INVESTBelize Vol. 2

Volume 2, 2014

The Marie Sharp Story

There was a thought by Belizeans that anything made in Belize was not good and that goods from outside were by far better.

THE BELIZEAN DIASPORA:

STRATEGIC PARTNERSHIP FOR BELIZE’S DEVELOPMENT

A TIME TO BUILD the Belize city council

The vision for

Norwegian Cruise Line

“It is with great pride that I invite you to take a very close look at an unusual opportunity to combine business with pleasure.”

Rt. Hon. Dean Oliver Barrow Prime Minister of Belize

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It is with great pride that I invite you to take a very close look at an unusual opportunity to combine business with pleasure.

With respect to business, your production location in Belize virtually guarantees tariff-free access for goods and services to the markets of all the English-speaking Caribbean countries, and it offers special arrangements for market access to the countries of Central America that should expand rapidly with the ongoing development of SICA. In addition, a production location in Belize offers special access arrangements for exports from Belize to the United States, Canada, and to the countries of the European Union; it also includes access for qualifying business operations to production and related assistance from the European Commission and other European Union agencies.

Belize is also in the process of negotiating special trading agreements with a number of countries in Latin America, including an expansion of existing arrangements with Mexico and the establishment of new arrangements with Brazil. We already have ongoing economic cooperation arrangements with Taiwan.

Facilitating all of this are, on the one hand, a cultural and legal environment that has been heavily influenced by the fact that the country was a British colony until independence in 1981; and, on the other, physical proximity to and strong family ties with the United States, with Miami being only a 90-minute flight away, and with flying-time directly to Atlanta, Houston, b eliz ein v es t .o r g .b z

and Dallas being only slightly longer. Communications and transportation services with the rest of the world are excellent. The country’s population reflects the diversity of our origins; but we are one nation, one people. The official language is English, although Spanish is widely spoken; and the legal system follows the British tradition. Belize is a member of the Commonwealth, with the Queen, who resides in the United Kingdom, being the country’s Head of State, represented locally by a GovernorGeneral. The country’s highest Court is the Caribbean Court of Justice, which is located in Port-of-Spain, Trinidad & Tobago.

On the pleasure side, Belize is arguably the fastest-growing tourist destination in Central America and the Caribbean. Its attractions combine a first-class version of the traditional Caribbean sun-sea-sand offering, one that includes the longest barrier reef in the Western Hemisphere, and sea and resort facilities that are second to none, with an unspoiled rainforest interior, filled with birds and animals as a result of the country’s extremely low human population density, with uncounted thousandyear-old ruins from the advanced civilization of the Mayan people who inhabited the area. Quite a few of these sites have now been excavated and are accessible to the general public. Some of them can only be described as awesome. The difficulty here will be to keep your mind focused on business.

My only regret is that I did not extend this invitation to you sooner …

PHOTO BY DEMIAN SOLANO

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Hon. Erwin R. Contreras

Minister of Trade, Investment Promotion, Private Sector Development and Consumer Protection

According to the Economic Commission for Latin America and the Caribbean (ECLAC), Belize has fared very well compared to similar economies in the Caribbean region, posting a GDP growth rate of over 2% for 2011, outpaced by only three other CARICOM countries. In fact, since 2008, Belize’s GDP has grown by an average of 2.1%, well above leading, regional economies over the same period.

Belize’s economic indicators bear good news for our economy; Belize’s Central Bank data confirm that the economic growth rate is set to outperform previous estimates.

From 2008-2013, our government has led an unprecedented Public Sector Investment Program as a means to lead economic recovery. During this period, the Government focused its spending on infrastructure programs and on a sustained program of social reforms, the hallmark of our Pro-People agenda. Even today, program spending continues unabated, with close to US $200 million in ongoing infrastructure and other programs.

Since March 2013, after receiving a clear mandate from the people of Belize, the Government has shown its seriousness in promoting enterprise development by creating the Ministry of Trade, Investment Promotion, Private Sector Development and Consumer Protection. Parallel to this, the dialogue with the private sector has been greatly enhanced through the establishment of the Directorate of Public/Private Dialogue, and the institutionalization of the annual Prime Minister’s Business Forum, and the Economic Development Council.

Through strategic planning, consultation, and partnership, it is a certainty that a confident private sector will continue to lead our economic growth.

Our Ministry has embarked on a bold strategy for business development upon three main pillars of activity; Promotion of Foreign Direct Investment, Development of Export Capacity, and Small and Medium Enterprise Development. We are driving change through important legislation and policy development geared at 6 private sector growth. In early 2013, we will launch our

renewed National Export Strategy, which will include an assertive five-year implementation plan, complete with the prioritization of national economic sectors; simultaneously, we will continue to refresh and refine our Foreign Direct Investment Strategy. This ongoing strategy places keen focus on promoting domestic and foreign investment in the important sectors of Internationally Traded Services (ITS), Tourism, Agriculture and Agribusiness, Mining, Petroleum, and Energy as our national priorities. Additionally, our strategies seek to develop new areas for investment, including International Financial Services (IFS), Medical Tourism, and Business Process Outsourcing.

Since 2008, the strengthening of Belize’s export capacity has been clearly evident; Belize’s exports have grown by US $123.2 million since 2008, an increase of 28%: our trade balance now stands at an all-time low of US $-170.7 million. This growth, led by exports of agricultural products and petroleum, is expected to continue well into this decade, as global conditions and changing weather patterns make food and energy security a priority for most nations. Notwithstanding the effects of the global recession, Foreign Direct Investment has continued at a strong pace and is projected to close with an estimated 20% increase over the previous year.

All in all, the future for investment in Belize is bright.

This young, diverse, resource-rich nation stands ready to invite you to share in its bounty. It is our firm belief that we represent an opportunity for key investors to participate in our model for sustainable development with the promise of attractive returns. Investment options in Belize abound, with strong opportunities like those in five-star hospitality development, petroleum exploration, energy, real estate development, and services seeking capital and expertise.To encourage and support these kinds of unique investments in Belize, the Government has a choice of incentives that are designed with the confident investor in mind. I would like to congratulate BELTRAIDE on this second issue, and I invite you to live, invest, and retire in Belize with confidence.

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PHOTO BY DEMIAN SOLANO

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BELIZE

The Natural Niche for Investment

I am pleased to welcome you, our readers, to this second edition of Invest Belize magazine. We hope that through these pages, we will stimulate your interest in doing business in our beautiful country, Belize.

The business climate in Belize has never been better.

We are proud that the country has achieved an average growth rate nearing 3% for the past two years and is projected to continue and improve upon that trend in the foreseeable future. Our major sectors, Tourism, Agriculture and International Trade in Services, all continue to perform well despite a slow global economy.

Tourism has been on an upswing showing some of the highest growth numbers over the past three quarters, making this a hot sector for investment. This growth has been as a result of strategic marketing programs, combined with the strong brand that Belize carries in the industry. We expect to announce a major investment in this sector bearing a major luxury brand this year.

Projections for agriculture are strong, particularly in the grain sector, as weather patterns in North America have caused uncertainty in production. Through regional agreements, Belize stands to gain from exports to Central America and the Caribbean. For the first time, Belize has reached the milestone of 4.5 million boxes of bananas being exported to Europe, with the projection that we will reach 5 million boxes by next year. Sugar exports hit an all-time high as farmers achieved record crop yields, and new investment in this sector will see expansion of existing plant capacity, as well as development of a new sugar mill that will produce refined sugar, ethanol and energy from biomass.

In the Energy sector, Belize is finalizing an agreement for linkage into the SIEPAC grid. This important development means that Belize has the opportunity to transition from an importer of power from Mexico to being an exporter of power to Central America. In order to supply SIEPAC, we are inviting companies to look at opportunities in renewable energy from wind and solar and through expansion of our hydroelectric production network.

In 2013, there was an estimated US $30 million in oil exploration investment. Though production in the Spanish Lookout field has peaked, and new oilfields

Michael Singh

opened at Never Delay have shown mediocre results, analysts still project that Belize could benefit from new finds, and this has driven a frenzy of exploration by major companies. This trend is expected to continue in the foreseeable future.

Within the Services sector, Belize has seen an 80% growth in the BPO sector; our young, educated Englishspeaking population has provided a strong alternative for companies seeking a near-shore advantage. As exhibited in our cover story, companies like Infotel have successfully established contact centers in Belize, paving that way for additional growth in this sector. Likewise, our Offshore Financial Services continue to grow as more and more companies select Belize as a place to incorporate, to establish trusts, and to seek offshore banking services.

In addition to the opportunities already mentioned, Belize remains a major producer of marine products, both from our traditional fisheries, as well from our fast growing Aquaculture sector. Despite the global financial crisis, our banking institutions remain strong and willing to assist in providing financing for viable projects. Our physical infrastructure of roads, bridges, airports, and telecommunication systems make for easy movement of goods, people, and services throughout the country and abroad, and our various trade agreements offer a vast market with tariff free access to most countries in North America, Europe, Central America and the Caribbean.

As you will see from the pages of this magazine, Belize exhibits a wealth of possibilities for investors.

