Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) Grisha Heyliger-Marten’s comment that St. Maarten cannot be run on its current 530-million-guilder budget (see Thursday newspaper) and needs “a cash injection of minimum 250 million” prompted quite some reaction. One must keep in mind that she responded that way after being told during Wednesday’s press briefing that many things are not going as they should in the country.
One of her concerns is that the three largest of seven ministries remain underfunded despite consuming the largest share of the budget. TEATT has just Cg. 22 million of which Cg. 4 million is used to market the destination while tourism is its backbone.
Perhaps government should consider buying the big US Jackpot Lottery, because that’s probably the only way such a revenue hike of almost 50% can realistically be achieved any time soon. Increasing public sector income for example by raising taxes or social premiums is a delicate and probably gradual process that must balance every implication, including socioeconomic factors.
The stated aim to increase the budget by at least another Cg. 20 million seems more feasible, although caution remains advised. One major area offering potential additional earnings are the – largely untaxed – short-term vacation rentals including via online platforms such as Airbnb, which in a fiscal sense also provide unfair competition for more traditional visitor accommodations.
The minister says the matter is being studied carefully to make sure whatever strategy St. Maarten chooses works and the same mistakes seen in other places are not repeated here. That’s all good and well, but the matter has been in discussion for many years already, without much in the way of tangible results.
High time to pick this low-hanging fruit.
