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Looking South

If efforts to introduce regular flights from Venezuela to St. Maarten are successful, they should provide an important boost to especially the hotels, which have been struggling to keep occupancy figures at a reasonable level. In the past charters from South America have been a big help, especially in the slow season, when it is winter there.

A connection through Caracas would greatly enhance the island's possibilities in that market, especially now that flying via Miami has become a tedious affair due to new visa requirements in the wake of 9-11. The currency devaluation in most South American countries compared to the US dollar is still a problem, but there should still be plenty of people who can afford vacations in "The Friendly Island."

Recent figures released in Aruba showed that while tourists on the average were better off last year, they actually spent less. One of the reasons is said to be that, just like St. Maarten, Aruba has seen the number of timeshare units, vacation villas and other types of accommodations grow in comparison to classic hotel rooms, although there are studies indicating that timeshare guests don't necessarily spend less.

One explanation may be that while Aruba showed growth in the North American and European markets, the South American market was down, due mostly to the new visa requirements for Colombians and political unrest in Venezuela, along with the currency devaluation. In fact, studies show that South American tourists tend to spend more on average than North American tourists do, making them an interesting market for not just the hotels, but the business sector in general.

While timeshare resorts on the island are doing relatively well, there is no denying that the hotel sector is hurting and "new" tourists are needed to fill those rooms.

The island has traditionally depended almost exclusively on the North American visitor, making it quite vulnerable, as became clear after 9-11. While that no doubt will remain St. Maarten's most important market, diversifying the tourism economy by working on other markets, including Europe, especially with the high euro, makes every sense in the world. Opening up the South American market with direct flights could go a long way in that respect.


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