Curacao Business Magazine | Edition 1, 2018 by Curacao Business Magazine

CURAÇAO

WWW.CURACAOBUSINESSMAGAZINE.COM Opportunities for Economic Recovery in 2018

Looking Out On The Horizon Korpodeko Incentive Program The Rebirth of Scharloo Reviving ‘Skalo’ Into a Trendy Residential & Business District

The Powerful Potential of NEXT GEN

EDITION 1 | 2018

Solving local tax and legal issues in a regional and global context. Contact details: Wendell Meriaan Fong-Mang Cheong

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LETTER FROM THE PRESIDENT

Recently the Government presented it’s take of the routes which would lead Curaçao to a renewed level of economic development, during which process some very important issues were dealt with. For one, Government aims to transform red tape into a red carpet, and in so doing, enhance our investment climate and smooth out the business environment. The presented plans also address a tighter cooperation between the public and the private sector, which would yield better results in terms of the economic goals proposed to be reached through this plan. Besides other very important reforms, one of those being the labor market, the government also foreshadows stepping up

the public investments in both public and private undertakings as an instrument for boosting our economic performance, ultimately with the intention of creating jobs.

by fundamentals could make the growth episodic. The accumulation of fundamentals, on the other hand, requires costly, time-consuming, and complementary investments across the entire economy.

On the other hand, creating sustainable economic growth also requires certain specific approaches in the sense that investments should also be made in both structural and fundamental transformation. Addressing the need for reform of the labor market should yield the necessary results in part. The structural transformation entails the challenge of how to ensure that resources flow rapidly to the modern economic activities that operate at higher economic productivity, while the fundamentals entail how to accumulate the skills and broad institutional capabilities needed to generate sustained productivity and growth, not just in a few modern industrial sectors, but across the entire range of services and other non-tradable activities. Whereas structural transformation can fuel rapid growth, failing to back this up

One of the fundamentals is the centerpiece in the presented route, and that is preservation of investors’ trust in sustainable public finance during the process of implementing government policy. With the centerpiece in place a well balanced program of investments in modernization and institutional capacity would boost private sector confidence and fuel the required stream of private sector investments to complement this public sector effort, resulting in a revitalization of our economy. A pretty bold move as a new years’ resolution. May 2018 bring prosperity to all of us! Cheers! Billy Jonckheer President Curaçao Chamber and Commerce and Industry

LETTER FROM THE EDITOR fresh new approach to successfully running a business. They have embraced today’s technology with exciting creativity to create dynamic new companies that are paving the way to success. Indeed, each of these entrepreneurs is nothing short of inspirational.

The resounding question is, “What’s on the horizon for Curaçao?” In this issue we chose to focus on all things new. New projects, new initiatives, new momentum and new ways of doing business. All of these key factors are pieces of an important puzzle that comprise a new approach to our economy. As we fit the pieces of the puzzle together, we present several spotlights on new entrepreneurial initiatives. Taking a closer look on how the new generation does business, Millennials, or Next Gen, have re-invented the traditional business models to create a

It is also important to step back and take a look at the bigger economic picture. When all the pieces of the puzzle are put in place, what do we see as the overall economic outlook for our island? In spite of a number of hurdles placed before us in recent times, the big picture looks promising. With the government taking an aggressive and all-encompassing approach towards economic recovery, we see a number of public projects and stimulus initiatives that can create that much-needed momentum for the rehabilitation of our economy. This issue highlights some of the public and private investments and developments on the horizon, and the potential they have for the island’s economic recovery.

As the island settles into the rhythm of 2018, we take stock of both the economic successes and failures that we experienced the previous year, and look forward to new opportunities that lay ahead. It must be acknowledged, that whilst we faced an economic downturn in recent years, the tides have very definitely changed, and we have begun to experience a clear shift in the right direction. As this issue goes to print, I would like to take the opportunity to thank the magazine’s readers, contributors, and the Curaçao Chamber of Commerce, for their continued support, as I move forward to begin a new chapter in my career. With heartfelt gratitude, I wish the members of the Curaçao Business Magazine team, continued success in the future and look forward to exciting new initiatives on the horizon. Helen Griffith Editor-in-Chief

CONTRIBUTING AUTHORS Farah Ayoubi started her

writing career more than 20 years ago when she was still trying to work her way up the corporate ladder. For more than 10 years she owned a content providing company, which put her in charge of the production of many newsletters, websites, annual reports, corporate content and more. She stopped just long enough to fully pursue her dream of becoming a life coach, so as to empower all who need that extra oomph to reach for their dreams, in their own authentic way. Still empowering people thru coaching, she is now empowering herself as a freelance writer, combining the best of both careers.

-----------------------------------------------Nicole Echobardo gra-

duated with a Master’s degree in Tax Law at Erasmus University. In 2017 she started her professional career at Meijburg & Co Caribbean as Tax Assistant. She is a member of the team that provides tax compliance and advisory services to clients in primarily Curacao and Sint Maarten.

-----------------------------------------------Vanessa Vrolijk, is Foun-

der and Owner of Curaçao Information Management B.V., and is an Information Governance consultant with over 20 years of experience helping clients navigate the ever-changing world of Information Management, and Digital Transformation. Her other specialties include Business Process Management & Change, Workflow Management, Digitization of Archives and Case Management. She holds a Master’s Degree in Library Information Sciences, and is also a board member of CARIFIG, (Caribbean Association for Information Governance), and as such has organized several successful conferences in Curaçao as well as Fundashon Lechi di Mama.

-----------------------------------------------Katy Branum was

brought up in the great outdoors of Australia, and graduated from university with a BA in Business, which included a double major in Marketing and Management and a minor in Finance. Today, she enjoys living in Curaçao and is currently the Director of Stella Vanilla Consultancy, and works with many different publications.

------------------------------------------------

CURAÇAO BUSINESS

Korra Pietersz-Juliana

is an entrepreneur in the field of wellness development and is on a quest to make Curaçao a wellness destination with her company Oasean Vision. She holds a Bachelor in International Tourism Management from Webber University and a Masters in International Business Administration from Nova Southeastern University. Since 2012 she has been creating new wellness concepts, organizes wellness events, develops corporate teambuilding programs with focus on wellness, and is currently adding a new wellness tourism brand to her scope of services.

-----------------------------------------------Priscilla Lotman is the

Owner and Managing Director of Front Shore, a company that specializes in fund governance, providing services to private equity structures and investment vehicles. She is also the Founder and Director of Ava2 Digital Asset Management. She is the co-author of three books published by Divas Publishing Inc., and the blog Concept 43.

-----------------------------------------------Susan Vrolijk Brand &

Communication Manager, PwC, is a marketing and communications professional with over 10 years of experience. She has diverse skills and qualifications in a variety of functions, mostly in Financial Service Marketing, and has been brand gatekeeper, spokesperson, concept developer, trainer and leader. At PwC, she supports the Partners within this region in the development of the brand and communication activities, including change and reputation management, and is in charge of proper implementation of the brand usage and expressions across the Dutch Caribbean.

-----------------------------------------------Kimberly De Freitas

is Founder and Owner of 8, a full-service salon and spa located in Coral Estate, Curaçao which was awarded the prestigious Salon of the Year award by Salon Today Magazine in 2016. Kimberly has been invited to speak on behalf of the 2 to 10 Project in Chicago, Qnity for leaders in Minneapolis, and The Salon People in Florida on her life and experience as a millennial leader.

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Angela Rasiman gra-

duated with a Bachelor’s degree in Business Administration with a Major in Business Information Systems from the University of the Netherlands Antilles. In 1999 she started working as a Tax Compliance Officer at Canters Goede & Associates, nowadays Meijburg & Co Caribbean. She specializes in Personal income tax and Wages tax.

------------------------------------------------

Kevin de Cuba, MSc. is an Energy and Sustainable Development Specialist. He is the Director of the Americas Sustainable Development Foundation (ASDF) and Founder and Chairman of the Circular Economy Platform of the Americas. Kevin brings considerable expertise and international experience to the Foundation, having led several international technical teams in the implementation of small to large-scale interdisciplinary projects in energy, waste management, closed looped cycle production (CLCP), sustainable consumption and production (SPC), Cradle to Cradle® (C2C), Circular Economy (CE), and climate change mitigation initiatives throughout Latin America and the Caribbean. ------------------------------------------------

Quincy Lont is Senior Tax Manager at Meijburg & Co Caribbean, primarily in charge of the Sint Maarten practice. He graduated with a Master’s degree in Tax Law at Erasmus University of Rotterdam in 2008 and joined Meijburg & Co Caribbean shortly after. Over the course of the years he has been involved in tax and legal advisory services for individual and corporate clients active in, among others, the retail, banking, energy & utilities, telecommunication and hospitality industry. ------------------------------------------------

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Curaçao Business PUBLISHER Curaçao Business Media Group b.v. POSTADRES ON CURAÇAO: Sta. Rosaweg 19 Willemstad, Curaçao EXPLOITATION Van Munster Media BV P1: Postbus 6684, NL-6503 GD Nijmegen, The Netherlands P2: Kerkenbos 12-24a, NL-6546 BE Nijmegen, The Netherlands T: +31(0) 24 373 8505 F: +31(0) 24 373 0933 I: www.vanmunstermedia.nl PUBLISHER Michael van Munster T: +31(0) 24 373 8505 E: michael@vanmunstermedia.nl EDITOR IN CHIEF Helen Griffith helen@vanmunstermedia.nl SALES INQUIRIES Heather de Paulo heather@vanmunstermedia.nl Sabine Hoogkamer sabine@vanmunstermedia.nl Jonathan Jonckheer jonathan@curacaobusinessmagazine.com INTERNATIONAL SALES INQUIRIES Monica Koffieberg-Woodford monica@curacaobusinessmagazine.com SUBSCRIPTIONS Subscriptions: NAF 35 per year (4 issues) sales@curacaobusinessmagazine.com abonnementenbeheer@vanmunstermedia.nl ART PRODUCTION Jan-Willem Bouwman PHOTOGRAPHY Jonathan Jonckheer, jonathan@curacaobusinessmagazine.com Alberto Sanchez, btostudio@gmail.com The publisher and its staff cannot be held liable for the contents of this magazine and statements and/ or its advertisements do not necessarily reflect its editorial views. Although the greatest care was given to the accuracy of the information in this publication and checked where possible, the publisher and the editors explicitly contest any liability for any incorrectness or incompleteness of the information provided.

