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not so much describe alternatives The PROFIT model is certainly Index (TPI) is used, combining why the SITE model was followed
or counterpoints to globalization, relevant to Aruba and Sint and adapting existing tourism- so successfully, what the ensuing
but indicate locally applied Maarten as well. Specifically intensity indicators. Research bottlenecks are and what possible
consistent strategies by small the straddling of the fence by shows that St Maarten (0.935) avenues for improvement might
island jurisdictions in successfully the Netherlands Antilles and its and Aruba (0.525) occupy the first exist.
carving out niches in the global successors, consistently striving and third positions respectively
economy. for a maximum level of autonomy, in terms of TPI, ‘outperforming’ Aruba and Sint Maarten are not as
while steadfastly remaining within Caribbean tourism frontrunners vulnerable as they seem
The taxonomy of island the Kingdom and rejecting any such as Bermuda, the Cayman
development models takes off in suggestion of independence, is a Islands and the US Virgin Islands, This section further analyses the
the 1980 with the description of a recognizable PROFIT attribute. based on 2006 values. Aruba and Sint Maarten model
strategy adopted by a number of The constitutional link to the in terms of the main factors of
Pacific island territories. The first production; labour, capital and
type is ‘Migration, Remittances, Land area (km2) Aruba Sint Maarten technology, taking into account
Aid and Bureaucracy’ model or Population 193 341 the institutional framework in
MIRAB. The strategy of rotating Tourists (stay-over visitors) 103,000 30,000 which they operate. Starting like
temporary emigration that Day visitors (cruise 694,000 486,000 Sint Maarten with no significant
gives rise to a steady stream passengers) 591,000 1,438,000 indigenous production sectors
of remittances as an important Average stay (nights) 7.9 5 and being almost depopulated,
source of income in the home Room capacity 9,062 3,532 or in the case of Aruba, with a
island is also recognizable as Tourist spending per year 1,076 652 recently collapsed oil industry,
the mainstay of Sint Maarten’s (US$ mln.) 10,447 21,733 there was hardly a question of
development between 1930 and Spending per resident (US$) 162 345 tourism driving out other types
1970. Nowadays, Aruba and Sint Tourists per 1,000 residents 47.0 103.9 of employment or industry.
Maarten are on the receiving (average p. year) The risk of a “Dutch disease”
end of migration from MIRAB Rooms per km2 situation with one dominant
classified Caribbean islands like sector crowding out existing
Haiti and Dominica. The aid and Netherlands remains an integral Table 1. Selected 2006 tourism alternative economic sectors did
bureaucracy aspects of the MIRAB part of the investment climate statistics and density indicators for therefore not materialise on these
model are highly relevant as well as well as the ‘bridging’ role the Aruba and Sint Maarten islands. Bertram and Poirine argue
in the context of the (former) Dutch dependencies nowadays therefore that in this sense ‘Dutch
Netherlands Antilles as a high envision between the Caribbean As the figures show Sint Maarten Disease’ is treated by the islands
level of Dutch aid co-existed and Latin America on the one leans more heavily towards cruise as an evolutionary opportunity
with an inefficient two-layered hand and Europe on the other. tourism, while Aruba’s focus is on rather than a threat.
government apparatus. Presently Being overshadowed by tourism the hotel- and timeshare industry.
however the MIRAB model is of as the main pillar of development, In Sint Maarten, the stay-over Labour supply plays an
limited relevance to Aruba or Sint neither Aruba’s nor Sint Maarten’s sector developed rapidly at first unconventional role at the
Maarten. offshore financial sector have been but met with the obvious space macroeconomic level in Aruba
able to prosper in the new era of constraints of its 34 km2 surface and Sint Maarten, being in effect
A different distinguishable weeding out doubtful financial area compared to Aruba’s 179 highly adaptable to national
class of island development is practices, most clearly represented km2. In 1997, stay-over versus economic development. Each
proposed, with islands exploiting by the Financial Action Task Force cruise visitor proportion was 65- phase of expansion by (foreign)
certain economic niches based (FATF) established in 1989. 35 for Aruba against 40-60 for Sint direct investment in tourism
on a strategic toolset, consisting Maarten. In 2007 the proportions industry has been matched by
of a purposely managed (in) Somewhat surprisingly, the had diverged even more: the an increase in labour supply
migration policy (People); Small Island Tourism Economy Aruban ratio stabilized at 62- through immigration. Moreover,
leveraging control over natural (SITE) model came to the scene 38, while that of Sint Maarten some immigrant labour supply is
resources such as oil, fishing rights relatively late although it is based developed to 25-75. rotational or otherwise temporary,
or strategic location (Resource on work from the 1990s with so labour supply can even be
management); carving out a the introduction of the ‘Tourism Aruba as well as Sint Maarten fall modified to match short-run
high degree of autonomy while Penetration Index’ as a measure squarely into the SITE category, cyclical or seasonal changes in
remaining part of a larger national of the dominance of tourism in with some recognizable PROFIT demand.
entity (Overseas engagement) ; an island economy. The SITE attributes. Some even place Aruba
a distinctive regime in the field model, originally mainly applied in the PROFIT/SITE overlap, Contrary to many open-economy
of banking and insurance, with to Caribbean cases, is predated probably by virtue of its - dwindling developing countries, especially
a related favourable tax regime by an earlier tourism-focused - offshore financial and trade around the time of the ‘take-off’ of
(Finance) and powers over air and variety of the Pacific MIRAB sector. The SITE model however Aruba’s and Sint Maarten tourism
sea links (Transportation). This model, postulated in 1996 as offers few analytical tools in bonanza, the two island economies
island development model spells ‘TOURAB’. Of all small island terms of recognizing motives and cannot be readily qualified as
PROFIT. models, the SITE category is the instruments of strategic choices ‘resource-based’. Resource-based
most relevant to Aruba and Sint made by island states. In the cases economies suffer certain economic
Maarten. As a measure of SITE- of Aruba and Sint Maarten it is
ness, the Tourism Penetration worthwhile to investigate how and
