Tapping Into Chinese Tourism by STAR Publishing

THE STAR Businessweek MAY 25, 2019

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Tapping into Chinese Tourism By Catherine Morris, STAR Businessweek Correspondent

China is now the world’s largest outbound travel market with around 145 million Chinese travellers journeying all over the globe, spending US$ 265bn in 2017, according to the World Travel & Travel Council (WTTC). The Chinese are notoriously big-spenders. Citizens of a superpower, these tourists have significant disposable income and are not afraid to invest in the best. That means the best accommodation, transportation, experiences and souvenirs.

in this edition of

SBW THE STAR Businessweek

The Caribbean Economy in 2019: Growth, Setbacks and Future Directions Many nations in the Caribbean and Latin America have a new momentum in 2019. Pages 3 & 7

Continued on page 4

Skyline of downtown Montevideo, capital of Uruguay

Budget Hotels in the Era of Short-Stay Vacations The Caribbean has long been a region of diverse holiday offerings. Page 7

Bay Gardens Beach Resort has become a local pioneer in introducing flexibility to the traditional all-inclusive model. The hotel’s ‘Dine Around Town’ plan allows guests to purchase meals at external restaurants around the island while still paying a single price as part of their all-inclusive resort package. This hybrid all-inclusive model has earned the hotel’s dining partners over EC$ 600,000 since its launch in 2016. A win for the hotel, its partners and its guests.

The star businessweek

MAY 25, 2019

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ECFH, BANK OF SAINT LUCIA RECORDS EC$ 44.9MN PROFIT PRESS RELEASE

Eastern Caribbean Financial Holdings, headquartered in Castries, Saint Lucia

astern Caribbean Financial Holding Company Ltd (ECFH) and its sole subsidiary Bank of Saint Lucia Ltd, the island’s largest indigenous bank, has once again delivered a strong performance

For the financial year ended December 2018, the Bank recorded net profit after tax of EC$ 44.9mn compared to its 2017 year-end figure of EC$ 36.9mn

for another consecutive year. For the financial year ended December 2018, the Bank recorded net profit after tax of EC$ 44.9mn compared to its 2017 year-end figure of EC$ 36.9mn. Managing Director, Dr. Bernard La Corbiniere, credits the Bank’s successful financial performance to the confidence and trust vested in the institution by its valued customers. La Corbiniere lauded the hard work of the management and staff of the institution, the guidance of the Board of Directors and invaluable contributions of its shareholders. ECFH held its Annual General Meeting on Thursday, May 16, 2019 at the Financial Administrative Complex at Pointe Seraphine. Management, along with the Board of Directors, promised to continue working in the interest of shareholders, customers and the general public to ensure that the institution’s performance continues to surpass expectations.

MACRO PERSPECTIVES

The star businessweek

The Caribbean Economy in 2019: Growth, Setbacks and Future Directions By ED Kennedy, STAR Businessweek Correspondent

any nations in the Caribbean and Latin America have a new momentum in 2019. Nations that have invested and worked hard to make their economies strong at home and attractive to those abroad are reaping the rewards. Each nation’s story is unique, but within them can be found shared lessons for all. With Saint Lucia’s annual budget having recently been delivered, it is a fitting time to consider the Caribbean and wider Latin America’s economic comparisons and contrasts.

Success Stories and Why They’re Succeeding Recent years have seen Saint Lucia achieve some impressive economic feats, with record levels of tourists, a number of big infrastructure projects — like the Hewanorra International Airport upgrade and the Pearl of the Caribbean — commissioned, real progress being made on the development of Vieux Fort cruise terminal, and complementary achievements alongside them. The stats also show the strength of Saint Lucia’s performance in recent years when assessed regionally. In 2016 Saint Lucia saw a real GDP growth of 3.89%, in 2017 3.67%, and while 2018 was a more modest 0.99%, projections show that 2019 should deliver a return to form with a 3.32% rate of growth. This compares to the region-wide average which has been around 2.5% a year. While Saint Lucia’s record is commendable, other nations have also been driving forward strongly. Panama has experienced not only some good years, but good decades economically, growing at an annual rate of 7.2% between 2001 and

The growth that the Panama Canal has experienced in the last two decades was driven by specific circumstances mainly related to the transpacific trade. Conventionally, the American East Coast was dominantly serviced through West Coast ports and then overland through the intermodal rail services across the continent. Illustration by Jean-Paul Rodrigue.

