Tourism is the crucial clog in the economic wheel and many service industries depend on it. The same could be said for real estate, as overseas property investors have not only boosted small island economies with foreign currency, but they have
The government needs to earn, but it also needs to look at the bigger picture and stimulate overseas investment, foreign exchange earning, employment and local industries. provided the market for a rampant construction boom in recent times. The tourists have remained loyal, but within their midst the number of property investors has dwindled in the past two years. However, the new investor is returning, albeit cautiously, and the business environment has to change to woe that business or the
Caribbean economies will sink into a backwash. Caribbean tourism leaders must recognize the global threat of India, China and South America and enhance their product with better value through added benefits. They must identify niche markets and align their attributes and assets to a particular audience. Governments must take a leading role in promoting tourism and in addition to marketing support; they must assist and protect their tourism partners with concessions and financial guarantees where necessary. This has happened with the high profile Four Seasons project in Barbados and the Baha Mar project in the Bahamas, but much more could be done to negate the punitive effect of high bank rates and the rampant escalation in the cost of utilities at many struggling hotels. The real estate industry also needs support to bring back investors and boost construction and governments all across the region could help bring down costs by reducing stamp duties,
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property transfer taxes, licenses to purchase and tax on rental revenue. The government needs to earn, but it also needs to look at the bigger picture and stimulate overseas investment, foreign exchange earning, employment and local industries. Unfortunately nothing happens quickly in the Caribbean, and this is part of our lovely laidback lifestyle, but there are positive signs all across the region that key players are coming to terms with the new economic landscape and making the necessary strategic changes that will lead to better times. Enjoy your 2011 copy of Caribbean Property Magazine, as it will give you a great insight into this beautiful region and its many business and financial opportunities.
Clarence Hiles Editor