Our close proximity to major North American airport and seaport hubs, our well-educated, English-speaking population, and our abundance of pristine terrestrial and marine natural resources should put Belize on the top of your list as a place for you to visit, enjoy, and invest.

Please enjoy our publication and do not hesitate to contact the Belize Trade and Investment Development Service (BELTRAIDE) or my office at the Ministry for information on your investment needs.

Michael Singh | Chief Executive Officer Ministry of Trade, Investment Promotion, Private Sector Development and Consumer Protection

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CONTENTS 16 BELIZE SPACE IN GLOBAL ECONOMY 18 INTERNATIONAL TRADE RELATIONS 22 BELIZE’S NATIONAL EXPORT STRATEGY 24 THE BELIZEAN DIASPORA 28 ENERGY INVESTMENT OPPORTUNITIES 30 BELIZE TOURISM 36 THE FUTURE OF REAL ESTATE IN BELIZE 38 A TIME TO BUILD 40 OVERVIEW OF BELIZE ‘S CURRENCY REGIME 42 YOUR GUIDE TO DOING BUSINESS IN BELIZE

20 MARIE SHARP

46 INVESTMENT INCENTIVES 50 BELIZE IN NUMBERS 52 DIRECTORY 55 MAP OF BELIZE

12 NORWEGIAN CRUISE LINE The vision

34 CHAA CREEK

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Produced and published for BELTRAIDE

by Idea Lab Studios Ltd., Belize

Demian Solano, Publisher Editorial Team Demian Solano Editor in Chief Nicole Solano Managing Editor Silvaana Udz Copyediting Creative Team Demian Solano Creative Director & Photo Editor Jose Martinez Sr. Graphic Design & Layout eLise Arelie Graphic Designer Advertising Sales, Marketing & Administrative Team Nicole Solano Alicia Fabro Lisa Flores BELTRAIDE CEO, Mike Singh Executive Director, Nicholas Ruiz Deputy Director, Lejia Melanie Gideon PR Coordinator, Jamil Loskot Contributors: Colin Murphy, Kim Aikman, The Belize Chamber of Commerce and Industry, Yashin Dujon, Jody Williams, Shahera McKoy, His Excellency Nester Mendez, Hon. Sen. Joy Grant, Dr. Colin A Young, Christy Mastry, Lucy Fleming, Hugo Miguel, Roger Espejo, Azucena Novelo, Brian Lin, Lejia Melanie Gideon, Jamil Loskot, Monique Usher and BELTRAIDE Invest Belize 2014: The publisher thanks the members, board and staff of the Belize Trade and Investment Development Service for their assistance with this publication. Special acknowledgment goes to Lejia Melanie Gideon and Jamil Loskot.

about THE cover Norwegian Cruise Line has embarked on a new 75-acre eco-friendly development on Harvest Caye, Belize. The cover photo shows the Norwegian Jewel, one of the ships that call on Belize. It offers some of the largest suites at sea, plus complete amenities. Learn more about the project on page 12.

Disclaimer: The contributors and publisher have made every effort to ensure that the information in this magazine was correct at press time. Contributors and publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions. beliz ein v es t .o r g .b z

Copyright: The title Invest Belize is a registered trademark of BELTRAIDE. No part of this magazine may be reproduced or transmitted in any form or by any means without the written permission of the publisher. Nothing that appears, including designed advertising, may be reproduced or reprinted in whole or in part, without permission from Idea Lab Studios.

Corporate/Editorial Offices: Invest Belize is published bi-annually for BELTRAIDE by Idea Lab Studios Limited, 1484 Salt Avenue, Tel.: +501-223-6386, Belize City, Belize, Central America. www.idealabstudios.com

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The vision for Norwegian Cruise Line

BY COLIN MURPHY Vice President of Special Projects for Norwegian Cruise Line

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he vision for Norwegian Cruise Line’s new 75-acre eco-friendly development on Harvest Caye, Belize is to create a worldclass cruise destination, consisting of two locations: an island destination with docking facilities and a mainland connection point for inland tours. This eco-friendly development will be an authentic destination grounded in nature, ancient civilizations, art, adventure and music that celebrates Belizean, Mayan, Creole and Garifuna history and culture.

“As our fleet continues to grow to 15 ships by 2017, we expect that we will double the number of guests sailing on our Western Caribbean itineraries and, once this new destination is complete, bring four times as many guests to Belize than we do today,” said Kevin Sheehan, Norwegian Cruise Line’s president and CEO. “In our quest to continuously look for new and exciting destinations for our guests, we plan to develop a cruise destination focused on sustainable design and eco-friendly principles that will retain the natural beauty and local culture of this tropical paradise.”

Norwegian plans to invest $50 million in this project. Major components of the project include a floating pier, island village with open-air structures on raised platforms, marina, transportation hub for tours to the mainland, a lagoon for a variety of water sports, and a relaxing beach area.

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The new destination is expected to benefit Belize directly with significantly increased head tax revenues, and at a local level with up to 1,000 new jobs.

PHOTO COURTESY NORWEGIAN CRUISE LINE

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The creation of the new destination will also help relieve cruise tourism pressures in Belize City which has been called for in Belize’s National Sustainable Tourism Master Plan.

In developing Harvest Caye, Norwegian Cruise Line understands that protecting Belize’s oceans and ecosystem is vitally important. The company is committed to the preservation of our oceans and to environmental stewardship. Environmental Protection is one of Norwegian’s core company values. In addition, Norwegian’s Safety and Environmental Protection Policy establishes several objectives relating to the environment, which include preventing accidents and incidents involving pollution of the environment, reducing the impact of our operations on the environment, disposing garbage and waste materials in accordance with national and international rules and regulations, recycling and re-using materials, and establishing specific objectives and targets for continual improvement of environmental management programs. Norwegian has implemented many of the most innovative environmental policies and technologies in the cruise industry.

PHOTO COURTESY NORWEGIAN CRUISE LINE

“In our quest to continuously look for new and exciting destinations for our guests, we plan to develop a cruise destination focused on sustainable design and eco-friendly principles that will retain the natural beauty and local culture of this tropical paradise,” said Kevin Sheehan, Norwegian Cruise Line’s President and CEO. The new destination is expected to benefit Belize directly with significantly increased head tax revenues, and at a local level with up to 1,000 new jobs. Norwegian’s new development offers many exciting employment and business opportunities for Belizeans. A new hiring program has been implemented which gives Belizeans the opportunity to cross-train on board Norwegian Cruise Line vessels in advance of the destination opening. Once the destination is operational, Belizeans will also be hired to run the day-to-day operations on Harvest Caye and will have the opportunity to become entrepreneurs by providing supplies to Harvest Caye, including fruits, vegetables, arts and crafts without having to leave their own villages.

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As such, the company meets and exceeds all international, US, State and local port regulations, including those set by MARPOL, the U.S. Coast Guard (USCG) and the U.S. Environmental Protection Agency (EPA).

Norwegian is accredited to the international ISO 14001 standard for Environmental Management Systems. This prestigious achievement recognizes that the company utilizes a core set of standards for an effective environmental management system that reduces the company’s environmental impact and increases the ship operating efficiency.

“At Norwegian, we have a strong commitment to the environment through our Eco-Smart Cruising philosophy. We will continue that commitment as we develop the Belize project and ensure that we are socially responsible in everything we do,” said Colin Murphy, vice president, destination and strategic development for Norwegian Cruise Line.

In addition, on board every Norwegian ship there is a dedicated Environmental Officer who oversees all of the environmental operations and monitors performance. Norwegian is proud to have pioneered

recycling of used oil and routinely recycles plastics, aluminum, steel and oily sludge. Used cooking oil is often offloaded for use at shoreside installations as biofuel. All Norwegian ships are fitted with incinerators that burn paper, cardboard, some plastics, bio-residuals and dried food waste. When incineration is not permitted or items cannot be burned, they are brought ashore for disposal by licensed installations. Furthermore, food waste is disposed of at sea according to MARPOL and USCG regulations and is the only solid waste discharged to the sea. All Norwegian ships are currently equipped with state-of-the-art advanced wastewater treatment systems that treat black water and gray water to near drinking standards.

The Government of Belize and Norwegian have signed a memorandum of understanding on the development that calls for adherence to Belize’s environmental standards, creation of jobs for Belizeans, as well as significant economic impact, among other items.

To learn more about the project, visit the Belize tab on Norwegian Cruise Line’s Facebook page at www.facebook.com/norwegiancruiseline.

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DEFINING BELIZE’S COMPETITIVE SPACE IN THE GLOBAL ECONOMY

PHOTO CREDIT: BIGSTOCK.COM

BY MRS. KIM AIKMAN Chief Executive Officer, Belize Chamber of Commerce & Industry

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elize is distinguished as the only English-speaking country in Central America, with a land mass of 8,866 square miles and a population of approximately 330,000 people. The country’s very strong Caribbean identity makes Belize the strategic bridge that links Central America with the Caribbean.

Historically, Belize’s major exports have been agricultural, grounded on sugar and citrus.

Between 2001 and 2005, services emerged as the leading economic sector with tourism out in front from unprecedented growth. This explosion is mainly attributable to the growth in the cruise tourism sector, which experienced a tremendous increase over the years.

