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“Dollarisation” in St Maarten ? Jan 09

dollar-billThe discussion about switching from the Antillean guilder to the US dollar in Curaçao and St. Maarten when the Netherlands Antilles ceases to exist has died down somewhat since a symposium on the subject at the end of last year. However, preparations for “dollarisation” continue unabated behind the scenes in financial circles in Willemstad, confirmed director Chicu Capriles of Maduro & Curiel’s Bank (MCB), the parent company of Windward Islands Bank (WIB), during a recent interview on TeleCuraçao.

The banker was quite candid about it, saying the move made sense considering the strong economic ties to the US. He added that the public would be duly informed in due time and every effort would be made for the process to go as smoothly as possible.

Full article can be read here

Source : The Daily Herald St. Maarten

St. Maarten, irrevocable date for country status: October 10, 2010 Oct 04

ST MAARTEN — After nine years of tireless and relentless work, Team St. Maarten brought home a firm, irrevocable date for country status: October 10, 2010. Leader of Government Constitutional Affairs Commissioner William Marlin commended the team – in particular the advisors – who have poured countless hours into the struggle to break from the Netherlands Antilles and become a country within the Dutch Kingdom.

The date 10-10-10 was signed off on by the Dutch Government, Central Government and Island Governments of St. Maarten and Curaçao last Wednesday night in the World Trade Center in Curaçao. The Antilles of five islands will cease to exist on this date, and in its place, two new countries St. Maarten and Curaçao will emerge, along with three public entities of the Netherlands: Bonaire, St. Eustatius and Saba. This is the first time in the process of dismantling the Antilles, started by St. Maarten’s referendum on June 23, 2000, that a firm date has been set. In the past there were several target dates but nothing to which the Dutch Government had affixed a signature.

Marlin, Finance Commissioner Xavier Blackman and opposition Democratic Party leader Island Councilwoman Sarah Wescot-Williams commended the island’s smart and fierce group of advisors, who had found solutions in the face of many road blocks. Team St. Maarten has long been the banner under which government and opposition, armed with advisors, have waged the battle to get the status the people voted for in the June 2000 referendum.

Just off the airport from Curaçao at midday Thursday, Marlin singled out Project Director for Constitutional Affairs Dennis Richardson for always finding a solution to every barrier, even if this meant few hours of sleep.

Wednesday’s Kingdom Political Steering Group meeting was very gruelling, but as the day wore on, and with “some give and take,” the team returned home with a signed agreement with a date for country status, Marlin said.

This is not the end of the road, because there is still a lot more to be done, the commissioner told the press in the Soualiga Business Lounge of Princess Juliana International Airport. Now is when the country has to emerge by taking up decentralised responsibilities and improving its infrastructure to better serve its people, he added.

This date for country status is not without conditions. Another Kingdom Steering Group meeting is planned for December in St. Maarten, to iron out the details of the Wednesday agreement. Chief among these is the progress committee that will be put in place to vet the readiness of the islands to assume the role of Country within the Kingdom.

Commissioner Blackman was equally full of praise for the dedication and hard work of the team. He pressed that the setting of 10-10-10 had been significant, and should not be tainted by talk of compromise, because this had been a joint decision of all partners. This message was reinforced by Dutch State Secretary for Kingdom Relations Ank Bijleveld-Schouten, Antillean Prime Minister Emily de Jongh-Elhage, Curaçao Constitutional Affairs Commissioner Zita Jesus-Leito and Marlin.

Blackman added that Wednesday’s agreement also served to hasten the preparation of the necessary infrastructure for St. Maarten to receive tasks from the Central Government, and with this the personnel and budgeted amounts to carry out the work.

He also said there was still a lot of work to be done but added that “a lot of doors to go back [wards] have been closed [in the constitutional process].”

Wescot-Williams said the pinning down of 10-10-10 was “another definite step in the transition from Island Territory to Country [within the Dutch Kingdom].” This was the result of nine years of bittersweet battles, but the goal had been accomplished by the “small but dedicated” team of St. Maarten. (See related story)

Head of the team of advisors and former Constitutional Affairs Minister Richard Gibson said it was a “great pleasure” to witness the signing of the agreement that would bring an end to the “fiction” of the Netherlands Antilles that had been “an iron ball” on the feet of progress, for St. Maarten in particular.

