Friday’s inaugural flight by TUIfly was good news in several ways. For starters, it came just one day after the Central Bank story that St. Maarten’s economy had in fact contracted by 0.6 per cent during the second quarter of 2015.
Granted, April, May and June are usually relatively slow between the high tourism season and the summer school vacation. Carnival does bring some extra activity, but in general this part of the year is not one known for exponential growth.
Having said that, the same period saw an expansion in 2014, so there is obviously some reason for concern. Besides, the outlook for the remaining half of 2015 was not that great to begin with.
Although it has nothing to do with the second quarter figures, the Central Bank’s report also mentioned political uncertainties that hamper economic growth and the need for stability to create a better macroeconomic environment. The constitutional crisis has since been resolved, but only time will tell what the possible negative impact on doing business and especially the hospitality industry may have been.
It also must be taken into account that the interim cabinet of the incoming NA/DP/USP/Lake/Matser coalition to be installed in the next few weeks will need time to get its feet wet and deal with what the Central Bank said were “major deficiencies not being addressed adequately.” In addition, looming elections usually don’t make for very decisive governments either.
Keeping all this in mind, the boost that TIUfly could give to tourism from Europe and the Netherlands in particular is even more welcome. While the island’s main source-market by far continues to be North America, the importance of diversification cannot be underestimated.
An increasing number of Dutch visitors over the last few decades proved crucial for Curaçao, but also Bonaire and Aruba to a lesser extent. Up to now St. Maarten has not been very successful in targeting this market, but the additional twice-weekly airlift could help change that also in terms of price competition with Air France/KLM and, according to the carrier, almost double the current 17,000 Dutch vacationers per year to 32,000.
It’s now up to “The Friendly Island” to make the new flights work by providing these guests with a rewarding holiday experience. That is a task not just for those directly involved, but for the entire population of St. Maarten.
