On Monday a similar meeting will be taking place in Barbados - national economic consultation. The Barbados Prime Minister David Thompson says that 2009 could potentially be a very difficult year with reductions in revenue from the international business sector and possibly tourism.
The talks in Barbados will focus on how that island nation would market itself in tourism, international business and other areas; how Barbados would work with the thousands of overseas-based Barbadians to continue assisting in the country's economic development; and thirdly, to look at physical development issues such as environmental concerns, land use policy, use of water resources and alternative energy.
At the Sixth International Tourism Forum for Parliamentarians and Local Authorities held in the Philippines last week that brought together close to 400 representatives from 78 countries, in part of a resolution issued last Friday, request the Secretary General of the United Nations (UN) to instruct the "Resilience Committee," of the UN World Tourism Organization to give urgent attention to all appropriate measures that could assist countries regarding the negative impacts the present financial crisis may have on their tourism industries.
This demonstrates that various organizations are developing strategies to deal with the direct and indirect of the global financial crisis. The Director-General of the International Labour Office (ILO) Juan Somavia in a statement to the International Monetary Fund (IMF) and the World Bank, says that the crisis of the international financial system has grave consequences for businesses, workers and families around the world. This comes on top of high food and fuel prices, and the effects are provoking a slide into a recession that unless averted by prompt and coordinated government actions could be severe, long lasting and global. The global financial crisis could increase world unemployment by an estimated 20 million women and men according to the ILO.
The Inter-American Development Bank (IDB) is prepared to accelerate loans to finance projects and enhance social programmes and approve up to US$12 billion in 2009, up from about US$10 billion this year. The IDB is setting up a new fast-disbursing US$6 billion liquidity facility to help Latin American and Caribbean economies sustain growth in the face of the global financial crisis.
In addition, the Andean Development Corporation (CAF) has announced a liquidity facility of US$1.5 billion and the Latin American Fund of Reserves (FLAR) has offered US$1.8 billion as part of its liquidity arrangements. Similar facilities are also being offered by the IMF and the World Bank.
Our island nation is not allowed to borrow. This authority within the constellation of the Netherlands Antilles only belongs to the Central Government and Curacao. The Island Government of St. Maarten for years has been trying to get this authority but to no avail. Independent nation states have the possibility to tap into credit facilities to help them go though this challenging period which could last up to two years.
We haven't heard anything from the Central Government which St. Maarten has representation within the coalition with respect to how they view the international financial crisis and what contingency plans are being developed. The Central Government is cash strapped and is awaiting the formalization of debt relief from Holland as a Kingdom partner. This debt relief which also includes the other four islands is tied to the constitutional restructuring process.
Today, the global financial crisis has presented serious challenges for tourism based economies. The indirect impact due to the crisis we expect will be a direct impact. The St. Maarten Hospitality & Trade Association (SHTA) stated last week that hotel bookings for the upcoming high season are already down by 20 to 30 per cent. This is not good news and contingency planning is necessary.
The Dutch Government has taken a number of measures to mitigate any impact on its banking system. One such measure was the takeover of the Fortis Bank to the tune of 16.8 billion euros. The measure was taken due to the current exceptional circumstances and in the interests of account holders and other parties concerned.
Dutch Prime Minister Balkenende and Minister of Finance Bos are of the opinion that the government is obliged to step in on behalf of citizens due to the potential impact on the (Dutch) real economy constituting another important reason why the takeover was necessary and that it will contribute to the continued proper functioning of vital financial functions of the Dutch economy.
The Dutch Government is also maintaining close contact with the European Union partners. The question is, has the Dutch Government inquired with its Kingdom partners about what the potential consequences will be for the other partners in the Kingdom? Where does the Kingdom stand on the issue of the global financial crisis and its consequences for the tourism oriented economies?
We need to ensure that the working class continues to have a secure job and that government continues to collect revenues to pay for services and investments. The global financial crisis with respect to the consequences on the other Kingdom partners requires a Kingdom approach.
Roddy Heyliger