2013, and maintaining an average of over 5% between 2014 and 2017, and now growing at over 4% after a dropoff in the intervening period. Like Saint Lucia, work remains to be done in better channelling this growth into stronger outcomes in education and employment opportunities, but unquestionably strong inroads have been made in the reduction of poverty in the nation. The Dominican Republic aspires to be a high income country by 2030. Since president Danilo Medina was elected to office in 2012, the nation has been bold in devising a National Development Strategy (Vision 2030), defying those who say modern politics is about the soundbite and daily news cycle rather than defining a big vision and chasing it. The Dominican Republic has achieved enviable growth, averaging 5.1% between 2008 and 2018, and an outstanding run between 2014 and 2018 that saw it average 6.6%.

Nations Looking to Turn the Page Recent years have seen prosperity

and success for some nations, while others have faced great trials. Barbuda, Dominica and St. Martin are examples of the devastation that natural disasters can cause. Any regional assessment must always factor in that a strong economy today can quickly become embattled tomorrow because tides can change suddenly and savagely. Beyond the environment, there are other hurdles to obstruct the Caribbean’s family economic growth as a whole.

The Dominican Republic has achieved enviable growth, averaging 5.1% between 2008 and 2018, and an outstanding run between 2014 and 2018 that saw it average 6.6%

May 25, 2019

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Cuba’s economic performance has also been a key regional dynamic, given the generational changes seen in the transfer of power from the Castro brothers to new president Miguel Díaz-Canel, and the normalisation of relations with the United States, albeit temporarily, and now very much in a ‘stop-start mode’ under the Trump Administration. Many have watched, hoping to see a new momentum that brings greater opportunities for the Cuban people. As a nation of approximately 11.49 million, Cuba remains the largest regional nation by population, yet has stagnated at that level since 2013. This in contrast to Haiti and the Dominican Republic — with populations of 10.43 million and 10.28 million respectively in 2013 — who are projected to reach 11.39 million and 11.12 million by 2020. In short, while Cuba’s president has sought to kickstart the economy with a new constitution and mega tourism push, ultimately the Communist Party of Cuba’s biggest hurdle to greater economic growth in the nation would appear to be the Communist Party itself.

Things Looking Up Down South The Caribbean is at once its own region and yet also often counted alongside South America given the shared history and the cultural and political links. For the economic giants of Latin America — Brazil and Mexico — there is little in the way of direct comparison and contrast given that these nations’ economies are among not only the biggest in the region, but the world. The recent stories of South American nations like Chile and Uruguay can offer key considerations for Caribbean nations as they look to plan for the future of their economies. In Chile, the free market policies of President Sebastián Piñera have seen the country regularly enjoy annual GDP growth north of 2%, with 2018 delivering particularly strong quarters of 4.7%, 5.3%, 2.6% and 3.6%. Continued on page 7

The star businessweek

May 25, 2019

CHINESE TOURISM

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Tapping into Chinese Tourism Continued from page 1

In their leisure time, Chinese vacationers tend to enjoy the kinds of activities associated with the ultra-wealthy.

ith all that tourism revenue on the table, Caribbean nations are increasingly eyeing the Chinese market. If island nations can overcome stumbling blocks such as lack of airlift, technological shortfalls and inadequate promotional efforts, the regional tourism industry is set for a significant payday.

