The post Creating Value in Later Life: A Conversation with Martha Harris Myron appeared first on RG Magazines.
]]>Long-time financial columnist Martha Harris Myron is no stranger to the need to be frugal. Born in Bermuda, her father operated a sewing machine sales and repair business on Wesley Street during a time when many families struggled to make ends meet. Her upbringing instilled in her a lifelong sense of the importance of counting every penny and value of planning for your long-term health and financial future as early as possible.
Moving to New England to live with her grandmother at the age of sixteen afforded Martha the opportunity to study medical technology and an internship at the Boston City Morgue. Her eclectic career path has also included working in garment design and the construction industry before finally obtaining a degree in accounting and a Master of Law degree once her own children had completed college.
It was then that she embarked on a career as an international professional finance consultant to Bermuda residents, advising both their multinational families and businesses on cross-border financial planning; ultimately specializing in assisting with the unique financial challenges for international citizens living, working, and straddling what she refers to as “The North Atlantic pond” (the territory comprising the United States, Canada, United Kingdom, Europe, and the island of Bermuda).
It’s no wonder then that Martha’s no-nonsense approach to personal financial management makes her twenty-year financial column with the Royal Gazette an enduring success because she has lived through five major recessions and appreciates exactly what it takes to recover from setbacks in a complex financial jurisdiction.
“Bermuda does not have an independent financial planning website like Yahoo Finance. There’s a huge need for a place for people to obtain trustable financial facts to help them make financial decisions without trying to sell product,” she says.
Now in her seventies, Martha’s days are busier than ever. In addition to writing her weekly column, she has recently released her first digital format book entitled “The Bermuda Islander Fundamental Financial Planning Primer”. This book, which is the first in a series of seven that she has planned, focuses primarily on personal financial matters for island residents – and future titles will include information and topics ranging from risk and insurance, to investments.
She is also in the midst of recording a series of “Fast Fact” audio tracks to accompany the various segments of her eBook on The Royal Gazette and is looking forward to participating as a regular panellist on a new video series entitled “Leaders in Action – Looking Ahead” which is being produced by Olderhood Productions International to air on social media around the world.
When asked if she had any thoughts of slowing down, she laughed and confided that the secret to a fulfilling later life is to find something that you are interested in that promotes your own sense of purpose and identity and enables you to continue to contribute to society.
In Martha’s mind, planning for your financial future requires taking a good hard look at a lot more than your bank balance. “Many people don’t have a sense of purpose when they leave work, and this frequently leads to unhappiness, marital discord, and spending money excessively or inappropriately.” In fact, given that older people still have so much to offer, she questions whether many people should really retire at all.
“I really don’t think this later phase of life should be called retirement at all,” she said. “People really need to start planning what they are going to do next at least 3-4 years before they leave their current job. It’s essential to figure out what you can do either part-time or full time to maintain a sense of personal value.”
Rather than think about retirement, Martha advises, “Just think of this as another change in your journey; and if you really are going to retire make sure you practice first – practice how you will live, what you will do, and experience how it will feel to either spend time with your spouse 24 hours a day, or how it will feel to be alone all the time depending on your circumstances.”
Our later years can be lengthy, so having a purpose in life is essential, and while it can change over time, it is the bedrock of our later years. Every individual is different in many respects – we have our own individual standards and character. Moreover, the things we enjoyed when we were younger may not hold the same appeal as we age. What we planned to do in our later years can change – due to not enough money, not enough energy – or simply because our goals have changed.
Finding purpose in life is something to plan ahead of time and continually review and revise, as necessary. “And above all, make sure you realize that later life is not just about money – the key to a long and prosperous retirement is to stay connected and stay involved.”
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]]>The post Sun shining on Green energy’s growth prospects appeared first on RG Magazines.
]]>Potential for hundreds of new jobs
by Jonathan Kent
The future is green for electricity in Bermuda and that means strong growth ahead for the renewable energy sector.
If there is an industry on the island that could reliably be expected to expand through these challenging times, it is green energy.
Indeed, it is probably the only industry for which growth is mandated. The Integrated Resource Plan, the blueprint for the future of the island’s electricity supply, targets 85 per cent of the island’s power supply coming from renewable sources by 2035.
Realising that vision would entail hundreds of millions of dollars of investment and hun- dreds of jobs. A report by the Rocky Mountain Institute, published this year, concludes that 750 jobs could be created over five years by pursuing 50 megawatts of solar photovoltaic capacity, or 300 jobs over five years by install- ing 30 megawatts of wind power.
Stuart Kriendler, managing director of Be Solar, a stalwart of the renewable energy in- dustry, said the industry is already generating jobs for locals. “We are training and recruiting more Bermudians in this industry, so while
some organisations have been trying to cut back, we’ve been looking to hire more people. About 60 per cent of our staff are Bermudian and the other 40 per cent spouses of Bermu- dians, so our business does not hold any work permits.”
The approval of the takeover of Ascendant Group Ltd by Canadian firm Algonquin Power and Utilities Corp promises to put wind in the sails of the green energy industry. Algonquin has pledged to invest $300 million in renewables on the island and to work with local companies.
Walter Roban, the home affairs minister, said training programmes for solar installers were being set up at Bermuda College and that a Green Energy and Environmental Justice Fund was planned to encourage more renewables investment.
Mr Kriendler said there were other good economic reasons to go green. “We’re just coming up to our tenth anniversary and we can say that we’ve helped our clients save more than $3.5 million. This is money that otherwise would have been sent off island to pay for fossil fuels.