Even though Belize’s economy is considered to be small, we have competitive opportunities.

We are blessed with a young population and an increasingly scarce natural resource called land.

Agriculture and forestry, important pillars of the Belizean economy, hold great promise for increasing contribution to GDP growth in Belize.

Agriculture has and will remain the economic anchor of the Belizean economy.

In order to take advantage of the emerging global opportunities, we need to take decisive actions in both the public and private sectors.

As a countr y we need to define our competitive niche in this global marketplace.

We have made steps towards creating a trade-enabling infrastructure to facilitate a diversified market strateg y for our exports.

Our trade negotiators have begun the process of identif ying potential trading partners. B elize is now defining its space to be the bridge to connect C entral America to our CARICOM partners. We have negotiated Partial Scope Agreements with Guatemala, and negotiations with other countries are in the pipeline such as with El Salvador, Mexico, and Honduras.

Opportunities abound in Belize. When compared to the rest of the Caribbean, our arable land mass provides access to agricultural lands that can be exploited to become the secure bread basket for the region.

Belize has an excellent branding opportunity upon which we are not capitalizing. Our products have the reputation of being high-quality

products; our seafood, sugar, citrus, oil, and cacao are all top grade. We must step up to the plate and aggressively seize and capture what sets us apart as Belize. We need to collaborate with each other, find our niche markets, and market Belize as a brand.

Sustainable economic development dictates that we look down the value chain and determine what we need to change in order to survive in this dynamic global economy. The change is in the air; it’s not business as usual, and our private sector is thinking and seeking ways to realize a structural transformation in order to define our competitive space.

Countries seldom grow rich by producing the same things more productively. They usually change what they produce in the process of development. Structural transformation is the process whereby countries move to new economic activities that are more productive and thus are able to pay higher wages. This process is very important for growth: countries that are able to upgrade their exports by developing new economic activities tend to grow faster (Hausmann & Rodrik, 2003; Hausmann, Hwang,& Rodrik, 2006).

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Even though Belize’s economy is considered to be small, we have competitive opportunities.

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INTENSIFYING INTERNATIONAL TRADE RELATIONS

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n what is beginning to look like the aftermath of the global economic recession, many economies are beginning to experience gradual growth increases to GDP as compared to the last six years. Although this is positive in message, at the current rate of recovery it is still expected that it will be another decade before many affected economies have fully recovered. In the case of developing nations, this recovery may take even longer.

There are many lessons to be taken from this recent global economic collapse, primarily the 18 weakness and vulnerability of consumer-based economies, as well

as the fallout effect that it has had on developing nations. There is also the success of the “emerging economies” or BRIC nations (Brazil, Russia, India, and China) whose growth and economic development strategies may be a sign of pending change in economic world order.

In Belize, the recession signalled that the need for adjustment is imperative, however fortunate it may be that the exacerbated impact of the recession trickled down slowly into our economy. The clear understanding was that matters of trade, food security, local employment, foreign debt servicing, and contributions to GDP are all vulnerable under these b eliz ein v es t .o r g .b z

conditions, and a thorough assessment of Belize’s trade relations had to be conducted and determinations made for the growth and expansion of the economy.

In 2012 Belize’s trade portfolio included membership in CARICOM and a Partial Scope Trade Agreement with Guatemala. Engagements have since been made with El Salvador for the negotiation of a Partial Scope Agreement between the two countries, and expressions of interest have been shared with the governments of Mexico and Honduras.

What this means is that upon successful conclusion of these negotiations, and building upon

PHOTO CREDIT: BIGSTOCK.COM

BY YASHIN DUJON Directorate of Foreign Trade

the already existing trade between these nations, Belizean exports will have improved access to these markets; equally, local producers will have access to sources of cheaper inputs for agro-processing and manufacturing.

In this regard, greater economic growth is being proposed through strategic market access growth and through the better sourcing of inputs for local production. El Salvador, the second strongest economy in Central America with a relatively high consumer base, will provide an excellent alternate market for Belizean goods and services in Central America. It will also aid to formalize matters of trade, transportation, and assistance that both countries can provide for each other.

The other initiative for improving Belize’s market access this year is the arrangement of a Partial Scope Agreement with Mexico. For Belize and Mexico, this process is long overdue, with Mexico—regarded as the fastest growing economy in the region—having just received the first shipment of cattle under the cattle sweep. The vibrant trade of goods that exists between both nations has been developing for years, and this PSA will formalize business between the two economies, enabling greater growth and expansion.

These exercises are a unique combination of strategic planning, economic vigilance, national production, and growth restructuring. We are moving closer and closer to the 2016 deadline for the removal of export subsidies, the removal of trade quotas, and the implementation of other trade protocols. Therefore, it is imperative that we increase competitiveness, market access, and production as the main principles for growth and seek diversification of industry and new industry formation as the way forward.

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THE MARIE SHARP STORY

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arie Sharp’s Fine Foods (MSFF) was started by Mrs. Marie Sharp in her kitchen when she was experimenting with habanero peppers. At the time Mrs. Sharp and her husband Gerry had a farm and grew many different fruits and vegetables. Dr. Gordillo, a medical officer in Belize at the time, was making a pepper sauce in Belize and asked Mrs. Sharp to supply some habanero peppers for him. Without further consulting with the doctor, Mrs. Sharp went and supplied a truckload of habanero peppers. Mrs. Sharp arrived at Dr. Gordillo’s door with the truckload of peppers. The doctor said worryingly, “Solo quería poquito.” He had just wanted a small quantity.

Now Mrs. Sharp was left with all this pepper so, instead of leaving it to spoil, she decided to begin blending the pepper to make a sauce. After that, she began giving it away to family and friends, and one day one of her sisters asked, “Why don’t you sell this sauce?” People were astounded by the taste and quality of the hot sauce. There was none like it! Mrs. Sharp bought a few more blenders and also three countertop stoves and began making sauce from her kitchen.

At the time Mrs. Sharp worked as an executive assistant at the Citrus Company of Belize and was 20 also a full-time housewife after work. So when she got home she would take care of the family, then she

would begin making sauce at night. During the day one employee would come and fill the sauce into the bottles. Mrs. Sharp would go to family homes to encourage people to try her sauce. She has explained that Belize was one of her most difficult markets to capture. There was a thought by Belizeans that anything made in Belize was not good and that goods from outside were by far better. It was not until 1989 that, after Mrs. Sharp had made her first sale to the United States, Belizeans started to say, “You know, this is a good product.” For the first time a Belizean final product was being exported to the United States.

During these early years, the sauces and company were both called Melinda’s, which was the name of the farm. However, in 1993 the name was trademarked by the exclusive distributor in the United States. Also, the US distributor was purchasing a “bad” sauce from Costa Rica and labeling it as Marie Sharp’s. Mrs. Sharp at the time did not know about it until her customers began calling in to complain about the bad taste and quality of the sauce.

To stop court proceeding and the like, Mrs. Sharp decided to leave the name with the people, and they in turn dissolved the exclusivity agreement because during the case Mrs. Sharp could not export to the United States.

Mrs. Sharp was sad and angry about the entire

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PHOTOS BY DEMIAN SOLANO

BY JODY WILLIAMS Marketing Manager, Marie Sharp’s Fine Foods

situation, but she was strong and determined and came back with her products and company, again called Marie Sharp’s. Sales, marketing, etcetera had to be started all over again. Mrs. Sharp had to convince the world that Marie Sharp’s was Melinda’s and that Melinda’s was stolen. As time passed, she was able to regain the US market, but the difference was that by the time she came back to the US market, there were many people making habanero pepper sauce. However, still none can compare to Marie Sharp’s Pepper Sauce!

In the year 2000 on the Melinda Road, Mrs. Sharp saw two Asian tourists (Japanese) approaching.

They expressed that they were thrilled to see her and told her, “We want to buy pepper sauce for Japan!”

Mrs. Sharp replied, “Please do.” MSFF soon began exporting to Japan by the container load. Japan also sold to Taiwan, Russia, and other parts of Asia.

Today MSFF has gone a long way, and its famous hot sauce is just one of its well-known products.

Moreover, MSFF continues to make products the old-fashioned way with high quality, consistency, and great presentation. The brand is also known and people will often say “Pass me the Marie Sharp’s” instead of saying “Pass the pepper sauce.”

The method of making the sauce is a combination of blending and cooking the mixture of hot

sauce and its base (carrots, nopal, grapefruit pulp, or orange pulp). Mrs. Sharp does not add preservatives, food colorings, or starch in her products. It’s all natural. Another popular MSFF product, the fruit jams, all have higher fruit content than what the FDA requires. This means that the jams are made of real fruit and have no fruit concentrates and no preservatives. Yet another MSFF product, the pepper jelly, is a very unique product that combines all natural ingredients along with the red or green habanero peppers. It is excellent on meats and crackers, and pepper jelly can be added to any dish. It’s not too sweet or too spicy; it’s just right for any type of food.

MSFF still lives up to its slogan, “Proud Products of Belize,” and new markets are on the horizon.

