M Mt. Wy nne Ressort Devvelopment
Key Points • • • • • • •
tion 2011 Internatiional Airport approved d ‐ complet New Highway unde er constructtion for easier access ffrom Airporrt to the We est Coast Governm ment Incenttives for forreign Investtors ‐ includ des income tax exemption ing in line w Under De eveloped Issland ‐ pote ential to bri with neighbou uring Barbaados and Stt Lucia Rich lush h landscape e and Caribb bean Sea – ideal for ecco‐luxury ennterprise Golf Cou urse potentiial ‐ part fin nanced by tthe Govern nment No Capittal Gains Taax
Re egional Locaation
Map of St. Vincent SHOWING LOCATION OF MT. WYNNE
Site of Mt. Wynne Site of new international airport
St. Vincent & the Grenadines at a Glance
Location: • • •
St. Vincent & the Grenadines is located between St. Lucia, 21 miles to the north and Grenada, 15 miles to the south. Barbados is 100 miles to the east. St. Vincent is situated at 13 ° 15’ N latitude and 60° 56’
Land (area): • •
St. Vincent: 29km (18 miles) long and 17.7km (11 miles) wide The Grenadines: 44 sq. km (17 sq. miles).
Climate: • • •
Tropical Average yearly temperature: 24°C /75°F to 30°C/87°F. Average annual rainfall: 380 cm (150 inches) inland; 200 cm (80 inches) on the coast.
Population: 118,432 (July 2008 est.) Language: English is the official language with many people also speaking Spanish and French. Capital: Kingstown, located on the southwest coast of St. Vincent, is the seat of government and the main commercial centre. Currency: The local currency is the Eastern Caribbean Dollar (EC$) which is pegged to the US$ with an exchange rate of EC$2.67 for US$1.00 cash and EC$2.68 for US$1.00 traveller’s cheques.
Ethnic Groups: Carib, African, Portuguese, Scottish, Irish and East Indian decent, with newer immigrants from Syria, Lebanon, Asia, France, England, Italy, Canada and the United Stated of America.
Airports: An international airport is due to be completed by 2011. • •
St. Vincent and Canouan have modern airstrips with night landing equipment. There are also airstrips on Bequia, Mustique and Union Island. Same day connecting flights with international airlines are available to and from St. Lucia, Martinique and Trinidad and Tobago.
Sea Ports: •
Port Kingstown: A modern cruise and ferry complex which opened in 1999. The deep water berths of the cruise terminal may accommodate 2 vessels, while the adjacent ferry terminal 4 berths with ro‐ ramps for inter‐island vessels. Facilities here include duty‐free shopping, snack bars, banking services and tourist information. The approximate route sailing times are as follows: Kingstown to Bequia 1 hour Kingstown to Mustique 2 hours
Kingstown to Mayreau (direct) 2.5‐3 hours Kingston to Mayreau (via Canouan 4.5‐5 hours Kingstown to Canouan 3‐3.5 hours Kingstown to Union Island (via Canouan and Mayreau) 5 hours •
Campden Park (2 miles from Capital)
Entry and Residence: All visitors must have a valid passport except nationals of the Organisation of Eastern Caribbean States who may visit with proof of citizenship. A return or ongoing ticket is required by all visitors.
Import Duties: • • •
Beer ‐ 93% Cigars/Cigarettes – 66% Spirits – 60%
Road Network: St. Vincent has a total of 300 miles of paved roads which encompass the island’s perimeter. Other Grenadine islands have sufficient roads for the flow of traffic. All islands have well defined trails and minor roads, excellent for walking and hiking. . Current major road projects include: • •
Cross Country Road Project: This project will serve as an instrument of integration from the northeast and the northwest of the country. Windward Highway Rehabilitation Project.
Telecommunications: • •
Domestic: fully automatic telephone system; VHF/UHF radiotelephone from Saint Vincent to the other islands of the Grenadines; mobile‐cellular teledensity about 75 telephones per 100 persons International: country code ‐ 1‐784; the East Caribbean Fiber Optic System (ECFS) and Southern Caribbean fiber optic system (SCF) submarine cables carry international calls; connectivity also provided by VHF/UHF radiotelephone from Saint Vincent to Barbados; SHF radiotelephone to Grenada and Saint Lucia; access to Intelsat earth station in Martinique through Saint Lucia.
Government: On October 27 1979 St. Vincent & the Grenadines gained independence from Great Britain. It has a democratically elected government and Prime Minister. • • • • • •
Based on Westminster parliamentary model. 15 member elected house of assembly and a six member appointed senate. Parliamentary term of office: 5 years. Unity Labour Party (ULP), led by Dr. Ralph Gonsalves re‐elected in December 2005. Queen Elizabeth II is Head of State, represented by a Governor General, currently , His Excellency Dr. Frederick Ballantyne. Control of the government rests with the Prime Minister and the Cabinet.
