St. Maarten – July 31 – BlueOceanVillas.com
Some welcome news concerning the state of the local economy during the first half of the year was reported by government. While the cost of living undoubtedly has increased, government earnings on a cash basis and the collection of taxes are both up.
Some airlines have reduced the number of flights to St. Maarten, but the number of stay-over visitors increased by 5.2 per cent compared to 2007 and all source markets except the Caribbean recorded growth. Occupancy rates went up by four per cent over the first quarter and eight per cent over the second.
While the local cruise sector is faced with demand shifting away from the Caribbean, the number of passenger arrivals dropped only slightly, by 3.8 per cent, over the first quarter and the number of ship calls by 78 over the first six months, the latter compensated largely by the use of larger vessels.
All in all, “The Friendly Island” appears to be doing all right, certainly compared to some of the other islands, while the Caribbean as a whole is also doing better than some other regions when it comes to tourism. That American Airlines, US market leader in the region, announced an increase rather than decrease of direct flights from the mainland to St. Maarten reinforces the view that the island remains a highly popular destination.
It’s far too early to rejoice, however. Some of the worst impact when it comes to world fuel and food prices as well as the real estate crisis in the US may still be felt in the comings months and years. The drop in pre-construction sales in various major tourism projects on the island is an indication of that.
The outlook for the rest of the year is positive and gives government cause to be cautiously optimistic. It’s important, however, to keep in mind that things can change for the worse very quickly. Under the circumstances, working more on diversifying tourism in terms of both secondary markets and times of the year continues to be important. Today’s good tidings do not change that.