A bad reputation When China first started making significant inroads into the global tourism market, it wasn’t all smooth sailing. Chinese tourists quickly gained a reputation for rudeness, disrespect and even indecency with reports of public defecation, spitting and littering. Numerous episodes of obnoxious behaviour surfaced, including a 2013 incident where a Chinese visitor to Egypt carved ‘Ding Jinhao was here’ onto a wall at the 3,500-year-old Luxor Temple. The Chinese government took note, with Vice Premier Wang Yang declaring: “They speak loudly in public, carve characters on tourist attractions, cross the road when the traffic lights are still red, spit anywhere and [carry out] other uncivilized behaviour. It damages the image of the Chinese people and has a very bad impact.” This national embarrassment led to the 2013 Tourism Law which compels the Chinese to act sensitively and respect local customs, requiring them to ‘observe public order and respect social morality in tourism activities’. Five years on, and the Chinese are now more experienced travellers — contributing to destinations, rather than defacing them. It’s also worth noting that a 2015 poll from travel analysts Travelzoo declared Americans to be the world’s worst behaved tourists, beating out the Chinese, Germans, British and Canadians in categories such as skipping out on a bill and taking hotel items.

Spend more, play more, shop more China accounts for more than a fifth of the money spent by outbound tourists worldwide, according to the United Nations World Tourism Organization (UNWTO). The spending power of the Chinese tourist is a boon to the high-end and luxury market, whether hotels, tour companies or retailers. In their leisure time, these vacationers enjoy the kinds of activities associated with the ultra-wealthy. They may want to spend the morning on the golf course, the afternoon shopping and the evening trying their luck at the casino or partying at nightclubs. Glamour, luxury and being given VIP service are all crucial to capturing and retaining business from the affluent Chinese. Saint Lucia hopes to deliver exactly what Chinese visitors want with its US$ 2.6bn Pearl of the Caribbean project. The development in the south of the island will feature a racetrack, marina, casino and high-end shopping — all the amenities Chinese tourists typically seek out, though it is currently unclear when the project will officially be completed. The Chinese may love to splurge, but destinations need to consider not just where they shop, but also how they shop. Chinese tourists are very tech savvy and this can be an issue for Caribbean countries who are drastically mismatched when it comes to technological capability. The Chinese are so au fait with mobile payment systems that they are now forcing their favourite destinations to get up to speed, according to a recent report from data analysts Nielsen. The Nielsen survey shows that 75% of merchants in Chinese tourism hotspots Singapore, Malaysia and Thailand are now accepting Chinese mobile payments, with Nielsen China President Andy Zhao commenting: “Along with the increasingly personalised and sophisticated demand of Chinese tourists,

improving the global coverage of mobile payments is a long-term project for merchants.”

China in the Caribbean Several Caribbean countries are already reaping the rewards of attracting Chinese tourists. Just under 50,000 Chinese tourists visited the Caribbean in 2016, according to the UNWTO, and most of these went to Cuba, with Jamaica the second choice. Havana benefits from having the only direct flight to China in the region, while Jamaica has seen more interest after removing visa restrictions for Chinese travellers. Other islands making inroads into this profitable market include The Bahamas which has been steadily building links with the superpower for many years: making diplomatic overtures, facilitating Chinese investment, and welcoming China Construction America to construct and manage the country’s newest megaresort, Baha Mar, as well as The Pointe development in downtown Nassau. Typically, Chinese interest has centred on

Glamour, luxury and being given VIP service are all crucial to capturing and retaining business from the affluent Chinese. Saint Lucia hopes to deliver exactly what Chinese visitors want with its US$ 2.6bn Pearl of the Caribbean project

