The newly formed “Institut Territorial de la Statistique et des Études Économiques de Saint Martin” (ITSEE) report on its first six months of work (see last Wednesday’s newspaper) was interesting. Cross-checking and analysing the national census data confirmed the French-side population has been in decline for some time and in 2021 was estimated at 31,477, 15% or 5,202 less than 11 years before.
This trend, despite an annual birth rate of more than 600, translates to more emigration than immigration. The latter is reason for concern, because it may indicate fewer local opportunities and prospects, with the average age also going up from 33 to 35 during the past decade.
Perhaps one could add that living and doing business on the Dutch side became more affordable after the euro was introduced. A number of persons from St. Martin have since moved south across the open border.
The study also mentioned that “contrary to popular belief” tourism (accommodation and catering) was only in third place as driver of the economy at 13%, behind public administration, education, health and social services (30%) and retail and automotive repair (14%). However, such a statement should be qualified.
It is the hospitality industry and its employees that actually produce the bulk of revenues spent in most other categories including taxes to fund public sector operations. One thus has to conclude that tourism is indeed the main “productive” activity in terms of earnings.
That’s important to keep in mind when one talks about economic diversification. Initiative focussing on the local market is fine, but what really make a difference are attracting external income or reducing import cost, for example with agriculture.
