Without a doubt, a concerted approach to combat the challenges which the nation faces is critical. Effort is being made. About three weeks ago a copy of the draft Memorandum of Understanding (MOU) that outlines how all parties, including unions and other organizations, will assist in combating the global crisis was presented to Commissioner of Economic Affairs Maria Buncamper-Molanus. After a review by government of the MOU, plans are to organize an economic summit in cooperation with the Chamber of Commerce.
In the meantime, a proposal for a four million dollar tourism marketing stimulus fund to be used for a short-term intensive emergency marketing and promotional campaign in St. Maartenʼs primary and secondary visitor source markets has been put forward by the St. Maarten Hospitality and Trade Association (SHTA) in conjunction with the Tourist Bureau.
For the mid and long-term, the island needs a multi-million dollar marketing/visitor relations plan to drive visitor arrivals from all source markets. This multi-million dollar campaign would take into consideration the 2009-2010 tourism season, in assuring that the fallout from that season does not be a catastrophe.
St. Maarten doesnʼt have the right to borrow on the capital markets. Leader of Government Commissioner Sarah Wescot-Williams already pointed out last week that there is no budgetary surplus to juggle things around. Antillean Central Bank President Emsley Tromp stated that to stimulate investment, government itself needs to boost the economy which possibly can only be done by acquiring cash injections from the capital markets. Our island nation has a good case to have the restriction on the island borrowing repealed, so loans could be sought. This is an unprecedented global economic crisis since World War II which requires extra ordinary measures.
Regional independent island nation governments are moving post haste to minimise the impact of the global crisis and bracing for any eventuality. The Government of Barbados is putting greater focus on tourism to ensure they get their fair share of global travellers by preparing another supplemental budget to present to the House of Assembly which would take the overall tourism budget to an unprecedented US$50 million.
The islands of the Organization of Eastern Caribbean States (OECS) have developed a plan to maintain a level of ongoing economic activity, by supporting the tourism industry in cost reduction and marketing strategies, engaging in targeted public sector investment programmes which would have a multiplier effect and providing efficient, social, safety net programmes, to address the needs of the poor, the indigent and the vulnerable.
The Eastern Caribbean Central Bank (ECCB) has gone as far to establish a contingency team to maintain constant oversight over the developing situation, as well as to develop contingency plans should an additional crisis arise.
The Cayman Islands has presented a US$160 million capital spending budget for 2009-2010 as part of the governmentʼs economic stimulus package. The government is also bracing for the very worse of the economic fallout from the US economy to be felt in the second half of 2009.
Our nationʼs resilience package that would be in response to this crisis must be able to carry us through what has been characterized as the deepest recession in history, arising from the worst global economic decline in 60 years.
We need a resilience package that will avert an even sharper downturn in our economy due to the global recession which would lessen the more lasting damage to our economy if we didnʼt introduce such a package.
Our island nation at the same time is moving towards country status which should materialize sometime in 2010. Economic forecasters at this time say the global recession is also expected to continue in 2010. Therefore, as the birth of country St. Maarten may also coincide with the global recession, our nationʼs resilience package must also be one that puts us on track where country St. Maarten emerges with strength when the global economy recovers, therefore enhancing our capabilities and competitiveness as a service oriented economy for the long-term.
As a nation, we must remain optimistic that success can be achieved, despite the enormity of the challenges we face. As long as we work in an efficient, competitive and productive manner, our future survival in a rapidly changing and restructured environment will be assured. The urgency is now and the way we deal with the current crisis will determine how we ride out this economic storm.
Believe in yourself, have confidence.
RODDY HEYLIGER
