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Economie Impact Study (EIS®)
for the Maritime Sector of
the Netherlands Antilles
Conc1usions and Recommendations
Prof. Dr. Chris Peeters Drs. Lars Couvreur Drs. Gustaaf De Monie
Hir. Frank Hendrickx Ing. Karel Joos Drs. Jan van der Linden
Bibliotheek TU Delft
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Economic Impact Study (EIS®) for the Maritime Sector of the Netherlands Antilles
Policy Research Corporation N. V. based in Antwerp, Belgium, specialises in providing both economie and management consuiting support to public and private dec is ion makers. Poticy Research aims to produce scientifically reliable studies which are at the same time practical and ready for imple-mentation. The studies are often considered projects, with the formulation and implementation of policy recommendations as the main trademarks of the company. Over the last decade, Policy Research has become a recog-nised 'think-tank'. The main areas of expertise are transport economics, government policy and strategic management. Many of the studies, both carried out for governments and private companies, prove to be extremely influential.
Prof. Dr. Chris Peeters is Executive Director and President of the Board of Directors of Policy Research. Prof. Peeters also teaches public finance, in-ternational finance, maritime economics and transport economics at the Fac-ulty of Applied Economics of the University of Antwerp, where he is at-tached to the Department of Transport Economics. Prof. Peeters is a well-known expert on the maritime industry and on policy analysis in general, and is an external advisor to several public and private policymakers. He is the author of influential strategic papers and scientific publications, includ-ing an analysis ofthe Dutch shipping industry and policy.
·Drs. Lars Couvreur is a Research Associate at Policy Research. He studied economics at the University of Amsterdam and specialised in Traffic & Transport Economics and Marketing Management. He has acquired interna-tional experience in the field of policy making for the shipping sector. Countries and their respective Governments he has advised, or whose mari-time policy is in the process of being evaluated, include the Netherlands, Germany, Italy, the United Kingdom, Belgium and the Netherlands Antilles.
Drs. Gustaaf De Monie is the Research Director with Policy Research. He is a renowned international expert in port planning and management and a well-known advisor to amongst others The World Bank, UNCTAD, ILO and EBRD. His role as a manager of a large terminal operating company pro-vided him with substantial practical transport and logistics know-how. He acquired extensive field experience as an international consultant responsible for the development of port master plans and the design of operational sys-tems for specialised terminals.
Hir. Frank Hendrickx is Senior Research Associate at Policy Research. He holds a degree in Commercial Engineering, summa cum laude from the Uni-versity of Antwerp. Mr. Hendrickx gained consuiting experience in the field
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of maritime transport and shortsea shipping by working on a number of studies and research projects. He is also the co-author of strategy papers on container terminal management arrangements and on issues relating to the strategic positioning of shipping lines.
Ing. Karel Joos is a Research Assistant at Policy Research. He graduated from the Belgian Royal School of Cadets and the Royal Military Academy and holds a degree in construction engineering and tinancial economics. Before he joined Policy Research, Mr.. Joos was a project officer with the Directorate of Military Constructions and performed input-output analysis on the Belgian army budget. In his present function, he specializes in using input-output analysis to evaluate and optimize govemment policies re lating to maritime sectors.
Drs. Jan van der Linden is Research Associate at Policy Research. He graduated in Regional Economics at the Erasmus University Rotterdam. Af-terwards he worked at the Vniversity of Groningen, where he studied the developments of !he intercountry economic interdependence in !he European Vnion. In the autumn of 1998 he wil! take his doctoral degree on th is study. He is a specialist in the field of input-output analysis and in the development and implementation of analytical methods for the studies carried out by Pol-icy Research.
Economic Impact Study (EIS®) for tbe Maritime Sector of
tbe Netberlands Antilles
Conclusions and Recommendations
Prof. Dr. Chris Peeters Drs. Lars Couvreur Drs. Gustaaf De Monie
Hir. Frank Hendrickx Ing. Karel Joos Drs. Jan van der Linden
Delft University Press
1998
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Published by
Delft University Press Mekelweg 4 2628 CD Delft The Netherlands Tel.: +31-15-2783254 Fax: +31-15-2781661
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-E-mail: DUP@DUP.TUDelft.NL for
Policy Research Corporation N.V. Jan Moorkensstraat 68 B-2600 Antwerpen Belgium Tel.: +32-3-286.94.94 Fax: +32 -3-286.94.96 E-mail: policyresearch@innet.be ISBN 90-407-1735-4 _ Ie f t
Keywords: maritime, economie impact study, Netherlands Antilles
Copyright © 1998 by Ministry of Transport, Directorate General Freight Transport
All rights reserved. No part of the material protected by this copyright may be reproduced or utilized in any form by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system without written permission of the owner of this copyright. Permission may be obtained at the following address: Ministry of Transport, Contractfunctionary Maritime Traffix, P.O. Box 20904, 2500 EX The Hague, The Netherlands
Qualitatively the maritime sec -/or is even more important: the island economies of the Neth er-lands Anti//es depend on the maritime sec/or 10 provide
pro-duction factors and consumer goods. Moreover, the maritime sector is strongly Iinked with other sectors in the economy.
Preface
PREFACE
WORD FROM THE AUTHORS
From the Economie Impact Study (EIS®) for the Maritime Sector of the Netherlands Antilles (A-EIS), the fundamental importance of the maritime sector for the Antillean economy is apparent. The maritime sector of the Netherlands Antilles accounts for a total value added of 621 million NA! Nearly II 700 jobs depend on the maritime sector. On Curaçao, 11% of total employment is related to the maritime sector. For the other islands this figure is even higher: 17% for Bon-aire, and 19% for the Windward islands. The maritime sector gener-ates a total backflow of over 132 million NA! to all levels of gov-emmen!. Moreover, the analysis has shown that there is potential to flIrther increase this economic significance.
It should be stressed that qualitatively the maritime sector is even more important: island economies like the Netherlands Antilles largely, if not completely, depend on the maritime sector for the pro-vision (and export) of raw materiais, semi-manufactured articles, capital goods and con slim er goods. Moreover, as is shown in this re-port, the maritime sector has strong linkages with other (sub)sectors, sllch as free zone trading activities and cruise tourism. Because ofthe strong linkages with the rest of the economy, an integrated approach for the stlldy ofthe maritime sector and its potential is chosen.
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Economic Impact Study (EIS®) for the Maritime Sector of the Netherlands Anti/lesThe recommendations constitute a FRAMEWORK POLICr with MARlT/ME FOCUS, and will generale considerab/e economie growlh.
The imp/emenlalion of the rec-ommendalions should be done by Ihe Beleidscoördinaliecom-missie (BCC), also known as the IDB Task Force, bul requires Ihe supporl of all o/her parties invo/ved.