Political Stability: At present there are three political parties in St. Vincent & the Grenadines. • •
Unity Labour Party (ULP) – Ruling party New Democratic Party (NDP)‐ Opposition
•
Green Party
Past and present government of St. Vincent & the Grenadines have consistently articulated through clear pro‐ business policies the importance if local and foreign direct investment for the development of the Small Island Developing State.
Economic Overview Economic growth slowed slightly in 2007 after reaching a 10 year high of nearly 7% in 2006, but is expected to remain robust, hinging upon seasonal variations in the agricultural and tourism sectors and a recent increase in construction activity. In 2007, the islands had more than 200,000 tourist arrivals, mostly to the Grenadines. Saint Vincent is home to a small offshore banking sector and has moved to adopt international regulatory standards.
Personal Taxation: Income tax is levied on all persons whose chargeable income is more than EC$ 12,000 per annum. Rates range from 10% to 40%. There is no capital gains tax. National Insurance (social security) Contributions are payable from salary up to EC$ 20,040 per annum; • Employer……………………. 3% • Employee…………………….2.5%
Domestic Corporate Taxes: The International entities registered in St. Vincent and the Grenadines are not subject to taxation. Favourable tax laws are common also in the domestic economy, where there is no capital gains tax, no inheritance tax, no tax on dividends and corporate tax ranges from 10– 35%.
Withholding Tax Rates are as follows: • Royalties and management charges 20% • Property rental 10% • Other payments 10% There is a Hotel, Restaurant and Bar sales tax of 7% and a Property tax of 5%. Companies granted Fiscal Incentives are exempted from paying corporate tax, but foreign nationals working in St. Vincent and the Grenadines are subject to the same tax rate as nationals.
Benefits to Investors • • • • • •
Repatriation of profits. Exemption from custom duties and consumption taxes on tourist attraction printed promotional material. Waiver or drawback of custom duties and consumption taxes on all building material and equipment. Tax exemptions not exceeding 15 years for income tax and profit attributable to room additions. Additional incentives offered for investments of over 100 rooms. A special Act can be developed for investors wishing to develop an entire island as in the cases of Mustique and Canaoun
St. Vincent & the Grenadines ‐ Executive Summary
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t. Vincent & the Grenadines (SVG) is an archipelago in the Eastern Caribbean, lying 100 miles west of Barbados, 21 miles south of St. Lucia and 80 miles north of Grenada.
The country comprises a main island, St. Vincent and a chain of islands and cays, the Grenadines, which stretches some 40 miles. The main islands in this chain are Bequia, Mustique, Canouan, Mayreau, Union Island, Palm Island and Petit St. Vincent. The climate is tropical, with little seasonal temperature variation. Rainy season is from May to November. St. Vincent is a lush, volcanic island of steep mountain ridges, valleys and waterfalls with abundant flora and fauna and a limited amount of arable land. The rugged eastern coast is lined with cliffs and rocky shores while the western coastline dips sharply down into black and gold sand beaches lapped by the tranquil Caribbean. The capital, Kingstown, combines reminders of its colonial past with a modern commercial centre. The Government of St. Vincent & the Grenadines recognizes the tourism sector as the major engine of growth for the local economy in the foreseeable future. Therefore, a carefully managed tourism industry that responds to national development needs is encouraged and supported by the Government. Key public sector investments in infrastructure, including an international airport, an attractive investment climate and a competitive package of incentives, are laying a solid foundation for growth and sustainable development of the tourism sector. In addition, the government is committed to the development of a number of ecotourism sites and attractions in St. Vincent. St. Vincent and the Grenadines is in the Atlantic Standard Time zone, 1 hour ahead of Eastern Standard Time and 4 hours behind GMT.