Using the old emancipation cry, “free at last, free at last, free at last,” a very fiery Gibson said all doubters of the constitutional change process could now be quiet, but added that there was still a lot more to be accomplished to be ready as a country, come 10-10-10. “The work really starts now.”

Gibson is now charged with getting the Justice System and Police Force ready for Country St. Maarten. Justice is one of the areas which may end up under supervision, should the necessary organisation not be in place in time for October 10. He said work was progressing in this area to ensure the safety of the island’s residents, and to see to it that the force was not left empty-handed in the face of crime.

Dennis Richardson thanked the team for its hard work and commended the political leadership, present and past, for having stood tall and for having given the advisors the opportunity to steer the technical aspects of the dismantling. With teamwork, the end of a country had been realised without bloodshed or a single shot being fired, he noted

St. Maarten has gotten a big reputation for restaurants, hotels, and energetic nightlife. Sep 11

For an island with a big reputation for restaurants, hotels, and energetic nightlife, St. Maarten is small — only 96 sq. km (37 sq. miles), about half the area of Washington, D.C. An island divided between the Netherlands and France, St. Maarten (Sint Maarten) is the Dutch half, and St. Martin is French. Legend has it that a gin-drinking Dutchman and a wine-guzzling Frenchman walked around the island to see how much territory each could earmark for his country in a day; the Frenchman walked farther, but the canny Dutchman got the more valuable piece of property.

The divided island is the smallest territory in the world shared by two sovereign states. The only way you’ll know you’re crossing an international border is when you see the sign BIENVENUE PARTIE FRANCAISE, attesting to the peaceful coexistence between the two nations. The island was officially split in 1648, and many visitors still ascend Mount Concordia, near the border, where the agreement was reached. Even so, St. Maarten changed hands 16 times before it became permanently Dutch.

Returning visitors who haven’t been to the island for a while are often shocked when they see today’s St. Maarten. No longer a sleepy Caribbean backwater, now it’s a boomtown. Duty-free shopping has turned the island into a virtual mall, and the Dutch capital, Philipsburg, is often bustling with cruise-ship hordes.

Although the island’s 39 white-sand beaches remain unspoiled, much has been lost to the bulldozer on St. Maarten. This is not a place for people who don’t like crowds, so if you want to get away from it all, head to the nearby Dutch islands of St. Eustatius (Statia) and Saba, or choose another getaway, such as the British Virgin Islands. Even the French side of the island would suit you better. Nevertheless, despite problems like crime, occasional storms, traffic congestion, and corruption, St. Maarten continues to attract massive numbers of visitors who want a Caribbean island vacation with a splash of Las Vegas.

The Dutch capital, Philipsburg, curves like a toy village along Great Bay. The town lies on a narrow sand isthmus separating Great Bay and the Great Salt Pond. Commander John Philips, a Scot in Dutch employ, founded the capital in 1763. To protect Great Bay, Fort Amsterdam was built in 1737.

The French side of the island has a slightly different character. It’s been undergoing a building boom of late, with lots of new hotels opening, but for now at least, it’s still sleepier than the Dutch side. Most hotels tend to be quieter and more secluded than their Dutch counterparts, and you won’t be overwhelmed with cruise-ship crowds. There are no dazzling sights, and there’s no spectacular nightlife. Even the sports scene on St. Martin isn’t as well organized as on many Caribbean islands (though the Dutch side has golf and other diversions). Most people come to St. Martin to relax on its many white-sand beaches and to experience “France in the Tropics.”

French St. Martin has a distinctly French air. Police officers, for example, wear képis. The towns have names like Colombier and Orléans, the streets are rues, and the French flag flies over the gendarmerie in Marigot, the capital. It also has some of the best cuisine in the Caribbean, with an extraordinary number of good bistros and restaurants. Advocates cite French St. Martin as distinctly more sophisticated, prosperous, stylish, and cosmopolitan than its neighboring départements d’outre-mer, Guadeloupe and Martinique.