The Economic Impact Study (EISJY) for the Maritime Sector of the Netherlands Antilles has provided decision-makers with an insight in the composition ofthe maritime sector and its economic significance. Moreover, the study has identified the strengths and weaknesses of the sector and its sub-sectors. In order to further develop the mari-time sector, policy alternatives were developed and evaluated. Sased on the ex ante evaluation of the policy scenarios, the A-EIS project has resulted in a large number of detailed and concrete policy rec-ommendations for all levels of government involved. The policy rec-ommendations are presented in implementation matrices, which do not merely contain policy recommendations, but a concrete plan for their implementation as weil.
In summary, this report presents a ready-to-implement plan for the further development of the maritime sector of the Netherlands An-tilles. The expected effects are quantified beforehand, and show that the implementation of a FRAMEWORK POLICr with MARITIME FOCUS will generate over 3 600 jobs and nearly 200 million NAf. in value added. Finally, the additional backflow to the government of over 40 million NAf. a year is expected to easily outweigh the costs related to the FRAMEWORK POLICr.
Sy means ofthe bot/om-up approach, Policy Research has succeeded to provide the policy makers of the Netherlands Anti lies with a basis for the further implementation of these recommendations. The top priority for the government of the Netherlands Antilles should now be to institutionalise the 'Beleidscoärdinatiecommissie' (SCC), better known as the IDB Task Force, as a central government body. The SCC should co-ordinate and monitor the implementation process of the A-EIS project. Moreover, it is of the utmost importanee that Key Players in the various sub-sectors assume their responsibility to take the lead in further developing their sector, building on the momen-turn of the A-EIS project. In short, the time to study is over, the time to take action has come.
Prof. Or. Chris Peeters
-Preface
ACKNOWLEDGEMENTS
Policy Research Corpora/ion N. V. would like to thank all Key Play-ers that actively collaborated with by providing relevant input infor-mation, discussing related issues with the project team or any other action that assisted the latter in carrying out the study.
A special word of gratitude goes to Mr. Jochem Goslinga, Advisor to the Minister of Traffic and Transport ofthe Netherlands Antilles. The entire research team thanks him for supporting and facilitating the field research missions of Policy Research and especially for the immaculate organisation of three crucial workshops on Curaçao, In co-operation with Pro Business and Curaçao [nc.
Many thanks to Prof. dr. Diana Phillips (University of Antwerp) for revising the text.
Finally, the authors would like to thank the entire staff of the Policy Research for their valuable and highly appreciated contribution to the Economic Impact Study (EI.<fFJ) for Maritime Sector of the Nether-lands Antilles.
Economic Impact Study (EIS®) for the Maritime Sector of the Netherlands Antilles
This Final Report consists of /wo volumes:
- Volume I 'EIS® Results ';
- Volume 11 'Cruise and
Container Markets '.
The most important conc/usions and recommendations are pre-sented in the Executive Sum-mary.
The policy recommendations are presented in detail in imple-men/atian matrices, which do not merely contain policy rec-ommendations, but a concrete
planfor their implementation as weil (see Chapter XI). For more detailed information on a subject, references are made to the relevant chapter of the report in the last column of the implementalion matrices.
Finally, Ihe lexl boxes serve as a guide 10 Ihe reader.
STRUCTURE OF TUE REPORT: GUlDE FOR TUE READER
The Fina/ Report ofthe Economic Impact Study (EISW) for Maritime Sector of the Nether/ands Antilles consists of two volumes:
Volume I 'Conc/usions and recommendations " focusing on all aspects of the internal situation on the Netherlands Antilles: the country's general economie performance, its maritime sector and related government policies and the economie impact of the five policy scenarios and, finally, conclusions and recommendations; - Volume II 'Cruise and Container Markets ' presents an elaborate
(external) analysis of the maritime situation in the Caribbean re-gion, focusing on trends and developments in cruise (tourism) and container shipping.
Both volumes are preceded by an Executive Summary comprising the most important aspects and conclusions ofthe study.
The general conc\usions and recommendations of the project are pre-sented in Chapter XI of Volume I. The policy recommendations are presented in implementation matrices, which do not merely contain policy recommendations; but a concrete plan for their implementa-tion as weIl. As such, the implementaimplementa-tion matrix identifies the re-sponsible level(s) of government and provides an overview of the concrete actions required. Moreover, the implementation matrix al-lots priorities to the execution of the proposed measures. Finally, the matrices contain 'Milestones', which reflect recommendations with respect to the timing of the implementation phase. For more detailed information on a subject, references are made to the relevant chapter ofthe report in the last column ofthe implementation matrices.
Finally, the text boxes in the margin ofthe report contain the 'thread' ofthe presented information. As such they can be read separately and serve as a guide to the reader.
Table of contents
T
ABLE OF CONTENTSPREFACE .................. i
T ABLE OF CONTENTS ... Ui LIST OF ANNEX ES ... viii
LIST OF FIGURES ... ix
LIST OF TAB LES ... xi
EXECUTIVE SUMMARY ... ... ES.l J. INTRODUCTION ... ; ... 1
l.I. GENERAL INTRODUCTION: GOAL OF THE RESEARCH PROJECT ... 1
1.1.1. Background ... ... .. 1.1.2. Goals ofthe research project. 1.1.3. Policy a/ternatives ... ... .. .. .. I .. ... 3
..3
1.2. SHORT OVERVIEW OF THE APPLlED METHODOLOGY ... .4
1.3. STRUCTURE OF THE REPORT AND ANNEXES ... 6
11. MACRO-ECONOMIC PERFORMANCE OF THE NETHERLANDS ANTILLES ... 9
11.1. GENERAL OVERVIEW ... 9