8 Looking Out On The Horizon: Opportunities for Economic Recovery in 2018 12 Korpodeko Incentive Program

14 Real Estate Development Is On The Rise

16 MegaPier Tula Open: A Proud Curaçao Welcomes More Passengers 18 Income Tax on Immovable Rental Property 21 The New Reporting Standards: IFRS

22 Traditional Shop Versus Online Shop: Turnover Tax

24 The Rebirth of Scharloo: Reviving ‘Skalo’ Into a Trendy Residential & Business District 28 Spotlight on Beyglz: A Young Entrepreneur’s Initiative 32 The Powerful Potential of NEXT GEN

34 What it Takes to Run a Business on Social Platforms and Inter-branding 38 Digital Transformation & The Generational Gap 40 Destination Education Comes to Curaçao 42 Microfinancing for SMEs in Curaçao 44 The Deep-Sea Water Industry

“The power to fuel the impetus towards an economic revitalization”

“Korpodeko strives to empower small entrepreneurs”

“The amount of foreign investment currently taking place in the real estate market”

“A worldwide trend to let your immovable property to third parties via online platforms”

“Beneficial to the whole tourism sector and local community”

“Brought back to their former glory, they have become beautiful office spaces to many companies”

“The smart phone has broken barriers to entry for many entrepreneurs putting store fronts into the back pockets of millennials globally”

“The ocean that surrounds your island is the potential source of the solution”

Opportunities for Economic Recovery in 2018

Looking Out on the Horizon

In an attempt to get a pulse of the status of the economy for 2018, and what lays on the economic horizon, the course of the economic prospectus should be changed as there are still many opportunities for economic growth and investment here on the island that can lead us on the road to economic recovery. TEXT BY HELEN GRIFFITH

There are a significant number of projects that will materialize this year that have the power to fuel the impetus towards an economic revitalization. A number of key public investments are in the pipelines and promise to deliver that much-needed momentum to start us on our journey to economic recovery. In addition, several initiatives within the private sector,

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from both foreign and local investors, have been facilitated by the government and are now in their early phases of development. At a recent presentation held by the Ministry of Economic Development, Minister Steven Martina laid out an overview of the plans that the government has in store for the recovery of

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our local economy. The event was kicked off with Prime Minister, Eugene Rhuggenaath’s endorsement of the plans. He acknowledged that the recent downturn in the economy was due to a number of different factors which amounted to “a perfect storm” and that Curaçao must take aggressive measures to change the course of the economy. He appealed to the greater business community for their support through private investment and highlighted the need to create an attractive environment for foreign investors as well. As Minister Steven Martina presented the details of the island’s economic outlook, he noted that there were significant factors that led to a sudden economic downfall. The political and economic crisis in Venezuela has

undeniably had a tangible effect on the island with the lion’s share of Curaçao’s trade coming from Venezuela. Also, due to this crisis, production at the Isla Refinery has also drastically decreased. This is further compounded by the recent embargo that Venezuela’s President Maduro has enforced, which has essentially served to de-capitate all travel and trade between the two nations. The economy also had another drawback when the agreements with candidate for the management of the oil refinery failed, and in effect were nullified. In addition, the downsizing of Insel Air also served to have a drastic impact on airlift and the number of visitors to our shores. But the message delivered by the Minister presented a number of development projects that are already in place that will serve to give the economy that much needed boost. Several public investments are already underway including: the neighborhood improvement projects at Sapaté, Tera Kòrá and Kortijn/Otrobanda; the upgrading of the Koredor area; the construction of the public rest area and beach facility at Marie Pampoen; and a 40Million injection into

the tourism sector including marketing, airlift and cruise contracts. Several semi-public investments were also noted, including the construction of the new Aqualectra Diesel Power Station, the Airport Expansion Project and the construction of the new Cruise Terminal “Tula”. Indeed Mr. Martina highlighted an “ambitious strategy” that encompasses both investment and structural reform to stimulate the economy and encourage both local and foreign investment. There were several major private investment projects that were also discussed, including the new residential developments at Grand View, Rif St. Marie and Blue Bay; the new floating docks that will soon be installed by Damen Shipyards and the construction of the new Chobolobo Plaza in Salinja. We can also take into account the additional injection of investment capital and income brought in by several major developments in the tourism sector. Already underway, we have the refurbishment of the Curaçao

Marriott Hotel and its expected re-opening later this year; the construction of the Marriott Courtyard Hotel; the development of the Hard Rock Resort, and the recent completion of the Coral Estate Resort. Each of these projects promises to add a significant number of hotel rooms and tourist attractions to the island, further increasing its appeal as a tourist destination. There is undoubtedly a need for an increase in airlift to the island, and it is hoped that in the coming year, the government will have successfully completed negotiations with several new airlines facilitating a marked increase in the number of regular flights to Curaçao. The follow-through of the Airport Expansion Project, is evidence of the Airport Authority’s forward-thinking commitment to seeing that this need is met. Indeed, one cannot work without the other. With the launching of these and other new hotels, there will be a clear increase in the demand for flights to Curaçao, and the logical conclusion would be for the airlines to begin establishing new routes for this newly expanded market and newly expanded

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airport. One must also acknowledge the efforts of the Curaçao Tourist Board, with the implementation of their aggressive Tourism Marketing Plan, as indeed it is equally important to not only provide expanded facilities and infrastructure to the tourism market, but to also get the word out there. The completion of the new Mega Pier also holds great potential for further economic growth as CPA now has the capacity to simultaneously berth more cruise ships each day. With the continued efforts to revive the Punda and Otrobanda shopping districts, and with the renewal of the Pietermaai district and now the Scharloo area, visitors will undoubtedly inject a greater amount of US dollars and Euros into the economy. CPA held a ‘soft’ opening of the Mega Pier in November of 2017, but will be having their official launch at the beginning of 2018. Another significant driver to the economy will be the establishment of the Multi Commodities Center of Curaçao (C-MCC) at the airport. For the upcoming year, the interim location of the center will be at the old departure lounge of the airport, while awaiting construction of the new commodities center facility adjacent to the airport. This free trading zone holds the potential for a significant increase in jobs, not only during its construction phase, but also

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“These investments will also serve to provide the stimulus needed to attract further foreign investment and trade.”

in the long run, once large-scale trading has been established. In addition, the C-MCC will serve to facilitate the Dutch Caribbean Stock Exchange (DCSX), by hopefully expanding their number of listings. This enterprise will undoubtedly inject a substantial amount of tax income, which can be further utilized towards investing in education and healthcare on the island. Currently, Curaçao trades and exports approximately 1 billion guilders per year in gold. With a similar set-up to the Dubai Commodities Market, the C-MCC Development Group, LLC, plans to trade a large variety of commodities including gold, diamonds, oil, coffee and much more. As these projects commence in 2018, there will undoubtedly be an increase in employment, which will also serve to trigger expenditure on the island. The government stands

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ready to prepare the island’s workforce for this increase in demand for jobs. Minister Martina illustrated an aggressive Economic Recovery Framework, encompassing accelerated public and private investments while simultaneously triggering workforce planning and development. These investments will also serve to provide the stimulus needed to attract further foreign investment and trade. One important factor supporting this Economic Recovery Framework is the restructuring and reorganizing of several government procedures so as to facilitate a smoother process for foreign investors. Mr. Martina coined the phrase: [from] “Red Tape to Red Carpet.” The Chamber of Commerce, (Kamer van Koophandel), stands ready at the starting gates to facilitate and assist all of the projects carded for 2018, and any others in the pipelines. John Jacobs, Director of the Chamber stresses that the responsibility of economic recovery falls not only on the Ministry’s shoulders, but on the shoulders of the entire population at large, and calls for the civic duty of Curaçao’s citizens to look towards a grander scale of economic development and progress on a national level and not just simply on a personal level. As a community, we look forward… towards the horizon.

NEWS B RIEFS PLATFORM ISLANDIFY LAUNCHED FOR TOURISTS

Last November CHATA, (Curaçao Hospitality and Tourism Association), and Profound Projects joined together as partners to launch the new directory platform entitled, Islandify. It is designed to help consumers find local businesses in the tourism industry or related to it, such as restaurants, supermarkets, beauty salons and even gas stations on the island. In addition, it provides users with the possibility to explore new places of interest.

PROGRESS OF CINEX FOR ASSISTING INVESTORS HATO - BEST CARIBBEAN AIRPORT IN 2017

The Caribbean Journal, the largest travel website for the Caribbean region, has awarded the Curaçao’s Hato International Airport as the best Caribbean airport for 2017. They based their choice on improved experiences of travelers who went through the modernized Curaçao airport. This is the outcome of an ongoing expansion and improvement plan that Curaçao Airport Partners has been executing since 2014, by renovating facilities for departing and arriving passengers, as well as increasing the variety of shops and food & beverage outlets.

By the end of 2017 Cinex, (Curaçao Investment & Export Promotion Agency), was assisting over 40 leads, companies and private citizens, to obtain the necessary permits required to enable new investments and start new companies in Curaçao. In addition, over 150 further leads have shown interest in investing in Curaçao, many of which now plan to visit the island in early 2018 to evaluate their ideas. There is a great variety of areas covered by the companies that approached Cinex to assist them in the procedures to start operating in Curaçao. In addition, Cinex recently opened an office at the Curaçao House in The Hague, to better serve potential European investors.

CUROIL PREPARED TO EXPAND IN THE REGION

Curoil, the exclusive distributor of fuel, oil products and bunkering in Curaçao, Aruba and Bonaire, is expanding its activities in the Caribbean region. Last September the company purchased the tanker ‘Scott Berlin’, making it possible to offer more bunkering services in the wider Caribbean, to ships and utility companies. As such, Curoil already successfully completed their first off-shore assignment in Trinidad & Tobago. In the company’s strategic growth plan, Curoil also signed a memorandum of understanding with KTK, (Curaçao Towage Company). In addition, Curoil recently signed a five-year agreement with CubaPetróleo for providing them with gasoil and jet fuel. Their demand for gasoil matches with what Curoil already delivers on the Curaçao market. Curoil also signed an agreement with ECASA, that currently manages 22 airports in the Caribbean, enabling the 2 companies to exchange information, knowledge and expertise on investments in the fields of infrastructure, bunkering and product sales.

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Helping SME’s Overcome Obstacles

Korpodeko Incentive Program

It is no secret that the Small and Medium Enterprises, (SME), in Curaçao account for a substantial chunk of our economy. But statistics show that 75-80% of SME’s fail within their first two years, meaning that they fail to meet their operational obligations, including tax and social benefits payments. Korpodeko is launching its own incentive program for its clients, offering small and medium sized companies six new and funded pathways to develop their weaknesses into strengths in order to increase their chances for success. TEXT BY FARAH DIBAH AYOUBI

Support for SME’s

There’s a myriad of theories about the many obstacles facing SME’s, but there seems to be a common consensus among experts that if an SME manages to overcome its first two years in business, its chances for survival increase substantially. According to Chesron Isidora, Managing Director of Korpodeko, many of the common struggles of SME’s are attributable to ‘minor’ issues that can be overcome with the right guidance. Korpodeko, - although some-

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times mistakenly regarded as a financier of large ventures, - is currently amping-up efforts to boost its SME portfolio by adding a new layer to its new and affordable loans: incentive programs. Every SME entrepreneur with a loan at Korpodeko, can gain access to (mostly) free support in 6 different areas of discipline. By helping the entrepreneur with a loan, and supporting it with expertise and guidance, Korpodeko strives to empower small entrepreneurs, build a stronger SME base and help strengthen the local economy.

