Lee: Prepare now for
possible slowdown
PHILIPSBURG--While keen on emphasising that the island is not facing a recession, St. Maarten Hospitality and Trade Association (SHTA) President Emil Lee urged members to prepare for a possible slowdown triggered by the United States economy.
Addressing Commissioners Roy Marlin and Maria Buncamper-Molanus and SHTA members at Sonesta Great Beach Bay Beach Resort on Thursday evening, he equated the present economic situation to an approaching Category II hurricane that is seven days away on a projected path to the island, a scenario requires urgent preparation.
Marlin and Buncamper-Molanus in their addresses also dealt with alternatives to safeguard and encourage the growth of the local economy. Giving a word of caution was Windward Islands Bank Managing Director Jan Beaujon, who represented the Bankers Association.
Buncamper-Molanus, who is responsible for Economic Affairs, said that while tourism was the island’s main source of income, it was time to look at diversification by venturing into the fields of education, telecommunication and marine industry opportunities.
Beaujon urged the bundling of resources and efforts for better results and a cushioning effect for the local economy. Everyone needs to “be cautious” and prepared in case a slowdown happens, he added.
The island’s infrastructure, as it stands, cannot absorb any downturn, making it necessary to look elsewhere to build a buffer. The most logical direction to head in is Europe where the euro continues to increase, giving travellers more income to spend on vacations, Lee said.
Increasing efforts in South America and reaching out closer to home to develop the Caribbean market, where little attention has been placed, are also possible options to buffer any fallout from US economic troubles, Lee said.
The present high season has been about the same in growth as the 2006-2007 season, according to reports, However if the low season turns out badly, the environment is on par for a serious economic problem that can only be mitigated though strong partnership, Lee stated.
In preparation for the a possible direct hit from the “Category II hurricane,” Lee suggested that government decrease the throughput fee on fuel that is paid by the importers, which will result in lower prices for residents; organise the public transportation system without delay; and provide more parking in Philipsburg and Simpson Bay.
Further, he said a statistical system at the ports of entry was needed urgently, as well as immediate marketing in Europe and the Caribbean. Also, the airport, government and the private sector must band together to attract more airlift.
In his customary comment on partnership, Lee said a strong partnership had developed between SHTA and the St. Maarten Tourist Bureau over the past years. This partnership is also a tool to better position and promote the island, he added.
On the same theme, Marlin said if government and the private sector didn’t make a concerted effort to combine forces, but continued to work in the same ad hoc manner, the island’s most important asset – tourism – would be left “up to chance.”
“The world trends such as the use of the Internet, online bookings, the high euro and other factors make us an attractive destination that we should benefit from. These benefits will only come if we combine our resources and forces,” he said.
To increase needed marketing funds, Marlin urged the management of Princess Juliana International Airport, a government-owned company, to consider paying a concession fee to government’ coffers similar to the NAf. 5 million paid annually by St. Maarten Harbour Group of Companies. Negotiations are ongoing with utilities company GEBE to also pay an annual concession fee.
Thursday’s gathering was organised as the SHTA annual membership meeting during which a new board would have been elected. As there was no quorum of members, the election was deferred to two weeks from now.