the Caribbean islands closest to central transport hubs such as those within easy travelling distance of the US Eastern Seaboard. While the cost of the long journey from China to the Caribbean may not necessarily be a dealbreaker for wealthier travellers, the inconvenience and sheer discomfort of such a trip is definitely offputting. For most of the Caribbean, poor air connectivity has been the main stumbling block to penetrating the Chinese market so far but other issues include lack of promotional efforts and targeted marketing in China, and visa or other travel restrictions. The interest is there, however, and there are signs that Chinese tourists are beginning to broaden their horizons and are keen to discover what other islands have to offer. This year, the Caribbean Hotel and Tourism Association welcomed 20 Chinese travel buyers to Caribbean Travel Marketplace 2019, marking the first time the renowned trade show has ever hosted Chinese delegates. On the rise With the unprecedented swell of Chinese tourism in recent years, it’s easy to think this market may be in danger of reaching its peak. It’s not. There is still much more potential to be mined in Asia. Currently around 8% of China’s population have a passport but the country’s biggest online travel firm, Ctrip.com, is predicting that the number of passport holders in China will double to 240 million by 2020, kickstarting another wave of adventurous travel-seekers. Research from Bloomberg suggests that the Chinese government is issuing around 10 million new travel documents every year and the WTTC says Chinese tourists will take an estimated 400 million trips in 2030. But how many of these trips will be to the Caribbean islands? Airlift is probably the biggest obstacle so far, but there has been progress on this front with Jamaica pushing the idea of multi-destination trips. If Chinese tourists can fly directly to Cuba, this gives Caribbean countries an opportunity to work with Havana to offer single-visa tours with multiple destinations. Getting the Chinese into the region is one thing, but retaining that business will mean a thoughtful shift in focus. Selling the Caribbean halfway across the world requires a nuanced promotional approach that understands, and caters to, a culture wildly different to the Caribbean melting pot. As Xu Jing, UNWTO’s Regional Director for Asia and the Pacific, told the UNWTO Global Conference on Jobs and Inclusive Growth: “More work is needed when it comes to publicity. To make an impact you have to offer more ‘Chinese friendly’ services. The region needs amenities such as Chinese language services, free WiFi, integrating elements of Chinese culture and special conveniences. These adjustments will make the Chinese feel more welcomed and can increase the demand in the future.”

CARIBBEAN STATISTICS

The star businessweek

A numbers game By Catherine Morris, STAR Businessweek Correspondent

OECS Member States approved the new draft OECS Regional Strategy for the Development of Statistics (RSDS) in April 2017. Pictured front row, fourth from the left is Dr. Gale Archibald, Head of the Statistical Services Unit at the OECS Commission.

s the old adage goes, knowledge is power. Without detailed, upto-date numbers, it’s almost impossible for a country to take stock of its challenges, track its progress and set a course for the future. Information on population growth, workforce capability, housing resources, health issues, education gaps and industry performance — statistics are vitally important to every area of life and a government’s greatest tool in ensuring that it meets the needs of all its citizens. In a climate of economic scarcity, a well-functioning statistics system is even more necessary as it can ensure that already-stretched budgets are used more efficiently. When times are tough, the public sector has hard choices to make about where funds are most needed and how to allocate dwindling resources in such a way that they will have the greatest impact and deliver long-term benefits. “Data are very important to empower citizens and hold their government to account,” says Dr Gale Archibald, Head of the Statistical Services Unit at the Organisation of Eastern Caribbean States (OECS) Commission. “Small Island Developing States in particular need data so that they can be efficient, economic and effective when using and allocating scarce financial resources, using statistics to help them design targeted policies.”

Regional efforts Statistics departments across the region face many challenges trying to plug the gaps in their knowledge. Dr Archibald says that the Eastern Caribbean is hampered by a lack of financial resources, pointing out that the population census undertaken every 10 years can run into the millions for larger OECS countries. “There are competing priorities for public sector funds. Governments tend to finance things that are visible and tangible, like a school or a hospital. Noone can ‘see’ statistics. The irony though is that statistics are required to inform programmes and policies for better use and allocation of funds.” Another factor, according to Dr Archibald, is lack of public buy-in. She notes that citizens and businesses tend to wrongly associate data collection with taxation and are therefore reluctant to share their information, particularly as they fail to see the direct benefit. “Statistics can only be produced when those who are asked to participate and respond to surveys do so. Using statistics to make informed decisions is not observed. It could be because statistics are not available, but it could also be because the habit has not been cultivated. If data culture was sufficiently mature, the demand for statistics would be sounding loud and clear.” CARICOM has been trying to bring more awareness to this niche field for over

a decade, launching the first Caribbean Statistics Day on October 15, 2008. It’s been celebrated every year since, but how many Caribbean citizens know about or mark the occasion? Statistics Day may have been on the calendar for 10 years, but it wasn’t until last year that CARICOM Heads of Government endorsed the Strategic Framework for the Regional Strategy for the Development of Statistics (RSDS). The 2019-2030 Strategy recognises the important of statistics in evidencebased decision making, calls for greater allocation of resources to statistics gathering in member states and aligns the RSDS with national and regional goals and benchmarks. The OECS has its own master plan, formally launched in 2017 and, like CARICOM’s, running through to 2030. The plan focuses on the economy, society and the environment and looks at the national statistical system in each OECS country, data production, data dissemination and data revolution. “The overarching goal is to have social, economic and environment statistics that are available and accessible anytime, anywhere and by anyone,” explains Dr Archibald. “The challenge will be realising our goals in a context where resources for statistical development are reducing.”