“An investment in renewable energy keeps more dollars within our Bermudian economy. We’ve seen growing interest over the past six months, with people wanting to invest in clean, renewable energy.
“With people working from home and they see what their Belco bills are like, they seize opportunities to reduce that monthly cash outflow by making this sort of investment.”
The photovoltaic technology in solar panels has evolved over the years and is cheaper and more efficient than it was a decade ago, making return on investment more compelling.
Stratton Hatfield, of Be Solar, said: “De- pending on the property, you’re looking at a seven to eight-year average payback. Once a system pays for itself, you’re looking at 23 years of free electricity. Because solar has no moving parts, that means at the end of its lifespan, it will not stop working – you can get energy beyond that period.”
Mr Hatfield saw a clear path to growth ahead. He said: “Right now we’re under 2 per cent of the island being powered by solar. We’ve a long way to go to achieve the targets set in the IRP.”
Electric vehicles form another part of the picture. Increasing adoption could bring further benefits in terms of cutting pollution and reducing fossil fuel imports still further. Ac- cording to David Gumbs, of the Rocky Mountain Institute, charging up would cost electric car drivers between a fifth and a quarter of what they pay for gas, based on Bermuda’s electricity rates, he said.
Mr Gumbs said: “If you then transition to renewables at a lower power rate, you then get even more savings. You’re talking about another 60 per cent reduction. You’ll feel like you’re driving around for free at that point in time.”
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]]>The post CONSTRUCTION INDUSTRY Looks ahead to busy 2021 appeared first on RG Magazines.
]]>Fairmont revamp and Riddell’s Bay development offer opportunities
by Jonathan Kent
Construction is not work that can be done remotely, so the industry ground to a complete halt in April’s shelter-in-place period. But it has stabilised since then and has reasons for optimism looking ahead to 2021.
With a slew of major projects completed, such as the new passenger terminal at LF Wade International Airport and Belco’s new North Power Station, and another, the new St Regis hotel in St George’s almost finished, some might wonder: what’s next?
However, Alex DeCouto, of Greymane Contracting Ltd, believes there is work in the pipeline coming from several sources.
Mr DeCouto says construction “is what happens when people have enough confi- dence to make substantial investment in physical plant”.
“I don’t need to tell you the reasons why Bermuda might be seeing an uptick in inves- tor confidence at the moment,” Mr DeCouto said. “Our handling of the pandemic has sure- ly caught the eye of some people who value that kind of safety.
“We are also seeing lots of movement
in the reinsurance industry in the form of takeovers and new businesses that could po- tentially fuel an increase in employment and physical presence on island. The ‘why’ might be up for debate, but on the face of things I would say that we have reasons to believe that investor confidence is ticking up.”
On the residential side, confidence also ap- pears to be on the up, Mr DeCouto said, with anecdotal evidence of healthy demand, some of it stemming from the work-from-home phenomenon.
“Whether it be for the digital nomads or people looking to improve their ‘at-home’ experience, the chatter I am hearing from ar- chitects and contractors is that their forward order books are quite busy,” Mr DeCouto said. “I’ve also seen flashy adverts teasing the new development at Riddell’s Bay, which should create a bunch of new-build opportunities.”
Permission to develop homes on 18 lots on 23 acres on the site of the former Riddell’s Bay Golf Course was given under a Special Development Order in June.
There is also one large, commercial project looming, the $100 million refurbishment of the Fairmont Southampton before it reopens in April 2022.
Mr DeCouto said: “All indications seem to be that they intend on pressing ahead with a substantial renovation of the entire property. This is obviously good news and I am keeping my fingers crossed for this one for Bermuda.”
While that is the only “megaproject” the Greymane boss sees on the horizon, he added: “I would almost rather see a ‘rising tide’ of local commercial property investment, as it will be like having more eggs in more bas- kets and will be indicative of rising business confidence.
“While it might be hard to envision a return on investment in a retail store or a restaurant at the moment, there are other businesses that are doing well and might benefit from physical investment.”
The pandemic has thrown the future of the office, as the traditional workplace, into some doubt, as businesses adapt to having staff working from home and physically distanced on site.
Mr DeCouto is not convinced employers will give up altogether on the office. From his own experience with his office-based staff, he said having them together in the office for at least some of the week was “much more efficient and effective than working 100 per cent remotely”.
“I’m not exactly sure at this point what the impact will be on the traditional office layout, but I do know that any change is likely to result in construction work,” he said. “From that perspective I have some optimism that investment in office reconfiguration will see an increase in 2021.”
Another traditional source of construction work is government capital projects. The need for emergency funds to deal with the social impact of the pandemic put the squeeze on public-sector capital spending in the spring. Since then the Government has bolstered available funds through a $1.3 billion bond issuance.
Curtis Dickinson, the finance minister, said last month that some of the proceeds will be used to bring forward some aspects of the Government’s long-term capital plan. “These capital projects will support our economic re-
covery, provide employment for Bermudians, while improving our quality of life,” Mr Dick- inson said. The Government would provide up to $90 million for capital investment focused on construction projects for the fiscal year 2020-21, he added
Mr DeCouto said: “The Government’s position is rather delicate when it comes to capital projects, especially as PPP [public-pri- vate partnership] projects have been heavily politicised. That’s a pity, because I think there may be more opportunities with private finance in the future.
