The Bahamas is a great place to retire or take a break from the rat race. It’s also a great place to live if you’re looking for a high quality of life without breaking the bank. In this article, we’ll discuss the cost of living in the Bahamas which is incredibly affordable, making it a great option for budget-minded travelers.
History of Bahamas
The history of the Bahamas spans more than two centuries and has been shaped by a variety of factors, including Britain’s need for a naval base in the region, slavery, hurricanes, and commercial fishing. However, it is tourism that has been the catalyst for most economic growth in recent years.
The first Europeans to visit the Bahamas were Spanish explorers in 1513. The islands were then claimed by the British as part of their North American colonies in 1648. The British military maintained a presence on the islands until 1815 when they were transferred to the newly formed United States. The Bahamas became a Crown colony in 1874.
The first slaves arrived on the island of New Providence in 1623, and slavery was soon entrenched on the archipelago. The economy of the Bahamas was heavily dependent on slavery until abolition in 1834. After emancipation, many Bahamians moved to Haiti or Jamaica to find work. Those who remained turned to subsistence farming and small-scale commerce.
The destruction wrought by major hurricanes such as Hurricane Donna in 1960 and Hurricane Gilbert in 1988 had a significant impact on Bahamian society and economy. Tourism replaced primarily commercial fishing as the key sector of growth following these disasters. In recent years, efforts have been made to revive traditional industries such as salt production and baking powder production using traditional methods.
Benefits of Living in the Bahamas
- The Weather is Spectacular
The weather in the Bahamas is perfect all year round. The islands are surrounded by warm water, which keeps the temperature mild year-round. The only time you might feel hot and sticky is during the summer months when temperatures can reach up to 90 degrees Fahrenheit. Even in winter, temperatures hover around 70 degrees Fahrenheit because of the warm ocean breezes.
- There Is No State Income Taxation in the Bahamas
This makes it a great place to live if you are looking for an island getaway without having to pay high state income taxes. There is income tax at all on income earned within the Bahamian Islands! This means that people who work full-time can still enjoy a comfortable lifestyle without having to worry about huge tax bills every month.
- Healthcare is Affordable
Healthcare in the Bahamas is very affordable compared to other countries in the Caribbean region. For example, private healthcare costs between $100 and $200 per month for an individual plan, which is much less than what people would spend in other countries such as Canada or Mexico.
Bahamas’ Gross Domestic Product
The Bahamas’ Gross Domestic Product (GDP) was estimated at $8.1 billion in 2017. This represents a growth rate of 2.5% from the previous year. The GDP per capita was estimated at $26,500 in 2017. This is lower than the regional average but higher than the regional median.
In terms of industry, the top three sectors of the Bahamian economy are tourism, financial services, and shipping and maritime services. These sectors accounted for over 50% of the GDP in 2017. Other important sectors include manufacturing (14%), food and beverage (10%), and oil production (8%).
The cost of living in the Bahamas is relatively low when compared to other countries in the region. The average monthly rent for an apartment costs only $240, while groceries cost an average of $40 per month. Transportation expenses also tend to be low, with transportation costs accounting for only 5% of total household spending
Different Costs of Living in the Bahamas
Cost of Feeding
When it comes to feeding a household, the cost of living in the Bahamas can be quite expensive. Groceries can easily rack up over $100 per month, especially if you include in-house dining and treats for the family pet. Additionally, there are myriad other expenses associated with maintaining a comfortable standard of living – from utilities to transportation.
Nevertheless, despite the high costs of living, there are ways to reduce expenditures without sacrificing the quality of life. For example, by cooking at home as much as possible and using local ingredients whenever possible. Another option is to live modestly – cutting back on luxury items like electronics and cable TV subscriptions while still enjoying adequate food and shelter.
Cost of Accommodation
The cost of accommodation in the Bahamas ranges from luxurious resorts to modest cottages. The cost of living is lower than in most developed countries, and while food and drink are more expensive than in the United States, other costs are relatively low.
Accommodation can be found on both the eastern and western coasts of The Bahamas. The east coast has a mix of resorts that can run as cheap as $25 per night for a room with shared facilities, but also some very high-end options that can run upwards of $500 per night for a suite. The west coast has more cottages and guesthouses, many of which offer great value for money at around $50-$100 per night.
There is also a growing number of Airbnbs available on both the east and west coasts. These allow guests to rent out whole apartments or rooms rather than just single rooms, giving them greater flexibility in terms of where they want to stay.
Cost of Transportation
The cost of transportation in the Bahamas varies greatly depending on where you are located. The cost of living in Nassau is comparatively expensive when compared to other regions of the country, but it is still much less expensive than most places in the US. The cost of living in Freeport is also relatively high, but this is because many things, such as food and clothing, are more expensive in Freeport than anywhere else in the country. Transportation between the different islands can be quite expensive and often requires a ferry or plane ride.
Cost of Healthcare
Healthcare in the Bahamas is expensive. According to the World Health Organization, the cost of healthcare in the Bahamas was estimated to be US$762 per person in 2010. This ranks the Bahamas as having one of the highest costs of healthcare in the world. The high cost of healthcare is primarily due to several factors, including high fees for medical services and a lack of private insurance options. In addition, the country’s expensive living costs also contribute to the high cost of healthcare.
The cost of living in the Bahamas can vary greatly depending on your lifestyle and needs. This means that if you are looking for a place to retire, live out your day’s surfing or diving, or simply relax and enjoy the beautiful weather, the cost of living will be quite different than someone who is looking to work in tourism.