Presently MSFF exports to Japan, the United States, Canada, Germany, China, South Korea, Taiwan, Central America, Mexico, the United Kingdom, France, Australia, and India. MSFF products continue to be a part of people’s lives, homes, and dinner tables. And, even though Mrs. Sharp is a national icon for all Belizeans and Belize, last year MSFF came up with another slogan, “The Whole World Loves Marie Sharp’s,” to show the love and support from everyone who continues to enjoy her products in Belize and around the world.

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BELIZE’S NATIONAL EXPORT STRATEGY

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he Government of B elize, facilitated through the B elize Trade and Investment Development Ser vice (BELTRAIDE), with funding from the Caribbean Development Bank (CDB), is engaging in the revision of B elize’s National Export Strateg y (NES), first drafted in 2007. The objective of the NES is to better position businesses in B elize’s priority export sectors to take advantage of trading opportunities, particularly those provided by the CARICOM Single Market and Economy 22 (CSME), the Economic Partnership Agreement (EPA), the Partial Scope Agreement with

Guatemala, and other agreements that B elize is in the process of negotiating (with El Salvador, Mexico, and Honduras).

Given B elize’s relatively small population and hence its small market, local companies wishing to increase sales, expand their markets, and seek new opportunities must venture into the global marketplace. With the advent of internationalization and trade liberalization, it is critical for B elize to address the challenges resulting from an erosion of trade preferences and new requirements for both rules of origin and quality and standards certification.

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PHOTO BY DEMIAN SOLANO

BY SHAHERA McKOY Trade Development Officer/Project Coordinator National Export Strategy, BELTRAIDE

for trade development, identifying priority sectors and priority actions for enhancement of the national enabling environment. Improvement in the enabling environment will cut across sectors and will produce positive impacts for both goods and service exports. The NES and the accompanying action program will thus strategically and systematically articulate actions to improve the enabling environment, which includes • improvement in trade facilitation services at all levels of the public sector, • strategic investment in export infrastructure, • improved cost structure for utilities, • institutional support for quality systems, • support of export-finance regimes, • improvement in intellectual property protection, and • improved incentive regimes for exporters of goods and services.

Broadly, the NES seeks to • enhance the effectiveness and efficiency of the national enabling environment; • ensure adequate provision of necessary infrastructure to enable industry to become more internationally competitive;· • enhance private sector capacity and capability to drive economic growth and development; • foster human resource development to obtain the skills required for further economic development; • identify and develop new sectors that create, capture, and retain higher value-addition and that provide the basis for Belize’s economic development; and

Additionally, the NES provides a basis for mainstreaming of policies and planning processes relating to both promotion and development of trade and investment. Foreign Direct Investment provides a positive stimulus for export competitiveness and often plays an important role in shaping the export landscape within a developing country. The relationship between export and investment is significant and cannot be ignored when formulating development agendas. Our resource endowment and proximity to major markets are two factors that have increased our attractiveness as an investment destination. It is thus judicious for Belize to pay close attention to those sectors with significant export potential, while crafting an investment strategy that contributes to the growth and development of the export sector.

• internationalize Belize’s enterprises, allowing them to take advantage of international business opportunities.

The NES is intended to be the blueprint for trade promotion and development at the macro level, while facilitating competitiveness of Belize’s export sector. It necessitates a comprehensive analysis of the national and institutional framework beliz ein v es t .o r g .b z

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THE BELIZEAN DIASPORA: STRATEGIC PARTNERSHIP FOR BELIZE’S DEVELOPMENT

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am grateful for the opportunity to contribute an article to BELTRAIDE’s Invest Belize magazine, and I wish to capitalize on this opportunity to delve into an issue about which I am totally convinced: The Belizean Diaspora represents an invaluable strategic partner with tremendous potential to contribute to the socio-economic development of Belize, and its value as a pool for investors in their own county needs to be enhanced and supported. The Belizean Diaspora constitutes a unique investor bracket with intimate knowledge of our country and what it represents, and Belizeans in the Diaspora are exceptionally positioned to make good investments, achieve handsome returns, and become drivers of the micro, small, and medium enterprise sector.

In this context some may ask: What makes our Diaspora so special?

To start off, the communities of Belizeans living overseas have been strengthened by exposure to very competitive business models, they have access to invaluable technical and business networks, and many of them have been forced to compete in some of the most cut-throat environments in the world, therefore sharpening their skills and in many instances their business acumen. In addition, and very importantly, many of them have access to capital, whether it be hard-earned savings or from their ability to access low-interest loans in their adopted country.

There is also no question that the overwhelming majority of our people living overseas have an inherent, sincere, and sometimes even emotional stake in the economic development and future well-being of our beautiful country.

This interest has been manifested b eliz ein v es t .o r g .b z

time and again by their tremendous efforts to give back—and give back they have—in the areas of education, health, security, community development, and general philanthropy, as well as in the transfer of remittances. Although these remittances are invariably destined for family and friends, these funds often constitute a needed and reliable source of income for many families.

These Belizeans remain connected with home in ways that have been made possible by the great advances in communication technology: They watch or read the Belize online television newscasts every day, they listen to Belizean radio stations at home or at work all the time, and many of them chat online, monitor their Facebook accounts for news from home, and make full use of social media to feel part of that community of Belizeans scattered

PHOTO CREDIT: BIGSTOCK.COM

BY HIS EXCELLENCY, NESTOR MENDEZ Ambassador of Belize to the U.S., Washington, D.C.

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all over this continent. In short, they are connected, informed, and interested; moreover, many of them are eager to find more ways to help.

Thousands of Belizeans abroad, especially those in the United States, are organized in community organizations through which they maintain their contacts with other Belizeans, and wherein they organize community activities and fund raising initiatives often destined to assist some school, hospital, community, or entity in Belize with a specifically identified need. Over the last few years, many of these community organizations have expressed deep concern about the level of crime and violence, which for a moment appeared to be stifling our society. These expressions of concern also included questions about how they could help, whether it be with procurement of specific equipment for our security agencies, with technical expertise to enhance the capacity of our police, or even with offers to organize activities for youths to keep them productively occupied. Of course we appreciate all of these offers, which we understand to be well-meaning expressions of concern and solidarity and a genuine desire to help. Unfortunately, these initiatives only address the symptoms and not the causes of some of our social deficiencies that eventually manifest themselves in outburst of crime and violence.

In my mind, in addition to the ongoing activities presently undertaken by the Belizean Diaspora in benefit of Belize, the most important way that they these Belizeans can assist Belize is by investing in its economic development—by taking ownership of their country and its economic future. It is only by growing the economy so that it can provide jobs, economic opportunities, and hope for our 26 marginalized sectors that we will be able to confront and abate the

violence and insecurity that are of great concern for Belizeans at home and abroad.

And by the Diaspora’s helping Belize by investing in it, I am by no means referring simply to altruism— not at all. There is money to be made in Belize, and the proof lies in front of us in the small fortunes—sometimes large—of many people who have come to Belize and discovered its economic potential in tourism, in agriculture, and in the services industries—and who have stayed and invested and are now reaping the benefits. The economic potential of Belize cannot be overstated, and we are seeing record growths in the tourism and agriculture sectors.

There are many areas for investment, and the time to get involved is now.

One of the great strengths of Belizeans who have lived and worked away from Belize for some time is the fact that they would, upon returning home, often be able to identify opportunities for business enterprises that were not obvious to them before. It is also a factor of the evolving Belizean economy that more opportunities in the productive and service feeder chains are arising as the economy grows. During a recent visit to Belize, I went with some friends and colleagues for lunch at a relatively new establishment in Belmopan. At the end of the lunch, I offered to pay, but I did not have enough cash on my person, therefore prompting the question of whether or not I could pay using a credit card. The waiter looked at me strangely and said no, which was not all that surprising. However, what the experience brought to my mind is that with so many tourists coming to Belize, many of whom prefer not to carry cash, and with so many Belizeans visiting all the time, it is about time that some entrepreneur in Belize finds a way to make use of the existing technology so b eliz ein v es t .o r g .b z

that people can pay in more places using a credit card. In Belize, cell phone usage is ubiquitous, and the technology is available already where a cell phone can be fitted with a “Square Card Reader” which can be used to swipe a credit card for payment. Now, I do not know the mechanics or the financial regulatory frameworks that need to be in place for such technology to be widely used, but this is where an entrepreneur with experience in this field could come in and fill this need and create a lucrative business. Visitors to Belize will only increase, and the more opportunities and alternatives we offer these visitors to spend their money, the more they will spend, and the better for Belize.

In my conversations with Belizeans in the United States, many have mentioned that they do want to invest in productive activities in Belize, but that it is difficult to do so if you are not there to look after your interests. There is the matter of who to trust with your hard earned money, as well as what credible institutions exist that can safeguard your investment if what you are looking for is more than just a fixed deposit account at a bank. The truth is we do lack the financial infrastructure such as small investment firms that can channel in credible ways the capitals from small Diaspora investors into lucrative businesses in Belize.

However, this deficiency is also an opportunity, a need that must be filled and one that is crying out for enterprise development.

Some people tell me that they do intend to return home to live and work eventually, but, until such time, they will not invest in Belize, not even buying or building a home because it is impossible for them to visit due, in many instances, to their irregular migration status in the United States.