“They maybe have seen potential with this new arbitration centre on Parliament Street which seems to be using a lease-back model. I would have liked to have seen this opportu- nity presented to local developers and am not sure why it wasn’t.”
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]]>The post Class of 2020 brings economic booster shot appeared first on RG Magazines.
]]>Bright year in prospect for Bermuda insurance market
by Jonathan Kent
Devastating catastrophes tend to inspire a new appreciation for the value of insurance. So it has proved this year with the monumental impact of the Covid-19 pandemic, on top of a higher than average incidence of natural disasters, such as hurricanes and wildfires.
Rates for insurance and reinsurance were rising before Covid-19 unleashed itself on the western world and most in the industry expect that hard market will last throughout 2021 and beyond.
In the words of Richard Brindle, chief exec- utive officer of Bermudian reinsurer Fidelis, this is the first real hard market since 2002, which followed the 2001 terrorist attacks on New York and Washington.
Rates had risen briefly after some of the major losses of recent years, but any nascent rising trend rapidly fizzled out. Some have at- tributed the smoothing out of the reinsurance cycle’s traditional peaks and troughs to the growing insurance-linked securities market. But three years of above-normal catastrophe losses, with loss creep meaning claims from previous events continue to climb, have left much capital “trapped” in ILS – one of several factors driving today’s hard market.
For Bermuda, the insurance pricing spike is a welcome silver lining during tough eco- nomic times. According to Maamoun Rajeh, chairman and chief executive officer of Arch Worldwide Reinsurance Group, the industry has seen inflows of about $12 billion this year, much of it coming to Bermuda.
Most of the new money has been raised by existing companies. The likes of Renais- sanceRe, Fidelis, Arch Capital, Hiscox and Lancashire Group have raised billions be- tween them through sales of debt or equity.
There are also some start-ups in the pipeline. These include the new Class 4 reinsurer being set up by Lloyd’s insurer Chaucer, which is owned by China Re, and Vantage, a start-up headed by former Arch chairman Dinos Iordanou and former Axa XL CEO Greg Hendrick, reportedly with about $1 billion in initial capital.
Then there is Conduit Holdings, which raised $1.1 billion in an initial public offering of shares on the London Stock Exchange with the aim of setting up a new Bermudian reinsurer. Conduit was founded by industry veterans Neil Eckert, who will be the new company’s chairman, and Trevor Carvey, one of the founding underwriters at Arch Re Bermuda, who will be CEO.
Add to that Convex Group, the new re/ insurer set up last year by Stephen Catlin and Paul Brand with $1.7 billion of committed capital, a company that will be moving up the gears towards top speed in the coming months, and it is apparent that the Bermuda marketplace is looking more buoyant than it has done in years.
Bermuda has seen nothing like this since 2005, when companies including Validus Holdings, Flagstone Re and Ariel Re launched in the wake of hurricanes Katrina, Rita and Wilma. This year’s flurry of activity follows a prolonged period of consolidation for the industry, which has caused the number of standalone companies operating on the island to shrink.
The fact that Bermuda is attracting the lion’s share of the new money is significant in terms of the island’s ongoing status as a global re/insurance hub, according to Mark Chudleigh, lead partner in Bermuda for inter- national law firm Kennedys and an expert in financial services and corporate litigation.
“Despite doubts being expressed earlier this year about whether Bermuda would retain its ‘most favoured’ status for new ventures, it is now clear that Bermuda is still regarded by both incumbent Bermuda insurers and the sponsors of new capital as the place to be, particularly for underwriting US-based risks,” Mr Chudleigh said.
“We are seeing a combination of start-up re/insurers, managing agents who underwrite on behalf of capital providers, as well as established reinsurers who are raising additional capital to expand existing business lines or to branch out into new areas.”
While the influx of capital will give the lo- cal economy a shot in the arm, the number of jobs at the billion-dollar start-ups is unlikely to be what it was in 2005. The Convex model may be the blueprint for the modern re/insurance start-up.
Convex has deployed “horizontal outsourcing”, meaning it uses a single outsourcing firm, an Indian-headquartered company called WNS, for everything, as Mr Catlin explained in an interview with The Royal Gazette last year. The upshot is an absence of back-office jobs in Bermuda, although the island gains many higher value roles.
“Employment costs here are as high as they are anywhere,” Mr Catlin said. “Any people you employ here, or in London, have got to be adding value to the balance sheet. Those servicing the balance sheet can do it from elsewhere.”
Nevertheless, Mr Catlin hoped to have a staff of about 50 working at Convex’s reinsurance arm in Bermuda when it is fully up to speed.
Mr Chudleigh said the scale of the Class of 2020’s impact on the domestic economy was questionable. “Of course, there will be new jobs and new arrivals of reinsurance professionals looking for housing and schools,” Mr Chudleigh said. “But I do not expect to see anything on the scale of 2005 or prior start-up waves.
“The prolonged soft market has forced insurers to focus on expense reductions, which included the increased use of technology and ‘offshoring’ to low-cost jurisdictions like India, developments which tend to reduce opportunities for positions that are typically filled by Bermudians.
“This trend has accelerated as a result of the work-from-home revolution: why have an accounts processor working from home in Bermuda when you can hire one in Halifax or India for much less?”
A significant proportion of the island’s air arrivals traditionally come to the island on business, many of them here to negotiate insurance deals. Their stays tend to generate a lot of hospitality dollars, but the success of remote working this year could deplete that business, Mr Chudleigh fears.