French St. Martin is governed from Guadeloupe and has direct representation in the government in Paris. The principal town on the French side is Marigot, the seat of the subprefect and municipal council.

Marigot is not quite the same size as its counterpart, Philipsburg, in the Dutch sector. It has none of the frenzied pace of Philipsburg, which is often overrun with cruise-ship passengers. In fact, Marigot looks like a French village transplanted to the Caribbean. If you climb the hill over this tiny port, you’ll be rewarded with a view from the old fort.

About 20 minutes by car beyond Marigot is Grand-Case, a small fishing village that’s an outpost of French civilization, with many good restaurants and a few places to stay.

Category 4 Hurricane Bill passes St Maarten Aug 21

PHILIPSBURG–Powerful Category 4 Hurricane Bill passed more than 300 miles Northeast of St. Maarten late last night through early this morning, but its winds were powerful enough to cause moments of anxiety in Philipsburg.

While, generally, residents had breathed a collective sigh of relief earlier in the day as Bill finally made its turn towards the Northwest and away from the island, by 8:30pm, coinciding with a brief but heavy downpour, high sea swells started to have devastating effects along some sections of the coastline.

This was especially noticeable in the Philipsburg area at Foot of Town and along the Great Bay beach promenade (the boardwalk) where heavy-duty equipment had to be used to dump sand to prevent sea water from flowing onto Front Street.

About half of the open beach-front lot adjacent to Sonesta Great Bay Beach Resort, which is often used as a parking area or for picnics, was flooded and water from the sea was seen gushing into the nearby canal and flowing into Fresh Pond.

In their bid to stop water from flowing onto Front Street, an emergency crew used heavy equipment to dump sand at the beach-side entrances to Armenhuissteeg and Sisalsteeg, both of which were flooded.

The island did not record any long periods of sustained heavy winds as the storm passed at a distance far enough to keep the island outside of its tropical storm force winds. However, high sea swells were recorded in Cay Bay, Pelican, Great Bay, Mullet Bay, the Northern half of the island and other areas throughout most of the day.

As was expected, the heavy swells dumped a lot of sand in places such as Beacon Hill Road and along the promenade, including in the vicinity of Captain Hodge Wharf.

Utility company GEBE did not report any problems with seaweed or high waves during the course of the day and an assessment is expected to be made today of the power plant facility.

Eight divers were involved in a mishap at sea during the day which was believed to have been related to the deteriorating sea conditions associated with the passing of the storm.

At 11:00pm Wednesday, as Hurricane Bill continued to move Northwest and passed Northeast of the local islands, its centre was located near 20.7 degrees North and 58.9 degrees West or about 315 miles Northeast of St. Maarten. The system was moving Northwest near 17mph with maximum sustained winds near 135mph, making Bill a dangerous Category 4 storm.

However, the EOC stressed that residents living along coastal areas should be vigilant, as hazardous conditions are possible along North- and East-facing shores due to large breaking waves.

It said areas that might be subjected to high seas are Oyster Pond, Guana Bay, Point Blanche, Beacon Hill/airport area, Simpson Bay area, and the Philipsburg/Great Bay beach promenade. Coastal roads may become impassable due to the sea washing sand on the road and motorists should therefore exercise caution.

Also, the Meteorological Service of the Netherlands Antilles and Aruba has issued a small craft advisory and a high surf warning. Both will remain in effect until further notice.

Source : The Daily Herald St. Maarten

JetBlue’s travel pass: one month of unlimited flights for $599 Aug 13

JetBlue have announced a brilliant new travel pass, although it is for a limited time only (9 September-8 October). The All-You-Can-Jet Pass lets you make unlimited flights anywhere on the JetBlue network for one month for just USD$599.

