SHTA reiterated its concerns regarding the current economic crisis. Since spring 2008, the SHTA has been warning about the potential economic difficulties businesses will endure in 2009. By fall 2008, the predictions were worrying. Feedback from businesses indicates that things are now worse than anticipated. The time for Government to act is now! To date not one guilder has been spent on an economic stimulus plan. Instead, things have become more cumbersome and expensive for businesses, which will ultimately impact the community in the form of higher cost of living. In keeping with the SHTA's strive to obtain some form of relief to the businesses and residents of St. Maarten, the SHTA has and will continue to advocate for the following:
1. Elimination of Turn Over Tax for a period of time. Many businesses agree that the
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4. elimination of this tax, which was originally meant to be implemented on a temporary basis, would offer a significant relief to businesses and residents almost immediately.
5. Approval of US 4.1 million dollar marketing program, submitted by the SHTA and the Tourism Bureau. These emergency funds would be used for an intensive marketing and promotional campaign in St. Maarten's primary and secondary visitor source markets. This is the minimum amount needed urgently to increase visitor arrivals and save an estimated 2000 jobs that would be at stake, should the current situation continue unmitigated, the two entities stressed.
6. Realizing that government doesn't have money to fulfill its obligation to the people of St. Maarten (in regard to the crisis at hand), an urgent request is necessary from the island and federal governments to request financial assistance from Holland.
7. Implementation of the long-awaited Tourism Authority. The presence of such a tourism body, comprising of public and private sector representatives will ensure that decisions are made quickly and effectively allowing our tourism industry to become more impactful and agile.
8. All other entities (businesses and residents) have already taken measures to increase productivity, efficiency and reduce expenses. Government too needs to begin to curtail expenditures in order to prepare for decreasing government revenue. Failure to reduce expenditures may result in higher fees and taxes for the people.
9. Urgent follow-up on Chamber's initiative to formulate economic relief summit. The St. Maarten Chamber of Commerce & Industry proposed the development of an economic stimulus plan for the island's businesses and consumers.
10. In these trying times, the restoration of confidence in government is of utmost importance. Therefore the SHTA calls for the approval of the proposed code of conduct for all government officials that were submitted by the Lt. Governor.
11. Reinstitute the joint marketing committee in order to structure tourism promotion between the French side and Dutch side. Structural cooperation will increase the island's marketing possibilities and improve the island's main economic pillar, tourism.
12. The feeling of safety amongst businesses, residents and visitors is essential in safeguarding the island's standing as a preferred Caribbean destination. Therefore, the SHTA encourages continued efforts by the police to control crime.
Adding to the burdens of businesses is the recently implemented Work Permit Policy. This policy has caused businesses additional time and money instead of the relief needed in these trying times. The SHTA therefore feels that the following is necessary to ensure a system free of frustration and abuse:
SHTA agrees and understands that priority must be given to local employment but in the event suitable local labor is not available the work and residence permitting process must be streamlined and affordable. Abuse must be regulated but killing the economy in order to manage abuse is not the solution.
13. Statistical information has been requested from the labor office regarding, numbers of unemployed, positions, educational level, experience etc. The SHTA feels that this statistical information should form the basis for the recently implemented regulations.
14. The Executive Council should disclose information regarding technical comments submitted by the governor general on the revised policy. See attached letter.
15. The formalization of the Labor tripartite committee. The SHTA believes that the structure should be formalized in such a way that procedures and binding decisions will be made clear. Additionally, an impartial person, preferably an economist, should be called to chair the meetings. This will assist in guiding the policy that will benefit both labor and businesses giving St Maarten's economy a sound foundation to grow.