Pantophlet gave several examples of other nations who have been offering relief to their people during this global crisis, while St. Maarten has not yet addressed the situation. The councilman said the island depends solely on tourism most of which comes from the United States and there are indications that this crisis will go one for the next year or two.
He said he is considered himself a middle class and he cannot even afford to take a shave at his barber prior to yesterday's island council.
He said that this problem of the global economic crisis was pending for a long time since it was clear due to the dramatic increase of oil prices and local government should have taken heed so that they could have give assistance from that which they have reserved over the past year.
Pantophlet said food prices are skyrocketing and salaries remain the same. He said while he would agree that government cannot control every item on the shelves, but more items needs to be controlled. He alluded that more can be done to mitigate the effects of this crisis. Pantophlet said that the gas stations were not controlled in over 15 years. He asked why is it signs cannot be placed at the service stations with the cost of fuel and exchange rates.
In the meantime, Councilman Rudolph Samuel said if the National Alliance did not requested the meeting then the people would not have gotten an explanation on the situation. He said for years they have been hearing that the economy is booming and yet they are not able to assist those in need. He asked when would government especially the commissioner of Tourism would decide to market the island elsewhere like in Latin America.
He felt that government is not doing what it has to do to keep the economy running. He asked what type of training is offered to taxi drivers and others that directly deal with the tourist when they visit the island.
Councilman Frans Richardson said that even though there are only two months left to end the year 2008 there is nothing concrete done to address the economic crisis.
He said a a government with insight or that would expect to be taken seriously cannot simply hide behind the arguments of the price of oil rising to 140 U.S. per barrel
What the people of this island want to know, is what government has been doing to halt the still rapidly increase in food and other commodity prices on the island. Richardson said.
The council man said that the executive council needs to get serious and address these aspects, not only in terms of what it means for residents of this island but also as it relates to the main economic pillar.
Knowing that the island is heavily dependent on tourism and that notwithstanding the many carefully crafted statements made by commissioners, all is not well with our economy neither with tourism.
Richardson said that the present government continues to behave as if the recession or a slowdown has not been as costly in terms of employment as in previous recessions.
Richardson said they simply have to concede that the economy is facing increased uncertainties and major risks. There is no doubt that a protracted and deep US downturn combined with a slowdown in the European Union countries, will surely affect tourism. Richardson said.
Richardson said that this government needs to become more creative and not just throw around the cliché about ‘thinking outside of the box', when it believes it makes good reading. He gave an example of reports that has been released by the Airports Council International (ACI )which warned that while the effect of high oil prices may begin to fade as we head into the winter months, the implication of the international crisis in the financial markets for air traffic demand "could be worse".
It says that, during the summer months, several regions reported solid international traffic increases, led by Africa (+9 percent), Latin America-Caribbean (+9 percent) and the Middle East (+8.3 percent), while Europe (+1 percent) and North America (+2 percent) grew moderately. All regions are however showing definite signs of what we call "traffic weakness".
ACI stated that demand for domestic travel has proven "very elastic and price sensitive", leading to significant declines in the wake of high oil prices during summer.
International freight shrunk by 2.6 percent led by North America (-8 percent). Overall freight traffic was down a worrying 8 percent in August of this year, reflecting the slowing world economy.
Richardson said even though this information is out there government don't seem to realize is that jet fuel is 75 per cent higher than a year ago, airlines are not only cutting services; they are cancelling orders for new equipment, laying off staff and introducing swinging fuel surcharges.
One of the major carriers for airlift to the island, American Airlines, also delivers 60 per cent of visitors to the entire Caribbean and they have already announced significant cuts to its regional services, and more are expected.
The National Alliance faction are convinced and can appreciate how in the shorter term, tourism economy is inextricably linked to growth in the global economy and, by extension, the short to medium-term economic outlook for our island, while the executive council has yet to prove that it can sustain any set of measures necessary for our tourism to survive a recession.
And unless the seriousness of the short-term challenges facing the industry are recognized by government and an overall and sustainable policy response is adopted and implemented rapidly, St. Maarten will suffer serious consequences. Richardson said.
Richardson said there is still an absence of clear vision on the part of this DP-led government. They are the ones which should be leading the way, if we to reach a national consensus on core tourism issues, especially at this time.
He felt the absence of marketing funds at a time of increased global competition between destinations; the lack of a strategic approach to investment in the sector; and a consequent failure to maximize revenues derived from tourism - all point to failure on the part of this government. The councilman said.
He said rather than dealing with these issues on a case to case and/or ad-hoc basis when the island find itself in situations, and even then, failing to sustain the resulting initiatives, government needs to think well and think clear about marketing funds; promote the development of airlift from new markets elsewhere and consider the implications of the arrival of low- cost carriers in the region, including St. Maarten.