“There has been a virtual cessation of business visitors, including insurance buyers and their brokers who may visit for a full week of meetings with golfing and dining thrown in,” Mr Chudleigh said.
“Will these high spending visitors come back in numbers when things return to ‘nor- mal’ or will remote transactions become the norm? If so, does a reinsurer need a big, prestige office with reception and secretarial staff, a large entertainment budget and an on-call taxi driver to ferry business visitors around?” The more high earners are based in Bermuda, whether they be Bermudian or not, the more benefit there is to the economy, since they are likely to be substantial spenders.
Malika Taylor, managing director, Bermuda, of recruitment firm Expertise, stressed that the island had to be as welcoming to new people as it is to new money in order to maximise economic benefits.
Ms Taylor said: “Bermuda continues to welcome financial capital. Our laws, the BMA and our reputation are all optimal. But on welcoming human capital, we lag other jurisdictions.
“To ensure we maximise every economic opportunity we must continue to look to immigration reform and position Bermuda as a leading place to live and work by 2021.”
Ms Taylor reiterated the view she first expressed In a video roundtable discussion on the economy, hosted by The Royal Gazette in August, when she said: “For Bermuda to be successful in the future and maintain a healthy, economically viable community, it needs to get back to being an excellent host.
“The critical point for Bermuda to recog- nise is that everybody who is working from home in Bermuda does not need to be here. We can successfully host tourists who come to Bermuda — a safe environment in this Covid world. We have to pay just as much attention and be just as great hosts to guest workers and individuals, who right now are choosing to work from Bermuda.”
Not all insurance workers will need to brought in, given that Bermuda has built a strong talent base of its own over the past three decades. More than two-thirds of the entire payroll of members of the Association of Insurers and Reinsurers are either Bermudians, spouses of Bermudians, or permanent residency certificate holders.
Mr Chudleigh said: “We have seen a whole generation of Bermudians working their way up in the insurance industry and now occupy- ing mid-level and senior positions.
“The nature of the business is such that there will always be a need for a large number of skilled guest workers, but there are many more Bermudians occupying skilled posi- tions now than there were when the ‘Class of 2005’ arrived. Arguably, the opportunities for ambitious, educated, young Bermudians have never been better.”
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]]>The post Silver linings amid the gloom for tourism appeared first on RG Magazines.
]]>Health and safety a key attraction for Bermuda
by Jonathan Kent
Tourism faces a long and rocky road back to normality. A sector important for the jobs it provides and supports, and the foreign currency it brings in, was chopped off at the knees with the three-month airport closure and the sudden and complete loss of cruise ships.
Hotels and tourism-reliant businesses were shut down, thousands were laid off and many made redundant. Air arrivals have gradually picked up since the airport reopened in July, but a second wave of the virus in the US and Britain has caused the temporary suspension of the British Airways flight.
Cruise ships have been absent from April onwards, causing pain to the taxi and minibus drivers, retailers and tour operators who rely on them. In the last three quarters of 2019, Bermuda welcomed more than half a million cruise visitors, this year there have been none over the same period.
To say it’s been a tough year would be an understatement. But Glenn Jones, interim chief executive officer of the Bermuda Tourism Authority, says the mood in the industry has been lifted by Bermuda’s relative success in controlling the virus.
“Talking to them about where we are versus our competitors gives them a lot of optimism,” Mr Jones said. “Tourism is going to recover. This is a matter of how long does it take and how many tourism businesses can sustain themselves for that length of time.
“Our tourism recovery started in July and hasn’t regressed. Every month has been a positive step forward. Some of our competi- tors still haven’t opened up, or have opened up and had to shut down again.
“The recovery will still be longer than 12 months, for sure, but I think we’re going to get to a period that feels like recovery much faster than our competitors. And I hope that means we will lose a lot fewer businesses along the way.”
Based on what we know today, Mr Jones said a full recovery was unlikely before 2022, although much could change in the mean- time.
The BTA interim CEO said Bermuda’s health and safety record is a “differentiator” that leads the conversation with travellers, and which had produced spin-off benefits already, particularly in sports tourism as organisers seek safe venues.
In October the island hosted sailing events, the Bermuda Gold Cup and a World Match Racing Tour event, rescued by coming to Ber- muda. The Bermuda Championship was the first PGA Tour event to welcome spectators since the onset of the pandemic. And then there was the bonus of the World Tens Series rugby event.
“We were not even on their radar,” Mr Jones said. “We spoke to an organiser who said they had basically searched every con- tinent to find a place where they could hold the event. Bermuda was one of the few places where it was possible to do it safely, so they came here. They had a very good experience and they’re already talking to us about poten- tially coming back next year.”
Among next year’s sporting events will be the World Triathlon Series season-ending event in October and a potential spring US Tennis Foundation event. Also, confirmed only this week, is SailGP’s season-starting in April. The event will feature the same 50ft catamarans used in the 35th America’s Cup in Bermuda.
Eight teams – Australia, Denmark, France, Great Britain, Japan, New Zealand, Spain and the United States – will stay on the island for a four-week training camp ahead of the April 24-25 races on the Great Sound in the Bermuda Grand Prix presented by Hamilton Princess.