Benefits to Investors • Repatriation of profits. • Exemption from custom duties and consumption taxes on tourist attraction printed promotional material. • Waiver or drawback of custom duties and consumption taxes on all building material and equipment. • Tax exemptions not exceeding 15 years for income tax and profit attributable to room additions. • Additional incentives offered for investments of over 100 rooms. • A special Act can be developed for investors wishing to develop an entire island as in the cases of Mustique and Canaoun
Location n of Mt. W Wynne Top pographicaal Map 1
Location n of Mt. W Wynne Top pographicaal Map 2 Mt. Wynne Site
Mt. Wynne M –Site Deveelopment
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Mt. Wynne liess approximateely 10 miles from the capitaal, Kingstown,, and 20 miless from the he areaa known as M new international Aiirport. h named Mt. Wynne, the aarea lies at th he foot of a series of volcaanic ridges an nd forms a sett of three Although natural b bays, each witth a secluded black sand b beach. Each baay is separateed from the n next by a natu ural ridge, approxim mately 200ft h high. These rid dges would form ideal locattions for the b building of excclusive homess. There is also potentiaal for the con nstruction of a a golf course between thee three bays which would have the unding by the government. possibilitty of partial fu Big Bay most secluded d of the threee bays, being closed off fro om access he partt of the site kknown as ‘Bigg Bay’ is the m along tthe beach by natural rock o outcrops and high ridges o on the North and South bo oundaries. The e leeward highway skirts the inlaand (Eastern) boundary and d the only acce ess to the sitee is off this roaad. The road d and ridges on both sidees form a naatural 3‐sided d amphitheattre facing thee sea with an n area of approxim mately 30 acrees. A smalll stream runss through the e property carryingg fresh water from rainfall occurring higher up the mounttain areas straight into n that this the seaa. It is the autthor’s opinion stream could be reelied upon to o run for nths of the ye ear. approxiimately 9 mon nsive, with in ndigenous Vegetattion is exten plants forming a green carpet across a the entire area. Closelyy spaced ‘Royyal’ palm a present on the wh hole site, trees are creatingg a uniquee and pristine eco‐ ment. environm The beacch is approxim mately 250ft lo ong with exceellent snorkeling amongst th he rocks on both sides of the beach. The beacch itself has a gentle slope for approximaately 30ft beffore it drops aaway to substantial depths making it ideal for yacht mooring.
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he nextt bay north off this is ‘Little Bay’. Very similar in topo ography to Big B Bay but with a larger area (approx. 50 acres) adjoining of hilly land that the Government has an area o indicated d it would bee prepared to o lease as a golf course with the option to seell freehold plots for exclusive hom mes.
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LLittle Bay
Peter’s Hope
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inally, just north of Little Bay is ‘Peter’s Hope’ a naturally terraced amphitheatre of 30 acres with its own protected bay where a marina could be ideally situated.
Tourism Investment/Concessions Current Incentives Offered Under the Hotel Aids nvestors may benefit from incentive provisions under the existing Hotel Aids (1988) Act as a new hotel and resort development. This act is not confined to hotels but will incorporate all eligible operators within the tourism industry. Under current legislation, concessions are only extended to hotels registered according to the conditions set out in this Act. A Certificate of Registration evidences proof of registration as an approved hotel. Concessions may be granted under the following guidelines: i. Income Tax Exemption A new operator must apply for a hotel construction approval order. For an overseas entity, concessions may only be granted where guestrooms equate to 10 or more (5 guestrooms where construction is undertaken by Vincentian nationals). The hotel construction approval order may include an income tax exemption, which will commence on the date of the opening of the resort, for the following periods:
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NUMBER OF ROOMS
PERIOD OF EXEMPTION
5 – 20
10 years
21 – 34
12 years
35 or more
15 years
ii. Custom Duty and Consumption Tax Exemption An approved construction order may also include a customs duty and consumption tax exemption order, in respect of building material and articles of hotel equipment to be used. iii. Tourism Promotion Material Exemption Order Waiver of custom duties and consumption tax may be granted on all or some of the printed material required in promoting the tourist attractions of St. Vincent and the Grenadines. 100 Rooms and Beverage Incentive esorts offering more than 100 rooms may request exemption from the payment of import duties on food and beverages, which are to be consumed within the resort. Further details may be obtained from NIPI. (National Investment Promotion Inc
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Acquisition of Land for Development by a Foreign Entity/National Aliens Land Holding Regulations
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or investors electing to acquire a site through a freehold agreement the process will be governed by the Aliens (Land‐Holding Regulation) Act, Cap. 235 of St. Vincent and the Grenadines. In brief, the regulation stipulates the following requirements and fees: • A license must be obtained and applications are made through the Office of the Prime Minister. • A local lawyer must be appointed to prepare and submit the application to the Prime Ministers’ • Office. The lawyer is also responsible for registration of the license, once granted, with the High Court Registrar. License application for development of the site must be accompanied by the following documents: • A development plan for the entire area. • Physical and architectural aspects • Details on financing. • Details on the labour force to be employed. • Due diligence documentation. Details of the above documents will be incorporated into the license as performance clauses to which the holder of the license must comply. Fees: Granting of a license must be registered and carries various costs according to the type of sale, as follows: TYPE OF REGISTRATION FEES Sale of land where value of property: • Does not exceed EC$100,000 EC$10,000. • Exceeds EC$1,000,000 but does not exceed EC$3,000,000 EC$10,000 plus 6% of the value in excess of EC$100,000. • Exceeds EC$3,000,000 EC$184,000 plus 4% of the value in excess of EC$3,000,000. • Lease of land where value of property: • Does not exceed EC$100,000 EC$10,000. • Exceeds EC$1,000,000 but does not exceed EC$3,000,000 EC$10,000 plus 6% of the value in excess of EC$100,000. • Exceeds EC$3,000,000 EC$184,000 plus 4% of the value in excess of EC$3,000,000. • Other fees Registration Fees Annual general license EC$2,500. • • stamp duty EC$5.