11.2. MACRO-ECONOMIC ENDOWMENTS AND IMPERFECTIONS ... II 11.2.1. Gross Domestic Product... . II 1/.2.2. 11.2.3. 11.2.4. 11.2.5. /1.2.6. 1/.2.7. Investments, Savings and Consumption The Public Sector ... The Labour market. The Capital MarkeI. . Entrepreneurship .... The Balance of International Payments ... /3 .. ... 16 .. ... 21 .. .. 24 .. ... 27 .. ... 28 11.3. CONCLUSIONS ... 32
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-Economie Impact Study (EIS®) for the Maritime Sector of the Netherlands Antilles
111. INTERNAL ANAL YSIS: THE MARITIME SECTOR OF THE NETHERLANDS
ANTILLES ... 35
111.1. INTRODUCTION ... 35
IlI.l.l. Subsectors ofthe maritime sector ... . ... 33
m.I.2. Current significance ofthe maritime sector ofthe Netherlands Antilles ... 37
111.2. THE MARlTIME SECTOR OF CURAÇAO ... 38
1/1.2.1. Economic significance: overview. ... 38
111.2.2. Subsector shipping... .40
1/1.2.3. Subsector port-re/ated services ... 41
111.2.4. Subsector shipping agen/s... . .... 43
111.2.5. Subsec/or ship repair... . .. 44
m.2.6. Subsec/or regis/er-related services ...... . ... 45
1/1.2.7. Cruise /ourism 111.2.8. 111.2.9. Free zone 'Koningsp/ein' Misce//aneous activities ... 46
.47 . ... 48
111.3. THE MARITJME SECTOR OF BONAIRE ... 51
111.3. J. Economic significance: overview... ...... ... . ... 51
111.3.2. Subsec/or maritime services... . ... 52
111.3.3. Subsectors oil refining, storage and /ranshipmenl. ... 55
111.3.4. Cruise /ourism ... . ... 55
111.4. THE MARlTIME SECTOR OF THE WINDWARD ISLANDS ... 57
1/1.4. /. Economic significance: overview ... . ... 58
111.5. THE MARlTIME SECTOR OF SINT MAARTEN ... 59
111. 5.1. Subsector maritime services ... ... ... . ... 59
111.5.2. Cruise /ourism ... 60
111.6. THE MARITIME SECTOR OF STATIA ... 61
111. 7. THE MARITIME SECTOR OF SABA ... 63
IV. EXTERNAL ANALYSIS: CONCLUSIONS OF THE CARIBBEAN PORTS SCAN ... 67
IV.I. THE CRUISE LlNE INDUSTRY ... 67
IV.I.I. Trends and struc/ural changes in the cruise indus/ry during the past decade ....... 67
1V.!.2. The competi/ive position of Curaçao and Sin/ Maar/en ... 71
IV.2. THE CONTAINER LlNE INDUSTRY ... 76
1V.2.1. Conc/usions and recommenda/ions wi/h regard /0 /he Port of Wil/ems/ad ... 76
1V.2.2. Conclusions and recommenda/ions wi/h regard /0 /he Port ofPhilipsburg (Sint Maar/en) ... . . ... 82
POLICY SCENARIOS: INTRODUCTION ... 89
I. INTRODUCTION ... , ... , ... , ... 89
2. POUCY ASPECTS ... 90
Table of contents
V. POLICY SCENARlOS FOR CURAÇAO ... 93
V. I. SCENARIO I: CONTINUATlON ... 93
V.2. V.3. SCENARIO 2: LAISSEZ FAIRE ... .. .. ... 95
SCENARIO 3: REGISTER PLUS ... 99
V3.1. Inlroduclion ...... .. ... 99
V3.2. V3.3. O~jeclives and compelilion Markei posilion: high versus low quality ... . V 3.4. Co-operalion versus independence ... V 3. 5. Organisalion: public vs privale. service level ... 100
. 101 .102 ... 106
V.4. SCENARJO 4: INTEGRATED MARJTIME POLICY ... 113 V4.1. Faci/ilalion oj economic growlh in generaI.. .. ... 114 V4.2. Slimulalion oj aClivilies in lhe marilime sector .. 121
V4.3. Provision ojjavourable boundary condilions.. .. ... 133 V.5. SCENARJO 5: FRAMEWORK POLICY WITH MARITIME Focus ... .. VS. I. Measures aimed al reslrueturing governmenl... . ... .. V5.2. Measures aimed al spurring economie growlh in generai .. V5.3. Measures aimed al providing beneficial boundary conditions .. V 5.4. Measures aimed at allraclingjoreign inveslmenl. V5.5. V 5. 6. V5.7. Seclor-specific measures.. Measures aimed al slimulaling inter-is land lrade .. Measures aimed al promoling lhe Nelherlands Anlil/es ... . ... 146 147 148 .. ... 149 .. ... 150 ..... 150 .. ... 155 .. ... 155
VI. POLICY SCENARlOS FOR BONAIRE ... 157
VI.I. SCENARIO I: CONTINUATlON ... 157
V1.2. SCENARJO 2: LAISSEZ FAIRE ... 158
VU. SCENARIO 3: REGISTER PLUS ... 159
VI.4. SCENARIO 4: INTEGRATED MARITIME POLICY ... .. VI.4.I. Faci/ilation oj economic growlh in genera! ....... . VI. 4.2. Slimulalion oj aClivilies in lhe marilime seclor. VI. 4.3. Provision ojjavourable bOllndary condilions .. ... 160
160 . ... 167
.. ... 171 V1.5. SCENARIO 5: FRAMEWORK POLICY WITH MARITIME Focus ... 173
VU/. VO.2. VI. 5. 3. VI. 5. 4. Measlires aimed al reslrllctllring governmenl ... .. Measlires aimed al spurring economic growlh in generai ... Measllres aimed al providing beneficial bOllndary eonditions Measllres aimed at allraetingjoreign inveslmenl ... . VI. 5. 5. Seclor-specific measllres.. .. ... .. VI. 5.6. Measllres aimed al promoting Ihe Nelher/ands Antil/es .. © Policy Research Corporation N. V. .. ... 174 ... 174 .... /74 .. ... 174 .. ... 175 .. ... 176
Economic Impact Study (EIS®) for the Maritime Sector of the Netherlands Antilles
VII. POLICY SCENARIOS FOR SINT MAARTEN ...••...•...•...•..••... 177
VIL!. SCENARIO I: CONTINUATION ... 177
VII.2. SCENARIO 2: LAISSEZ FAIRE ... 179
VII.3. SCENARIO 3: REGISTER PLUS ... ...179
VIl.4. SCENARIO 4: INTEGRATED MARITIME POLICY ... 180
VI!. 4. I. Facilitation of economie growth in genera!.. ............ ......... .. 181
Vll.4.2. Stimulation of activities in the maritime sector ............................... 187 Vll.4.3. Provision of favourable boundary conditions ...... .. 190
VII.5. SCENARIO 5: FRAMEWORK POLICY WITH MARITIME Focus ... 193
Vll.5.1. Measures aimed at restructuring government ............. 193
Vil. 5. 2. Measures aimed at spurring economie growth in general ............... 194
Vil. 5. 3. Measures aimed at providing beneficial boundary conditions ............. l94 Vll.5.4. Measures aimed at altracting foreign investment ... .. ................... 194
Vll.5.5. Sector-specific measures ...... ....... 195
Vll.5.6. Measures aimed at promoting the Netherlands Antilles ................................ J96 VIII. POLICY SCENARlOS FOR STATIA ... 197
VII!.I. SCENARIO I: CONTINUATlON ... 197 VII!.2. SCENARIO 2: LAISSEZ FAIRE ... ... .. ... 198
VII 1.3. SCENARIO 3: REGISTER PLUS ... . .. ... 199
VII!.4. SCENARIO 4: INTEGRATED MARITIME POLlCY ... . .. ... 199
