Emsley D Tromp: The Caribbean Hotel & Tourism Investment Conference
Speech by Dr Emsley D Tromp, President of the Bank of the Netherlands Antilles (Bank van de
Nederlandse Antillen), at the cocktail reception hosted by the Bank van de Nederlandse Antillen on the
occasion of The Caribbean Hotel & Tourism Investment Conference, Willemstad, 9 May 2007.
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Good evening ladies and gentlemen,
On behalf of the Central Bank of the Netherlands Antilles, I welcome each of you to our beautiful
island by extending you a warm "Bon Bini". We are very pleased in having you here at the Bank for a
cocktail party on the occasion of the Caribbean Hotel and Tourism Investment Conference.
Ladies and gentlemen, the Caribbean region has made impressive economic progress in recent years.
In 2006, our region recorded a growth rate of around 5 percent. The services sector has been the
main driver of growth in the Caribbean. In most countries in the region, tourism has played an
important role in the expansion of the services sector, and hence the economic growth. According to
the World Travel and Tourism Council, the Caribbean is the most tourism intensive region in the world.
Based on the latest statistics of the Caribbean Tourism Organization1, the region hosted
approximately 10 million stay-over and 8.6 million cruise visitors in 2006.
In all the Caribbean countries, tourism has shown to be a highly labor intensive sector that provides
possibilities for many small and medium enterprises that are connected to, or offer products and
services to the industry. Its impact is especially strong in the retail trade, hotels & restaurants, and the
construction sectors. Tourism in most Caribbean economies is a major employment and foreign
exchange generator. According to the World Travel and Tourism Council, nowadays, tourism
contributes to approximately 15 percent of the Caribbean's GDP and 16 percent of total employment.
Similar to the other Caribbean countries, tourism is also an important sector of the Netherlands
Antilles' economy. This is reflected in our recent economic performance. In 2006, economic growth in
the Netherlands Antilles was sustained by an encouraging performance of stay-over tourism,
particularly on the island of Curacao. Rising occupancy rates triggered a wave of new hotel projects
and expansion of existing hotels.
The tourism sector is also a crucial contributor to foreign exchange receipts, which is about 36% of our
total foreign exchange earnings from the exports of goods and services.
Ladies and gentlemen, similar to other economies in the Caribbean, the Netherlands Antilles is
characterized as a small and open economy, which makes it highly vulnerable to external shocks. The
achievements of the tourism sector in the Netherlands Antilles and other Caribbean islands are mainly
due to the many positive endowments we are blessed with in this region. These include favorable
locations, excellent climates, the advantage of the English language in most countries - Spanish,
French, and Dutch in other cases, an early targeting of primary education, strong traditions of
democratic participation, and political stability for most countries.
However, nowadays, the Caribbean tourism sector is facing increased competition from emerging
economies, namely Asia and the Pacific, and the rapidly changing nature of global tourism demand.
However, the strong growth expected in global tourism and the emerging of new market segments,
create possibilities for growth in the Caribbean tourism sector.
Ladies and gentlemen, the tourism industry will only remain an important driving force of our regional
economic growth, if we address certain issues in our economies. In this, the improvement of the
investment climate is crucial for all countries in the region. A good investment climate provides
opportunities and incentives for firms to invest productively, create jobs, and expand their activities.
More investments in the tourism industry will not only raise activities in this sector, but also stimulate
additional investments in related sectors, and hence contribute to economic expansion. It is therefore
crucial that the investment climate gives the correct signals and encourages higher quality and more
productive private investments.
The policy agenda to enhance the investment climate is relatively similar to most countries in the
region, and consists of several actions. First, improve the quality and effectiveness of the human
resources. Second, make the public sector more cost effective and efficient. Third, address the level of
taxation and infrastructure deficiencies. Fourth, diversify the economy with more knowledge-based
activities. And lastly, address the issue of crime in some countries. At the same time, governments in
the region should pursue sound macro-economic policies.
Moreover, Caribbean countries can enjoy the benefits of tourism fully and create strong linkages with
national economies if they take specific aspects of tourism development into account. As a result,
each and everyone in the community will benefit from the tourism growth.
Ladies and gentlemen, the tourism sector in the region is facing many challenges, but at the same
time it has great potential for growth. In order to realize this potential, the region, as I have mentioned
will need to improve its investment climate, and manage and market the tourism sector more
effectively. To accomplish this, it is necessary for the public and private sectors to work in synergy.
Today, I understand that you have dealt with many of the challenges and issues that impact the future
investment and growth of tourism in the Caribbean. In addition, tomorrow you will address some key
topics related to the development of the Caribbean tourism product. I wish you all success during the
plenary sessions and in the workshops tomorrow, thereby contributing to a further dynamic
development and reinforcement of the competitiveness of Caribbean tourism. Once again I bid you all
welcome and hope that during the conference you will have an inspiring exchange of views.
I thank you for your attention.