Technological transformation In Saint Lucia, statistics are collected, collated and analysed by the Central Statistical Office of Saint Lucia (CSO). This government agency monitors details such as the inflation rate, unemployment numbers, GDP growth, visitor arrivals, price indices, exports, conviction rates, communicable diseases and education expenditure. In other words, everything needed to paint a picture of Saint Lucia’s citizenry and services. Former CSO Director Edwin St Catherine recently told the OECS that the agency has worked to shorten data turnaround times, with census results now available within seven months of the survey being undertaken. This was achieved through greater use of

may 25, 2019

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technology, according to St Catherine who commented: “We need to ensure that our process is dynamic because we are in a world where technology is changing. Dr Archibald says statisticians are changing alongside the technology and making the most of the tools available. Online questionnaires are now replacing paper forms, information is being stored in the cloud rather than spilling out of filing cabinets and data is being accessed and downloaded online at the user’s convenience. The latest innovation set to transform data dissemination is use of Geographic Information Systems (GIS), according to Dr Archibald who says this technology has the power to “bring data alive”. By integrating data into mapping programmes, statistics can now be localised — a person browsing a map of Saint Lucia online could hover their cursor over a certain area and instantly be able to view statistics such as population and crime rate for that locale.

Bringing onboard the next generation Greater uptake of cutting-edge technology isn’t just helpful for number-crunching. It can also be a means of enticing young people into the field. The OECS uses Statistics Day in October as an opportunity for outreach, going into schools and advocating for careers in the industry which are more diverse than most realise, covering agriculture, education, tourism and the economy. Dr Archibald says it’s an exciting career, with a lot of depth, but acknowledges that kids must be engaged in the early stages of their educational journey if they are to grasp the possibilities. “Data science is an emerging and attractive interdisciplinary field, a hybrid of mathematics, software engineering and data. It uses scientific methods, process and algorithms to extract the stories and insights from data. It requires inert curiosity to explore what problems need to be solved and how to present data to support the solution. To make statisticians and data scientists professions of first choice, we may have to start in kindergarten.”

The star businessweek

may 25, 2019

REGIONAL / Companies Office

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JAMAICA’S NCB FINANCIAL GROUP BUYS TRINIDAD-BASED GUARDIAN HOLDINGS

he National Commercial Bank Financial Group (NCBFG) says it has “successfully completed” the acquisition; acquiring control of the Trinidadbased company, Guardian Holdings Limited (GHL). NCBFG, in a statement posted on the Jamaica Stock Exchange, said together with its wholly-owned subsidiary, NCB Global Holdings Limited (NCBGH), it had acquired 72,230,750 ordinary shares in GHL following the granting of all necessary regulatory approvals. It said the acquisition had taken place earlier last week, but gave no details as to the price paid. Late last month, Trinidad and Tobago Finance Minister, Colm Imbert, announced that it had has issued a licence to the Jamaican conglomerate to acquire control of GHL. GHL is the parent company for an integrated financial services group known as Guardian Group, which is involved in life, health, property and casualty insurance, pensions and asset management throughout the Caribbean.

The National Commercial Bank Financial Group, headquartered in Kingston, Jamaica, trades under the NCBFG ticker on the Jamaican Stock Exchange (JSE)

Imbert said that the licence had been issued under the Foreign Investment Act and allowed the Jamaican conglomerate, that held 69,547,241 shares, to acquire up to 74,230,750 shares in GHL, representing 61.99 per cent of the total

issued and outstanding shares in the company. “As we stated at the beginning of this journey, we believe that this transaction is a game-changer in the history of the region,” said NCBFG chairman, Michael Lee-Chin.