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Six Incentive Programs

The Korpodeko Incentive Program, (KIP), consists of six products and programs that target the most pressing issues that most startup entrepreneurs face. Most of these programs are either free to join, or upon obtaining a loan at Korpodeko can choose to join. Each of the KIP products is offered in close partnership with one or more organizations with ample expertise in their field to create synergy and efficiency. The partners make it possible to offer highly qualified people to mentor and support the SME’s without breaking the bank. 1. KIP SIB - Sustainability in Business This program is conducted with the partnership and support of BPM, (Bedrijven Platform Milieu). It is suited for companies who want to obtain official certification and improve their competitive advantage on the market by positioning themselves as a sustainable company. By having a mentor who can guide you through the certification process, this

increases your success rate and avoids unnecessary mistakes and delays. This particularly pertains to the tourism sector, where environmental sustainability and certification is imperative to your bottom line. A hotel certified as environmentally sustainable, is far more likely to attract and sustain its targeted clients. 2. KIP RTD – Right-to-the-Door Online selling may sound like the easiest way to tackle new and larger markets, but the in’s and out’s of selling online make it important to have the right infrastructure, platforms and other prerequisites that need to be in place for a successful online sales point. Isidora explains that, contrary to the other KIP products, KIP RTD is still in its developmental stage and has both a program and a product component to it. Korpodeko aims to lower the threshold for companies to sell their products online; a feat that will potentially change the SME way of doing business on the island. When our people can sell their art, handmade products, etc. online, the bigger potential target market will potentially lower the risk of starting the business. In the near future, it should be easy to sit at home and sell your products online to the neighbor down the road,” says Isidora. Korpodeko works with a list of implementers, and currently has C-Post as a partner while conversations with other partners are still ongoing. 3. KIP WWW - Social Media Awareness Digital presence has fast become a staple and new companies are sometimes at a loss while trying to find their way with what works, and how. Isidora believes in the power of improving digital presence effectiveness, saying: “The way the economy operates nowadays, if you don’t have a website and you’re not on Facebook, you practically don’t exist. It won’t be long before we add to this that if you don’t have an App you don’t exist either.” Having these online gateways to your company, is vital to the survival of any small and medium sized business. Korpodeko’s KIP WWW provides financing and support to get an online presence. To have a website, become proficient in social media management or navigate the way to outsourcing it.

and focus on that, while their lack of financial acumen lags behind. As a consequence, they are often unaware of how their business is performing. They frequently end up incurring unnecessary tax arrears, and costs that could have been avoided with proper insight and interpretation of their financial figures and forms. We are all too familiar with the ‘Areglo di Pago’ (arrangement that the tax office allows you to pay off your accumulated tax debt in installments), but we are best served by putting our energy in creating a good system to avoid arrears and penalties. For this program Korpodeko partners up with BAB, (Belasting Accountants Bureau). During your first year, BAB will support you in setting up your financial systems at no charge and in the second year the SME will have to find an administration company to do its bookkeeping. If it stays in this program for the full two years, Korpodeko will provide a loan discount. The peace of mind and insight into the companies’ dealings, is priceless. 5. KIP Green KIP Green is a product that offers financing to any type of business using recycled water, wind energy, solar energy and any other type of environmentally friendly solution. Reducing fossil fuels is the key here. Korpodeko is flexible in the application of the green initiative, going as far as taking into consideration solar panels on a building that you are renting. The 5% loan will make it attractive for SME’s to consider switching to a green alternative. 6. KIP Helping Hands SME’s as catalyst for young entrepreneurship? Yes, if this is a win-win solution. Many small and medium business owners struggle with not having enough time to do all that is required to run their businesses. In

its initial stages the company is not making enough money as yet, to enable it to hire consultants or temporary help. To meet this demand, Korpodeko is partnering up with UoC, (University of Curaçao), enabling its SME’s to pair up with 3rd year students who can use work experience as credits towards their curriculum and get a first-hand view of the core of a business. Isidora: “If they don’t catch the entrepreneurial bug, at least they will know that entrepreneurship is not for them. This is creating a more empowered entrepreneurship culture in Curaçao.” Meanwhile, the student has worked for 3 months helping the SME conquer a difficult period. The muchneed assistance has helped the entrepreneur overcome a critical moment in its business.

Tested and Approved

Isidora, explains that most of these programs have been in the pilot stages since 2014, and have been tested and adapted over time. In 2016 Korpodeko had a soft-launch of the 6 programs in its “Korpodeko di Bishita” outreach project that runs in local neighborhoods. Now that the effectiveness has been proven a fullscale launch has been implemented as of the end of 2017. Isidora: “We want to focus mostly on the value of SME’s as the backbone of our economy, and at the same time trigger entrepreneurs to move towards being an entrepreneur by choice, not by chance. You are an entrepreneur by chance whenever you choose for entrepreneurship by running away from something. We want entrepreneurs to choose in an empowered way. These programs create entrepreneurs by choice, by offering them support for those main struggle points, so they won’t have to run from them but face them and overcome them, becoming a more mature and empowered entrepreneur.”

4. KIP BAB - Administration and Tax Compliancy Not surprisingly, a substantial number of small and medium sized businesses don’t have an appropriate bookkeeping system in place. Many entrepreneurs start out with a keen understanding of their product or service

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Real Estate Development is On the Rise.

One of the key indicators that the local island economy is trending upwards is the amount of foreign investment currently taking place in the real estate market. Judging from the increased number of projects that one local architect is experiencing, it seems that the amount of investment in residential developments particularly shows that this sector of the economy is doing well. TEXT BY KATY BRANUM

IHC Architects, have been providing architectural services on the island for almost 10 years, during which time they have seen fluctuations in the amount of investment activity in Curaçao, from the positive investment

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climate prior to 2008, to the weakening in demand after the crash of that same year. The period leading up to independence in 2010, saw some investors leave the island, while other investors hesitated to enter into

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the Curaçao market until they were confident that the political changes occurring on the island would not affect Curaçao’s status as an attractive investment. Since then, many have returned and continue to invest. From these experiences, IHC has observed over the years that there is a direct correlation between political stability and investor confidence. When there is a perceived high potential for sovereign risk default, then investors lack confidence to invest. When the political landscape is stable, then perceived risk is low and the international investment community, have an appetite to invest in the island. This is especially important when it comes to invest-

ment from abroad, such as the Netherlands, USA and UK, etc. Once political stability is in place, the second important factor is the government’s policies to encourage investment, and the processes that are involved to secure permits, etc., to be able to complete the project. The local government here in Curaçao has been proactively addressing this challenge both from a procedural perspective and from a macro-economic perspective. From a business-owner’s perspective, IHC has also seen that government departments have become a lot more efficient when it comes to assistance with business requests, like for example, the timely processing of local paperwork required for the submission for international tenders. Of equal significance is the government’s macro perspective towards foreign investment, which includes topics such as re-zoning. It is important that government nurtures an open environment where developers feel that they are able to have a transparent discussion on this topic, especially when it comes to rezoning dormant land, such as former farmland. If the government views certain projects as important for the island’s economic development, then the developer will require a timely response as to whether or not the re-zoning plans have been approved. Currently IHC sees about 40% of the projects that they are involved in are investment projects where most of the clients are preparing

for long-term retirement to the island. These folks tend to be foreigners and are first time investors; they are planning to build a home that they can rent out in the short-term, with a view to move permanently to the island upon retirement. For recurring investors, a key factor for consideration is the island’s track record, and how successful previous investments have been. Specifically, did these projects deliver the level of return-on-investment expected? This undoubtedly affects the investor’s level of optimism when looking toward the next. IHC also works with investors that are currently on their 2nd and even 3rd project after having enjoyed a positive return on their 1st development. Often these investors are continuing to build houses specifically for holiday rentals. This is preferred, as long-term rental does not have the same return on investment as holiday rental. There is also a trend for people to build a second holiday home and then rent it out on Airbnb or similar sites. Another area of development that is growing in Curaçao, is where a developer will seek to find a group of investors to provide the capital to build a small number of holiday apartments. In this case, apartments are sold individually; the new apartment owner then places it in an apartment rental pool to be rented to vacationers. This provides the owner with income, making the decision to purchase more attractive. It also gives them access to the apartment

when it is not being rented out. IHC is also seeing the renovation of older historical buildings being transformed into apartments, such as the buildings in Punda and Pietermaai. This creates its own special challenges, as often the main structure requires structural renovation, prior to its interior transformation. This is a trend that is also seen elsewhere in the world, where older spaces with renovated apartments inside are in high demand, such as the classic NYC lofts renovated from old warehouse spaces. The challenge for the developer and the architect is to create an apartment with modern amenities, which a renter would find desirable, delivered cost-effectively, so that the investor gains a very competitive return on the investment. All these types of investments are an important factor in the developmental progress of the island. In general, the local population tends to be very cautious about investing, and sometimes it takes a foreign investor to come to the island, see the potential and invest. Once this has happened, others see the possibilities and also begin to invest. IHC experiences a lot of optimism in their sector, which is exciting for the island from an investment perspective. Attracting international investors to Curaçao through maintaining a positive investment environment is vital as it injects capital to the economy, creates jobs and is fundamentally vital for Curaçao to realize its economic growth objectives.

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A Proud Curaçao Welcomes More Passengers

MegaPier Tula Open On November 13th, 2017, Royal Caribbean Cruise Lines’ Adventure of the Seas became the first cruise ship to majestically glide alongside and moor at the newly built second Megapier, named Tula. TEXT BY: FARAH DIBAH AYOUBI

On the occasion of this soft launch of the pier a small delegation led by Minister of Economic Development, Mr. Steven Martina, and Minister of Transport, Traffic and Urban Planning, Mrs. Zita Jesus-Leito, as well as Curaçao Ports Authorities’ representatives went on board The Adventure of the Seas to meet with the captain for a small ceremony

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to commemorate this historical day. It is a momentous occasion for CPA who worked diligently to make this pier a reality. CPA’s Managing Director, Humberto de Castro, expressed gratitude on behalf of CPA to all who worked together and helped make this pier a reality, saying humbly that congratulations should go to the great teamwork that

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made it possible to reach this target opening of MegaPier Tula. The addition of a berthing for very large vessels is beneficial to the whole tourism sector and local community. Although it’s hard to beat the experience of entering our Anna Bay canal perched high on a cruise ship, the new pier enriches Curaçao’s tourism product and ensures that Curaçao’s infrastructure is well equipped to accommodate the ever-growing ships on the market now, and those coming in the near future, thus fueling growth opportunities for the cruise tourism sector. Mr. Humberto de Castro, Managing Director of CPA, said the pier will be there for at least

50 years, explaining: “Our vision is to reach 1 million cruise passengers in the coming five to ten years. When we strategize our cruise tourism growth we think in terms of number of passengers and in spending amounts. With the addition of this second MegaPier, at least now we won’t have to worry about capacity anymore.” Curaçao currently has approximately 600,000 cruise passengers annually,

and average passenger spending runs about US $75 per passenger. The next phase of the project is finalizing the land side logistics. Apart from the facilities on the immediate premises of the MegaPier Tula, the whole area surrounding the mega cruise terminals and including the Rif Baseball Stadium and the community swimming pool,

Pisina Bennie Leito, will be transformed into a commercial and entertainment area where both locals and tourists will be able to enjoy leisure activities. The Curaçao Ports Authority, (CPA), has a grand opening of MegaPier Tula planned for the beginning of 2018.

