Increasing cost
News that St. Maarten/St. Martin was featured in The Wall Street Journal’s travel section (see Wednesday’s paper) is most welcome. The Wall Street Journal is no doubt one of the most respected and acclaimed newspapers in the world, and with circulation base of 2.9 million and 931,000 paying online subscribers, the coverage could have a very positive impact on tourism.
What’s less positive is the recent report that high operating cost at Princess Juliana Airport is threatening the island’s airlift. While the new airport is no doubt a major improvement, some may question the wisdom of building such an expensive airport in terms of both construction and operating cost on an island with a one-pillar tourism economy.
The problem is compounded by skyrocketing fuel cost that is affecting the airlines and making travel more expensive. Commissioner of Tourism Roy Marlin’s call for stakeholders to sit down and discuss the matter is in any case on the mark.
Fears that major airlines will divert to, for example, less costly St. Kitts and use regional carriers to transport their passengers to “The Friendly Island” are not likely to materialise any time soon because of the limited capacity of these carriers and the fact that they too are struggling with increasing operational cost. If it were to happen, however, it would make St. Maarten/St. Martin a lot less attractive, because indirect connections are not popular, and fewer people might very well choose to vacation here.
Also, plans to attract more tourism from the region, including Caribbean shoppers, could very well be affected by the increased operating cost for airlines, because flying to and from St. Maarten has become expensive. If that market declines it will also hurt the small businesses and stores on, for example, Back Street and could have a ripple effect on employment and government earnings as well.
And it’s not just airlines. Wednesday’s warning from a Dutch yacht captain that St. Maarten is pricing itself out of the market must also be taken seriously. For example, Antigua is a major competitor in this regard and even the Heineken Regatta could ultimately be affected.
The report comes after the St. Maarten Marine Trades Association had issued similar warnings. Here too, consultations between stakeholders, including marinas, appear justified.
All in all, the island must take care not to erode its only economic base by becoming too expensive. How to prevent that is a matter for discussion, but the fact of the matter is that it’s becoming a major issue.
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