BDO ST. MAARTEN RETHINK – NAVIGATING THE NEW REALITY WITH PAUL LUNGU – MANAGING DIRECTOR BDO SINT MAARTEN. While St. Maarten’s economic outlook remains challenging, the pandemic has re-emphasized the importance of what business agility really means. The COVID-19 crisis will continue to affect businesses in different ways and at different times. It is accepted that the world will change as a consequence of COVID-19 and businesses need to imagine this ‘new reality’ as early as possible - and rethink how they will be positioned in it. We are discussing with Paul Lungu – Managing Director BDO St. Maarten about possibilities that can be used to manage business priorities, address issues and leverage thinking, acting as an extra dimension for strategic level consideration and discussion. For over a year now we observed how the buzzing of activity that defines a visit to St. Maarten gave way to ghost towns when the pandemic hit. Though resorts, restaurants and casinos reopened, foot traffic remained light and businesses struggle to minimize losses.As a result, organizations focused on gaming and hospitality have had no choice but to rethink their business strategies to regain revenue lost from initial shutdowns and the continued lack of physical consumer presence, in addition to making investments to ensure and promote customer and employee safety. Certain trends that were developing before the pandemic have been accelerated, while previous ways of doing business may remain part of the past. The Sint Maarten economy is highly dependent on tourism, restaurants, hotels, and other tourism-related sectors account for about 45% of Gross Domestic Product (GDP), with a per-capita GDP of US$29,495 (IMF, February 2021). We believe that Sint Maarten has largely adapted to the international trends identified below and we are of the opinion that successful implementation of the National Recovery Program is instrumental for an accelerated recovery of our economy. Now, more than ever, business leaders realize the importance of speed of reaction in response to changes in the market. Over the past months, the key enabler was the level of 56
digitalization within each organization. We could observe an accelerated transformation of the operating model for various businesses operating in different industries in Sint Maarten. Irrespective of the their activity, all of them placed digitalization as their top priority and repositioned their processes around what proved to be the new normal. Working from home revealed how many distractions are at the office with most of our professionals spending a significant higher amount of productive hours during the lockdown period than when working from our office. While digital collaboration tools have become critical to remote work and will remain post-pandemic, the new way of work also unveiled the need for social interaction, where BDO Dutch Caribbean organized a number of internal events particularly created to mitigate this gap. Hybrid work models are anticipated to proliferate in 2021 and are likely to endure. To attract and retain these employees, companies, including BDO St. Maarten, are planning to provide more options to make hybrid work/life work for them.
HOSPITALITY
Hotel, restaurant and casino operators have had to implement new protocols during the pandemic to comply with safety measures. Because there is no telling how long the pandemic will last, even with vaccines in play, some of these new protocols—especially those that require significant investment—may become permanent. Internationally many casinos are replacing the traditional buffet with food halls, including grab-and-go and fast casual options, and offering technology that allows patrons to order from their tables. Other changes in the industry that may be permanent include revised gaming floor layouts that promote social distancing, with gaps between gaming positions and plexiglass barriers between dealers and gamblers. Until the vaccines are widely distributed and the pandemic officially under control, fewer player positions will be offered at tables. Other safety measures, such as requiring masks and temperature checkpoints upon entering, will linger for as long as the pandemic does, and are likely to continue past that. The pandemic has accelerated digital adoption within hotels, restaurants and casinos, reinforcing trends that improve customer experience. Hotels especially have noted the value in implementing new technology with the intention of simplifying the guest experience and enforcing contactless interactions. Allowing customers to have control over their stay with mobile check-in and check-out has reduced the need for physical employee and guest interactions. Some international surveys indicate that up to 90% of hotel
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The Golden Book of Sint Maarten 11