However, it is never too early to start looking for property or to start building

in Belize because real estate prices will only keep increasing. In addition, for the first time in many years, the United States Government appears to be close to agreement on comprehensive migration reform. When this occurs, and thousands of Belizeans are able to live and work in the mainstream of American society, and when they are able to regularize their status enabling them to travel, it is anticipated that a huge wave of Belizeans who have been away for many years will make use of the opportunity to visit home to see friends and family.

This flood of visitors, armed with a certain level of liquidity, will also be another economic opportunity for entrepreneurship in Belize in several areas. Moreover, many will probably be looking around for opportunities to buy homes and property, so the time to start looking at what Belize has to offer is now.

Another concern that has often been raised is that even though a few

persons who have lived in the United States and are getting ready to return home may have some capital and an idea for a business, sometimes they do not know where to start in terms of setting up or starting and managing their small business. The answer to this concern has been provided by BELTRAIDE and the Small Business Development Center through which are offered exactly the kind of hand-holding and advice needed by someone just moving back to Belize to start a business.

The Embassy of Belize estimates that we have well over 125,000 Belizeans in the continental United States, with the principal concentrations residing in Los Angeles, California, Chicago, Illinois, and New York City, with significant numbers in Florida, Texas, and Louisiana. Many of these people, our people, have enjoyed a tremendous level of success in some of the most competitive societies on our

planet. They have contacts, skills, some level of capital or access to it, and—above all—interest in Belize.

Several of them own and operate successful businesses, big and small; others have been successful in academia, in government, in managerial positions, in technical areas, in the arts, in construction, and in high-end finishing and refurbishment of buildings, to name a few.

These Belizeans constitute a largely untapped source of investment in the economic development of Belize, and it is my hope that they will become aware of the great potential that their own country has to offer and that they will take advantage of these opportunities. The growth of our economy and development of our country will redound to greater opportunities for our people, in parallel with enviable returns for our investors. Belize needs you, dear Belizean who lives abroad, and the time to get involved is now.

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ENERGY INVESTMENT OPPORTUNITIES IN BELIZE

BY HON. SENATOR JOY GRANT AND DR. COLIN A. YOUNG Ministry of Energy, Science & Technology

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PHOTO CREDIT: SHUTTERSTOCK.COM

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ccess to affordable and reliable energy sources is critical to Belize’s national development. We currently expend approximately 15% of our gross domestic product to purchase and import fossil fuel for our primary energy needs.

Except for electricity generation, almost 60% of which comes from renewable energy sources (biomass and hydro), we are reliant on petroleum-based products to meet 90% of our primary energy needs.

This dependence on imports is a major source of vulnerability in the Belizean economy.

With the escalating increases and volatility in global oil prices, sustained national development in Belize is contingent on improving our energy independence through the generation and production of domestic and renewable energy such as biomass, hydro, solar, and wind.

Private sector investment and public-private partnerships are critical prerequisites to reducing fossil-fuel dependency. Despite Belize’s nascent renewable energy focus, many investment opportunities exist in energy, science, and technology.

Opportunities for energyrelated investments in Belize abound in two broad areas: energy efficiency and conservation (EE&C) and renewable energy technologies (RET) for the supply of clean energy to the national grid, each of which requires the applications of science and technology.

Investment in energy efficiency can take many forms and spans a number of products and services. The most common energyefficiency investment involves retrofitting of a home or building or upgrading its lighting, cooling systems, and household appliances to gain returns through savings on energy bills.

Energy-efficiency interventions—particularly in areas of lighting, cooling, equipment, and appliances in the residential and commercial building sectors—offer excellent investment opportunities. These clear financial benefits create opportunities for the establishment of energy service companies (ESCOs) that can provide EE&C services and products such as

energy audits and energy-efficient appliances and equipment.

ESCOs will have the capacity and financial ability to determine the required EE&C upgrades, make the corresponding investments, and get repaid from a portion of the energy savings. Once ESCOs are operational, employment will be created, which fosters economic growth due to greater update of EE products and services by the private sector.

Supplying renewable energy to the grid represents another promising and potentially lucrative investment opportunity in Belize. Supply of energy to the grid is possible through smallscale distributed generation as well as through large-scale commercial investments. The former is possible through the sale of surplus energy to the grid from RE sources such as solar and wind. Such distributed generation requires a conducive fiscal, financial, and regulatory environment (e.g., feed-in tariffs and net-metering mechanisms) to increase private sector uptake and investment.

The Ministry of Energy, Science & Technology, and Public Utilities (MESTPU) and the Public Utilities Commission will soon issue a Request for Proposal (RFP) to qualified firms and companies to supply 20MW of firm capacity power by 2016 and an additional 20MW of firm capacity power by 2020. The RFP will also invite bids for the supply of an additional 10 MW from renewable sources (e.g., solar and wind) of which 2-3MW is expected to come from distributed generation.

The MESTPU stands ready and willing to work with privatesector entities as they explore opportunities for investment in enterprises designed to increase Belize’s energy independence through the generation and production of domestic and renewable energy. The Ministry will provide the required regulatory and fiscal policy support to facilitate success.

Please visit our website: www. estpu.gov.bz MESTPU and view our Strategic Plan (2012-2017).

Hon. A. Joy Grant | Minister of Energy, Science & Technology, and Public Utilities.

Dr. Colin A. Young | Ministry’s Chief Executive Officer.

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WHY BELIZE? WHY TOURISM? WHY NOW?

BY CHRISTY MASTRY Project Director, Sustainable Tourism Program

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oday’s opportunity for tourism investment in Belize is unlike any we have seen before. Not only is the Ministry of Tourism and Culture at the forefront of creating an environment to support future development, but the Government of Belize continues to endorse the tourism sector as one of the main pillars of Belize’s economy. It also continues to pledge “its commitment to entrench tourism as a top national priority,” and promote tourism as a main engine for an upturn for the overall economic growth of the country. The energy and effort backing these statements are now being realized.

PHOTO BY DEMIAN SOLANO

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largest barrier reef in the world.

These diverse product-offerings as well as real estate opportunities in both marine and terrestrial destinations offer something for everyone—visitor and investor— with exceptional growth potential.

So why is this all happening now?

And why is it an excellent time to invest in Belize’s tourism sector? The Ministry of Tourism and Culture and the Belize Tourism Board embarked on an ambitious initiative over three years ago with the creation of the Sustainable Tourism Program. This program’s purpose is to deliver not only tangible infrastructural improvements but also to advance human resource development and build a strong commitment to the tourism value chain through the country’s 20-year roadmap for growth, the National Sustainable Tourism Master Plan (NSTMP). There is not only room for new growth but also immediate gains, which are being seen throughout the industry in the country today. These include the recent convergence of over $30 million in infrastructure development now b eliz ein v es t .o r g .b z

on the ground at tourism destinations throughout the country, the NSTMP legislated by Cabinet in October 2012, the stellar move to digital marketing along with a new marketing firm aligned to the NSTMP, and the newly introduced Hotel and Tour Operator Standards and Classifications.

Maybe you are a local proprietor renovating your existing property, or a foreign investor looking for greenfield construction opportunities, or a combination of local and foreign looking to repurpose a broken deal.

The Ministry of Tourism and Culture is now creating the framework to allow for all of these options to succeed, with national level planning and development for tourism growth at all destinations. Both soft and hard investments are now taking place to assure all local or international tourism investors, developers, and operators that the country has committed to a high value, low-impact blueprint for planning focused on development.

The Belize Tourism Board remains committed to impressively increasing the arrival numbers, soliciting additional airlift, and creating the capacity

PHOTOS BY DEMIAN SOLANO

The country started this year with a double-digit percentage increase in arrivals, showing almost no sign of slowing even two months past the peak season. As a comparison, global growth trends are at approximately 4% where any increase can be found. Currently, the industry accounts for 277,000 overnight visitors, breaking through the 250,000 mark for the first time; cruise ship passengers accounted for approximately 650,000 visitors last year.

Tourism represents 28% of the country’s GDP, amounting to over $500 million dollars in annual tourism expenditure, and this trend shows no sign of slowing. With a room stock of approximately 7,000, Belize is a small but strong competitor in the Caribbean and Central America; moreover, Belize is emerging out of the global tourism recession with opportunities for new growth and a product-offering like no other in the region. This country is rich with natural assets, living culture, and archeological antiquities that 32 are only now being tapped, in addition to being famed with the second

PHOTO BY DEMIAN SOLANO

and standards on the ground to ensure these developments are supported with international marketing for all properties, large and small, and the human resources to service the industry.

Investor confidence can only be paired to government commitment in any sector and the alignment to the NSTMP can assure investors that the development they seek through the goals of the Master Plan will be given priority, as well as multi-ministerial support in achieving such investment.

With a guiding framework in place, investors no longer need to speculate from afar; rather, they can work on the ground with the Ministry of Tourism and the Ministry of Trade and Investment to create potential partnerships for destination development and ensure infrastructure growth in order to optimize profitability and mutual benefits. By following the now modest global growth trend set within the NSTMP over the next 20 years, one can project that growth will result in doubling the overnight arrivals, growing the average length of stay, and doubling current room stock with new investments, totaling US $1.3 billion in annual tourism expenditure from total tourism visitation. The projection also indicates that new market segments will open up, such as the nautical, luxury, and leisure sectors.