It is good for travel on more than 600 daily flights to 57 cities on the jetBlue network. Domestic taxes and fees are included for travel within the United States, but you have to pay taxes for flights to Puerto Rico and to international destinations such as the Aruba, Bahamas, Barbados, Bermuda, Dominican Republic, Jamaica, Mexico, St Maarten and St Lucia.

You need to be a member of TrueBlue, JetBlue’s frequent flyer program, to use the pass. You earn 35 TrueBlue points when you buy the pass, but the flights you make with the pass aren’t eligible for any points.

This pass is only available for sale until 21 August 2009 (or while stock lasts), it is only valid for flights from 9 September to 8 October 2009, you must book your flights with jetBlue’s call centre at least three days before each flight and you must only book one flight per city per day (in other words just because your flights are free, don’t make multiple bookings you won’t use).

Sun Country Airlines Announces Caribbean Winter Schedule Aug 06

sun-country-airlines

Airline Announces New Exclusive Non-Stop Service to San Juan, St. Thomas and West Palm Beach

ST. PAUL, Minn.–Sun Country Airlines announced today the addition of exclusive non-stop service to San Juan, Puerto Rico and St. Thomas, Virgin Islands every Sunday as well as West Palm Beach, Florida on Mondays and Fridays this winter. The Hometown Airline also released details of its winter 2009/2010 flight schedule.

Flights are now available for purchase at suncountry.com, Sun Country reservations (1 800 FLY-N-SUN) and travel agencies. In addition to popular destinations in Mexico and the Caribbean, Sun Country will be offering service to winter hot spots in the U.S.

As part of its expanded winter service, Sun Country will offer customers nonstop flights from Minneapolis/St. Paul to the following destinations: Cabo San Lucas, Cancun, Cozumel, Ft Myers, Harlingen, Ixtapa/Zihuatanejo, Mazatlan, Miami, Montego Bay, Orlando, Puerto Vallarta, Punta Cana, and St. Maarten. The flights, which will begin between fall of 2009 and spring of 2010, will be operated with a combination of fuel-efficient Boeing 737 aircraft.

About Sun Country Airlines

MN Airlines, LLC, d.b.a. Sun Country Airlines is based in St. Paul, Minnesota. Sun Country, which has earned a reputation for offering world class service at an affordable price, was recently named in the “Top Ten Domestic Airlines” by Travel+Leisure for the fourth year in a row and Condé Nast Traveler for the third year in a row.  The airline flies to popular destinations in the U.S., Mexico and the Caribbean. For a complete list of destinations and more information, please visit www.suncountry.com.

BEST Cheeseburger in the Caribbean (by the readers of All At Sea) Aug 05

Rank

Restaurant
Location

% of Votes

1

Heidi’s Honeymoon Grill
Water Island, USVI

31.03%

2

Buccaneer Beach Bar
St. Maarten, Netherlands Antilles

24.71%

3

Skinny Legs
St. John, USVI

8.05%

4

The Lost Penguin
Bonaire, Netherlands Antilles

6.90%

5

Just-In-Case Deli
St. Croix, USVI

5.75%

6 (Tie)

Jolly Roger
Tortola, BVI

2.87%

6 (Tie)

Dog Watch Tavern
Antigua

2.87%

6 (Tie)

Trappas
Antigua

2.87%

9

Le Select
St. Barthelemy, FWI

2.30%

10 (Tie)

Deep End
St. Croix, USVI

1.72%

10 (Tie)

Golden Rail Cafe
St. Croix, USVI

1.72%

10 (Tie)

Cheeseburger in Paradise
St. Croix, USVI

1.72%

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Cruise Out of Charleston to the ‘friendly island’ of St Maarten … Jul 20

If you’re planning a tropical cruise, choose Charleston as your cruise port. Not only is it a beautiful city to spend some time in, but also there are a lot of affordable cruise options.

Charleston’s cruise port, which is located in the historic district, is host to the following cruises over the next year and a half:

* Celebrity Mercury ; 11 Night Eastern Caribbean – sail dates: February 15, 2010, March 8, 2010 or March 29, 2010 – sails to San Juan, Puerto Rico; Charlotte Amalie, St. Thomas, U.S. Virgin Islands; Philipsburg, St. Maarten; Basseterre, St. Kitts; and Tortola, British Virgin Islands before returning to Charleston. Prices for these cruises start at $999 per person.