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Income Tax on Immovable Rental Property TEXT BY: NICOLE D. E. ECHOBARDO LL.M, TAX ASSISTANT AT MEIJBURG & CO CARIBBEAN AND QUINCY N. LONT LL.M, SENIOR TAX MANAGER AT MEIJBURG & CO. CARIBBEAN.

One of the fundamental tax matters that never seems to go out-offashion is the taxation of income derived from immovable properties.

Lately it has been a worldwide trend to let your immovable property to third parties via online platforms such as Airbnb, Booking.com, Agoda etc. Income derived from immovable properties located in Curaçao falls in principle under the following sources of income: - A. Income from Business Enterprise (active) B. Income from Immovable Property (passive) Looking forward to earning income from your rental property? In the following, we

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will provide you with necessary information to consider when evaluating and improving your current or future property rental income position for income tax purposes. Please note, that the information provided in this article is limited to the tax consequences for individual taxpayers that receive their rental income derived from their own immovable property and not in the name of a company organized as a legal entity, such as an N.V. or B.V. According to the income tax legislation of

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Curaçao, all revenues received from immovable properties located in Curaçao by an individual must be declared in the personal income tax return. This includes any payment, e.g. advance rent, lease and cash, received for the use or occupation of your rental property. Even if you are not a resident of Curaçao, but you do receive rental income from an immovable property located in Curaçao, you are considered a foreign taxpayer for Curaçao income tax purposes and therefore the received revenues are subject to taxation. Furthermore, the scope of the taxable rental income is not limited to ownership, for instance income derived from subletting immovable property is also deemed a taxable income. The following

are examples of immovable properties that are more commonly rented out: • House • Apartment • Studio • Room • Building • Land • Berth • Parking lot In order to determine the tax consequences of receiving rental income as an individual from immovable property, a distinction should be made between ‘active’ rental activities versus ‘passive’ rental activities. Contrary to the assumption of many, the passive letting of an immovable property to third parties is also taxable. Both active and passive rental activities are subject to income tax at the progressive rates, at a maximum of 46.5% (in 2017). Although the tax rate for both activities is the same, the taxable base could differ, resulting in a difference in the effective tax burden.

Active rental activity

The Curaçao income tax legislation does not explicitly outline the term business. However, it is generally acknowledged that for tax purposes a business is an organization of capital and labor which aims to make profit by participating in the economic market. In this respect it must also be reasonable that profits could actually be expected from this activity. Therefore, in case a taxpayer realizes incidental profits this occurrence should not automatically result in the activity being deemed an active business enterprise. As a criterion for your rental or management activity, to qualify as an active business enterprise, the activity must be of such extent that it goes beyond the boundaries of regular asset management. To a certain extent the profitability of the activity will also be taken into account before determining if such activity should qualify as an active business enterprise. Working on a regular and continuous basis in such a manner that substantial time is spent on the rental activity are key factors in determining the tax status of the rental activity. For example, the number of hours spent on maintenance, administration, financial and contract management duties are crucial. Once your rental activity qualifies as a business enterprise based on the aforementioned criterions, it could be argued that you are entitled to deduct the necessary costs made to keep your rental property in good operating condition. However, business profits made with the

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sale of your immovable property would also be taxable for personal income tax purposes at the progressive income tax rates, at maximum of 46% (in 2017). In this respect necessary costs are the common expenses that are generally accepted, such as: • Depreciation costs • Interest costs and costs of loans • Advertising • Improvement • Repairs and maintenance • Utilities • Broker fees • Taxes • Insurance premiums

Passive rental activity

In general, if revenues received from a rental property do not qualify as proceeds of the other sources of income, such as: active business enterprise, labor, capital gains or periodical payments, they are automatically deemed to be a passive activity. In determining the taxable income from this passive activity, the deductible expenses are in essence limited to 35% of the revenues, except interest costs and costs of loans, e.g. death risk insurance premiums. This implies that the actual costs incurred to keep the rental property operational are not automatically deductible and in fact 65% of the received revenues would be deemed to be taxable income. For instance, damages caused and expenses incurred by a tenant are in principle not deductible. However, under strict circumstances it is possible to take additional operational expenses and inhabitant’s expenses into account, such as broker fees and utilities, when determining the taxable income derived from a rental property. Although actual costs and expenses made are not deductible, gains on sale of the immovable property are exempt from income tax. For completeness’ sake, please note that excess interest costs could also be tax deductible against positive income derived from the rental property in the five subsequent years, in case this interest expense is accepted for tax purposes and results in taxable losses.

ity, please note that for the calculation of your taxable income from business rental activities, 100% of the revenues are taxable, contrary to the aforementioned, deemed 65% income for the passive rental activity. Therefore, it is not necessarily beneficial for your property rental activity to be deemed an active business activity. Furthermore, in a recent Court ruling in a Sint Maarten case, the ongoing debate regarding the qualification of property rental activities as active business enterprise versus passive activity has been further clarified. Since, the Sint Maarten income tax legislation is, to a certain extent, similar to the Curaçao income tax legislation, this case is also relevant for the Curaçao tax practice. The individual taxpayer was of the opinion that he was operating a business with his rental property activity. However, the Inspectorate of Taxes argued that the property rental activity must be deemed as a passive rental activity and therefore refused the deduction of all the costs declared. The individual concerned did not succeed in proving the Inspectorate of Taxes wrong, essentially because according to the Court the taxpayer’s declaration of him spending twenty hours a week on the property rental activity, without further proof of evidence, was not credible. Therefore, the aforementioned requirements for the activity to qualify as an active business enterprise, in particular: “beyond the boundaries of regular asset management” has not been met. This ruling by the Court of First Instance serves as a confirmation of our understanding of the criterions that make the distinction between ‘active’ and

Active vs. Passive

It might seem beneficial for your property rental activity to be deemed as an active business activity, since the actual costs made are deductible. However, business profits made with the rental and sale of your immovable property are subject to income tax, whilst gains on sale from a passive rental activity are exempt from income tax. For the sake of clar-

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‘passive’ rental activities. Also, please be advised that in the event that the Inspectorate of Taxes successfully proves that you, as a rental property owner, intentionally did not report all received revenues (in particular, payments received from Airbnb, Booking.com, Agoda, etc.) or deducted costs which were not actually incurred, a 100% penalty of the non-declared amount could be imposed. Furthermore, a fine of ANG 2,500 can be imposed by the Tax Inspector for not submitting the income tax return (on time). As described above, how your property rental activity qualifies for income tax purposes could have significant impact on your personal financial situation. For instance, on a short term it might seem beneficial for your property rental activity to qualify as an active business, since the actual costs and expenses (especially maintenance costs) are deductible, however on the long term, for instance if you sell the immovable property in the capacity as entrepreneur the profits are taxable. While it could have been beneficial if the property rental activity was deemed passive, so that it could be argued that the sales profit might remain exempt from personal income tax in Curaçao. For completeness’ sake, please note that although this article sheds light on the income tax consequences of letting an immovable property, it must be taken into account that revenues received with the exploitation of an immovable property as such, are in principle also subject to Sales tax at the current rate of 7%, unless it regards long-term rental to individual residents.

The New Reporting Standards Since 2005, listed companies have had to prepare their consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). Companies that prepare their annual accounts based on these IFRS standards have had to take a large number of new changes into account. TEXT BY SUSAN VROLIJK, BRAND & COMMUNICATION MANAGER, PWC

The International Accounting Standards Board (IASB) has issued several new standards that have come into effect as of 2018, or later. IFRS 9 and 15 are effective for annual periods beginning on or after 1 January 2018, and IFRS 16 will be effective on or after 1 January 2019. The impact of these new IFRSs (the ‘Big3’) could be enormous for your company. If you have not yet acted in reference to the Big 3, please start right now. By applying IFRS, your business economic performance is better comparable with other companies that use IFRS, including companies abroad. This can lead to new insights for your organization in the financial performance of your company. On 13

January 2016, the international Accounting Standards Board published IFRS 16, ‘Leases’ which replaced the current guidance in IAS 17. If your company applies hedge accounting, then the documentation should have been amended before the end of 2017 to comply with the conditions of IFRS 9. For this new standard, companies should have spent sufficient attention to the consequences of the new impairment model. Due to changes in the classification model, it is important that the client go through the complete balance sheet, enabling companies to understand how the financial instruments are classified in the new model and what the consequences

are for measurement. Some items need to be recognized on a fair-value basis. IFRS 15 contains principles that an entity needs to apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity recognizes revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to, in exchange for those goods or services. The standard has significantly changed how many entities recognize revenue, especially those that previously applied industry-specific guidance. The standard has also resulted in a significant increase in the volume of disclosures related to revenue recognition. Although IFRS 16 takes effect at a later date, namely on January 1, 2019, there are also some actions that your company should take into consideration regarding this standard. If your company has chosen to implement IFRS 16 by applying the simplified approach, then there must be a reconciliation between the ‘off-balance sheet liabilities’ arising from the operational lease contracts at the end of 2018 and the amount the client will bring on balance as of January 1, 2019. But the underlying question remains, have you properly implemented the new reporting standard changes for 2018? It is recommended that you seek qualified professional advice on the introduction of IFRS for your company, and what the impact of the new IFRS standards will have throughout the year.

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Traditional Shop Versus Online Shop: Turnover Tax A visit to the local post office will give one a glimpse of the growing popularity of internet shopping, which has also affected Curaçao. This trend has also become apparent to many retail businesses on the island, which have seen their customer base decline during the past years, partly due to this. TEXT BY: ANGELA RASIMAN, MEIJBURG & CO CARIBBEAN

That this trend will continue for at least a little while proves the enormous growth of Amazon’s net revenue from its online stores segment, from USD 91.43 billion in 2016 to USD 108.35 billion in 2017. In an attempt to boost sales local retail businesses may decide to engage in the online shopping business, therewith creating the possibility to expand their customer base both domestically as well as across the borders. How the switch from a traditional to an online retail store will affect

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the turnover tax obligations of the business will be briefly highlighted in this article. For the businesses to be successful, researching the market and careful planning will be essential. Research has showed that the factors which motivate most consumers to buy online instead of going to a shop are flexibility of time and cost savings. The elements which hold the potential for the business to optimize costs and to be successful are the physical

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store, warehouse locations and logistics. How that is, may become clear when the tax implications are explained. It is important to understand in advance what the turnover tax implications may be, since it enables proper managing of the business’s tax obligations such as the timely and correct collection, reporting and remittance of turnover tax, thus preventing penalties, fees or closed shut downs for non-compliance. It also gives entrepreneurs the opportunity to plan and manage the business accordingly. From the consumer’s point of view turnover taxes add to the overall cost of a good. First of all one needs to understand that Curaçao turnover tax implies the taxation of: • the delivery of goods and the rendering of services within the territory of Curaçao with the exclusion of the economic zone, by entrepreneurs within the course of their business.