VIIJ..J.l. Faci/ilaling economie growth in general .... . VlIJ. 4.2. Slimulaling aClivilies in Ihe maritime sector. VlIJ. 4. 3. Providingfavourab/e boundary conditions.. . VII!.5. SCENARIO 5: FRAMEWORK POLICY WITH MARITIME Focus ... VII!. 5. I. Measures aimed at restrucluring government ... .. VII!.5.2. Measllres aimed at spurring economie growth in general ... . VIII. 5. 3. Measllres aimed al providing beneficial boundalY conditions ...... . VIII. 5. 4. Measures aimed al attractingforeign inveslmenl .. . VIII. 5. 5. Sector-specific measures ... . VIII. 5. 6. Measures aimed al promoting Ihe Nelher/ands Antilles .. . ..... 199 .. .... 203 . .... 206 .. ... 208 . .... 208 . ... 208 .. ... 208 . ... 209 . .... 209 . ... 210 IX. POLICY SCENARIOS FOR SABA ... 211
IX.I. SCENARIO I: CONTINlIAllON ... IX.2. SCENARIO 2: LAISSEZ FAIRE ... 211
... 212 IX.3. SCENARIO 3: REGISTER PLUS ... .. IX.4. SCENARIO 4: INTEGRATED MARITIME POLICY ... .' ... . IX 4.1. Faci/itation of economie growth in generaI .. . IX4.2. Slimulation of activities in the maritime sector IX4.3. Provision offavourable boundary condilions ... 212
. ... 212
.. ... 213
... 217
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TabJe of contents
IX.5. SCENARIO 5: FRAMEWORK POLICY WITH MARJTlME Focus ... 220
/X5./. Measures aimed at restructuring government... ... .. ... 220
/X5.2. Measures aimed at spurring economie growth in genera/........ ... .. .... 22/
/X5.3. Measures aimed at providing beneficial boundary conditions ... 22/
/X5.4. Measures aimed at attractingforeign investment ...... 22/
/X5.5. Sector-specijic measures ... ...... . .. ... 222
IX. 5. 6. Measures aimed at promoting the Netherlands Antilles ... .. . .... 223
X. ECONOMIC IMPACT OF POLICY SCENARIOS ... 225
x.!. X.2. ECONOMIC IMPACT ON CURAÇAO ... 227
X.I.I. Determination of direct economic impact ... 227
X 1.2. Direct economie impact per subsector ... ... .. ... 228
X /.3. Total economie impact ofthe maritime sector ... 232
ECONOMIC IMPACT ON BONAIRE ... .. X2.1. Determination of direct economic impact. X2.2. X2.3. Direct economie impact per subsector ..... . Total economic impact ofthe maritime sector .. ... 234
.. ... 234
.. ... 234
.. ... 237 X.3. ECONOMIC IMPACT ON THE WfNDWARD ISLANDS ... 239
X3.1. Determination of direct economic impact ... 239
X3.2. Direct economic impact per subsector ... .. .. ... 240
X3.3. Total economie impact ofthe maritime sector .. .. ... 243
X.4. SUMMARY AND CONCLUSION ... . . ... 244
XI. CONCLUSIONS AND RECOMMENDATIONS ... 247
XI.I. CONCLUSIONS ... .. ... 247
Xl/./. Current economic signijicance ....... . Xl 1.2. Policy scenarios ... ....... . Xll.3. General conc/usions ... . .. ... 247
... 249
. .... 251
X1.2. POUCY RECOMMENDATIONS: IMPLEMENTATION MATRJCES ... 252
Xl 2. I. National Government.. ...... .. 253
Xl2.2. Island territory of Curaçao ... 260
Xl2.3. /sland /erritory of Bonaire . ... .. ... 266
XI. 2.4. /sland territory of Sint Maar/en .. ... 272
Xl2.5. Island territory of Stat ia .. ... .. . ... 278
Xl2.6. Island territory of Saba .. ... 284
Xl2.7. The Dutch government and the Kingdom .. ... 290
XI.3. CLOSINGREMARKS ... 294
Economic Impact Study (EIS®) for the Maritime Sector of the Netherlands Antilles
LIST OF ANNEXES
Annex A LIST OF INTERVIEWED KEY PLAYERS ... A.l
Annex B THE CONTENTS AND ROLE OF INPUT-OUTPUT ANALYSIS ... A.l1
Annex C MACRO-ECONOMIC PERFORMANCE OF THE NETHERLANDS
ANTILLES ... A.29
Annex D ALTERNATIVES FOR THE ORGANISATION OF THE SHIP'S
REGISTER OF THE NETHERLANDS ANTILLES ... A.3S Annex E INTER-ISLAND SHIPPING ... A.41 Annex F REFERENCES ... A.4S
Tl/bie ()fc()ntent~'
LIST OF FIGURES
Figure I. I : Bottom-up versus top-down, , .. ", .. ", .... ", .. ", .. """" .. " .. , .. ,' .... , .. ", ... " .... " .. " .. , .. "", .. , .. ,,5
Figure 11. I : Population Shares in 1995 (in percentages) ... , ... " .. " ... 10
Figure 11.2 : Real and nominal GDP (mln, NA!), 1987-1996 (1987=100) ... " ... , 12
Figure 11.3 : G OP shares, 1995 (in percentages) ... , .... , .... , .. 12
Figure 11.4: Composition of foreign exchange earnings from the services sectoL ... " ... , 16
Figure 11.5 : Tax distribution between the Central and Island Governments ... ,,, ... , .. 19
Figure 11.6: The Solidarity Fund .. ", .. ", .. ", .. "" .. "", .. ", .. ", .. ", .. ", .. """"" .. " .. ", .. """ .. "" .. "" .. " .. , .. , .. 20
Figure 11.7 : Percentage changes of consumer prices, 1985-1995 ... ,,, .. ,, ... 24
Figure 11.8 : Evolution of Interest Rates, 1975-1995 (in percentages) ... 26
Figure 11.9 : Evolution of Foreign Investment in current prices (mln, US$), 1976-1994 ... ,27
Figure ILlO: Evolution of Trade (mln, NA!), 1975-1993 ... 30
Figure 111. I : Cruise vessels and passen gers Bonaire (1987-1997), ... ,56
Figure IV, 1 : Direct and indirect value added contribution by cruise tourism to Curaçao's economy 1986-2005 (in thousands of US$) ... 72
Figure IV,2 : Value added contribution by cruise tourism to Sint Maarten's economy ... ,74
Figure IV,3 : Recommended actions to establish the port of Willemstad as a subregional container hub , .... , .... ", , .. ", .. " .. ", , .. ", .. , .. , , .. ", .. " , .. " , .. " , .... " .. ", , .. , , .. " .. " , .... , , .. , , .. , .. , .. , .. , , .. 79
Figure IVA : Main principles for the revision of the concession and rental agreements in the port of Wi llemstad .. " , .. " .. ", , .. " , .. "" , .. " , .. " , .. , .... " , .... , .... , , .. " , .. , , .. , ... , .. , , .. , , .. , .. , .. , .. ,80
Figure IV,5 : External analysis: conclusions with respect to transhipment on Sint Maarten ... ,86
Figure V, I : Organisation ofthe one-window register ... I 08 Figure V.2 : Three tracks of an Integrated Maritime Policy (IMP) ... , 114
Figure V,3 : Proposed port organisation and government structure for Curaçao, ... , .. 115
Figure VA : Government structure .... , .... ", .. ", .. ", .... "" .. " .. "" .. ", .. , .. " .. " .. ", .. " .. " .. ,, .. , .. , .. " .. , .. , .. " .. ,142
Figure V,5 : Government structure with respect to maritime affairs ... ,,, ... " ... ' 144
Figure VI. I: Proposed organisation for the port of Kralendijk. ", .... " .. ", .. """, .. " .. """"", .... , .... " .. 161
Figure VU: Bonaire, number of cruise passenger visits (x 1 000), 1986-2005, ... ,,, ... ,, ... 164
Figure VII. I : Proposed govemment structure and port organisation Sint Maarten ... , ... , .... 182
Figure VII.2: Extemal analysis: conclusions with respect to cruise tourism on Sint Maarten .... , .... 185
