|
The Netherlands Antilles is comprised of five islands Curacao,
St. Maarten, Bonaire, Saba and Statia. St. Maarten is 37
square miles, while the Dutch side is 16 square miles and
is almost solely dependent on Tourism. St. Maarten being
very limited on natural resources is heavily dependent on
imports. St. Maarten, located in the North Eastern Caribbean
is used as a transshipment hub for a number of islands.
Driven by tourism, St. Maarten hosted more than 1.3 million
tourists in 2000.
Antillean/Sint Maarten economy:
Due to the high population density on the island, the main
focus would be the labor market and the developments over
the past years. By taking a look at table 1. below, we can
see the developments of the labor market over the past years.
The unemployment rate in the Netherlands Antilles declined
from 14.9% in 1999 to 12.9% in 2000. An analysis by islands
shows an improvement in the labor market in St. Maarten
and improvement in Curacao and Bonaire as well. In both
Curacao and Bonaire, the unemployment rate declined, due
to the vast migration. St. Maarten’s unemployment rate
fell due to more employment possibilities. For a better
comparison of the labor market, see table 1 below.
Table 1.
| Labour market |
Curacao |
St. Maarten |
Bonaire |
| |
|
1998 |
2000 |
1997 |
2000 |
1996 |
2000 |
| Employment |
52962 |
52236 |
18896 |
22626 |
7274 |
7206 |
| Unemployment |
10543 |
8531 |
3931 |
3337 |
467 |
436 |
| Labor force |
63505 |
60767 |
22827 |
25963 |
7741 |
7642 |
| Unemployment rate
(%) |
16.6 |
14 |
17.2 |
12.9 |
6 |
5.7 |
| Population |
146838 |
138263 |
38876 |
42728 |
13952 |
13508 |
|
|
|
|
|
|
|
|
The
developments in the labor market can be used to monitor
the development of the island’s economy. With a decrease
in the unemployment figures over 1997 and 2000, this indicates
that the island’s economy is improving with the creation
of new job opportunities. In table 2. below, you can see
the employment figures for the different sectors in 1997.
Table 2.
Employment in different sectors
in 1997
| |
|
|
|
%
in the |
%
in |
| Sector |
|
|
|
Netherlands
Antilles |
St.
Maarten |
| Agriculture, fishing
and mining |
|
|
1 |
|
1 |
| Manufacturing |
|
|
|
9 |
|
3 |
| Electricity, gas and
water |
|
|
2 |
|
1 |
| Construction |
|
|
|
9 |
|
10 |
| Trade, restaurants
and hotels |
|
|
28 |
|
40 |
| Transport, storage
and communication |
|
7 |
|
6 |
| Banking, insurance
and business services |
|
11 |
|
10 |
| Other services |
|
|
|
33 |
|
29 |
| Not ascertained |
|
|
|
0 |
|
0 |
| Total |
|
|
|
|
100 |
|
100 |
The contributions per sector to the Gross Domestic Product
(GDP) for 2000 are given in table 3. below. With a contribution
of 94%, the private sector is the main contributor to the
GDP.
Table 3.
Gross Domestic Product |
Millions
Naf |
|
| CBS Statistical Orientation |
1997 |
% |
| Agriculture, Fisheries and
Mining |
7.2 |
1% |
| Manufacturing |
30.7 |
4% |
| Utilities |
|
26.2 |
3% |
| Construction |
52.4 |
6% |
| Wholesale, retail |
254.4 |
30% |
| Hotels\Restaurants |
90.7 |
11% |
| Transport |
120.8 |
14% |
| Financial Services |
183.1 |
21% |
| Personal Services |
94 |
11% |
| Interest Margin |
47.4 |
6% |
|
Private Sector |
812.1 |
94% |
| Public Sector |
94.7 |
11% |
|
GDP |
|
861.46 |
|
The employment figures (labor market) are a good indicator
to measure the development/performance of the economy, but
the best in source of measuring the performance of the economy
is the Turnover Tax (TOT). Currently, the TOT is 3 % of
the “Gross Turnover” of business activity. The
TOT is an indirect tax with the character of a consumption-tax.
The tax is paid by entrepreneurs and businesses, but it
is not imposed on imports. The characteristics of the Turnover
Tax are:
- tax on business-sales realized by anyone who has a business
or self-employed trade;
- in accordance with their business in the Netherlands Antilles;
- by supplying goods or services;
- the TOT is paid by a self-assessment system.
*Source: Bank from the Netherlands Antilles and Central
Bureau of Statistics publications |