• the import of goods. The place of delivery is defined as the location of the good the moment it is delivered. In case the good has to be shipped or transported, the place where the shipment/transportation starts is considered to be the place of delivery. The place of delivery is essential in determining if a taxable delivery/sale of a good has occurred.

Turnover tax and the traditional retail business

In the traditional retail business, done from a physical store, goods are generally purchased from one or more suppliers abroad, then shipped to Curaçao, where they will be transported to the store/ warehouse and eventually sold to the customer. Two taxable occurrences will take place: 1st import of goods and 2nd a delivery/sale of goods by the entrepreneur, at his shop as indicated below in illustration by 1 and 2.0. Turnover tax on the import of goods is calculated from the import value, (customs value). Under certain conditions an entrepreneur can be granted an exemption on the import of trade goods. Turnover tax on the sale/delivery of

goods is calculated from the selling price and is charged to the customer. The entrepreneur has to report and remit these taxes to the tax authorities. If granted permission, the entrepreneur may settle the taxes paid at import with the taxes charged at sales. Entrepreneurs with annual sales of ANG 30.000 or less may be exempted from the reporting and remittance. When an online segment is added to the traditional business, resulting in sales to customers outside Curaçao, a turnover tax liability will occur at import (point 1), but not at point of sale (point 2.1), since this delivery is exempted from turnover tax. Note though, that some sort of sales tax will probably be levied by the country where the customer resides. It is therefore recommended to also get informed about possible tax implications and obligations in the countries that you have targeted.

Online business

The mere addition of an online segment to the business concept may increase sales, but may not necessarily result in the desired outcome. For the business to gain more than just a turnover tax exemption and an expansion of customer base, entrepreneurs may want to take better advantage of the possibilities of selling online. For instance:

• By introducing direct shipment from suppliers to customers, turnover tax liability will still occur at both levels for local sales and at level 1 for cross border sales, but certain cost reductions will be possible (i.e. warehousing, shipping) which may result in a more competitive price. • By reducing physical store presence to a minimum or completely, certain costs, such as costs of rent, electricity, water and personnel, may be reduced. • Implementing advanced inventory management, accounting, and invoicing software, may maximize efficient replenishment and may for instance reduce the risk of non-compliance, thereby avoiding penalties. With this contribution an attempt has been made to shed some light on how tax implications may change positively as a result of thorough planning and using the possibilities that the online shopping business has to offer.

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Reviving ‘Skalo’ Into a Trendy Residential & Business District

The Rebirth of Scharloo

Over the last few decades we have seen the restoration of many beautiful mansions in Scharloo, (Skalo). Brought back to their former glory, they have become beautiful office spaces to many companies. This development was just what this area needed to inject life into this historical residential neighborhood built by Curaçao’s wealthy merchants during the 1800’s. During 1870’s this area became very fashionable and attracted many discerning residents. TEXT BY KORRA PIETERSZ-JULIANA

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The present focus is to make Skalo Abou an area that is sought out by young and dynamic entrepreneurs that create Curaçao-based projects to form a unique neighborhood character as part of the totality of the heritage city.

We spoke with Marcel Dennert, Managing Director of Stichting Monumentenzorg, who shared his fresh outlook on the Skalo area. Since 1954, Monumentenzorg has been maintaining and restoring buildings and other properties that represent the cultural heritage of Curaçao, especially in Willemstad. The present focus is to make Skalo an area that is sought out by young and dynamic entrepreneurs that create Curaçao-based projects to form a unique neighborhood character as part of the totality of the heritage city. Think of art, wellness, café’s, recreation areas, shops and more. The possibilities are endless. Our heritage city is divided into different areas. As Marcel explains, “If I take Punda for instance, I see more possibilities for residential activities, accompanied with food & beverage and retail activities. Pietermaai has already developed into a hospitality area, and we are very happy with the outcome and hope that it stays that way. Skalo, on the other hand, should be more focused on the younger generation, young entrepreneurs looking to share their ideas, their talents, their offerings with less focus on harbor activities as is currently the case. We have to gentrify it a little, but not completely, so we can keep its edginess.” Recognizing that we have many monuments in our heritage city and that it is costly to maintain them, there needs to be a source of income for the project to be successful. The need then arises to have a portion of the area dedicated to residential buildings, to reduce the number of vacant spaces and to keep the area alive. It would not be enough to have only businesses in Skalo. The area also needs to offer residential buildings in order to encourage people to spend more time in the area during non-business hours. Therefore, the district needs to be trendy and desirable in order to attract people with a higher disposa-

ble income who are willing to pay a premium to live there. A similar situation can be found in Amsterdam, whereby the city started reconverting office spaces to residential spaces once again. People love to live in thriving cities. We have to make our city trendy in order for it to thrive. Indeed, big cities do offer more methods of transportation and facilities for pedestrians, compared to what Willemstad currently has to offer. Marcel acknowledges, “It’s difficult to compete, but that’s not our aim. The question is, how can we make

waterfront property to develop an upscale bayside residential area in its place. The hope is to attract people that contribute to creating a high-standard living area, making Skalo once again, the desirable residential area it once was. Living in a historical monument should not be relegated to those with a very low income, because of the high cost of maintaining these valuable buildings. As a result, these precious pieces of history fall into disrepair and decay. So how do we solve this? The island needs to provide lower cost housing for

“We have a clear new vision for Skalo,” as Marcel proudly puts it. “We want to attract new young professionals and entrepreneurs to this area, and make it a fashionable area once again. Young people are more accepting of an area despite its challenges. We have faced a couple of hurdles, but we have also seen that we can pursue our goal in spite of them. As more people move to Skalo and it increasingly transforms into a trendy and desirable living area, the current unfavorable neighborhood factors will dissipate. The good thing about Skalo Abou is that it is very clearly defined. You have the waterfront and the harbor side, and in between you have an area with all the beautiful mansions including the Fleur de Marie. The undesirable aspects of this area are still related to illicit harbor activities, but having said that, they are more of a nuisance than a real safety problem for the neighborhood. We recognize that we have to get rid of this problem, but with our new goal we are confident that we will succeed.”

it work for us? I believe you have to have a holistic approach towards the city. It’s no use to duplicate the same things everywhere in the city. You have to make each district unique.” There are certain functions related to Skalo Abou, that have very little to do with the wharf and harbor activities. For instance, there are storage buildings that get their goods from Nieuwe Haven, not from the ships that dock along the Skalo waterfront. In fact, they have no harbor activities at all, but are simply just located there. So, the idea would be to relocate these functions that are located on prime

lower income tenants and relegate the monuments to higher income tenants. Another challenge that cannot be overlooked is parking. Curaçao residents are not used to city living. We have grown to expect a parking space right in front of our door. The intention is to make the city less car dependent by looking at other forms of transportation, like for example, using more bicycles, including shared bicycles with docking stations. Despite the fact that there is ample parking in the nearby Waaigat area, many people do not want to walk much. Marcel proposes, “For those

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who do not want to walk, maybe a bike could be a solution. Or maybe a trolley or a ‘hopon-hop-off’ bus as a form of transportation to decrease the pressure of parking.” Marcel notes, “I already see a positive move towards a town center. I’ve seen more people coming to town who want to start a business and live in the city center, than you would have seen in the past. And the housing facilities are becoming more modern.” One such example would be Bargestraat, where there are four units; some one-bedroom and others twobedroom apartments. These units combine character with modern features. This combination characterizes the design of all the buil-

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dings that are restored now as modern living facilities. They feature much more than you would expect in a traditional monument, with

Monumentenzorg: “Tua Res Agitur” It concerns you too

more spacious bathrooms, good quality modern kitchens, connections for air-conditioning, higher-end finishes and ample electrical outlets.

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Marcel also hopes to add more artistic impressions in Skalo, to give the area a more edgy and artsy look. They have recently revived the park to attract more people, especially families, and eventually hope to attract more tourists to this area once more businesses arrive. They will be making more use of the park this year with at least four park-related events, and are considering the option to provide free wifi. As Marcel sums it up, “For right now, we invite current neighbors and businesses to participate in the upkeep of the park, and offer it to host more activities like the great events that ‘Hello Skalo’ has been offering. We can’t do this alone. We need more people to join us. So, let’s do something great together.”

NEWS B RIEFS TALL-SHIPS SCHEDULED TO RETURN IN 2018

By mid-July 2018, Curaçao expects to once again welcome a fleet of tall-ships to the main port in the Annabaai, in celebration of Sailing Latin America 2018, or Velas Latinoamérica 2018. The Chilean navy is organizing this event, and is scheduled to commence on March 25, 2018, in the Brazilian city of Rio de Janeiro. After a roundtrip voyage through the wider region, the fleet will reach its final destination on September 2, 2018, in the Mexican city of Vera Cruz. The purpose of this event is to further strengthen the ties between the navy units of the participating countries. Many of the participating tall-ships, which were largely used as freight vessels during the 16th century, nowadays serve as practical training ships. Curaçao and the port of Willemstad, serve as a particularly scenic port of call as the meticulously preserved historic waterfront creates a perfect backdrop for these beautiful antique tall ships

FOUR WEEKLY JETBLUE FLIGHTS FROM JFK

The tourism industry in Curaçao was given a welcomed boost by the recent announcement from JetBlue airlines that they will add a fourth weekly flight between JFK Airport in New York and Hato Airport in Curaçao, starting in the summer of 2018.

ISO CERTIFICATIONS FOR DAMEN SHIPREPAIR CURAÇAO

After Damen Shipyards acquired the former Curaçao Drydock Company earlier this year, Damen Shiprepair Amsterdam accompanied Damen Shiprepair Curaçao along in the process for their ISO certification. Both gained their certification, (ISO 9001:2015 and ISO 14001:2015) after Lloyd’s Register audited them last November. Now these companies must meet specific ISO standards, including the constant improvement of their activities in an environmentally friendly manner. Although Damen is also known for building ships of all kinds and sizes, in Curaçao the activities are limited to ship repair.

CURAÇAO - FAVORITE DESTINATION FOR THE HOLIDAYS

Curaçao was one of the top Dutch tourist destinations at the change of the year. At least one quarter of all clients of the Dutch travel organizations TUI and Corendon, mentioned Curaçao as the most favored destination to enjoy the holiday season, for Christmas and New Year’s. That growth in visitors to the island is also noticeable in the growing number of seats and even extra flights that the airlines TUI and KLM had scheduled to meet the increased demand for the December and January period.

