahama limits geographic diversification.