The preparation of the investment landscape is now more than ever the only thing that can ensure and invite healthy investment in this delicate climate of spending. In the tourism sector where the Caribbean faces the dilemma of repurposing so many broken deals, Belize is still one place that offers untouchable natural assets, combined with greenfield opportunities at lower investment costs than any of its regional Caribbean competitors. Coupled with the now legislated National Sustainable Tourism Master Plan and the government’s commitment to developing the sector, there is no better time to invest in tourism and INVEST IN BELIZE.

Belize is a small but strong competitor in the Caribbean and Central America

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THE LODGE AT CHAA CREEK A DIFFERENT INVESTMENT MIX RESULTED IN A UNIQUE SUCCESS STORY

BY LUCY FLEMING Owner, The Lodge at Chaa Creek

PHOTO COURTESY THE LODGE AT CHAA CREEK

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nvestment in Belize has taken many forms over the years, from the extraordinary expenditure of labor during the early days of logging to the high risk ventures of pirates, the influx of cash when sugar was king, and on up to the present day’s global investments in various sectors of 34 the growing economy. The success of the Lodge at

Chaa Creek is a truly Belizean story of a birth and evolution that took place alongside the growth of this vibrant new country.

My husband Mick and I arrived in Belize in the late 1970s with not much more than 600 English pounds and a wealth of youthful exuberance and enthusiasm.

For us, it was a case of love at first sight, and while most

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new arrivals were drawn to the Caribbean coast and cayes, it was in Belize’s lush interior, with its verdant rainforests, pristine rivers, and rolling pastoral hills that our lives took root.

A chance meeting in a Belize City bar led us to leasing a 137-acre parcel of land on the banks of the Macal River, and we immediately rolled up sleeves and began work, clearing the dense bush by hand and setting up house while establishing a vegetable garden, chicken run, and other necessities. With no road into the remote property, one of our first investments was a dugout canoe that became our primary means of transport to and from San Ignacio Town.

Before long we were regular fixtures at the Saturday markets, selling what produce we could and converting those sales into essential provisions not produced by the land. It was a good life characterized by hard work and the freedom that comes with being self-sufficient. However, like our neighbors, we were just barely getting by. Then, with a new baby on the way, we knew we had to eventually find a way to increase our meager income.

It was just around this time that more people, mostly young backpackers traveling through Mexico and Central America, began visiting Belize.

Soon the word spread that, when in Cayo, there was usually a spare hammock and a plate of rice and beans available at Mick and Lucy’s farm.

We welcomed the company, but acting as hosts took time and money we could ill afford in those days. As more people arrived on our humble doorstep, we began charging a token amount to offset the price of food and transport, which in time we standardized at BZ $8 dollars, or US $4 dollars a day. This money we used to build our first “cottage,” a simple one-room, thatch- roof hut built entirely of materials sourced from the surrounding forest.

In 1981 along with the birth of Belize as an independent nation, Chaa Creek Cottages was born.

Fast forward a few years and our vocational paths had shifted from farming to hospitality.

Our days still began at 5:00 a.m., but they were now filled with improving the road and expanding the rather basic amenities to cater for an ever increasing flow of guests.

Living and working in the pristine rainforest

setting imbued us with a profound respect for the natural environment and a commitment to do what we could to protect it. Nature presented us with a stunning canvas on which to work, and we came to appreciate the fragility of that canvas and learned to harmonize with, rather than impose on, Mother Nature. Thus Chaa Creek grew as an eco-resort years before we first heard the term.

We’ve evolved from that first simple hut to a 365-acre nature reserve embracing 20 thatch-roof, cottage style rooms and luxurious tree-top and private Jacuzzi suites, as well as the more budget bungalows at the adjacent Macal River Camp. A skilled chef specializing in Maya cuisine runs the kitchen of a large, airy restaurant, while the Hilltop Spa offers professional massage and treatments. There’s also a spacious conference center and lounge, an infinity pool, and a full range of amenities one expects from a first class eco-resort. Our Natural History Center has become an educational resource for hundreds of students as well as for our guests, along with the Maya Medicinal Plant Trail and Maya Organic Farm.

More importantly, Chaa Creek now provides steady employment for over 130 Belizeans and is able to give back to the community through programs such as the Chaa Creek Cares initiative, which sees 10% of all room revenue going directly into environmental and social programs.

We can’t help but feel blessed to have come such a long way.

Belize, as a young, dynamic country, has always welcomed and fostered creative investment. Certainly things have changed in the 30-plus years since two young adventurers decided to try something new in a country most of the world still hadn’t heard about, but Belize retains that frontier spirit of a country open to possibilities, where ideas can take hold and flourish.

What would we say to someone considering starting an enterprise in Belize?

Be smart, be open to new concepts, gain insight from the wisdom of the locals, and be prepared to work. But also be prepared to join an emergent nation that welcomes new ideas and energy, one that repays persistence and patience with an ever widening circle of opportunities and rewards.

And, most of all, get ready to take part in an amazing journey.

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Potential for real estate development in Belize is huge, and there are opportunities for many Belizeans within it and other related fields.

THE FUTURE OF REAL ESTATE IN BELIZE

BY HUGO MOGUEL President, AREBB

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he Association of Real Estate Brokers of Belize (AREBB) was formed in 2006 as the first association representing real estate professionals in Belize. While AREBB’s initial formation came about as a reaction to taxation policy being enacted by the Government at the time, our successful lobbying efforts with Government invigorated the Association, and our focus quickly moved toward formulating and enacting legislation to regulate the Belize real estate industry. After several years of working on the Real 36 Estate Bill, adding value and recognition to our members, and establishing ourselves as one of the strongest

and most recognizable associations in the services sector, AREBB is now about to enter a new chapter in its history. Three major events are about to take place in Belize’s real estate industry: the first is the installment of the Multiple Listing Service (MLS) in June, the second is our merger with the Belize National Association of Realtors (BNAR) that has formed one representative body for all of real estate in Belize, and the third is the enactment of the long-awaited Real Estate Bill.

The MLS is an online database of all available properties represented exclusively by members of AREBB. This advanced system has been developed and utilized in the United States and Canada for decades and has proven successful in both countries, with Jamaica, the Bahamas, and Turks and Caicos becoming recent users. Belize will now be listed as one of the countries in Latin America and the Caribbean with an active, association-run MLS. This will be the direct resource for properties available for sale or rent in Belize, professionally represented by real estate brokers and agents, allowing them to work together in a regulated environment and offering a database with real market information, valuable data that Belize has never had before. This will make it easier for real estate professionals to

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PHOTO COURTESY EMERALD FUTURES REAL ESTATE

advise their clients properly with up-to-date market data and accurate property values.

The biggest challenge our industry has faced in setting forth a regulated environment has been the existence of two real estate associations. This divisive situation made it almost impossible to have a united approach in lobbying Government, as well as in forming and enacting the legislation our industry desperately needs. Showing a high level of maturity and an unwavering aim of doing what’s best for the entire industry, AREBB and BNAR have decided to set past differences aside and formally merge, creating one association truly representative of the entire real estate industry in Belize. Signing of a memorandum of understanding between the two associations should be complete by June of this year, with an all-new association being formed and becoming formally active at the beginning of 2014.

The end of 2013 and commencement of 2014 should also see the enactment of our Real Estate Bill, legislation that will open the path for licensing and the creation of a formal body regulating how real estate professionals operate, holding them accountable to clients and each other. The Ministry of Natural Resources and the Environment has listed the enactment of the Real Estate Bill

among its top 10 goals for this year and are working closely with AREBB to accomplish this task. With the merger between AREBB and BNAR being completed in the next few months, the last hurdle will be crossed.

Potential for real estate development in Belize is huge, and there are opportunities for many Belizeans within it and other related fields. A regulated environment will lead the way toward training and certification; moreover, it will add investor confidence and an environment where real estate brokers and agents can advance and enhance their level of professionalism and talent. An MLS system will offer efficiency and standards in how we do business with each other and will offer real market data, adding a terrific tool for brokers and appraisers in calculating values and identifying market trends.

This further supports the financial sector in judging levels of risk and being in touch with a current, more vibrant real estate market. Finally, the merger of the associations will exemplify Belizean professionals working together for the greater good, and it will set the example for other service providers in seeing the value of being organized, improving standards for all and reaping the benefits of working together 37 rather than apart.

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PHOTO BY DEMIAN SOLANO

With our finest hour yet to come in Belize City, it’s indeed a time to build.

A TIME TO BUILD

BY ROGER ESPEJO, Councilor,–Belize City Council

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Saved by the city” one senior parliamentarian heralded last year within a ‘House Meeting’ referring to the residents of Belize City that delivered 8 of 10 city-based seats to the incumbent party in the 2012 general elections – what many would laud as the critical leverage for the present government’s overall electoral victory. Now, as the largest municipality and Belize’s commercial capital, Belize City is enjoying unprecedented upliftment under a prolific and relentless local government. Having developed a worthy vision coupled with a strong political will, City Hall now thrives in partnership with central government and the private sector to ‘save the city’.