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Spotlight on Beyglz:

A Young Entrepreneur’s Initiative “Follow your plan and work with your strengths,” recommends the latest young entrepreneur to open up her dream restaurant in Scharloo… Beyglz. Candice van Delden, born and raised in Curaçao, shares with us her journey towards the successful launch of her bagel shop in December 2016 and her plans for the future. TEXT BY: KATY BRANUM

Her goal was to create a lunch space where, regardless of where you’re from in the world, you’d just naturally feel at home. With a passion and curiosity for food, in combination with her natural creative flair, from very early on, Candice became well known for her tasty dishes. Over time she developed a reputation for catering at parties, and it was this experi-

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ence that first sparked her idea for the Beyglz restaurant.

Know Your Talents, Know Your Market Candice knew that because she was a very independent person, and to some degree set in her ways, reporting to an employer would have been very challenging for her. This

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helped her to understand that she needed to follow her own path. After being unsuccessful in her search for an affordable location in Punda and Pietermaai, already very busy culinary destinations, someone suggested that she consider Scharloo as they were encouraging new businesses to open up in the area. She sent an email to the Director for Monumental Scharloo and he immediately replied, which impressed her. As soon as she saw the property she knew that this was it. Although it had been used as a warehouse, she could envision her restaurant, and knew this was the place for her. Many people were shocked when Candice chose Scharloo as a location, but she wanted to make an effort to bring people back into the

old city area and to re-create the community feeling and convenience of having everything close at hand. Candice knew that this was the right decision when everything just started falling into place. She believes that it is really important to follow your intuition, and interestingly enough, as soon as she made the decision on her location, things just started falling into place. Growing up in Curaçao, Candice recognized that local people enjoyed a hot lunch, so she understood the importance of having warm fillings on the menu. It was also essential that she offer high quality ingredients and that the pricing was competitive so that Beyglz would be an affordable and tasty lunch choice for those working in the area.

Supporting the Community

Because it was an old building that she was renovating into a bagel shop, rather than making the interior something modern, it was important for Candice to honor the history and the character of the building, whilst still ensuring that it felt like a cosy place to relax. After two months of renovations, the result was a combination of vintage and eclectic styles. Candice admits that it really was very satisfying to see her dream become reality! It was also very important that everything for the shop was locally sourced. She believes that it is important to support the island and have pride in what we have here. Purchasing products and services locally is a great way to invest in your local community. And what Candice could not readily find, she had made by local craftsmen.

Don’t Let the Hurdles Get in the Way

Even though Candice had a strong drive and a clear vision for her business, up until she opened its doors, it was still untested, so she didn’t really know how the community would receive it. “Having these doubts are only natural,” she says. There were other doubts along the way too. For Candice, it was her skills – she had only ever been a cook at home, never in a restaurant, so her skills were untested in a commercial kitchen. Things also took much longer than planned, Candice started with zero investment capital, so financing took time, and the infrastructure, such as the new kitchen and gas connection, all took much longer than expected. All this she juggled with the challenges of having a newborn baby. The hidden blessing was that she had not been too hard on herself about the opening date, so she waited until the last moment when everything was in place before announcing the opening. This unexpectedly helped with

publicity, because it built up the anticipation so that the moment Beyglz was opened, people rushed in. And she has been receiving positive feedback ever since.

Giving Back

Candice has always enjoyed being involved in charitable work from a young age. Her Curaçao Cares Benefit Bagel program adds one additional bagel item to the menu each month where 50% of the proceeds from the purchase of this bagel go towards the charitable organisation chosen for that month. Curaçao Cares has put her in contact with local charities that do not have regular sponsors or government support. Candice notes, “Often the mistake that many of us make is that we agree that once we are set up and things are going well, that is when we will give back to the community. It was important for me to have a program like this in place right from the start.” The local artist program that Candice has also launched is all about providing a platform for artists to showcase their work. She deliberately kept the walls of the shop empty so that local talent could have the opportunity get exposure for their work.

opportunity here in Curaçao, my recommendation is that you go for it. I can understand that the older generations like to stick to what they know, but the younger generation is more adventurous, and the timing is right for introducing new ideas to the island. Follow your intuition, the affirmation you will experience once things start falling into place, will increase your confidence and you will know that you are on the right path.”

Opportunities for Everyone

Candice believes that even though there will always be challenges when starting a business, the good thing about Curaçao is that there are still many untapped opportunities here. She believes that there are gaps in the market for young entrepreneurs. In many cases, she believes that these could be ideas that locals have seen abroad and can then bring back to Curaçao to establish here. Candice shares, if you have worked abroad or have seen an

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The Powerful Potential of NEXT GEN Next gen, [generation], voices are getting louder and louder as the millennial generation officially over takes the baby boomers as our largest represented generation. Millennialâ&#x20AC;&#x2122;s have grown up in quite a dynamic economic landscape. The effect of the implosion of the economy and explosion of technology have raised a group of individuals highly motived by creative freedom and exponential purpose. Experience dictates their currency, and collaboration is the mantra of this generation. TEXT BY KIMBERLY DE FREITAS, FOUNDER AND OWNER, 8

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Next gen are cross-disciplinarians at heart. When the global economy crashed, large corporations were forced to operate leaner. Hierarchical structures flattened overnight and employees needed to become more diversified in their skill set. Wearing different “hats” became the norm as millennials entered the workforce. This allowed them to develop an aerial perspective of the companies they worked for, and they began to cultivate a very entrepreneurial mindset as they proved able to problem solve in creative ways and feel the value they were adding to the company. Simultaneously, technology has further impacted the way our next gen is moving through society. The smart phone has broken barriers to entry for many entrepreneurs putting store fronts into the back pockets of millennials globally. Now what does this all mean? Are we going to have a generation comprised of entrepreneurs? Not necessarily. This generation is passionate about innovating and pushing industries forward, resulting in an emerging opportunity for employers to harness this energy. They are a group of potential employees who are resourceful self-starters. But employers need to be able to shift the way they communicate and interact with

Kimberly de Freitas pictured speaking about NEXT GEN in Chicago at a 2 TO 10 Project

“Alone, we go faster. Together, we go further.” – African Proverb

their teams. Instead, their missions need to communicate that they are there to help their employees grow through a creative landscape.

With a need to promote a strong sense of collaboration and intra-prenuership, employees should be made to feel like they are an equal contributor to the company and the reward for doing so should be reflective of that mindset. Of course, this does not always translate to monetary compensation. Finding the drivers of any corporate team and then empowering them as leaders can propel the company to new heights of growth and profitability.

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Curaçao Business magazine, the official magazine of the Chamber of Commerce, is now available by subscription. The annual magazine subscription, published quarterly, is available for 35 guilders per year.

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An Interview with Three Young Social Media-based Entrepreneurs

What it Takes to Run a Business on Social Platforms and Inter-branding: “Establishing a personal brand that you’re proud of, is an ongoing project. It takes time to create a vision of what you want, and to then execute that vision. Nike did not establish their brand overnight and neither will you”, writes Jenn Chen, author of the popular blog, sproutsocial. TEXT BY: KIMBERLY DE FREITAS AND PRISCILLA LOTMAN

As creators, innovators, and movers of economies we are constantly attracted by disruption. In this now economy, there is an unprecedented access and immediacy for information. We want information now, we want to reach and communicate with our target audience now, we want to expand and open new companies now. Technology, in many ways, has lowered barriers for entry into certain, visually interesting industries. Social platforms have caused disruption and created space for new opportunities. We are now able to connect directly with our consumers and speak with them in plain language at a low cost. Resources, that at one time used to be allocated to the cost of brick-andmortar and traditional marketing, are now freed up as entrepreneurs build companies on social platforms. Have a product or service that photographs well… and boom! You are

in business. Many local entrepreneurs have also tapped into the vast potential of social media and have successfully built businesses, proving that Curaçao is no exception to this worldwide shift. We recently sat down with some social media influencers on our island that are building their brands through social platforms. More interestingly, in a world full of giant conglomerates and faceless corporations, the person behind the brand is becoming just as important as the brand itself.

still the one that is always directly in contact with our audience and customers. Those who know Dushi SUP, also know Liberty, and vice versa. Kimberly and Farah (K&F): Flea Finds started as a result of our love and passion for interiors and home styling, so our personal taste is clearly visible in all items we create. Thus, you could easily find any of our products in our own homes. Our brand is a creative outlet in which the tropical theme, as a reflection of our lifestyle as born and raised island girls, is visibly carried out. Aside from our creativity, our love for all elements of nature is infused in all our items. Q. What is your relationship with electronics? Do you sleep with them? G: I don’t work from a set location, so I carry my “office” with me. My laptop and phone are always in my bag, but also at home they are

The person behind the brand is becoming just as important as the brand itself. Meet Gaby Lieuw of Sand & Stiletto’s, Kimberley Douglas and Farah Leue of Flea Finds, and Liberty Suares of Dushi Sup and Liberty Yoga. We spoke to them about their personal brand, social platforms and how inter-branding has become an inevitable part of their business. Q. What part of “you” is clearly visible in your brand(s)? Gaby (G): My attention to detail and probably my fixation on aesthetically appealing...well, anything really. Fonts, color combinations, architecture, and yes - even words! Liberty (L): With both Liberty Yoga and Dushi SUP, I am the face behind the brand. These businesses both started as a hobby and were created by just sharing my “yoga” lifestyle on Instagram. Even though Dushi SUP became an independent brand on its own, I am

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A Hidden Gem:

Indonesian Restaurant “Batik Asli” Tucked away in the Eden Shoppers Paradise is the “Batik Asli” restaurant, a hidden gem that takes you across the oceans to experience the authentic flavors of Indonesia. With a loyal clientele for over 2 years, patrons have kept returning to dine at Batik Asli, and it seems as though the restaurant’s reputation for tasty Indonesian cuisine has steadily spread via word of mouth. The restaurant is owned and operated by Marco and Johan Dreijerink, who have been household names in Curaçao since 1969 after having lived in Indonesia for quite some time. With the support of Edu Lembekker, former chef and operator of “The Wajang Doll” restaurant in St. Maarten, the dynamic trio strive to deliver an extensive menu of traditional Indonesian gastronomy. Some of the highlights on the menu include: a Tiki rijsttafel (served at lunch), the Orang Belanda rijsttafel (served at dinner), as well as popular dishes like Babi Panggang, Nasi Rames or Ikan Bumbu Bali as well as various other Indian dishes. Take out service is available, including their rijsttafel specialties. The restaurant has a cozy atmosphere and diners can also choose to sit on the terrace in the beautifully landscaped garden with water feature. We are open for lunch and dinner from Tuesday to Sunday from 12:00 to 2:00pm and from 5.30pm to 8.30pm. The address is Caracasbaaiweg 280/5 nst. BK Tel. 843-0003. Reservations are recommended,

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never out of reach. Naturally it’s not all workrelated, but screens are the last thing I see before going to sleep at night and the first thing I reach for when I wake up in the morning. L: There was a time when I was so caught up with all the engagement of social media on my phone. Good thing I realized that I, as a human being, was not benefitting from this in any way. I now start my day with a little stroll in my garden, playing with the dogs and listening to the birds and eventually get to my emails and social media over breakfast. K&F: We’re living in an era and a society in which it is almost inevitable to not be addicted to your smartphone or other electronic device. It doesn’t come as a surprise that we spend a great amount of time on our phones, as our business is promoted solely on social media. Q. What does it mean to be a thought leader or an influencer within your industry? G: In my opinion, you are a thought leader or influencer when business is good and you continue to bring in work and/or projects even in a downturn. From my experience that position generally goes to someone who is always anticipating the future and rolling out innovative ways to give clients what they want while continuing to set the bar high and remaining consistent at all costs, no matter the effort or time it takes. It also means not being afraid to make mistakes and applying what you learned on your next attempt towards achieving a result of which you can be proud. L: Posting about life, yoga and happiness. All challenges that come my way and sharing how I deal with them. Influencing through social media, by posting things that I believe in and hopefully influence others to do the same.