“Amidst the context of the de-risking impacting the region, we are proud and excited about the implications and prospects of two leading indigenous Caribbean institutions coming together to drive economic growth, customer and share-holder value,” he added. GHL chief executive officer, Ravi Tewari, said that since the acquisition of the first block of shares in 2016, the Guardian Group had started seeing opportunities for a very “positive impact for the shareholders, clients and employees of the Guardian Group”. “This further deepening of the relationship between two leading Caribbean countries augurs well for the acceleration of these positive impacts for Guardian and the region,” he added. Meanwhile, Patrick Hylton of NCBFG has been appointed chairman of GHL, replacing Trinidadian, Arthur Lok Jack, who has served as chairman over the past 15 years. Hylton noted that as stand-alone regional leaders, NCB and GHL combined, have the opportunity to become a world-class financial service conglomerate, which ultimately has positive implications for shareholders, our region and its citizens. Originally published in Nation News

The Saint Lucia Registry of Companies & Intellectual Property Company Incorporations Name: Rastaphairn Inc.

Name: Mess Inc.

Description: Property holding

Description: Events Management

Directors: Benjamin Fairn

Directors: Zinaida McNamara-Phillip,

Date Incorporated: 3/12/19

Dwayne Mendes

Chamber: Messrs. Fosters

Date Incorporated: 4/29/19 Chamber: McNamara & Co.

Name: Agnes James Ltd. Description: Hair salon

Name: Olympic Restaurant Group Inc.

Directors: Jonathan Lesfloris,

Description: Restaurant

Dvianne Daniel

Directors: Angelo Konidis, Nickolas Konidis

Date Incorporated: 4/26/19

Date Incorporated: 4/30/19

Chamber: SEDU

Chamber: Bapson Ambrose Chambers

Name: Family & Cosmetic Dental

Name: Ti Bagauuy Ltd.

Services Ltd.

Description: To do any business

Description: Dental services

which is not restricted by law

Directors: Jonathan Lesfloris,

Directors: Nelita Parris

Davianne Daniel

Date Incorporated: 4/30/19

Date Incorporated: 4/26/19

Chamber: Temple Law Associates

Chamber: SEDU Name: Construction Design Name: King George Taxi and Tour Inc.

and Procurement Ltd.

Description: Transportation services

Description: Construction

Directors: George Joseph

Directors: Gideon Ferlie

Date Incorporated: 4/29/19

Date Incorporated: 5/2/19

Chamber: SEDU

BUDGET TRAVELLERS

The star businessweek

Budget Hotels in the Era of Short-Stay Vacations

Between Two Holiday Models For anyone who looks to a holiday on a Caribbean island, typically two options come to mind. The first is a vacation that provides a high-end experience from start to finish at an all-inclusive luxury resort; a chance to get away from the grind and toil of daily life back home, and sit on a lounger by a pool or on a beach with the knowledge that so much of what one usually needs to worry about on holiday — like arranging for meals and booking tickets for entertainment — is all taken care of. Then there’s the second type of traveller: those who are perhaps briefly passing through, en route to an eventual holiday destination elsewhere; who are holidaying for a short time with a mix of business and pleasure, or perhaps are passing through exclusively on business. For these travellers, a high-end allinclusive luxury resort isn’t the right fit. But neither may the rigmarole of an Airbnb be appropriate for them. The AIBH fills this gap. But while the existence of this sector and its ongoing demand is an achievement in an era of established corporate giants like the major hotel brands and disruptors like Airbnb, it also faces the unique problem of the short-stay vacation trend. More and more tourists now forgo the long holiday and opt instead for a short vacation. As a trade-off they will usually spend extra money on ensuring that the short vacation has all the trimmings of high-end luxury. In this scenario, Airbnb is unlikely to appeal, but neither will an AIBH. For AIBH providers in the Caribbean, there’s a risk of falling between the cracks.