As small cities in the region, and around the globe for that matter, contend with a myriad of urban challenges, the need for investment in infrastructure and public amenities grows exponentially. Increasingly cities must find creative ways to address all their challenges in the pursuit of sustainable municipal development. Issues related to infrastructure, population growth, traffic management, sanitation, lighting and urban planning are only a few among countless confronts facing modern local governments. Enter the Belize City Council: reeling from and grappling with a perceived and real history of inertia, controversy and mismanagement, a revitalized and repurposed Belize City Council emerged in 2012 and is changing the face of Belize City in unprecedented

form. Having already completed the renovation of 95 streets, of which many are principal thoroughfares, and having upgraded several public spaces, the Belize City Council recently raised the stakes once again. It embarked on the infrastructural modernization of the mile–long Coney Drive bolstering that area’s position as the city’s new commercial district where it most recently endorsed the Coney Drive Lighting Pilot Project, which aims to demonstrate major energy savings in connection with world induction lighting leader Amko Solara. Not to be forgotten the old downtown has enjoyed a refreshing makeover of the historic Battlefield Park and was fortified as a historical tourism site for cruise tourism which very much stimulates the local economy today.

This month the council, in conjunction with the Caribbean Local Economic Development (CARILED) project, will launch the new BTL Park – a major park renovation that has transformed a traditional park into a modern merchant & recreational zone. Arguably the city is in the process of its greatest urban development endeavor and is quickly creating an enabling environment for the public and private sector.

Paving the way for the launch of this new vision is Belize City’s successful issue of a Municipal Bond.

The local government took advantage of Belize’s relatively under–developed securities market by devising and administering an attractive beliz ein v es t .o r g .b z

$20M investment for stakeholders – big and small. It was indeed so attractive that the first $10M tranche sold in 3 days in October of 2012. In fact, interest rates of 3.5, 5.5 and 8 percent were rare and even unheard of before the issue of the ‘bond’. The second and third tranche of $5M each were sold with relative ease and the quick deployment of that money has left an unforgettable footprint on Belize City’s infrastructural landscape.

Governing with courage and in support of the bond, the Belize City Council has made some tough but all-too-necessary decisions in its first 20 months in office. Decisions to streamline staff and to forfeit traditional government subsidies [which are now diverted to the bond’s sinking fund] wouldn’t come easy to any local government but the Belize City Council has shown that these decisions must and can be made in exchange for real urban growth. Challenges lie ahead but most would agree that this municipal government has what it takes to persevere and in many ways it already has. In a very short window of time the municipality has seen such a substantial amount of work that it is evident to anyone who simply steps outside in a city whose finest hour is obviously yet to come.

Belize City, with renewed confidence among her social partners has concretely shown that it’s a time to build.

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OVERVIEW OF BELIZE’S CURRENCY REGIME

BY AZUCENA NOVELO Director of Research, Central Bank of Belize

PHOTO BY DEMIAN SOLANO

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ince 1976, the Belize dollar has been fixed to the United States dollar at the rate of 2 to 1, and this has contributed to the country’s low inflation environment and stable business climate. The fixed exchange rate shields Belize from the destabilizing effects of large swings in the value of the currency and volatile capital flows that can create liquidity and solvency problems with the potential to tip the financial system into crisis. As a result, domestic inflation has averaged 2.2% over the past two decades, a positive factor in long-term planning and investment decisions 40 as asset values have been safeguarded.

Maintenance of the fixed exchange rate is partially assured through the Exchange Control Regulations that are administered by the Central Bank, the institution that is legally mandated to protect the value of the Belize dollar. Foreign currency inflows and outflows from the banking system are subject to continuous monitoring with a view to ensuring usage for legitimate transactions and that adequate amounts are available to residents for foreign payments. Hoarding, capital flight, and the unauthorized sale and purchase of foreign currency in the parallel market result in the shrinkage of the banking system’s pool of foreign

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exchange and tend to undermine the fixed exchange rate regime. Such activities are therefore counterproductive to the goal of a stable business climate.

All foreign exchange inflows should be surrendered to entities such as the commercial banks and the Post Master General that are legally authorized to purchase and sell foreign currency in Belize. As foreign currency supplies are not unlimited, residents are expected to use the Belize dollar for all domestic transactions and, for maximum efficiency, limit their usage of foreign exchange to international transactions.

Except for volatile, short-term investments (for example, bank deposits, mutual funds, bonds, and other financial securities), there are no restrictions on inflows of money from legitimate sources. There are also very few restrictions on outflows of funds to pay for goods and services of a current nature (i.e. imports, vacation, medical and business travel, family maintenance, and gifts), and the Central Bank has delegated the authority to commercial banks to

approve these transactions. All transactions dealing with financial/capital assets and liabilities (for example, loans, shares, and land) require Central Bank approval. Foreign investors are readily accommodated to repatriate profits and investments and are encouraged to register their investments with the Central Bank to expedite this process. Further, businesses that generate foreign exchange earnings may obtain approval to operate a foreign currency account in order to purchase the imports required for their smooth operation.

Information on the system of exchange controls can be found on the Central Bank of Belize’s web page (www. centralbank.org.bz) in the Exchange Controls Regulations Act, the Exchange Control Circulars that have been issued by the Central Bank, and the public education pamphlet entitled “Foreign Exchange Controls: What It Means to You.” The staff of the Central Bank’s Research Department is also available to offer further clarifications where necessary.

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PHOTO COURTESY BELIZE BANK INTERNATIONAL

b eliz ein v es t .o r g .b z

YOUR GUIDE TO DOING BUSINESS IN BELIZE

BY BRIAN LIN Sr. Business & Investment Facilitation Officer, BELTRIADE

I

n an era when the global economy hinges on a pendulum swing, investors, whether large or small, have continually been compelled to scout for a solid ground where they can store and multiply their wealth with “peace of mind.” Belize, an Englishspeaking nation on Central America’s pristine northeastern coast, is poised to offer such a strategic location and serve as a gateway between the inland allies and the Caribbean community. In Belize, this is where the potential of your business can be maximized within the comfort of an environment (ground) that is viewed as stable, predictable, and, now more than ever, friendly!

Spearheaded by a government that is committed to growth, the country, through the Belize Trade and Investment Development Service (BELTRAIDE), is prepared to work with business developers on the path to success. At BELTRAIDE, our goal is to make your business establishment experience a pleasurable one. We seek to provide you with prompt guidance from starting a business to paying mandatory taxes. What’s more, we strive to hand-hold your every step along your pre-established phases, ensuring that your path is well lit. We are confident that with this support in place, you will be many more steps closer to reaping success.

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Doing business in Belize has never been friendlier.

So what are you waiting for? There are just five (5) key compliance steps to get your basic business entity up and running.

Business Registration/Incorporation

Any firm or individual wishing to carry on a business in Belize must register the business name with the Company Registrar [at the Belize Companies & Corporate Affairs Registry]. Businesses wishing to operate as a domestic limited liability company (minimum of two owners) must submit the respective Memorandum and Articles of Association to the Company Registrar. It should be noted that a business consisting of more than seven (7) persons for the purpose of carrying on a business for profit must also be incorporated.

Trade License

A business must obtain a trade license before the commencement of any type of operations in Belize. A trade license is required for each location that the trade will be conducted regardless of whether it is the same business (branch). The trade license must be renewed annually. This applies to companies, partnerships, and sole traders including professional service providers.

Business Tax Registration

All businesses must register at Income Tax Department to obtain a Taxpayer Identification Number (TIN) to pay tax. These businesses include sole proprietorships, companies, and partnerships. Please visit our website for a description on the taxable criteria, as well as for the full tax schedule.

General Sales Tax Registration

All persons who are engaged in a taxable activity with an annual turnover exceeding US $37,500.00 must register with the Department of General Sales Tax. It should be noted that it is not the business activity which is registered but the person conducting those activities. This person can be a company, partnership, sole proprietor, trustee, or estate. Persons must register within one (1) month of the day on which the person first becomes eligible.

Social Security Contributions

All persons or business entities who employ one or more persons must register for social security with the Belize Social Security Board. The application must be made within seven (7) days of employing an employee.

Doing business in Belize has never been friendlier. The Government of Belize is dedicated to fostering a sustainable environment that is conducive for business growth and development. To date, the nation has made significant strides in improving the burden of tax obligations to business operators.

According to The World Bank Group’s report entitled “Doing Business 2013,” Belize scored a total tax rate of 33.2%, as a percentage of the business profit, while the average Latin American and Caribbean country hit a rate of 47.2%. Such is the kind of solid endeavor in which Belize is working relentlessly in improving its investment climate.

Belize—Our Natural Niche!

Kindly contact BELTRAIDE for more information on investing and doing business in Belize.

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A GUIDE ON BELIZE’S INVESTMENT INCENTIVES Lejia Melanie Gideon Deputy Executive Director BELTRAIDE

B

ordered by Mexico in the North, Guatemala in the West, and the Caribbean Sea in the East, Belize is a unique, vibrant country in Central America whose British colonial history strongly links it to the Caribbean. It has a hard-working, diverse, friendly, bilingual (with English being the official language), and well-educated workforce that bolsters an economy focused on growth. Quite the popular tourist destination for its eco-friendly, pristine natural resources, Belize’s rich soil, yearround tropical climate, and long coast line creates an attractive and sustainable climate to foster niche products and services that cater to niche markets, such as adding values deriving from nature.