K&F: We have noticed that a lot of people approach us saying ‘that’s so Flea Finds!’ So, we have already succeeded in establishing a brand with a clear style and identity. We think it’s important in our line of work to keep up with changes in trends and lifestyles in order for us to regularly adjust or renew our products and so further evolve our brand. We must continue telling a story in new and interesting ways and keep attracting followers. Q. How are your brands different from each other and how do you manage this? G: While more people associate me with the Sand and Stilettos brand, it is actually a branch that falls under my consultancy, the HQ27 Group LLC, (B.V. in Dutch). Officially Sand and Stilettos is me as an experience curator (tailor-made trips, itinerary creation,

etc.) and HQ27 is me as a copywriter, consultant and landlord - but these days they are often used interchangeably and people can find me either way. L: I am currently managing 3 different business and that does bring its challenges. Number Ten is a new joint startup which requires a whole new audience group and niche. We’re still figuring out how we want to talk to our audience to receive the best engagement. With Dushi SUP and Liberty Yoga it’s a bit easier since we’ve been doing this for quite a while now. Creating content for Dushi SUP is the easiest out of all 3, since the setting is always perfect: turquoise water, happy people and a blue sky!

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Digital Transformation & The Generational Gap The media is full of Millennialism’s. We see how different Millennials are as entrepreneurs in comparison to previous generations, (Baby Boomers and Generation X) …and it would seem that Millennials (or Next Gen), have an edge. TEXT BY: VANESSA VROLIJK

Why would Millennials have an edge over previous generations? Do we actually have proof to substantiate this claim? To try and answer these questions, we need to first look at the definition of an entrepreneur and entrepreneurship. According to Entrepreneur Magazine, (www. entrepeneur.com), an “entrepreneur” is defined as: “A person who starts a business and is willing to risk loss in order to make money,” or “one who organizes, manages, and assumes the risks of a business or enterprise.” Note the common keywords business and risk. If there’s no real business or risk, you’re not an entrepreneur. A similar definition is found in Forbes Magazine (www.forbes.com): “Entrepreneurs, in the purest sense, are those who identify a need---any need--and fill it. It’s a primordial urge, independent of product, service, industry or market.”

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The main reason behind this idea that Millennials are driving the entrepreneurship movement has mostly to do with Digital Transformation and less with business skills as such. Digital Transformation refers to the way in which technology has been changing how business is conducted. This includes, but is not limited to, the Millennial’s favorite platforms of social media. Social media’s role has become fundamental to the ‘new’ ways of doing business, which might lead one to conclude that without integrating social media into your business model, you have essentially made your company obsolete. Now, it is a pervasive cliché that only Millennials ‘get’ social media and use it to their (business) profit as opposed to other generations.

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But social media has become instrumental in starting many new businesses as it is no longer necessary to have a ‘brick and mortar’ location or even actual merchandise other than content or knowledge. Another new facet in entrepreneurship, is the growing number of ways to raise capital or fund a project, start-up or campaign. This is where ‘crowd-funding’ comes in to focus as well as Initial Coin Offering, (also commonly referred to as an ICO), which is a fundraising mechanism in which new projects sell their underlying crypto tokens in exchange for bitcoin and ether. It’s somewhat similar to an Initial Public Offering (IPO) in which investors purchase shares of a company. There is ample research on Digital Transformation and its impact on businesses throughout the world. Curious to find out about the effect it is having on local entrepreneurs, especially Curaçao’s Millenials, we organized a roundtable discussion with the members of Boss & Co., a local all-female entrepreneur’s initiative, whose primary goal is to help foster female entrepreneurship in Curaçao. During this roundtable discussion it became

clear that Digital Transformation, and in particular social media, is a key factor in the way businesses are started and conducted. Some prime examples of these new business models already exist within the Boss & Co. group. It would seem that this generation, apart from embracing these emerging technologies, approaches the other critical success factors the same as would any other business run ‘traditionally’. Qualities like perseverance, staying on course and just plain working hard are still core values and skills that will get any business through. Thus the biggest difference with Millenials seems to be that they are fully engaging new technologies and all the benefits they offer, especially those offered by social media. The effects of Digital Transformation on how the world does business, goes far beyond digitizing processes or creating brand identity through Social Media. Digital Transformation is about utilizing, as well as leveraging, analytics and artificial intelligence, especially in the ways we perceive, anticipate and redefine customer experiences. It is also about dealing with disruptive technology such as Blockchain and its legal and regulatory consequences. Digital Transformation leads to the reinvention of industries, processes and the management of information. As a direct result, regulatory issues such as the management of privacy (customers, civilians) also inevitably come into play as well. Today’s business owners need to firstly

understand and secondly embrace and integrate the useful and necessary elements of Digital Transformation into their business models. Not only to survive but to gain that illusive competitive edge, to get the absolute most out of all that technology has to offer. Yet still, today’s entrepreneur needs to remain grounded in the fact that technology is never ever an objective onto itself, it remains a tool that can and should be used to make improvements on core competences. Technology being a tool should be wielded, just like any other tool, with proper knowledge and expertise and guidance if necessary.

Digital Transformation has been and will forever be redefining the way we do everything: the way our children learn, the way we think, the way we live and ultimately the way we work as well. It is about change and how we can implement this change in a way that benefits all strata of society. Laws and legislation are struggling to keep up but in no way will Digital Transformation stop or even slow down as it continues to define our era at breakneck speed. The sky is the limit and so are business opportunities for those, Millennials or not, who are willing to take the plunge.

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results-driven business education in a beautiful tropical setting such as Curaçao. And while locals are also invited to attend, their focus is to provide business professionals with a quiet getaway retreat in a serene setting. Their intention is to offer unique and enriching life experiences during the workshops, and allow participants to indulge in exclusive pampering while enjoying a holistic lifestyle during their stay in Curaçao. This truly elevates the definition of destination education and will undoubtedly attract many entrepreneurs to our shores. And of course, introducing new entrepreneurial visionaries to our island can only lead to further opportunities for local and foreign business development.

Destination Education Comes to Curaçao Curaçao is one of the latest additions to the growing list of unique destinations to offer professional educational courses and workshops to the international market of business owners and their employees. Considered to be “off the beaten path”, the island offers many exclusive accommodations and distinctive attractions that can be integrated into an educational curriculum to provide a one-of-a-kind experience that serves both as a relaxing retreat and a source of inspiration and empowerment for any business professional. TEXT BY HELEN GRIFFITH

One such program is Embark: a strategic partnership between Qnity, Inc., a US-based professional educational company; the locally-based accommodation and educational facility called Ananda; and 8 The Experience, the internationally recognized local spa and salon. This newly formed alliance plans to offer a number of business education programs

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in 2018, (the first of which was scheduled for February), that promise to deliver cutting-edge education for up-and-coming entrepreneurs in an enriching and rewarding setting. The workshops are primarily, (but not exclusively), geared towards attracting foreign business owners and leaders to experience a

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The unique approach delivered in these workshops holds great promise for many entrepreneurs who often struggle to maintain a consistent profit margin in their businesses. As a matter of fact, it is precisely the creative mind of a visionary business person that struggles with the analytical side of running a business, and limits the profitability of the company. The Qnity program is a tried and true success story that has helped many business owners in the U.S. and Canada to navigate the financial aspects of running a business with a simple and visual approach. Their internationally renowned programs are “whole-brained,” and take a “right brain approach to get left brain results.” This has been the key to success for many entrepreneurs, especially those in business sectors that rely on a certain sense of artistic creativity to distinguish their corporate identity. Qnity, was founded in 2009 by Tom Kuhn, an advisor, educator and entrepreneur, who previously co-owned a $25M multi-location salon/ spa/retail company. He is also the founder and CEO of The 2 to 10 Project, a $350M, 45 company benchmarking and networking collaborative for multi-location market-leading salons and spas. His brainchild, Qnity, headquartered in Minneapolis, MN, has been licensed by Fortune 500 Brands as an internal education resource, with clients including Estee Lauder (through the Aveda brand), JC Penny, Lifetime Fitness and ULTA Beauty. The signature Qnity training program has over 5,000 graduates from the U.S. and Canada, and the company serves as trusted advisors and coaches to many companies across North America. Entrepreneurs, business leaders and

Ananda’s vision is to create a place where people can experience a quiet serene environment, and benefit from a wellness program that enables guests to connect with nature, and benefit from farm-to-table menu offerings. The resort facilities include elegant accommodations, educational and conference facilities, a fully equipped gym, swimming pools, instructional kitchens, dining areas and meditational areas including a garden labyrinth. The overall

their teams, have gained the competitive edge, and all report higher earnings and employee motivation as a result of attending the Qnity workshops. Tom Kuhn was introduced to Curaçao by Kimberly de Freitas, owner of the exclusive spa and salon, 8 The Experience. Kimberly has emerged as a leading young entrepreneur burgeoning a creative path of success here on the island. Her beautifully appointed spa, located at Coral Estate, is an exclusive Aveda Spa that offers luxurious services in a relaxed setting, perched above the breathtakingly blue waters of Banda Bou. In 2016, the spa was awarded the prestigious ‘Salon of the Year’ award by Salon Today magazine. After hav-

ing moved to Curaçao from the U.S. several years ago, she is continuously inspired by the vast opportunities that Curaçao holds, and has become a passionate spokesperson for the island, female entrepreneurs and millennial leadership. She has presented at the esteemed 2 to 10 Project annual conference in Chicago, at Dare to Dream in Florida and at the Annual Qnity Summer Retreat in Minneapolis. After finally convincing Tom Kuhn to come visit the island she now considers home, he was equally inspired by the island’s beauty, and the two joined forces with Patricia McGraw at Ananda Resort, (formerly Rainbow Retreat) at Villapark Fontein.

layout of the resort is the perfect place to host workshops and corporate retreats such as the ones offered by Qnity. Put together with the indulgent spa services from 8 The Experience offered to all participants, the only conclusion is that Embark will deliver a life-changing experience for all who are lucky enough to attend. As Kuhn so aptly describes it, “The island of Curaçao, along with our two key partners, offers us an opportunity to bring our vision to not only a more global marketplace, but to do so in an exotic and colorful location… a jewel in the Caribbean.”

