1999
After reviewing all the data available, the general impression of the state of the economy of St. Maarten in 1999 was not positive. Tourism is the main income-generating source for St. Maarten. If the tourist industry declines, then consequently the whole economy suffers. The hurricanes that hit the island in the tourists’ high season, the last quarter of 1999, definitely played a major role in this decline. Other factors such as the taxi / tour bus unrest’s also caused decreases in the cruise tourism arrivals. The total stay-over tourists arrivals dropped by 1,8% in 1999 compared to 1998, while the cruise arrivals declined with a record 30% compared to 1998. In April 2000 only 72% of the accommodations on the island were available for visitors.

A decline (0.88%) was also noticed in the Turnover Tax revenue. This revenue is a good indicator of economic activity since it is a direct percentage of their turn-over of businesses. The amount of business licenses issued by the Department of Business Licenses and Permits also decreased by 25%, while the Chamber of Commerce registered a 12,2% decrease in new businesses starting in 1999 compared to1998.

There was an increase of 1% in resident’s loans in 1999 compared to 1998, and resident’s deposits also increased by 7,7%.

In the utilities sector water sales were down in the first three-quarters of 1999 by less than 1%. Electrical sales also saw a decline of 6,3% compared to the same period in 1998. There were power outages following the hurricanes, which could have caused a further decline in electrical sales. This can not yet be confirmed since there were no statistics available after the third quarter of 1999.

2000
Even though the economy was on a decline in 1999, the overall projections for 2000 are brighter. This is mainly due to the large amount of cruise tourists expected to arrive at the new harbor facilities after it’s completion later this year. Cruise passenger arrivals increased by 16,5% in the first quarter of 2000 compared to the first quarter of 1999.

In the first quarter of 2000 air arrivals declined with 11,8%. But with hotels (i.e. Maho, Royal Islander, & Caravansari) reopening in the new tourist season, it can be expected that more people will visit St. Maarten. With the construction of the new airport, we will be able to accommodate more planes and passengers thereby, providing a better services as well.

TOT increased by 13% in the first quarter of 2000 compared to the first quarter of 1999. This particular indicator seems to have a direct link with the cruise tourism, which experienced a 16,5% increase in the corresponding period.