Belize’s natural assets, progressive development policies, pro-business investment climate, and long-time democratic stability have created an ideal destination for investors seeking a sustainable harbor amidst the waves of global economic hardship. The Government of Belize is wholly committed to supporting the country’s niche-oriented development model, while preserving the country’s distinctiveness and fostering investor confidence. Likewise, the wide array of investmentrelated incentives have all continued to firmly reinforce the country’s business-friendly reputation. Notable incentives include the Fiscal Incentives Program, the Export Processing Zone Program, the Free Zones Program, Retired Persons Program, and the Offshore Financial Services Incentive Program.

In particular, the Fiscal Incentives Program places key emphases on fostering agriculture, agro-industry, aquaculture, manufacturing, and tourism.

Export Processing Zone Program

The Export Processing Zone (EPZ) Program was instituted with the aim to attract both local and foreign investments to boost production for export markets through the granting of a full-fledged tax holiday and Customs tariffs exemption. The EPZ Program places key emphases on value-adding activities, solely for the export market, such as agro-processing, manufacturing, assembling, and data processing.

Free Zones Program

The Free Zones Program was instituted to attract local and foreign investors for the development of trade in retail and wholesale merchandise, light manufacturing, assembling, and packaging in the designated zones. Beneficiaries under the Free Zone Program enjoy a full-fledged tax and Customs tariffs exemption.

QUALIFIED Retired Persons Program

The Qualified Retired Persons (QRP) program was instituted to facilitate people who wish to live in Belize and can prove a permanent and consistent income from investment, pension, or other retirement benefits. A retired person, on first entering Belize, can import his or her personal effects and an approved means of transportation free of all import duties and taxes. In addition, the person shall be exempt from the payment of all taxes and Fiscal Incentives Program The Fiscal Incentives Program was instituted to duties on all income or receipts that were accrued from encourage both existing and potential investors through a source outside of Belize. To extend the benefits further, 46 the granting of Customs duty exemption, inclusive of the retired person can invest freely in the country, with solely the Import Duty and Revenue Replacement Duty. the exception of becoming gainfully employed. b eliz ein v es t .o r g .b z

International Business Companies Act

Belize’s International Business Companies (IBC) Act is designed to meet the needs of sophisticated international investors by permitting asset protection and tax planning at competitive rates. The incentive offers several benefits such as exemption from taxes on all income, dividends, interests, rent royalties, compensations, and others. Any non-resident may singularly or jointly with others incorporate a company under the IBC Act. The incentives that Belize offers are equipped with the resilience to cope with contemporary

cross-sectoral needs. In light of this, the investment and export promotion agency of Belize, BELTRAIDE, serves as a critical government agency that acts as the first stop for investors seeking assistance to explore business opportunities in Belize.

BELTRAIDE helps potential and existing investors to successfully establish their business and to match any relevant incentives where applicable.

Investors are encouraged to contact BELTRAIDE for more information on investing in the nicheoriented country of Belize.

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Belize flag

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PHOTO BY DEMIAN SOLANO

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BELIZE IN NUMB3RS 2010 FIGURE

METRIC

Land Area

8,867 Sq Miles

Population Population Density Population Growth

338,936 (2012) 13.6 person per km2 2.011 % (1990-2012)

Labour Force Minimum wage GINI index

148,093 (2012) US $1.65/hour (2012) 53.1 (2012)

US $ 1.4 Billion

GDP

US $ 8,400

GDP

5.3%

2012

GDP

2012

per capita

50

real growth

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2010 FIGURE

METRIC

1.6 1.5

$

1.4

1.3%

1.3 1.2 1.1 1.0 .09 .08

Inflation

.07

(Annual average percentage change)

.06 2008

2009

2010

2011

2012

13.%

Weighted average deposit rate

3.7.%

2012

Weighted average lending rate

Merchandise exports US $ 603.3 mil (f.o.b.)(2011)

Gross Official International Reserves US $ 236.1 million (2011)

Merchandise imports US $ 773.9 mil (f.o.b.)(2011)

Corporate Income Tax rate 0.75% - 24.5%

Import cover of reserves 4.3 months (2011)

Average cost of water for businesses US $4.80 for 0-1,000 gals US $11.19 for 7000-8000 gals

Source: Investment Unit, Ministry of Trade, Investment Promotion, Private Sector Development and Consumer Protection beliz ein v es t .o r g .b z

Average cost of electricity (per kWh) US $0.10-$0.11/kWh

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DIRECTORY Arguelles and Co. LLC 4th Floor, The Matalon, Coney Drive Belize City, Belize P: +501-223-0088 F: +501-223-6403 E: info@belizelawyer.com W: www.belizelawyer.com A specialist law firm structuring quality legal solutions in the areas of Offshore Law, Real Estate, and Development/Foreign Investment Law.

Atlantic Bank Ltd. Cor. Cleghorn Street/Freetown Road PO Box 481 Belize City, Belize T: 501-223-4123 F: 501-223-3907 E: atlantic@atlabank.com W: www.atlabank.com

Bay Trust International Ltd.

Belize Bank

P.O. Box 2130 The Matalon Business Center 5th Floor, Suite 500 Coney Drive Belize City, Belize P: 223-1756 F: 223-1775 E: glen@baytrustbelize.com W: www.btcslbelize.com

60 Market Square Belize City, Belize P: 227-7132 / 227-7082 F: 223-0156 E: bblbz@belizebank.com W: www.belizebank.com

BELIZE BANK International The Matalon Business Center Coney Drive, 2nd Floor, PO Box 364 Belize City, Belize, Central America T: (501)227-0697/ 227-1548 F: (501)223-0986 E: services@BelizeBankInternational.com W: www.BelizeBankInternational.com 52 b eliz ein v es t .o r g .b z

Boris Mannsfeld and Associates Placencia, Belize Belize Office: 523-3063 Call from USA: 011-501-523-3063 Boris’ Cell: 610-0294 Frik’s Cell: 610-1223 E: info@RealBelizeEstate.com W: www.realbelizeestate.com

DIRECTORY

DHL 1746 Coney Drive Belize City, Belize P: +501 223-4350 / 223-1070 U.S. +1-305-677-9713 E: alvaro.a.rodriguez@dhl.com W: www.dhl.com

Belize Industrial Center 8.5 mls. Philip Goldson Highway, P: 501-670-6818 F: 501-223-2609 E: epzbelize@gmail.com W: www.epzbelize.com

HERITAGE Bank

International Communication Services Ltd.

35 Barrack Road, P.O. Box 1867 106 Princess Margaret Drive, P.O. Box 1988 Belize City, Belize Central America T: +501. 223. 5698/8784 E: services@banking.bz W: www.heritageibt.com

Mile 13 1/2, Philip Goldson Highway P O Box 603 Belize District T: 501-228-0022 F: 501-228-0023 E: info@icslbelize.com W: www.icslbelize.com

IDEA LAB STUDIOS LTD.

International Services Ltd.

1484 Salt Avenue P.O. Box 1444 Belize City, Belize C.A. T: 501.223.6386 F: 501.223.5109 E: info@idealabstudios.com W: www.idealabstudios.com Belize’s premier and only full service advertising firm.

16 Albert Hoy Avenue Belize City, Belize T: 501-223-2077 F: 501-223-5313 E: gomezisl@btl.net W: www.eastaxburden.com 53 beliz ein v es t .o r g .b z

DIRECTORY

ORCHID TRAVEL NETWORK 1484 Salt Avenue P.O. Box 1444 Belize City, Belize C.A T: 501.223.1302 F: 501.223.5109 E: info@orchidors.com W: www.orchidors.com The core of Orchid’s service offering is the Orchid Online Reservations System (ORS).

Robert’s Grove Placencia, Belize P: 523-3565 E: info@robertsgrove.com W: www.robertsgrove.com

VISIT US ONLINE Twin Palms Bed & Breakfast

Mile 54 Hummingbird Highway Air Condition, Cable TV, Fan, Hot/Cold Water, Wifi, Cell Phone, Swimming Pool City of BelTwin mopan Palms Bed & Breakfast

Tim & Anna Smith

Mile 54 Hummingbird Highway Tel: 501-822-0231 Cel: 501-610-2831 Email:tasmithbz@yahoo.com City of Belmopan, Cayo District �A P������ ������ �������� P: 501-822-0231 C: 501-610-2831 E: tasmithbz@yahoo.com

Belize Trade & Investment Development Service

54

14 Orchid Garden Street City of Belmopan T: 501-822-3737/0175 F: 501-822 0595 E: beltraide@belizeinvest.org.bz W: www.belizeinvest.org.bz facebook.com/beltraide

Visit us online at www.belizeinvest.org.bz Scan code with a QR CODE READER on your mobile device to visit us.

Like us on Facebook!

http://www.facebook.com/Beltraide b eliz ein v es t .o r g .b z

B EL I Z E

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