Preface: In this three-part series, we delve into the story of Sint Maarten's journey, exploring its rise as a tourist destination under the visionary leadership of Claude Wathey. While acknowledging the island's remarkable growth, we also shine a critical light on the challenges that emerged from the unbalanced focus on tourism. From the overlooked importance of education and moral development to the consequences of corruption and a cash-based economy, we examine the complexities of Sint Maarten's path and propose forward-thinking solutions to shape a more sustainable and prosperous future.
Introduction:
Claude Wathey is a name that needs no real introduction. Anyone that was around in the early 60s up to the 1990s would have known the prominent figure in the history of Sint Maarten. He played a pivotal role in transforming the island from a relatively unknown Caribbean destination into a thriving tourist hub. Under his leadership, Sint Maarten experienced unprecedented growth, with the crown jewel being the iconic Mullet Bay Resort. However, as time has progressed, it has become increasingly evident that the island's overreliance on tourism as its primary economic pillar has hindered its ability to diversify and adapt to changing global dynamics. While Wathey's vision brought prosperity, it also overlooked crucial aspects such as education, moral development, and fostering a culture in which adherence to laws and regulations is commonplace. This article examines the consequences of these oversights, including the prevalence of corruption, a sense of entitlement, limited skilled job opportunities, and a shadow economy, which hinder the optimal functioning of Sint Maarten's society.
A Tourism-Driven Economy and its Limitations:
One must give credit where credit is due. Claude Wathey's tenure as a political leader brought unparalleled growth and prosperity to Sint Maarten. The tourism industry flourished, transforming the island into a coveted vacation destination. The allure of pristine beaches, luxury resorts, and a vibrant nightlife attracts millions of tourists each year, fueling economic growth. However, this reliance on a single industry has left Sint Maarten vulnerable to external shocks, as exemplified by the devastation caused by Hurricane Irma and the recent global pandemic. Furthermore, the focus on tourism, while beneficial in terms of economic growth, also poses challenges. The industry predominantly offers low-skilled, low-wage jobs, leading to limited opportunities for career advancement. Consequently, there has been a notable influx of foreign workers to the island, undertaking occupations that local residents tend to avoid, such as cleaning, construction, and other jobs serving the needs of tourists. These individuals, driven by the desire for a better life, seek employment opportunities in Sint Maarten. Which is something we should offer; however, it is important that our approach to this reality is handled carefully. Currently, our lax adherence to regulations has resulted in many of these workers operating outside the confines of the legal workforce, thereby placing significant strains on our social and economic systems. Moreover, the prevalence of cash-based transactions within the tourism sector has contributed to the emergence of a substantial shadow economy, depriving the government of essential tax revenue and hindering the optimal functioning of our society.
Investing in Education and Human Capital:
While tourism has been a lucrative venture for Sint Maarten, it has inadvertently stifled the development of other sectors. This can be seen as one of the critical shortcomings of Wathey's vision. The failure to cultivate a culture of higher education and promote diverse industries has left the island's economy vulnerable to fluctuations in tourist arrivals and spending patterns. As a result, when tourism falters, Sint Maarten faces significant economic setbacks and struggles to recover. Sint Maarten is now stuck with a one-pillar economy that faces challenges in fostering and catering to a skilled workforce capable of pursuing information-based, high-paying careers outside the realm of tourism. Think of the financial sector or other online services that have low to zero marginal cost. The gaming industry, as pursued by Barbados, being a prime example (once you produce a game, selling another unit of it cost 0 or close to 0 extra dollars).
Corruption and a wayward moral compass:
It is no secret that Wathey's era was marred by allegations of corruption, which had a lasting impact on Sint Maarten's society. The normalization of corruption eroded trust in public institutions and discouraged ethical behavior. This culture of corruption, combined with a cash-based economy, allowed for illicit practices and an underground economy. As a result, the government to this day struggles to collect taxes and maximize revenue, limiting its ability to invest in infrastructure, social programs, and education, further exacerbating the socio-economic challenges faced by the island. Furthermore, the lack of emphasis on moral values contributed to a sense of entitlement and disregard for rules and regulations, perpetuating a culture of corruption and undermining social cohesion. This is the harsh reality St. Maarten faces today. We see it on all levels of so-called “leadership”. Nepotism, favoritism, unethical politicians that truly believe they are doing no wrong, or simply don’t care. St. Maarten is on the tail end of Claude Wathey’s vision. It has run its course. It’s time for a new path forward to uplift our people to a higher level.
Conclusion:
Sint Maarten's journey toward economic diversification requires a departure from the old ways and a collective commitment to embracing change. While Claude Wathey's vision brought prosperity, it is now imperative to build upon his accomplishments and chart a new course for the island's future. Claude Wathey's vision transformed Sint Maarten into a prominent tourist destination, bringing prosperity and economic growth to the island. However, the consequences of neglecting education, moral development, and adherence to laws and regulations are evident in today's society. The prevalence of corruption, a sense of entitlement, limited skilled job opportunities, and a shadow economy have hindered the optimal functioning of Sint Maarten's society. To overcome these challenges and create a more sustainable future, the island must prioritize education, foster ethical values, strengthen governance and transparency, and diversify the economy. By acknowledging and addressing these issues, Sint Maarten can forge a path towards a more inclusive, prosperous, and resilient society.
In part two of this series, we’ll offer a new vision for the island. Though lofty, it can set the tone for the next 30+ years giving the island a clear path to strive towards instead of resting on the laurels of yesteryear.
David Salomon