Figure VII.3 : Extemal analysis: conclusions with respect to transhipment on Sint Maarten ... 187
Figure XL 1: Government structure: ... , ... , .... , .... , ... , .... , .... , ... , ... , .. , .. , .. 254
Economic Impact Study (EIS®) for the Maritime Sector ofthe Netherlands Antilles
LIST OF
TABLES
Table 11.1 : GDP per capita in 1994 (US$) ... 13
Table 11.2 : Gross and Net Investment in current prices (mln. NAf), 1988-1993 ... 14 Table 11.3 : Savings and Consumption in current prices (mln. NA!), 1988-1993 ... 14 Table 11.4 : Value Added in the different sectors (mln. NA!), 1993 ... 15 Table 11.5 : Value Added per employee in the different sectors (NAf), 1993 ... 15
Table 11.6: Total Public Debt and guarantees (mln. NAf), 1994-1996 ................................... 18
Table 11.7 : Unit Labour Cost Relative to the Netherlands, 1992 (NLG) ... 22 Table 11.8 : Unemployment on the Netherlands Antilles and its Islands ... 23 Table 11.9 : Indicators for some Caribbean Countries, 1994 ... 23 Table 11.10: The Money Supply and its Components (mln. NAf), 1994-1996 ... 26
Table 11.11 : Balance of Payments (mln. NAf), 1994-1996 ... 31 Table 111.1 : Current significance ofthe maritime sector of the Netherlands Antilles, 1997 ... 3 7
Table 111.2 : Total economic significance of Curaçao's maritime sector, 1997 ... 38 Table 111.3 : Subsectors of Curaçao's maritime sector, total effects (direct plus indirect
plus induced) 1997 ... 39
Table 111.4 : Models of Port Organisation ... .41
Table Ill.5 : Registration of ships, current situation and comparison with competitors ... .45 Table 111.6 : Total economic significance of Bonaire's maritime sector, 1997 ... 5 I
Table 111.7 : Sub-sectors of Bonaire's maritime sector, total effects (direct plus indirect
plus induced) 1997 ... 5 I
Table 111.8 : Port of Kralendijk, number of imported containers (1993-1997) ... 53 Table 111.9 : Total economic significance of the maritime sector of the Windward islands,
1997 ... 58 Tablelll.lO: Subsectors of the maritime sector of the Windward is lands, total effects
(direct plus indirect plus induced) 1997 ... 58
Table V.I : External analysis: conclusions with respect to cruise tourism on Curaçao ... I 19' Table V.2: External analysis: conc1usions with respect to transhipment on Curaçao ... 124
Table X.I : Direct economic impact of maritime activities on Curaçao, 2005 ... 229 Table X.2: Economic impact ofthe maritime sector on the Curaçao economy, 2005 ... 233 Table X.3: Direct economic impact of maritime activities on Bonaire ... 235
Table X 4: Economic Impact ofthe maritime sector on the Bonaire economy ... 237
Table of contents
Table X 5: Direct economic impact of maritime activities on the windward Islands ... 241 Table X 6: Economic impact ofthe maritime sector on the Windward lslands economy ... 244 Table X 7: Comparison of the policy scenarios with the continuation of the present
policy ... 245 Table XI.I : Current significance of the maritime sector of the Netherlands Antilles, 1997 ... 244 Table XI.2 : Comparison of the policy scenarios with the continuation of the present
policy, 2005 ... 246 Table XI.3 : lmplementation matrix for the national government of the Netherlands
Antilies ... 252 Table X1.4: Implementation matrix for the island of Curaçao ... 258 Table Xl.5 : Implementation matrix for the island of Bonaire ... 264 Table X1.6: Implementation matrix for the island of Sint Maarten ... 270 Table Xl.7: lmplementation matrix for the island of Statia ... 276 Table XI.8 : lmplementation matrix for the island of Saba ... 282 Table X1.9: lmplementation matrix for the govemment of the Netherlands and the
Kingdom ofthe Netherlands ... 284
ES.I.
The Economic Impact Study (E1S®) for the Maritime Sector of the Netherlands Antilles (A-EIS project) is commissioned to Policy Research Corporation N. V by the Ministry of TrafJic and Transport of the Nether -lands Antilles.The A-EIS project has been carried out on the basis of an e/aborate bal/om-up approach, comprising the collection of bath qualitative information and cost structure data on all five islands of the Netherlands An-tilles. Moreover, the bal/om-up approach contributes to de vel-oping a basis for (he imp/emen-tation of the recommended pol-icy measures.
Input-Output ana/ysis is used to ca/cu/ate both the present eco-nomic significanee of the sector and the effects of a/ternative sets of policy measures.
Executive Summary
EXECUTIVE SUMMARY
INTRODUCTION
The Economic Impact Study (EIS$J) for the Maritime Sector of the Netherlands Antilles (A-EIS project) was commissioned to Policy Research Corporation NV. by the Ministry of Traffic and Transport of the Netherlands Antilles. Moreover, the Steering Committee,
which was installed to support and monitor the research efforts, also
includes representatives of other federal departments and of the Is-land Territories of Curaçao, Bonaire, Sint Maarten, Statia and Saba. The study is financed by the Dutch Ministry of Transport, Directorate General Freight Transport.
The A-EIS project has been carried out on the basis of an elaborate bottom-up approach. The bottom-up approach eomprises the large-scale collection of both qualitative information and cost structure data on all five islands of the Netherlands Antilles. In addition to the collection of data and information, the bottom-up approach also con-tributes importantly to the development of a basis for the implemen-tation ofthe recommendations proposed in the study.
The collected cost strueture data is an essential input for the Input-Output analysis, used to calculate the current economie signifieance of the maritime sector of the Netherlands Antilles. The Input-Output models are also used to quantify the effects of five alternative sets of policy measures. These policy scenarios are evaluated on the basis of their economic effects in terrns of value added, employment, back-flow to the government and spending impact.
-Economic Impact Study (EIS®) for the Maritime Sector of the Netherlands Antilles
ES.2.
There is a need lor restructuring Ihe Nelherlands Anlillean econ-omy. In Ihis economy. Ihe mari-lime seclor plays an importani role.ES. 2. I.
