Adding to the effects of the crisis are the drastically increased port fees of the Simpson Bay Lagoon Authority, which in most cases were raised by 300% without any warning on January 1st 2008. These fees have placed St. Maarten's port fee pricing in a non competitive disadvantage when compared to the neighboring ports, like: French St. Martin, British Virgin Islands, St. Barths and Antigua. Additionally, the manner in which the fee ordinance is interpreted (weekly billing vs. daily billing) and is collected, adds to the expensiveness of the fees. For example, if a yacht captain uses SXM as a base and goes for 3 day trips during the week to Anguilla, St. Barths and Saba, he/she will pay for 4 weeks even-though they only stayed 4 days! As a result, yachts that usually dock at the marinas in Simpson Bay are now opting to dock at ports on the French side of the island, where fees are rational and reasonable.
Both the SHTA and the SMMTA are extremely concerned by the effect that the slower than usual season is having on the many local service providers. Businesses like: Taxis, local port agencies, restaurants, car rentals, food wholesalers and marine services to name a few are already experiencing a decrease in revenues; and as is the case with the other pillars of the SXM tourism economy, they depend on a strong high season to carry them through the slow and now ever lengthening off season.
Separating the marine sector's 3 main categories in groups, the declines and comments are as follows:
1. Retailers - Revenues are down an average of 25% - Non-local vessels in SXM have declined to levels of more than 20 years ago. Comparative stores in Antigua and Virgin Islands are up in revenue.
2. Marinas - Revenues are down an average of 20% - Revenue and occupancy percentage was on par with last season until beginning January 2009, after which it has dropped off significantly. A shorter and abruptly ending high season is predicted.
3. Services - Revenues are down an average of 30% - December 2008 was on par with December 2007, but has now dropped off significantly. Back order jobs are no longer existent and yachts are now choosing to repair small projects rather than replacing a/o take on larger jobs as was the case in past years.
