Page 26 - AWM 5 MAART,2016
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26 AWEMainta Diasabra, 05 Maart 2016

2008 financial crisis. Economic      Figure 5. Real per capita GDP         unchanged. As stated above, this     environmental and physical space
recovery and expansion of harbour    Aruba and Sint Maarten, 1980-         effect is compounded when taking     is inevitably running out, often
facilities brought a renewed         2010 (US$; CPI 1996=100)              into account that the proportion     described in terms of ‘carrying
growth until the present day.                                              of economically active persons       capacity’ has been made before.
The available macro-economic         The Sint Maarten curve in figure      to the total population actually     It is obvious even to the casual
model for Sint Maarten indicates     5 clearly shows an initial gain       increased through immigration,       observer and unfortunately also
that the (direct) contributions of   in productivity similar to Aruba      as immigrants mostly fall into       to many visitors that the intensity
total stay over tourism and cruise   associated with the tourism boom      economically active age groups.      of the tourism industry and the
tourism to GDP relate as 56-44       of the 1980s, again levelling off as                                       increasing population density
in favour of the former. Based       soon as the tourism sector becomes    When real per capita GDP is          negatively affect the tourism
on this, a 20% drop in stay over     fully dominant in the economy. As     used as a measure of average         product itself and the quality
tourism combined with a 250%         we have seen earlier, in both cases   income, the conclusion is similar.   of life in general. The concept
rise in cruise tourists compared to  further development does increase     The trend is not rising despite      of ‘carrying capacity’ however
1991 levels should have resulted     the volume of tourism as well as the  the rapid growth of total GDP.       does not come with many useful
in a real GDP growth of more than    volume of the labour force, partly    The usual reservations brought       operational indicators. Indeed,
the roughly 60% now recorded.        through immigration. However,         forward when using real per          although theoretically a Caribbean
Therefore, as in the case of Aruba,  the quality of economic activity      capita GDP as income measure         tourist version of Singapore may
there is a lack of translation of    in terms of productivity remains      only make matters worse. To          not be out of the question, the
tourism volume growth into real                                            name one important factor; in        cost of compensating for the
GDP increase, and therefore a lack                                         a situation with heavy foreign       negative externalities involved
of productivity growth.                                                    investment, part of profits and      will probably become prohibitive.
                                                                           interest comprised in GDP will
Figure 4. Sint Maarten selected                                            flow overseas, resulting in a GNI    The data presented here paint
tourism indicators and real GDP                                            smaller than GDP. Assuming the       a picture of a rather consistent
indices (1991=100)                                                         part of value added flowing to       extensive growth model over
In figure 5, for both islands, real                                        foreign recipients is more or less   several decades, which makes
per capita GDP is chosen as an                                             constant, this would not change      it a very real question why no
indicator for labour productivity.                                         the horizontal direction of the per  successful attempt was made in
The Aruban development clearly                                             capita GDP trend, and it would just  either country to shift economic
shows the crash associated                                                 shift it to a lower level.           development towards a more
with the closure of the Lago in                                                                                 productive, less immigration
1985, and the subsequent rapid                                             What will the future bring for       dependent and less space-
recovery. After 1990 the gain in                                           Aruba and Sint Maarten?              consuming direction. After all,
real per capita GDP levels off, not                                                                             even outside the context of island
structurally increasing again until                                        Combining the immigration-           limitations, warnings about
the present day.                                                           dependent, extensive economic        the weariness on the demand
                                                                           growth trends outlined above with    side of tourism and the ensuing
                                                                           the obvious spatial constraints of   need for a tourist destination
                                                                           both islands, the outlook for Aruba  to constantly reinvent itself go
                                                                           and Sint Maarten seems bleak.        back to Butler’s tourism life cycle
                                                                                                                concept of the 1980s. Aruba and
                                                                           The observation that                 Sint Maarten have been residing
                                                                                                                in the ‘consolidation stage’ for
                                                                                                                decades, and staving off the
                                                                                                                ensuing ‘stagnation stage’ will not
                                                                                                                be successful much longer.

                                                                                                                While Aruba and Sint Maarten
                                                                                                                seem to be good examples of
                                                                                                                dedicated, full-blown ‘speciation’
                                                                                                                both islands seem to lack the
                                                                                                                real strategic flexibility found in
                                                                                                                some other islands to effectively
                                                                                                                take their tourism industry to the
                                                                                                                next level. The fact that smaller
                                                                                                                scale, higher value added tourism
                                                                                                                development is in fact possible
                                                                                                                in the Caribbean is shown by
                                                                                                                examples like Anguilla, in the
                                                                                                                direction of high-end luxury
                                                                                                                tourism, or by Dominica, in the
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