The maritime sector of Ihe Nelh -erlands Antilles accounls for a 10101 value added of 621 mil/ion NA! Nearly 11 700 jobs depend on il. Moreover. Ihe morilime sec/or generotes a tolal bock-flow to governmenl of 132
mi/-lion NAf
Qualilalively Ihe marilime sec-lor is even more impariani: the island economies of Ihe NeIher -lands Anlilles depend on Ihe maritime sector for provision of prodUClion factors and con -sllmer goods. Moreover. the maritime seclor has strong links with olher sectors of Ihe econ -omy.
ES.2
-This Executive Summary pro vides policy makers and other interested readers with an overview of the most important outcomes, concl u-sions and recommendations of the A-EIS project.
CONCLUSIONS
The macro-economie analysis of Chapter II shows that the economy of the Netherlands Antilles, and especially of Curaçao, is in need of a restructuring and stimulation programme on the basis of an 'Inspiring Plan'. A first conclusion of the Economic Impact Study (EISE) for the Maritime Sector of the Netherlands Antilles is that the maritime sector is very important, both in terms of its strategie position within the islands' economies, and in terms of its economie significanee (see Chapter lIl). The current economie significanee of the maritime sector is summarised in TabZe ES.f.
CURRENT ECONOMIC SIGNIFICANCE
The results in TabZe ES.f clearly demonstrate the fundamental Im-portance of the maritime sector for the Antillean economy. The maritime sector of the Netherlands Antilles accounts for a total value added of 621 million NA! Nearly 11 700 jobs depend on it. On Curaçao, 11 % of total employment is related to the maritime sector. For the other islands this figure is even higher: 17% for Bonaire and 19% for the Windward islands. The maritime sector generates a total backtlow to all levels of govemment of over 132 million NA!
It is emphasised that qualitatively the maritime sector is even more important: island economies like the Netherlands Antilles largely, if not completely, depend on the maritime sector for the provision (and export) of raw materiais, semi-manufactured artieles, capital goods and consumer goods. Moreover, as is shown in this report, the mari-time sector has strong links with other (sub )sectors, such as free zone trading activities and cruise tourism. Because ofthe strong links with the rest of the economy, an integrated approach for the study to the maritime sector and its potential has been chosen.
Executive Summary
Table ES.l: eurrent significance ofthe maritime sector ofthe Netherlands Antilles, 1997.
Value added
(000 NAf.)direct indirect induced total %GDP Curaçao 146779 45236 186822 378837 ±12%
Bonaire 27998 2624 20614 51236 ±19%
Windwards 78391 27122 85654 191167 ±25% Total 253 168 74982 293090 621240
Employment
direct indirect induced total %empl.
Curaçao 2353 570 3247 6170 ±11%
Bonaire 185 81 744 1010 ±17%
Windwards 1977 402 2114 4493 ±19%
Total 4515 1053 6105 11673
Backflow
(000 NAf.)direct indirect induced total
Curaçao 31636 9964 41438 83038
Bonaire 2874 418 4512 7804
Windwards 17081 5832 18891 41804
Total 51 591 16214 64841 132646
Source: Po/icy Research Corporation N. V
ES. 2.2. This economie significanee may he jitrther improved by new policy measures. To this end, jive scenarios wil/ be considered hy Policy Research:
I. CONTINUATION o/present policy:
2. LA ISSEZ-FAIRE policy: 3. REGISTER PLUS policy; 4. INTEGRATED maritime
po-licy;
5. FRAMEWORK policy.
POLICY SCENARJOS
Moreover, an in-depth analysis of the maritime sector has shown its potential for even greater economic significance, In Chapters V to IX, alternative sets of policy measures are introduced and discussed in a qualitative manner. In Chapter X, the impact of the most important measures has been quantified in the EIS® analysis. Inconclusion, the following policy scenarios were considered for each of the five
is-lands:
I. the CONTINUATION ofthe present maritime policy;
2. the introduction of a LAISSEZ-FAIRE policy, which would imply
that no specific measures were taken (or continued) to support the maritime sector;
3. the introduction of a REGISTER PLUS strategy, with more atten-tion being paid to the image of the register of the Netherlands Antilles in terms of the level of service and the quality of the ships
in the register;
© Policy Research Corpora/ion N. V. ES.3
Economic Impact Study (EIS®) for the Maritime Sector ofthe Netherlands Antilles
The Jol/owing package is rec-ommended:
- 0 FRAMEWORK POLICY
with MARITIME FOCUS,
- on INTEGRATED MARI-TIME POL/Cl':
- 0 REGISTER PLUS ap-proach.
7ïlese recommendations built on
an extended Input-Output
analy-sis the outcomes oJ which are summarised in Table ES2.
As shown in this tab/e, the PRAMEWORK scenario wil/ generale a st rong increase in economie aClivity. Moreover, Ihis increase is considered
sus-tainable. In genera/, a FRAMEWORK po/icy is - incentive-driven: - transparent: - c/usler-oriented: - slabi/ity-enforcing. -
ESA-4. the introduction of an INTEGRATED MARlTIME POLICY aimed at developing actual shipping and related activities in the (ports of the) Netherlands Antilles;
5. the introduction of a FRAMEWORK POLICY with MARlTIME
FOCUS, combining the integrated maritime policy with an im-proved general economie policy.
In principal, the measures recommended by Policy Research are in-c1uded in the FRAMEWORK POLICY with MARlT/ME FOCUS sce -nario. This implies the introduction of an INTEGRA TED MARlT/ME POLICY, including a REGISTER PLUS approach, in combination with an improved GENERAL ECONOMIC POLICY. A detailed de -scription of these scenarios and the included policy recommenda-tions, is presented in Chapters Vto IX.
By means of Input-Output analysis, the effects of the considered policy scenarios on the economic significance of the maritime sector were mode lied and estimated. To this end, three separate Input-Output models were used for Curaçao, Bonaire and the Windward
islands respectively. The results ofthe analysis are presented in detail in Chapler X, and summarised in Table ES. 2.
The introduction of the FRAMEWORK POLICY with MARlT/ME
FOCUS may realistically be expected to result in the following ob-jective:
the expansion of sustainable economie activity in the maritime sector, in the form of additional value added and employment
on the jive islands of the Netherlands Antilles.
The FRAMEWORK POLICY is:
incentive-driven: the government should not step into the shoes of the entrepreneur, because it does not possess the necessary market information;
transparent: a FRAMEWORK POLICY consists of clear and straightforward measures. As aresuIt there is no room for
'perverse' strategies of individual companies aimed at obtaining exceptional or special government support;
cluster-oriented: a FRAMEWORK POLICY is often aimed at a cluster of activities. The maritime sector in the broad sense used
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o ël"'~'" ~ Framework ... :0 -0 c::::g-
a- (") ... 3 ""'I ~ ::: ~.Va/ue added (000 NAf.) 100214 125% 2258 106% 89689 133% 192 160 126%
if
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--Emp/oymenl 1593 67 2027 3687 "0 ""
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~Economic Impact Study (EIS®) for the Maritime Sector of the Netherlands Antilles
lompared la CONTINUATION, Ihe FRAMEWORK scenario may
generale an addilional 192 mi1-lioll NAf. value added, 3 600 jobs, and 41 millioll NAf.
backflow la Ihe governmenl.