SailGP will be a huge draw to the big-spending superyacht crowd, a top BTA target. Mr Jones said: “We know this group is attracted to events and when they come, they stay for weeks longer – we saw this during the America’s Cup. This is a thrilling opportunity that not only offers Bermuda significant eco- nomic stimulus and international exposure outside the summer months, but also presents local business opportunities and community engagement benefits for our young people.”
Airlift, crucial to tourism’s success, has gradually been recovering since the airport reopened. Flights to Bermuda in July had only 10 per cent of the seats available for the same month in 2019, 20 per cent in August, 23 per cent in September and 33 per cent in October.
“Having that steady increase is giving us a steady pathway to recovery,” he said. Howev- er, Mr Jones is concerned by the prospects for winter airlift, as a result of the suspension of the BA flight and US airlines focusing on only the most popular routes.
At the end of March next year, BA will switch to Heathrow from Gatwick for its Lon- don-Bermuda service, something that would improve links to Europe, Mr Jones said.
Hotel room inventory will also influence airlift in the year to come. In April, the new St Regis Hotel in St George’s is due to open, the same month as the Rosedon reopens its doors. The new Bermudiana Beach Resort will open in July. Elbow Beach is expected to reopen, but the date has not been determined.
This activity will help to offset the more than 600 rooms that have been lost from the closure of the Fairmont Southampton, the island’s largest hotel, for a $100 million overhaul.
Mr Jones has mixed emotions about that, sad at the hundreds of workers impacted, concerned about the impact on airlift, but excited by the prospect of the refurbished hotel reopening in 2022.
“It’s the number one groups and con- ventions hotel,” Mr Jones said. “Perhaps the best time to take a pause is when groups and conventions are taking a pause. For that to be coming back online in April 2022, around the time the conventions season restarts, would actually be tremendous. Those planners look for new places to go.”
Another consequence of the closure is that smaller properties become more competitive in the absence of the Fairmont. “If you are Cambridge Beaches, The Reefs, or Newstead, the fact that you aren’t, at this moment, com- peting with the Fairmont Southampton, puts you in a stronger position than if you were,” Mr Jones said.
With regard to cruise ships, Mr Jones said the BTA has been working with health offi- cials to work out what the Bermuda standard will be for arriving passengers and he wants the island to remain ahead of the curve. “We should sort out with stakeholders like the Government and Wedco how we should open safely. If we do that now and get finished within the next 60 or 90 days, it puts us in the driver’s seat to tell the cruise industry, this is how Bermuda is going to do it safely, can you meet this standard?”
April 1 “feels right” as a potential re- sumption date, he added. Much depends on adherence to the framework developed by the Centres for Disease Control and Prevention in the US, under which cruise lines will eventually be able to resume passenger voyages with strict health protocols.
Inspiring residents to take “staycations” was part of the BTA’s “inside-out” marketing strategy to help hotels stay afloat and get their staff back to work.
“The hoteliers tell us that the staycations have been way stronger than they projected when deciding to reopen,” Mr Jones said. “There have been weekends when our hotels have been sold out, with the combination of people doing staycations and visitors.” The Work From Bermuda certificate, al- lowing international remote workers to work from Bermuda for a year has been a boon to tourism, in more ways than one.
Mr Jones said: “We believe this group spends a lot in the tourism economy, more so than the typical resident. They’re more likely to book a jet ski, take a boat trip, play golf and eat out.
“It’s also been the best publicity generator for Bermuda this year, with stories talking about the Bermuda lifestyle that is attractive to visitors. By our count, we’ve seen $2.6 mil- lion in combined media value just from media organisations talking about the Work From Bermuda certificate and more than a billion impressions.”
Vacation rentals have benefited from digi- tal nomads. Hotels have introduced extended stay pricing for this market, while electric car firms are looking at month-long and quarterly rentals.
Traditionally, the leisure travel had been largely a volume play, based on numbers of visitors, Mr Jones said. “Maybe the play now is how long can we get a visitor to stay and how much can we get them to spend per day while they’re here.”
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]]>The post Ready to see the back of 2020 appeared first on RG Magazines.
]]>Expert sees an uneven economic recovery ahead
by Jonathan Kent
Most of us will be delighted to see the back of 2020, a year that forced fundamental changes to the way we live and plunged us headlong into economic turmoil.
The onset of the Covid-19 pandemic brought us shelter-in-place and the closure of our airport for three months, cost many hotel, restaurant and retail workers their jobs and caused thousands more to be laid off or suffer wage cuts. Working from home has become normal, rather than exceptional, while travel plans were scrapped and the tourism indus- try ground to a virtual halt.
In 2019, the sight of someone wearing a face mask entering a bank or service station would have signalled the arrival of a robber: in 2020, it became required attire for us all.
This is all besides the human tragedy of those who died or became seriously ill as a result of the virus.
All eyes are now looking in hopeful antic- ipation to 2021. What will economic recovery look like?
RG Business has spoken with businesspeo- ple from multiple sectors to get their outlook on the coming year. While it was clear that the pandemic has beaten down some indus- tries more than others, many of our inter- viewees viewed 2021 with cautious optimism, displaying the resilience, ability to adapt and
can-do spirit of Bermuda’s business commu- nity.
But there was also an acknowledgement that some sectors, particularly retail, restau- rants and tourism, would need help to survive until better days, from breaks on taxes to lo- cals making an extra effort to patronise their businesses.
While most of us would yearn for a V-shaped recovery, Nathan Kowalski, chief financial officer of Anchor Investment Management and financial columnist for The Royal Gazette, sees the more likely scenario as K-shaped. That means a two-speed recovery, with those in international business doing
well, while many parts of the domestic econo- my continue to struggle.