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The Caribbean Economy in 2019: Growth, Setbacks, and Future Directions

By ED Kennedy, STAR Businessweek Correspondent

he Caribbean has long been a region of diverse holiday offerings. In one sense this is, of course, no surprise given how many territories make up the Caribbean family, but with the corporatisation and globalisation of the tourism industry over the years, the diversity of offerings that remain here is testament to unique businesses, and those who’ve built them. While the resilience of so many small businesses in the tourism industry across the region is clear, so too are global headwinds invariably strong, and so often enduring. That’s why the future of the All-Inclusive Budget Hotel (AIBH) model in the era of corporate expansion and Airbnb is one that must consider a new path.

may 25, 2019

Continued from page 3

The swim-up bar has become a staple in all-inclusive resorts. Photo taken at Coconut Bay Beach Resort in Vieux Fort, Saint Lucia.

Today’s Problem, Tomorrow’s Vacation The advance of ship technology and the increased use of airplanes have seen transport become faster and more affordable than in decades prior, but there has been the knock-on effect of many vacationers having less time to travel than in previous years, and requiring a change in their travel horizons accordingly. Put simply, when time is short, many who want to vacation can only do so if they stay closer to home. And though advances in transport may have improved travel times, the Caribbean is still thousands of miles from major population hubs like New York and London that have previously been big feeder cities for local tourism. Those who do travel to this region from afar will often do so with a desire to take in the amenities for which the region’s all-inclusive luxury resorts are famous. If not, they may opt for a trip in their own country rather than travel overseas, utilising Airbnb in their native nation and following the trend of the ‘staycation’, where travellers choose a domestic holiday given the time pressures that don’t allow them to travel far. The AIBH Advantage over Airbnb Airbnb’s appeal has two key premises. Firstly, there’s greater flexibility with an Airbnb rental than can (usually) be found with a regular hotel booking. Secondly, Airbnb offers accommodation and opportunities for exploration that usually wouldn’t be available if relying only upon travel brochures or a travel agent for accommodation recommendations. Unless partnered with Airbnb, a local AIBH is unlikely to have the reach and scope that Airbnb has. With the company valued at over US$ 31bn in 2018, an attempt at direct and head-on competition with it would often prove fruitless. Further, Airbnb not only has a Caribbean presence, but the capacity to draw short-stay visitors in major hubs like New York, London and beyond that a local AIBH provider couldn’t. But where Airbnb has an advantage

on its flexibility, it can fail on its personalisations and service. For a local provider of an AIBH, there’s the prospect of building a loyal customer base from one year to the next, and a reputation built not only on positive online reviews, but local word of mouth. There’s also the flexibility of building local affiliate relationships with transport and tourism providers, and even other accommodation providers further afield, that the Airbnb model doesn’t naturally cater to. These advantages are not just ones that Airbnb will struggle to acquire anytime soon, but ones that the AIBH must press in future to maintain — and grow! It will be its market niche, especially as many major hoteliers, like Mexican giant Grupo Posadas which is set to expand into the Caribbean, have signified their openness to partnering with Airbnb.

Short and Sweet Just as Airbnb’s arrival was incorrectly predicted to signify the apocalypse for small tourism providers (with some now having actually turned Airbnb into an asset, using it to boost bookings in their hotels), neither is the high-end, shortstay trend likely to capsize local small business tourism providers overnight. But the trend seen growing is a threat to the AIBH model. The good news is the that the trend of short-stay vacations is growing, but gradually. As it does, a new emphasis upon drawing Caribbean tourists from the Caribbean (as well as growing markets in northern Latin America, and the southern US states) will become more and more important. It’s no secret that airfares to many Caribbean nations remain expensive, but it’s here that the AIBH has an opportunity to offset those costs with the promise of great but simple and affordable local accommodation. The aim of the AIBH needs to be that even if more and more travellers do decide to stay closer to home, or arrive exclusively for high-end holidays, they’ll remain a sizeable audience to engage and entice by promising that a short trip into the region is possible and affordable, with a plane ticket and an AIBH booking combined.

Uruguay enjoyed a 15-year run of economic growth up to 2017 and, after a brief dip, has now lifted once more. This achievement is all the more impressive considering that the nation of 3.5 million was required to navigate the economic meltdowns seen in its neighbours of Brazil and Argentina. For Caribbean nations, Uruguay offers a case study in how to avoid catching a flu when a regional giant comes down with a cold. This all goes to show that while some nations may flirt anew with isolationism and protectionism, for others who identify a path in the global market, there are rich rewards to be had, and defences against the greater risks that can come with it.

