No decrease in spending among wealthy individuals on this Bahamian island.

No decrease in spending among wealthy individuals on this Bahamian island.
No decrease in spending among wealthy individuals on this Bahamian island.

The sight of Taylor Swift and Travis Kelce on a vacation at the tiny island's marina was met with bemusement by tourists and dismay by locals, who feared their paradise was becoming the next Saint Barts.

A woman sitting alone at the bar shared with us that she hears she's staying right up the street. She was cheerfully downing perfectly chilled prosecco in a champagne flute.

The locals seemed unimpressed.

The wealthier Americans, Canadians, and Brits are the ones driving business growth in this economy, according to a shopkeeper we spoke to.

Maybe too brisk.

She eyed me suspiciously, saying, "On this island alone, there are 20 billionaires, and the traffic is becoming unbearable."

I tried to adopt a two percenter appearance, but I was unsure of what they looked like.

I looked out the window of her shop and saw that most people were driving around in golf carts. With a population of only 1,800, Harbour Island and its one and only town, Dunmore Town, make Saint Barts (population 11,000) look like midtown Manhattan.

The woman explained that she had moved to Eleuthera, a remote island accessible only by a 10-minute water taxi ride, where few people visit.

What is the reason for Taylor Swift and a group of billionaires to visit this small location?

Why are there so many huge yachts sitting in Valentines Marina?

You can't fly here

Harbour Island is a small island located off Eleuthera, about 60 miles northeast of Nassau. It is not possible to fly directly to Harbour Island; instead, one must first fly to Eleuthera, then take a taxi to a nearby dock and use a water taxi to reach Harbour Island.

The inaccessibility of the island is a significant selling point for its exclusive group of visitors who can afford the high prices.

The largest hotel has only 41 rooms, and the other dozen or so hotels have even fewer. In total, there are no more than 250 hotel rooms on the entire island. It's unlikely that a big global chain will set up shop here due to the limited infrastructure. Instead, the few houses on the island are in high demand for rent.

After spending a few days exploring the town, it becomes clear why a small group of travelers consistently return and appear uninterested in expanding their group.

  • Pink Sands Beach: This renowned beach in the Caribbean, and arguably the world, is truly pink due to the microscopic sea creatures' decaying shells. The water remains crystal clear, hundreds of feet away from the shore, with no seaweed, rocks, or anything else. The beach is flat, and the sand is compact, allowing visitors to walk comfortably without sinking in. The sand is so compact that horses are often ridden up and down the entire three-mile stretch.
  • How can an island with a small population support so many excellent restaurants? Some of the local favorites include Queen Conch and Ma Ruby, which serves mouthwatering Caribbean cuisine and is famous for its "Cheeseburger in Paradise" (served on a brioche-style bun and praised by Jimmy Buffett). Aquapazza offers terrific Italian food, while Latitude 25 at the Coral Sands Hotel and the classy Dunmore Hotel serve classic Caribbean meat and fish dishes. Malcolm 51 at the Pink Sands Resort and the Rock House also offer great food, and The Landing and Valentines are popular choices for romantic dinners. Despite the many options, getting a reservation on many nights can be challenging.
  • The island's wealthy visitors and residents are not known for their giant McMansions and multi-acre compounds, but rather for their modest, one and two-story homes that are adorned with a vibrant array of colors, including blues, yellows, reds, and purple morning glories.
  • On a Sunday, you can hear singing in the churches of this religious country, where 90% of the population belongs to a religious denomination, with Protestants being the largest group (Baptists and Anglicans), followed by Roman Catholics, Jehovah's Witnesses, Greek Orthodox, and others. We visited the Lighthouse Church of God to hear Pastor Samuel Higgs and guitarist Rocky Sanders, along with a heavenly group of singers, rock the house with old-school gospel music. Mick Jagger and Lenny Kravitz have also stopped by. Higgs and Sanders previously played clubs in Europe before returning to the island.
  • The Bahamian people are renowned for their warmth and friendliness, and it is evident on a small island like this. Simply greet anyone with "good morning," and they will respond with a genuine "Good morning! How are you?" and a smile.

The two percenters: Can't live without 'em, can't live without 'em.

Despite complaints from locals about traffic and wealthy visitors, the Bahamas government is unlikely to restrict tourism, as it accounts for 50% of the country's GDP and employs 70% of its workforce. This has resulted in per capita income being the third largest in the Western Hemisphere, after the US and Canada.

Despite the growth of luxury travel, the Caribbean remains a popular travel destination, with arrivals increasing by 14.3% last year, according to a report by the Caribbean Tourism Organization, as reported by Caribbean Journal.

Despite complaints from locals, any small island or city would envy the intense loyalty found in places like this.

The woman at the bar at Valentines revealed that she had been visiting the same location for 20 years, including her honeymoon. She had arrived in Eleuthera on a private plane with her husband, who owned car dealerships in the Midwest, her children, and friends. They had rented a boat to spend several weeks in the Bahamas and planned to travel to even smaller islands in the future.

Why was she sitting alone at the bar?

She said with a smile that her family was out searching for Taylor Swift.

by Bob Pisani

Markets