Mr Kowalski said even though gross do- mestic product figures may not look so bad, that will not tell the story of those who are suffering. “Many jobs in areas like hospitality and restaurants have gone,” he said. “With those positions not available, there will have to be some retooling and retraining so that skill sets can match job options.”
Struggling sectors will inevitably turn to the Government for help, but public finances are also stretched.
The Government said last month it had paid out $56.8 million in financial aid to more than 10,000 people since the start of April.
It has also committed $12 million to support stricken small businesses through the Ber- muda Economic Development Corporation, and millions more in waived taxes, duties
and fees. All this, while revenue from tour- ism-based taxes, on air and cruise arrivals and hotel occupancy, have slumped to minimal amounts.
Faced with a large deficit that will propel its debt burden close to $3 billion, the Government will seek extra revenue from somewhere, but Mr Kow- alski urges Curtis Dickinson, the finance
minister, not to pull the usual levers. “The two major sources of government
revenue are payroll tax and Customs duties,” he said. “But I’m not sure there is any leeway to increase those right now.” For businesses, he said that would be like “punching them as they get up off the floor”.
He added that the Government should
also pursue tens of millions of dollars of unpaid back taxes more aggressively. Allow- ing companies to avoid paying what was due disadvantaged competitors who played by the
rules, he added.
For several years, the Government – both
Progressive Labour Party and One Bermu- da Alliance administrations – have looked at ways of broadening the tax base. In the
Throne Speech this month, the Government signalled an intention to introduce a capital gains tax.
Mr Kowalski said the Government’s debt burden was less of a concern than the health of the economy, given a successful $1.3 billion bond issuance this year that had not only sup- plied projected borrowing needs for the next two to three years, but had also rolled over existing debt, securing a lower interest rate in the process, and extended durations.
However, while Bermuda maintains an A rating from Standard & Poor’s that helps it to secure low borrowing rates, Mr Kowalski said the Government must act to protect it.
“You need to show the rating agencies that you’re fiscally responsible,” Mr Kowalski said. “Reducing government expenses has to be part of the equation.”
Public-sector unions agreed to a 10 per cent pay cut for one year from September 1, as well as a freeze on contributions to social insurance and the Superannuation Pension Fund. Mr Kowalski said more was needed, changes that would reduce the Government’s cost structure, such as a privatisation pro- gramme, as recommended in the Sage Report. Privatisation need not cost any jobs, he point- ed out, and would give government workers the opportunity to become business owners.
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]]>The post Kid-preneur: Younicorn Girl appeared first on RG Magazines.
]]>- How did you come up with the name Younicorn Girl?
I always wanted my business name to have something to do with unicorns, then I thought it was cool to use y-o-u at the beginning.
- What inspired you to start your own business and become a kid-preneur?
Well it all started with Bermuda, in Bermuda we have a lot of hair products but none of them are all organic or just for kids. I also think we should be able to read the ingredients. I want to be a kid-preneur because I love owning my own business and I like the idea of helping people.
- What does the term “kid-preneur” mean to you?
A kid owning their own business.
- Why organic hair products and how are they important for kids & teens?
They’re important for children and people in general because you need to know what’s going in and on your body. Chemicals are not good.
- How are the products made? What other products can we look forward to?
The products are made at my home in Bermuda with the help of my mom and step dad when I do big batches. I use all organic ingredients, and my shea butter is 100% raw and organic from Ghana made by widows to assist with their needs and the needs of their village.
In the near future, I will like to make scrubs, books and games for kids and teens. I want to help their minds and bodies.
- Any advice for kids like you that are looking to start their own business?
You should make the time. Put time aside and effort to do your best work.
- What are your plans for your future? What do you hope to achieve?
I’d love to do more speaking events and events where I can sell my products. I’d also like to eventually put my products into local stores as well.
Instagram: @younicorngirl
Facebook: @theyounicorngirl
Email: [email protected]
This article was originally published in the 2019 edition of the RG Kids Magazine.
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]]>The post International Women’s Day appeared first on RG Magazines.
]]>by Julie McLean
2019 marks the centenary in the UK of the 1919 Sex Disqualification (Removal) Act, which allowed women to enter the legal profession. Julie McLean, a director and board member of Conyers Dill & Pearman, takes a timely look back at the story of women in Bermuda’s legal sector and the progress to equality in her own firm.
The history of women lawyers in Bermuda begins with an exceptional pioneer – Lois Browne-Evans (later Dame Lois). In 1953, some 30 years after the first female lawyer in the UK, she was the first woman to be called to the Bermuda bar. As a young, black woman barrister in a profession dominated by white men, she was a trailblazer who in her long career went on to break down other professional barriers, including becoming the first female Attorney General in Bermuda in1998.
Following in Lois Browne-Evans footsteps, though over a decade later, were Ann Cartwright DeCouto and Shirley Simmons. As the only three women practising law in Bermuda in the 1960s, they were close friends and known as the “Three Musketeers”.
