Bermuda Shorts

05/20/20On ‘Doing the Unthinkable’

It may read like a hyperlocal report about a tiny island economy, but last week’s OpEd in the Royal Gazette—Bermuda’s daily newspaper of record—takes a rather grim look at the economic challenges facing the mid-Atlantic archipelago following the COVID-19 pandemic. The piece, titled ‘Doing the Unthinkable,’ which was written by the newspaper’s editorial board, is fueled by Finance Minister Curtis Dickinson’s recent report to the House of Assembly—a report that described “a catastrophe for Bermuda’s economy and government finances.”

According to Government statistics, 20 percent of the population, or one in five people in Bermuda, are currently unemployed. That’s 7,000 people, a number which is likely to rise to 10,000 when all is said and done. As the OpEd points out, a resumption of commercial flights “is weeks if not months away,” which means “few of the 4,400 people who work in hotels and restaurants” and “tourist retail or tourism related services such as tours or transport” will be working this year.

It’s a bleak outlook for sure, but there is a silver lining here.

The OpEd makes some good suggestions of how the Government can help us survive this mess, chiefly by offering must-needed immigration reform and changing the way Bermuda attracts foreign direct investment, but the island needs to do more. Tourism-related businesses are not going to survive in Bermuda unless they reinvent their business models, nimbly adapt to the marketplace and start thinking outside of the box. Implemented strategies would look vastly different from business to business (i.e. tour operators and taxi drivers versus restaurants and retail shops) but businesses that I predict will
survive—and dare I say thrive during these times—have already invested heavily in e-commerce, which will undoubtedly continue to drive the intra-island economy as doors remain closed.

From a retail perspective, that’s stores like TABS, Two Rock Wines, Makin’ Waves, and even The Stationery Store (pictured above), all of which have meticulously catalogued their inventories on sleek online platforms. Restaurants, hotels and tour operators will need to take an entirely new tack as well—mostly by catering to locals by lowering prices and incentivizing Bermuda-based experiences. But make no mistake, there is no silver bullet during a COVID-19 economy.

The Government can surely help. As the OpEd points out, it’s a “moral necessity” and “critical economically” that the powers that be utilize tactics and best practices to bail out Bermuda’s unemployed
workers—especially those in the tourism sector, who have long contributed to the lifeblood of the island’s economy. Extension of the coronavirus unemployment benefit is a good start. As is financial assistance. But no matter the solution, it’s important that public and private sectors continue to work together in these uncertain times to help stave off what could possibly be the worst recession since 2008.

It’ll be a must if Bermuda is to survive