Lee predicts difficult
high season for island
By Alita Singh
~ Marlin advocates wise spending ~
PHILIPSBURG--Amidst the news of slightly increasing room occupancy on both sides of the island, St. Maarten Hospitality and Trade Association (SHTA) President Emil Lee sounded an early warning of a potentially challenging high tourist season, starting December 15.
Lee told a gathering of tourism stakeholders, including Tourism Commissioner Roy Marlin, Wednesday evening that the housing slowdown in the United States, the island’s largest source market, would affect spending. “My concern is that the weakening US economy may lead to more conservative spending patterns and that may affect discretionary spending on luxuries like vacations to the Caribbean.”
This pre-high season alarm was delivered by Lee during the association’s quarterly meeting in Sonesta Great Bay Beach Resort. “For a variety of reasons, we may be facing a challenging season ahead. We need to work together. There is no secret formula. My message has never changed. The only way forward is in partnership, partnership and partnership.”
To balance the bite of his warning, he said, “I am not saying that things are going bad, just that we need to understand our markets and prepare our marketing strategies accordingly.”
Adding to the external factors exerting pressure on the industry, such as oil prices being at historic highs, slowing of the US economy, and retailers preparing for a weak holiday season, local businesses are also facing their own set of challenges, Lee said.
The increase in crime is forcing businesses to invest in costly security systems that severely affect their cost, fuel prices are driving up basic items such as electricity and shipping cost. The latter, while not of greater importance than the others, is also affected by St. Maarten Ports Authority increasing landing charges.
He said the situation called for “proactive” approaches. On this front, Lee believes the association and Marlin are in agreement on some of the priorities that need to be addressed to be prepared for the season.
Building on this call, Marlin told the gathering that government and private sector needed to spend scarce resources in terms of marketing dollars wisely by strengthening existing markets and creating more opportunities for airlift and passenger movement for traditional source markets, instead of exploring new ones.
Dealing with crime, Marlin said efforts were being made to better spend the NAf. 1 million allocated to the Soualiga Patrol. Understand the factors contributing to the spike in crime, an ongoing approach, will help to determine good effective measures, key intervention points and appropriate responses, he said.
Meanwhile, the economic outlook is good, Marlin said. Using collection of taxes as a yardstick, he explained that Turnover Tax payments were projected to reach an all-time high of NAf. 90 million by the end of this year, an increase of 10 million over 2006.
He disclosed that the tourism allocation in the 2008 island budget would increase slightly with an acceptable level possibly obtainable in 2009 as part of the Country of St. Maarten budget.
Obtaining country status is vital to accessing more revenues to develop the island and further strengthen the tourism industry, he explained. “We will need all partners on board to achieve this. There much work to be done and I invite the private sector where they see that they can assist us in attaining our country status,” he said.