ES. 2.3.
The recommended policy should
be incorporaled inlo an
'Inspiring Plan' Jor Ihe econ
-omy oJ Ihe Nelherlands Anlilles. This is Ihe responsibility oJ Ihe
nalional and Ihe Island Gov-ernments.
A similar approach is recom-mended Jor same olher key sec-tors.
ES.6
-Moreover, a FRAMEWORK POLICr is based on the principles of subsidiarity and limited government intervention. Consequently, these effects are expected to be sustainable and can be accomplished with relatively limited (financial) efforts.
In comparison with the CONTINUATION of the present policythe
FRAMEWORK POLICr with MARlTIME FOCUS will generate a
nearly 200 million NAf. in additional value added, in the period un-til 2005, which is the contribution to the country's Gross Domestic Product. Moreover, the FRAMEWORK POLICY is expected to create more than 3 600 additional jobs throughout the Antillean economy. Finally, the backflow to the government will increase by more than 40 million NAf. each year as a result of the introduction of a
FRAMEWORK POLICY.
GENERAL CONCLUSJONS
Clearly, the most favourable effects on the development of the mari-time sector are expected from the implementation of an INTE-GRATED MARlTIME POLICY, preferably supported by an improved general economie policy. The introduction of a FRAMEWORK POL-ICr with MARlTIME FOCUS is therefore strongly recommended by Policy Research for all islands ofthe Netherlands Antilies.
Moreover, the recommendations for the maritime sector should be incorporated into the overall 'Inspiring Plan' for the restructuring and stimulation of the economy of the Netherlands Antilles. It is the responsibility of the centra I government and the respective Island Governments to develop this plan. This should be done in close con-sultation with the private sector, the Dutch government and interna-tional organisations such as the International Monetary Fund (IMF) and the Inter-American Development Bank (!DB).
A5 indicated, this study has resulted in concrete recommendations for the maritime sector. In order to follow up the more general recom-mendations of the !DB report (1997), a similar approach is recom-mended for other sectors, such as the financial offshore sector, tour-ism, telecommunication, manufacturing, and fishery.
ES.3.
ES.3.1.
ES.3. 1. 1.
Most important at the national level is the institutionalisation of the IDB Task Force (or BCC) as a central government body for /he exeeu/ion of economie pol-iey.Executive Summary
POLICY RECOMMENDATIONS
The concrete policy recommendations and the underlying considera-tions following from the conclusions of the A-EIS project are dis-cussed in detail in Chapters V to IX. Moreover, the policy recom-mendations are presented in implementation matrices in Chapter Xl. An implementation matrix does not merely contain policy recom-mendations but a concrete plan for their implementation as weil. As such, the implementation matrix identifies the level(s) of government responsible and provides an overview of the concrete actions re-quired. Moreover, the implementation matrix shows the order in which the proposed measures should be implemented. Finally, the matrices contain 'Milestones', which make recommendations with respect to the timing of the implementation phase. In this Executive Summary the most important recommendations are highlighted.
NATJONAL GOVERNMENT
Government structure
Top priority should be given to adjusting government structure by means of the institutionalisation of the 'Beleidscoärdinatiecom-missie' (BeC) or IDB Task Force as a central government body for the execution of economic policy. The Bee should be responsible for the co-ordination of economic policy in the Netherlands Antilles. This implies that the Bee wiJl not just be responsible for the mari-time sector, but should also monitor and stimulate the development of other sectors. One of the other principal tasks of the Bee is to re-duce and bypass bureaucratie obstacles or 'red tape'. The al ready existing Bee should remain a part of the Ministry of Economic Af-fairs, but co-ordinate the policies of all other Ministries and other governmental organisations such as the National Bank. Moreover, the Bee should be the link between the national and Island Governments with respect to economic poliey. The proposed government structure is presented in Figure ES.].
-. -. -. -. · i h • • "'-1[ H=+i - -_ _ __ _ - . _ 'W- 'M-" r . l _ _ ''--'.l_'~I.!..l...L....J...:a...
Economic Impact Study (EIS®) for the Maritime Sector of the Netherlands Antilles
Figure ES.l: Government structure
Board of International Experts Advisory boards Windwards \ I I I ,_ --- _v _______ , : Sociaal- : : Economische : : Raad : ~ ---'
Source : Policy Research Corporation N. V. The Bee
- co-ordinate the economic
policies oJ ministries and
government levels:
- execute the
recommenda-tions oJthe A-EIS study:
- remain part oJ the Depart-ment oJEconomic Ajfairs; - consist oJ one or /Wo
offi-cia/s, supported by on advi-sory board and a group oJ
civil servants.
More details are given in Fig-ure ES. I.
ES.3.J.2. F urther points of allen/ion Jor the nationa/ leve/ are:
- the imp/ementation oJ the IDB recommendations;
ES.8
-This BCC will be set up around one or two high-calibre officials of the Department of Economic Affairs. They will be supported by an interdepartmental group of civil servants of the Services for Eco-nomie Affairs of all five islands. The Island governments should also be supported by sector-related Advisory Boards made up by Antillean and international experts. These specialised Advisory Boards can provide the Island Governments with the indispensable sector-specific expertise. In addition to these 'local' Advisory Boards, Boards of International Experts can provide the credibility and countervailing power which is sometimes necessary to withstand pressures from powerful private parties.
In line with the IDB track for the restructuring and stimulation of the economy ofthe Netherlands Antilles, the BCC should be responsible for the monitoring and co-ordination of the execution of the recom-mendations ofthe A-EIS study.
General economie policy
As was mentioned above, asolid economic development will support the growth of the maritime sector. The government of the Nether-lands Antilles is therefore urged to continue and speed up the imp
ES.3.1.3.
- Ihe al/raelion of foreign inve~'lmen' hy promolirwal activjties, the reduction oJ Imreaueraey. and fiscal measures;
ES.
3. 1.4.
- the establishment of a ship'sregister that is characterised
by high quality standards. independenee of the Dl/lch regisler. high service levels and active promo/ion.
ES. 3.2. There are two basic priori/ies for Ihis island.
Executive Summary
mentation process of the general recommendations of the Inter-American Development Bank.
Attraction
of foreign investment
In order to revive the Antillean economy, the attraction of foreign investment is essential. To this end, a streamlined promotional or-ganisation should be installed at the national level. Moreover, foreign investors in any sector should be attracted by the introduction of a new taxation system, the simplification of investment procedures (reduction of 'red tape'), the granting of tax holidays and subsidies related to the training and education of local employees. The previ-ous government practice of providing investment guarantees to (foreign) investors should be discontinued.