Other pioneers in the island’s legal profession include Dianna Kempe and Norma Wade-Miller. Dianna Kempe was admitted to the Bermuda Bar in 1973 and went on to become Senior Partner of Appleby, Spurling & Kempe (now Appleby). She was the first female lawyer to become Queen’s Council (QC) in Bermuda in 2000 as well as the first woman to be elected President of the International Bar Association. In 2006 she was the third recipient of the Outstanding World Woman Lawyers of the Year Award. Norma Wade-Miller was the first female magistrate in Bermuda, the first female Judge of the High Court, Justice of the Supreme Court of Bermuda and Acting Chief Justice in Bermuda. Her service to the island’s legal community and judiciary was honoured with an OBE in 2016.
While the percentage of women called to the bar in Bermuda averaged less than 10 per cent in the 1960s and 1970s, the feminist movement of those decades began to bear fruit, with that figure creeping up to roughly 20 per cent in the ‘80s and 40 per cent in the ‘90s. Since the turn of the millennium, on average more women than men have been called to Bar (around 55 per cent) reflecting the equality now present between men and women in terms of access to a legal education and entering the legal profession.
There still tends to be a gap between the numbers of men and women at the director/partnership level.
However, the picture is less rosy when it comes to equality between the sexes in the higher ranks of the profession. In common with firms in the UK, the US and Canada, there still tends to be a gap between the numbers of men and women at the director/partnership level. This can be partly explained by the time it takes to progress to partnership – if fewer women were entering the profession in the ‘80s and ‘90s, fewer would be in partnership positions today. Nonetheless, there are other factors at play too, resulting in higher attrition of women than men from the profession. Most notable is the greater challenge faced by women in balancing career and family, due to the continued expectation that mothers will play the primary role as care-giver. Millennials onwards tend to have a more open view of traditional roles, so as men take on more responsibility at home, balancing will become easier for women.
Recognising that there is still some way to go to ensure equal opportunity for progression to all levels, women in the profession have come together in Bermuda to assist each other. The Women’s Legal Network was founded in 2015 by Kimberley D. Caines-Best and Lovette Tannock. “We wanted to provide a space for women in law to support one another. Over the past few years we have organised a number of networking, educational and philanthropic events which have been very well attended and received,” said Kimberley Caines-Best.
Young women entering the legal profession today not only benefit from having had barriers broken by those who went before, but today often have the advantage of mentorship and support from female and male colleagues as they progress through their careers. This bodes well for a future where gender imbalance in the profession, at all levels, will eventually be a thing of the past.
Gender Diversity at Conyers
Bermuda’s largest law firm, Conyers Dill & Pearman, has come a very long way in terms of gender equality, particularly in recent years.
More than three-quarters of the firm’s Bermuda employees are women, and when it comes to global management roles and department heads, women are well represented – for example, the Chief Financial Officer, Global Head of Client Services, Head of Trust Services, Head of Corporate Services, Global Head of Human Resources and Chief Marketing Officer are all women.
Lisa Marshall, who joined in 1988, was the firm’s first female lawyer, soon followed by Robin Mayor. Lisa went on to become the firm’s first female partner in 1991; Robin was also promoted to partner the following year.
Conyers now has 22 female lawyers in Bermuda representing around 45 per cent of the total. At the director level, only 27 per cent are female, but this number is steadily rising and is higher than most onshore law firms. Lisa Spencer-Arscott, Global Head of Human Resources for Conyers, acknowledges the imbalance at the top, but points out that the numbers of men and women promoted to director in recent years have been equal. “When you look at the numbers of women associates in the firm (66 per cent), it is clear that in time we will see a much more equal representation of gender at the director level. It will just take a few more years,” she said.
The firm has worked hard to attract female lawyers and at least half of applicants to the summer law program – a primary vehicle for sourcing new associate hires – are now women. Equally important is retaining that talent, by fostering a culture in which women feel valued and get the experience they need to succeed. A women’s networking group has been set up by some of the firm’s female leaders to champion the professional developmentand career advancement of women through such means as sponsorship by senior leaders, mentoring and peer networking. “The group will also draw on expertise and insights from our peer groups of influential male leaders to help support our objectives, step up beside women and drive the adoption of actions across the firm,” said Lisa Spencer-Arscott.
Unconscious bias training was also delivered throughout the firm last year, with the aim of improving awareness of implicit biases – including gender and racial prejudices – that can hinder success and inclusion.
Julie McLean is a Director and local Head of Aviation Finance at Conyers Dill & Pearman.
This article was originally featured in the February 2019 edition of the RG Business Magazine.
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]]>The post To Airbnb or Not to Airbnb? Let’s Run Some Numbers appeared first on RG Magazines.
]]>We all know someone who has become a successful entrepreneur thanks to modern accommodation booking websites such as Airbnb. As popularity for vacation rental properties continues to increase more homeowners are starting to ask themselves whether this a worthwhile income option.
As a rental associate at Rego Sotheby’s International Realty, one of the most common conversations I have with homeowners is advising them of the pros and cons of entering the market with a long-term rental versus a short-term/vacation rental. People often want to know which option will generate a higher revenue opportunity, what will work best for their lifestyle, and whether renting their property or apartment on Airbnb is truly worth it. The answer to these questions is yes! Renting your home on the vacation rental market can be worth it if you have the time, resources and a property that can exceed the average vacation rental market statistics.
What do the average market statistics look like in Bermuda?
First, let’s take a look at the short-term/vacation rental market. The average daily rate is $160 BMD per night and the average number of nights that a property is booked is 72 nights per year. Therefore, the average annual revenue of vacation rental properties is $11,520. Of course, many exceptional properties in Bermuda will far exceed this number.