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Qredits

Microfinancing for SMEs in Curaçao

Local entrepreneurs starting a new venture agree that it can be quite a challenge to get adequate funding in Curaçao. Banks have procedures, standards and risk-aversion practices in place that often make it hard for a new entrepreneur with no collateral to get a loan. Qredits, a Dutch microlending institution is planning to start its operations in Curaçao in the first quarter of 2018. TEXT BY FARAH DIBAH AYOUBI

Why Microfinance?

Curaçao has an extensive financial sector and entrepreneurs have access to crowd-funding options. So, one might ask why should I opt for microfinance? According to Elwin Groenevelt, CEO of Qredits, “Banks are no longer equipped to issue small loans, especially not for startups without collateral. The handling costs and risks are actually too high to provide small loans profitably. Banks tend to put more effort towards their most profitable clients. If you are a small entrepreneur with a small loan, it’s difficult to get attention. Yet, extra attention may just be what helps an entrepreneur become successful. Microfinancing often enables the entrepreneur to build relationships with the lender based on trust and can even provide help and guidance to the entrepreneur with access to knowledge and online learning, to help them overcome pitfalls. Qredits is not in direct competition with banks, as Groenevelt puts it, “Qredits is not a competitor to banks, just complementary to the sector.”

mentoring or coaching is very important. It works, because our figures show that after 3 years, 93% of customers are still active and the default rate is a low 4-5%.” Qredits is a private, non-profit, microfinance, social lending institution, which strives to help entrepreneurs who don’t qualify for commercial bank loans. They have issued more than 11,000 loans, using EU guarantees, among others, to minimize its risk. Their front offices in Aruba, St Maarten

and Bonaire, all use the Qredits back office in The Netherlands. They plan to start operations on Curaçao in March 2018 with loans up to ANG 50,000 for starting and existing entrepreneurs. At 9.75% interest rate, the loans provide a non-profit business viability for Qredits, which states that research in Holland has shown that to offer these loans at breakeven for a bank, it would have to charge 18% interest.

Microfinance is not only about providing loans. It is very important to the entrepreneur to get the business development services he/she needs to be able to build a sound business plan.

Social Lending

The concept of social lending may not be totally new to Curaçao, since many retired people in the banking sector look back on similar practices that banks used in the past. As Groenevelt notes, “We have a different approach to lending. We take things into account such as: How many jobs will we create? So far more than 15,000 jobs have been created in the Netherlands by companies using our micro-financing option.”

Loans with Business Development

Microfinance is not only about providing loans. It is very important to the entrepreneur to be able to access the business development services he/she needs to be able to build a sound business plan and repay the loan. Groenevelt says, “We believe one-on-one

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The Deep-Sea Water Industry

A Circular Economy-Compatible Industry to Address Future Water, Energy, and Food Needs in Caribbean Island Nations TEXT BY: KEVIN DE CUBA, MSC.

Access to fresh, clean, and affordable water, energy, and food on island states is increasingly becoming a challenge across the globe. This can be solved by simply observing and realizing that the ocean that surrounds your island is the potential source of the solution to all these challenges. Imagine developing a new economic pillar that can help your island overcome the need to provide these basic needs through a circular and sustainable economic industry or sector. Many island nations, such as Curacao, are confronted with significant sustainable development challenges, as their economies are based on the premise of a continuously expanding tourism sector, electricity generation and transport that are mainly or completely reliant on expensive fossil fuels, limited agricultural activities and increasing or full dependency on food imports, no to limited access to natural fresh water sources and expensive water treatment, small scale fishing industries affected by global fish decline, brain drainage due to lack of attractive, progressive and innovating economic activities, among others. These are significant challenges to guarantee a good livelihood for the island community and sustainable development. Recognizing these sustainable development challenges, the business community in Caribbean island nations is in the unique position to serve as a key enabler to address these

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challenges by seriously engaging in the exploration and exploitation of the ocean resources. One very attractive market opportunity, is creating primary and secondary productive activities from Deep Sea Water, (DSW), pumped to the shores and then utilizing this resource in a sustainable manner creating added-value in a circular island economy, while making profit.

What is a Circular Island Economy?

A Circular Island Economy is an island economy that is restorative and regenerative by design; that aims to keep products, components, and materials at their highest utility and value at all times; thatÂ distinguishes between technical and biological cycles; that decouples economic development of the excessive consumption of natural resources; and that promotes economic growth and job creation to achieve sustainable development, (Ellen MacArthur Foundation, 2016)

How does a Deep-Sea Water Industry fit within a Circular Economy? This industry is based on the objective of closing the loop between an island economy and surrounding ocean water, through the pumping of cold DSW of 4-6Â°C at 800-1000 m depth to the shore, and circulating this in either closedloop or cascading systems as means to address among others, energy, water, and food needs in locations where the conditions are optimal,

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prior to returning the water back to the ocean. Having unlimited access to an eco-friendly and renewable source within your maritime boarders, makes DSWI an island-compatible and self-sustaining economic sector where innovation and sustainability are at the epicenter of all activities within this sector.

Macro-economic and socio-environmental benefits of a DSWI From a macro-economic standpoint, a DSWI contributes to the diversification of an island economy and helps building resilience to external shocks as most island economies are dependent on a single economic pillar (e.g. tourism) and are highly reliant on expensively imported goods, products, and other resources. But what makes this industry attractive, is that next to building economic resilience and increasing energy, water and food security, there is a potential for converting island economies in net exporting economies based on production of high-end or value-added products (cosmetics, biopharmaceutical products, bio fuels, and other types of products) using naturally available resources (including the characteristics of DSW) and conversion processes running on an eco-friendly and clean renewable source, which is the ocean water. A DSWI represents a combination of sectors and disciplines, not only for commercial and productive interests, but also to contribute with

research, development, education, thus the overall science in the use of DSW and other deep-sea marine flora and fauna. In this way, it is possible to attract research institutes and universities to the island to build expertise and launch a knowledge-based sector attached to this DSWI. Such a DSWI with its interrelated secondary activities can employ at least 400 â&#x20AC;&#x201C; 600 direct permanent jobs (Sewenig, 2016) and thousands of people during design, development, construction, installation, operation, maintenance, and expansion which can be significant in an island community. A DSWI also serves as a magnet for entrepreneurs for the creation of startups, research and development agencies, and investors interested in facilitating the process of transitioning from performing research to commercialization of findings and solutions. The creation of a knowledge hub in the Caribbean will not only promote innovation, but also creation of high paying specialized jobs to retain well-educated or highly skilled professionals from the region. By enabling the cultivation of fruits and vegetables on the island through modern technologies with low ecological footprints, the import and therefore the transportation of fresh produce and/or the need to consume conserved food is reduced. These, offset a significant amount of greenhouse gas (GHG) emissions, as the frequency or capacity of marine vessels running on fossil fuels to supply goods and products is reduced. Also, because the main driver of a DSWI is the ocean water, the complete system operates on a renewable resource that does not contaminate or lead to significant environmental impacts during its use cycle. In line with the definition of Circular Economy, a DSWI can contribute in the regeneration or restoration of fish stock in surrounding waters, by creating nursing ponds and/or use the DSW in intelligent cascading loop to nurture critical ecosystems, such as mangrove forests that serve as nursing areas for small fish and other marine life. Briefly, the interesting opportunity behind a DSWI lays in the fact that this highly valuable DSW that has already been pumped to the shore and has become a non-contaminated and still relatively cold by-product, can still be exploited for many additional productive uses. Not only to create new or additional revenue streams, but also making the investment in a district cooling or an ocean thermal energy conversion system more attractive and profitable. Thus, in a DSWI, instead of typically discharging the relatively cold DSW directly back into the ocean after extracting the temperature gradience, it is utilized for additional economic activities in a circular and/or cascading system,

Illustration of a DSWI + Sea-water Air Conditioning System

Jasmin Sewenig, Deep Sea Water Industry (DSWI), Potential for the Development of a new economic sector on Aruba, Dissertation MSc. Energy Sciences at the Copernicus Institute of Utrecht University in collaboration with the Americas Sustainable Development Foundation (ASDF), December 2016.

e.g. for fish and seafood rearing, agriculture, or fresh water production.

The way forward?

Caribbean islands are uniquely positioned to endeavor in the development of Deep Sea Water Industries to realize circular island economies, as they are located in an optimal climatic zone with year-round stable temperatures, have access to an untapped and renewable resource located within their economic territory, are confronted with energy, water and food supply challenges, and are in need of creating new and additional economic sectors for job creation and knowledge and expertise development to make the island economies less import dependent and more resilient to external shocks. Regardless of the island situation or past economic development pathway, the goal of optimizing the use of domestic natural renewable resources, such as ocean water, to drive a completely new economic sector is one that needs to be taken into consideration in any future devel-

opment scenario. In this global linear economic system, continued access to raw materials and fossil fuels are going to increasingly become more complicated, costly, and unreliable to drive modern technology based economies, while generating unwanted socio-economic and environmental consequences. Small island nations, like Curacao, do not and will not have the bargaining position to compete for ever scarcer resources, and secure access and supply of materials, products, and goods to guarantee a proper livelihood of their island communities. Therefore, it is important to focus on island-compatible and self-reliant ways to continue to guarantee access to core primary needs which are fresh water, food, and energy services by switching the island economy to one based on circular economy principles (regenerative and restorative by design and intent), and that can be driven by natural resources which are abundantly available in our surrounding oceans.

CURAĂ&#x2021;AO BUSINESS

| NUMBER 1 | 2018

Curacao Business Magazine | Edition 1, 2018

Articles inside

Microfinancing for SMEs in Curaçao

Destination Education Comes to Curaçao

What it Takes to Run a Business on Social Platforms and Inter-branding

Digital Transformation & The Generational Gap

The Powerful Potential of NEXT GEN

Spotlight on Beyglz: A Young Entrepreneur’s Initiative

The Rebirth of Scharloo: Reviving ‘Skalo’ Into a Trendy Residential & Business District

The New Reporting Standards: IFRS

Traditional Shop Versus Online Shop: Turnover Tax

Income Tax on Immovable Rental Property

MegaPier Tula Open: A Proud Curaçao Welcomes More Passengers

Real Estate Development Is On The Rise

Korpodeko Incentive Program

Looking Out On The Horizon: Opportunities for Economic Recovery in 2018