PM Douglas: Tourism product big part of Federation’s economic growth
By Terresa McCall
Reporter-SKNVibes.com
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Norweigian Dawn
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Basseterre, St. Kitts: The improvement of the tourism product has been cited by Prime Minister of Federation, Dr. the Hon. Denzil Llewellyn Douglas, as a fundamental aspect of economic growth in the Federation of St. Kitts and Nevis.
“Economic growth in St. Kitts and Nevis over the last decade has been increasingly based on the continual improvement of our tourism product. The tourism sector’s significant and growing contribution to GDP through visitor expenditure, foreign exchange earnings, and employment generation is critical to the continued progress of our nation,” Douglas said yesterday while delivering the 2007 Budget.
The PM described tourism as “a dynamic industry which has become globally competitive in every respect” and in giving an overview of its fiscal impact on the Federation, explained that since 2005, there has been an increase in its profitability.
“In 2006, the Tourism Sector continued to record significant growth and to make a substantial contribution to economic activity. Specifically, stay-over arrivals in the Federation increased by 6.2% from 127,728 visitors in 2005 to 135,691 visitors in 2006. More importantly, this has resulted in a direct increase in expenditure by stay-over visitors of $10.9 million or 4.6%. Cruise passenger arrivals to our Federation declined by 5.7% from 215,351 in 2005 to 203,075 in 2006. However, onshore expenditure by cruise ship passengers increased from $19.5 million in 2005 to $19.9 million in 2006 caused by an increase in per capita expenditure.”
Douglas said that he foresees significant activity in the Cruise Tourism Sector in the short term. Notwithstanding, Douglas continued, owing to the vibrant tourism industry, the Federation it is essential that the Federation employ strategies aimed at enhance its competitiveness in the global market. ~~Adz:Right~~
“We also expect significant growth in the Cruise Tourism Sector in the upcoming season. The current itinerary for cruise ship arrivals in our Federation suggests that we could reach record levels of passenger arrivals in 2008. Tourism is a dynamic industry which has become globally competitive in every respect, with travellers having more leisure options available at better prices than ever before,” the Prime Minister added.
“Consequently, it has been necessary for our Federation to engage focused strategic planning with a view to enhancing our competitiveness in the global tourism marketplace and attracting more visitors. Indeed in last year’s budget address I reported that my Government had carried out a strategic planning exercise for the Tourism Sector and I outlined the overriding objectives of the Strategic Plan. This year, I am pleased to report that we are already making progress in implementing the Strategic Plan,” he added.
The Finance Minister said that the Tourism Sector and the economy are in strategic positions to capitalize on the “increase in the rate of economic growth” which is likely to result from the “continued influx of large amounts of foreign direct investment into the Federation.”
“Currently, there are several projects still under construction or nearing completion which are already impacting positively on the sector; these include Ocean’s Edge, St Christopher Club, Sundance Ridge Estates, Calypso Bay Villas, Half Moon Heights, Marriott Vacation Club International, and Sun Rise Villas. Moreover, within the next two years several major resort developments are scheduled to commence (including) the Christophe Harbour project, and Kittitian Hill.
I have no doubt these major developments in the tourism sector will give momentum to the Government’s programme of economic transformation, and help to push St. Kitts and Nevis to the forefront of the high-end luxury segment of the tourism market in the Caribbean,” Dr. Douglas.