Now let’s compare that with the long-term rental market. An average one-bedroom apartment rents for $1,200-$1,500 per month. Therefore, the average annual revenue of one-bedroom properties on the long-term rental market is $14,400-$18,000.
It is important to consider that the operating costs of a vacation rental are higher than a long-term rental. For a long-term rental your operating costs are land tax, landscaping, appliance maintenance and general property maintenance. The operating costs of a vacation rental encompass all the costs of a long-term rental but have additional expenses such as utilities (electricity, internet, TV package, water), cleaning costs, maintaining supplies for guests (toilet paper, dish soap, salt, pepper etc.) and cost of replacing furniture or kitchenware due to normal wear and tear.
So how can a property owner create a vacation rental business that will be more profitable than renting their property on the long-term market? Maintaining a 5-star rating on the website which you use to advertise your property is critical. You get a five-star rating by providing an exceptional experience for your guests.
A quick response and being available to your guests 24/7 is crucial to achieving the profit you desire. The work involved in this could include things such as: answering all guests questions before their arrival, arranging airport transportation, facilitating grocery store deliveries, supplying basic toiletries and pantry items, check-in/out inspections and condition reports, professional standard cleaning and attending to property maintenance or internet issues without delay. There is also a requirement to report bookings to the Bermuda Tourism Authority and pay a 4.5% Vacation Rental Tax.
Ensuring that a vacation rental is ‘guest-ready’ for each booking requires a financial investment, as well as a time investment. Do not underestimate the value of your time. Many successful vacation rental property (VPR) owners will tell you that operating a successful VRP is a full-time job.
When you are deciding on a rental option for your property ask yourself if you have the time to properly commit. Are you prepared to work an on-call job on top of your full-time job? Or do you have the means to make VPR management your full-time job? If you have a passion for tourism, a property that will be in high demand and the drive to work for yourself, then you can absolutely create a VRP that will beat the vacation rental market average statistics.
If the time commitment is daunting, and you desire an easier revenue stream from your property then renting your property on the long-term market will most likely be better suited for your lifestyle, while still being profitable. Remember, there is also the option of hiring a property manager for a small fee to alleviate some of the responsibilities related to maintaining a vacation rental property.
There is no denying that websites such as Airbnb have had a significant impact on the tourism industry, and it is only growing. Every property and every owner is different. Take the time to reflect on which option is best for your lifestyle, and of course, do not hesitate to contact the professionals for advice!
Allison Settle-Smith is the Long-Term & Vacation Rental Advisor at Rego Sotheby’s International Realty.
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]]>The post The (Not-So) Secret to Networking in Bermuda appeared first on RG Magazines.
]]>Keith Szmierek
With Bermuda being such a small physical space and population, there is even more opportunity to create lasting relationships with people that matter. While the resume is always going to be an incredibly important piece of the recruitment puzzle in finding a role, how you develop your network and maintain it is equally as important, as strong connections within your field open up otherwise missed opportunities.
While the ability to network effectively doesn’t come naturally to everyone, the process of developing relationships with like-minded people can be developed. Whether you’re at the start of your career or have decades of experience, there are a few do’s and don’ts that apply to everyone:
Involvement
Volunteering, playing sports or coaching kids, getting involved in the church or being active in your community are all great ways to meet people on a level footing and build your network.
Social media
Having an informative LinkedIn profile is a great way to show off your skills and make you more marketable. Keeping your profile fresh by updating it or regularly posting relevant articles are important ways to market yourself in the information age.
Events
Attending events is great, but take your networking up a notch and really showcase your expertise by being a speaker/panelist instead of just an attendee. Presenting at an event will boost your credibility as a leader in your profession and will give you a platform to offer insight to others.
Get in there
Bermuda’s size provides excellent opportunities to rub shoulders with decision makers. There will be plenty of times when you don’t realise you’re having dinner or a drink at a table next to someone who is influential. That said, for the same reasons, be wary of your surroundings before you overindulge!
Tips for networking:
- Create your elevator pitch. A concise personal and professional profile of who you are.
- Get out of your comfort zone. Make every effort to engage with people you don’t know. Take the initiative.
- Ask questions, listen and learn. Anticipate the kind of people you’re likely to meet and what you would like to ask them. Then listen and learn from the response.
- Bring plenty of business cards and exchange them with people you speak with.
- Follow up and follow through. Thank people for their time, connect with them on social media and do whatever it is you said you would do.
- Be patient, developing contacts isn’t always about immediate results. Good connections and relationships are developed and payoff over time.
- Be prepared. Before heading to networking events, make sure you find out who is going and think about what you might ask them or want to learn from them.
- Don’t be “too social” – Remember those first impressions last, as do old impressions that might still be on your social media. Be careful not to overindulge in the wrong circumstances.
- Be careful about what you post online. You wouldn’t think to post your resume on Facebook or Instagram, but make no mistake, more employers research all social media when deciding who gets the job offer. Creating a professional image on LinkedIn is a great tool but don’t undermine it with what can be found on other social media.
Simply sending in job applications might not be enough – spend some time on building your network. Done right, it can provide a range of benefits, including the exchange of ideas, knowledge and information that can take your career to the next level and develop longstanding friendships along the way.
Keith Szmierek is the Recruitment Manager for Bermuda-based recruitment agency Frontier Financial Services Ltd. Established in 2000, Frontier provides both permanent and consulting recruitment for international and local business, as well as immigration and new business set-up, compliance and related professional services.
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