The Nation has been bombarded with the Government’s economic thrust; the promotion of so called “High- end tourism” in the Federation. In summary this means the development of hotels and condominium for the exclusive use of the rich and super rich of the world. Hotel Rooms will cost a minimum of US$200 per nigh. Condominiums will be sold for a minimum of U$400,000.00.
The Caribbean Development Bank (Annual Economic Review on St. Kitts & Nevis), stated “value –added in the tourism sector, as proxied by hotels and restaurants, declined by an estimated 11% in 2007, compared with growth of 4% in 2006”. The tourism sector has declined annually since 2004.There is no evidence to suggest that this trend will be abated in the near future. The Economic Intelligence Unit a respected Economic forecasting institution in its annual report on the Caribbean region has concluded that the recession in the region will continue into 2010. Those countries with a high dependence on tourism have experienced severe recession with resultant high levels of unemployment. Most Caribbean countries do not possess the financial resources to stimulate their economies in order to engender economic growth. St. Kitts & Nevis is no different.
High end tourism is most remunerative when the economy is booming, but reacts negatively in periods of recession (Marriot lay-offs).UNCTAD has projected that Foreign Direct Investment will decline by 30% during 2009 and 20% in 2010. It declined by EC$188 million in 2008 in the Federation. High end tourism sectors such as Anguilla (Viceroy); Bahamas; Dubai; Barbados and Jamaica have either reduced their activities and are diversifying into more viable areas. The Federation is depending on High end tourism such as Christophe Harbour which is limping along and is having difficulties raising investment capital; building another Golf Course at La Vallee and one at neighbouring Kittitian Heights. Kittitian Heights is struggling to raise finance or get investors. Economists have concluded that the world economy will take some years to recover, thus St. Kitts will take a little longer.
It has been a source of concern for Caribbean and Development Economists that the politicians in this Federation have spent millions of taxpayer’s money travelling the world to entice foreigners to come to this country and give them our land to find projects for this country. Foreign Direct Investment simply means that the funds are from offshore. It does not mean expatriates. Local entrepreneurs should be given the same opportunity to develop this nation. A new thinking on economic development has to be instituted whereby the emphasis is on job creation and independence of our people.
The available land should not be distributed hap hardly as is presently being done but systematically in keeping with a development strategy geared to producing food, Livestock and a productive agro-industry. The present food import bill is EC$453 million (ECCB). This is a drain on the national resources.
It should be noted that National debt ($3billion) has been increasing as Government Recurrent Revenue has fallen and the Government continues to borrow to finance the growing deficit (EC$653 million at 2007). It is reckless economic management to be burdening the future generation with a debt of this nature with no policies or programs being emanated to turn the economy around. I am still puzzled as to the relevance of a policy based on high end tourism, given the grave economic realities facing this Nation. The Prime Minister’s dream could easily turn out to be the Nation’s nightmare.