Registration of ships
Although the economic significance of the ship's register and the related offshore sector is rather limited, the issue is high on the po-litical agenda. In order further to develop this subsector, the ship's register should be reorganised into a service-oriented one-window operation. The Shipping Inspectorate of the Netherlands Antilles (SINA) is not expected to be willing and able to become the operator of the register. The maritime tinancial offshore sector should there-fore consider taking the initiative of jointly operating the one-window register. In principle, the register should aim for the higher end of the market and attract as much tonnage as possible, with inter-national safety and environmental standards as important constraints. The register should be operated completely independently from the Dutch register. For purposes of marketing, the Netherlands Antilles should use a separate f1ag, underlining its independent position within the Dutch Kingdom. The improved register should be actively promoted.
[SLAND TERRJTORY OF CURAÇAO
The priority tracks of maritime policy for Curaçao should concern port organisation and cruise tourism.
-Economic Impact Study (EIS®) for the Maritime Sector of the Netherlands Antilles
ES.3.2.I. The first priority concerns port organisation, with the port changing from 'taal port' to 'fandlord port' status.
This can be achieved by a revi-sion of the ('oncession between CPA and CPS, whieh is due in 200 land should be put on the agenda in 1998. The revised concession should give CPS the incentive to at/raet more sea-to-sea container transhipment.
-ES.I0-Port organisation and container transhipment
Contrary to the present situation, the port of Willemstad should be operated as a 'landlord port'. In order to realise a land lord port model, the existing concession agreements between the public Cura -çao Ports Authority (CPA) and the private stevedoring company Curaçao Port Services (CPS) should be revised.
In order to provide the CPS shareholders with more incentives to pursue a pro-active and 'state of the art' transhipment marketing strategy, the revision should aim to increase the share of fixed com-ponents in the stevedore's co st structure. Higher fixed costs will in-duce CPS to achieve economies of scale by increasing the number of containers handled. As the growth potentialof local cargoes is lim-ited, the stevedore will have to realise the scale increase by attracting sea-to-sea transhipment. In turn, the larger the scale of the container operation, the greater the chances of the port of Willemstad to attain the status of 'subregional hub', which is of fundamental importanee from the macro-economie point of view. The excellent organisation of the container terminal, its high productivity in regional terms, and the favourable perception by international shipping lines are impor-tant as sets which will help it to achieve this status.
Failure to achieve subregional hub status is expected to result in the loss of most direct calls by international shipping lines. As aresuit, the Curaçao economy will not benefit from the world-wide decrease in shipping rates induced by new systems of multi-Iayered feedering. Moreover, the loss of direct calls could even lead to an absolute in-crease in freight rates, causing inflation and a deterioration of the competitive position of the island. Trade sectors, and especially the free zone in the port of Willemstad, would suffer most from such a development.
The first opportunity to revise the agreements will present itself in July 2001. It is recommended that an early start should be made on preparations and negotiations.
ES.3.2.2.
The second priority concerns cruise tourism. This requiresmore than the conslruction of
the mega cruise pier and the reduction of harbour tariffs.
I/ ulso involves:
- developing more lOurist altractions;
- improving the attitude to-wards touris's:
- intensifYing the co-opera/ion
with CTDB,
sec
and /he cruise lines.ES.3.3.
.lust as for Curaçao, there are !wo basic priori/ies.ES.3.3.J.
The /irs/ priority concerns the por/. 1 mproved port organisa -lion will serve as a basic condi-tionJor relieving conges/ion and
making the port more at/roctive
for cruise tourism.
Executive Summary
Cruise tourism
Another top priority for Curaçao is to continue to develop cruise
tourism. The importance of developing cruise tourism has already been recognised by the CPA and the [sland Government, as proved by the recent decision to build a mega cruise pier and introduce at-tractive harbour tariffs for cruise vessels.
[n addition, the lsland Government should alm to improve the 'product Curaçao' by providing additional attractions. Another im-portant aspect is to improve on pervasive negative attitude towards providing services to tourists through e\aborate training and educa-tion program mes. Moreover, if co-operaeduca-tion is essential to become a
preferred cruise destination in the Oeep Caribbean, this wil! require
further co-operation, both at island level, between the CPA and the Curaçao Tourism Oevelopment Bureau (CTOB)I, and internation-al!y, e.g. in the Southern Caribbean Group (SCG). In general, all
in-vestments made on be half of cruise tourism should be made in close consultation with the cruise lines and their umbrella organisations.
JSLAND TERRITORYOF BONAIRE
With respect to maritime policy, the priorities for the [sland
Gov-ernment should be to improve the (physical) organisation of the port and to attract additional cruise vessels to the island.
Port of KraLen dijk
The port infrastructure of Kralendijk should be modified in order to relieve congestion (at the South pier) and make the port more attrac-tive for cruise tourism. Moreover, a clear structure for the organisa-tion of the port is recommended: the [sland Government, represented
by an upgraded Bonaire Port Authority (BPA), should remain re-sponsible for the management, operation and development of the port.
Already institutionalised in the Curaçao Cruise Action Group.
ES.ll-Economie Impact Study (EIS®) for the Maritime Sector of the Netherlands Antilles
ES.3.3.2.
The second priority concerns ,hecruise tourism ilself The current
elforts of the BCA should be continued, and extended by - improving the functioning of
the porl:
- intensifYing the co-operation with SCC and the cruise
lines.
ES.3.4.
ES.3.4.J.
7ïle jirst priority concerns the porl. A 'Co-ordinator for Mari -time Alfairs . shol/ld develop and fol/ow up a po/icy for all threeWindward islands.
ES.12
-The port should be operated as a 'landlord port', with the Island Government as the owner of the port infrastructure. The port infra-structure (piers and quays) should be operated as a common user fa-cility, accessible to licensed stevedoring companies and their accred
-ited employees.
Cruise tourism
In order further to stimulate cruise tourism on Bonaire and attain a level of nearly 50 000 passenger visits in 2005, the Island Govern-ment, BPA and Tourism Corporation Bonaire (TCB), co-operating in the Bonaire Cruise Association (BCA), should:
- continue to improve the product Bonaire (island-related factors) along the Iines of their current efforts. This implies an upgrading of the port area, the improvement of restaurants and shopping fa-cilities, the promotion of attractions and the provision of addi-tional attractions, and training programs for taxi-drivers and em-ployees in tourism-related jobs. As indicated, all actions should be taken in consultation and co-operation with cruise lines;
- improve the organisation and the facilities of the port of Kral-endijk (port-related factors);
further increase existing international co-operation with respect to developing itineraries and promoting ports in the Deep Caribbean as cruise destinations, e.g. through the Southern Caribbean Group.
ISLAND TERRITORY OF SINT MAARTEN
The priorities ofthe Island Government of Sint Maarten with respect to maritime policy, should concern investments in and the organisa-tion of the port, and the further development of cruise tourism on the island.
Port of Philipsburg
Within a Co-ordinalor for Marilime Affairs the Servicefor Economic Affairs should be made responsible for the development of a port and maritime policy, and for providing the players in the port with guid
-ance and objectives. The Co-ordinator would also be responsible for the other Windward islands.
