The Bahamas: Economic Activities, Tourism and Development
What you must know
The Bahamian economy rests on tourism and offshore financial services, with smaller contributions from fishing, agriculture and light manufacturing. Tourism dominates employment and foreign exchange, and it is heavily concentrated in Nassau, Freeport and resort islands. This makes the economy vulnerable to external shocks such as hurricanes, recessions and travel restrictions. Development is measured by indicators including GDP per capita, literacy and life expectancy, but these hide inequality between islands and income groups.
Concepts to master
Primary, secondary, tertiary and quaternary activities; mass tourism versus sustainable and eco-tourism; multiplier effect; leakage; foreign exchange; balance of trade; diversification; and the Human Development Index. Understand why cruise-ship passengers may spend less per head than stopover visitors, and why enclave tourism limits local benefit.
Traps in questions
Do not describe The Bahamas as mainly agricultural or industrial. Do not confuse GDP with development; GDP per capita is an average and ignores distribution. In multiplier-effect questions, remember that money leaks out when profits go abroad or goods are imported.
Rule of thumb
For any tourism-impact question, give one economic, one social and one environmental effect, each with a 'because' clause. Example: tourism creates hotel jobs (economic) because resorts need staff; it can raise seasonal pressure on housing (social) because workers move in; and reef damage occurs (environmental) because of anchoring and runoff. Balanced answers score higher.