Central Bank leans towards dollarisation Jul 09
dollar-billPhilipsburg – Dollarisation maybe the direction in which to head for the new Countries of St. Maarten and Curaçao – a choice already made for the soon-to-be Dutch public entities Bonaire, St. Eustatius and Saba.Giving the 2008 financial report, Central Bank of the Netherlands Antilles President Emsley Tromp said having the US dollar as legal tender removed the possibility of a balance of payments crisis with the risk of devaluation.An economic downturn or reversal of capital flows would not turn into a currency crisis, he added. However, economic adjustments will be necessary to improve the investment climate and hence regain the trust of foreign investors. In addition, the elimination of devaluation risk will promote trade and foreign investments, make foreign borrowing cheaper, and reduce international transaction cost.

The new countries Curaçao and St. Maarten will form a monetary union with one central bank and a common currency. St. Maarten is already de facto dollarised and the US dollar is widely accepted in Curaçao. Therefore, it would not be such a big step to formally dollarise St. Maarten and Curaçao.

However, dollarisation has some drawbacks.

First, the authorities lose monetary policy as an instrument to steer the economy, limiting the available policy mix to correcting macroeconomic disequilibria. Second, the “lender of last resort” function of the Central Bank disappears. Finally, under dollarisation, the Central Bank would lose its main sources of income: investment of the foreign exchange reserves and issuing banknotes.

Given the limited scope to pursue independent monetary policy under the current exchange rate regime, this loss would not be substantial, according to the Central Bank. The recent adjustment periods have indicated that small open economies like ours are limited to fiscal policies and structural measures to remain competitive and hence improve their investment climates.

The lion’s share of the Central Bank’s profit consists of licence fees, which will continue to exist under the regime of dollarisation. With the balance of payments constraint no longer binding, the need to hold foreign exchange reserves to maintain the peg no longer applies. Therefore, the bank’s capital reserves will all become investable funds, thereby preserving the profitability of the bank, Tromp pointed out.

“We need to accelerate the deposit insurance scheme. Aside from providing depositors with added security, the funds of such a scheme, some of which can come from the current reserve requirements, will meet the function of lender of last resort. Moreover, the government would have to assume this function even under the current exchange rate regime. This became abundantly clear during the recent financial crisis,” he explained.

Dollarisation would result in no perceptible changes in the profit of the Central Bank and hence no impact on the government budget. Rather, it might lead to an increase in the bank’s profit, as the balance of payments constraint always has confined the bank to pursue a policy of profit maximisation. The bank also has non-interest sources of income in terms of the fees it charges the financial institutions to cover the cost of financial sector supervision.

A careful assessment towards a more realistic balance between the advantages and disadvantages of dollarisation for Curaçao in particular should be part of the public debate in choosing the most suitable monetary system for the future countries in the Kingdom, the bank president suggested. The balance seems to point in the direction of dollarisation, given the vulnerabilities in the present world economic order.

As for financial sector vulnerability in the new constitutional structure of the Kingdom, the bank envisions a financial supervision structure in which every country will have its own supervisory institution, complemented by a standard-setting body on the Kingdom level.

This body will consist of the presidents of the respective central banks and be charged with the preparation of legislation in line with international best practices, the timely implementation of rules and regulations, and monitoring compliance.

Such a structure not only will guarantee compliance with international supervisory standards and create a level playing field with uniform rules within the Kingdom, but also will promote transparency and credibility.

For setting up this structure, the current cooperative arrangements between the central banks of the Netherlands, Aruba, and the Netherlands Antilles can serve as a basis. This approach will ensure a solid supervisory architecture, sound financial institutions, and financial stability in the new countries of the Kingdom, thereby removing a major potentially destabilising force on our financial sector.

* Note from editor : “new country” in this case means, separate country status in The Kingdom of the Netherlands.

* Source : The Daily Herald St. Maarten

St. Maarten