State Secretary of Kingdom Relations Alexandra van Huffelen is prepared to discuss the 12.5 per cent cut in benefits of (semi-) public sector employees implemented by the Dutch Caribbean countries (12.6 per cent in Aruba) as condition for COVID-19 crisis liquidity support from the Netherlands (see Wednesday paper), but only in terms looking at “other possibilities to accomplish this.” This means that – simply put – money no longer saved will have to come from elsewhere.
To be sure, where it concerns civil servants in St. Maarten the austerity measure merely involves vacation pay and not basic salaries. Nevertheless, this is annual income on which they have come to rely every June not just to go on holiday. In fact, many use it for other often-essential matters such as buying uniforms and other study- and school-related items on behalf of their children.
One way to cover the difference would be achieving higher government revenues than budgeted because the local economy rebounds beyond expectations. Judging from figures in today’s edition provided by Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) Roger Lawrence, things are going relatively well in that regard.
The first quarter total of 194,516 air arrivals comes very close to the 195,064 of pre-pandemic 2019. For the entire year 2022 a 90 per cent recovery is foreseen compared to two years ago, while a respectable 291,497 cruise passengers visited the destination during the first three months of 2022.
However, the current situation remains delicate. The Central Bank has already downgraded its economic growth prognosis due to the ongoing war in Ukraine and its detrimental effects, including inflation.
In addition, the traditional low season is fast approaching, making a significant rise in earnings difficult. Promoting more tourism during that period could help address that problem.
Investing in a bigger effort to attract especially European guests who love to travel also in summer would appear to be a worthwhile endeavour for both the Dutch- and French sides of the island that – after all – have close ties to respectively the Netherlands and France. Introducing reforms with assistance and oversight from The Hague is one thing, but actively stimulating more year-round business and diversifying source markets with the necessary financial means can facilitate what is urgently needed, namely short-term results.
