The ensuing trade war’s global impact is fast becoming inescapable and St. Maarten is no exception. According to reports from Willemstad (see Tuesday newspaper), the Central Bank of Curaçao and St. Maarten (CBCS) has reduced its expected gross domestic product (GDP) increase for the latter monetary union country from 2.5% to 1.8%.
Keep in mind that worldwide developments regarding import tariffs continue to be very fluid. Even for the financial sector supervisor but also others like the International Monetary Fund (IMF), economic forecasting at the moment seems a bit like trying to accurately predict the weather for an entire year.
The end result remains unclear, but much damage has already been done, including Americans being less inclined to vacation overseas. Last week Delta Airlines based in Atlanta, Georgia, lowered its profit outlook for this quarter citing a “largely stalled” travel demand.
It’s important for people to understand that the current crisis is not just about rising grocery and all other prices, but affects the dominant hospitality sector that ultimately – whether directly or indirectly – provides for the livelihood of practically the whole population. This can translate to loss of local jobs and income.
A letter by Roddy Heyliger on the opinion pages of Monday, April 7 suggested that due to soured relations between the two neighbouring countries, Canadians are dropping their plans to spend time in the US this summer. He suggested ramping up promotion in that market to attract visitors for the upcoming summer months.
This was also mentioned in a report on the recent St. Maarten/St. Martin Annual Regional Tradeshow (SMART) in the same edition by the St. Maarten Hospitality and Trade Association (SHTA). The Dutch side’s biggest employers organisation earlier called for prioritising a tourism authority as well.
The destination has the advantage of ample direct airlift from several major Canadian cities. If demand increases, probably so will the frequency and capacity of these flights.
An emergency marketing effort – if possible with matching funds from within the industry – appears called for. In adversity lies opportunity.