The Challenges Over the Horizon The old adage ‘no one is an island’ is applicable to the Caribbean in the global economy. External challenges remain, such as the ultimate outcome of Brexit, that test the region’s growth and economic outlook but, even so, recent years have seen strong advances in regional partnerships. Just as the EU has presided over immense growth of regional wealth in Europe, so too can the Caribbean not only look forward to the profits of financial growth among the islands, but also join in the same charge ahead that the giants of Latin America, like Brazil and Mexico, will engage in as the years ahead deliver continued growth. The Core Takeaway for the Caribbean Even amidst some testing and turbulent chapters, the Caribbean is seeing new growth, new opportunities emerge, and a clearer and stronger sense of identity as it drives into the future. Where there is universal positivity to be had, is that recent years have also seen a strong shift into greater regional integration around the Caribbean. Beyond the particular achievements of government and economists, the credit for this progress rightfully goes to entrepreneurs, innovators, small businesses and their employees who’ve delivered the region to this point. Now the test ahead is to sustain it and advance SBW it even further.

The star businessweek

may 25, 2019

MAKING MOVES

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From Castries to Berlin: Local Start-up Competition Winner Gilland Avril By DEAN NESTOR, STAR BUSINESSWEEK CORRESPONDENT

illand Avril, a Rodney House Old Boy of Saint Mary’s College, is introducing something new to these shores through his augmented reality app called Peekaboo; and although augmented reality has been available on our devices for a while now, such an app developed on-island by a national is rare, to say the least. It is this outstanding factor that helped propel the Berlinbound Avril to victory in this year’s Get In The Ring (GITR) Saint Lucia start-up pitch competition. He sat with STAR Businessweek to discuss his recent achievement, and the plans he has for his mobile app.

What is Peekaboo? Gilland Avril: Peekaboo is an augmented reality-based application that was created to overlay digital content upon the physical environment. So the idea is that you can have ads, video, audio, 3D objects, anything that you

want. Let’s say you have a poster, you have your business card, you have your flyer, and you want to have your visuals played; you just open the peekaboo app over whatever image you have and then the digital content will start playing.

How did you feel ABOUT winning GITR? Gilland Avril: Excited! But the funny thing is, I won the competition but I was sick so I wasn’t as excited as I would have been. I found out a week before that I had pneumonia. So the energy I would love to have had, wasn’t there. I faked a few smiles, being sick and all, but I took every provision possible to win.

2019 Get in the Ring Winner and Peekaboo developer Gilland Avril sees his app transporting Saint Lucia to the realm of 21st century advertising and user engagement.

Will your GITR wiN help market the app? Gilland Avril: That was one of the reasons I did the show because I’ve been trying to knock on doors but they’ve been closed. I figured if I won or just became a finalist, it was gonna be aired and persons might be interested in it. When will you be going to Germany? Gilland Avril: I’m traveling to Berlin for the event on the 17th, 18th and 19th of June. The trip follows a similar format to the Get In The Ring competition hosted here. This time I will be pitching in a room where there will be industry leaders, investors, venture capitalists and generally persons who can see the potential in a business startup and help the respective entrepreneurs scale that enterprise.

Persons hear of an app called Peekaboo and ask: What sort of childish thing is that? Because they associate Peek-a-boo with children, which was one of the reasons it was called that. Not so much for the children aspect of it, but the motion of what you do

Why did you call your app Peekaboo? Gilland Avril: Persons hear of an app called Peekaboo and ask: What sort of childish thing is that? Because they associate Peek-a-boo with children, which was one of the reasons it was called that. Not so much for the children aspect of it, but the motion of what you do. The whole idea behind it is finding something unseen. How do you plan on funding the app and how will it generate income? Gilland Avril: I’ve been approached by persons who want to invest in the business because they see the potential and scope of it but I am also looking into a business loan as my Plan A. Peekaboo will generate income from the companies or businesses that want to advertise and market their business. Costing will be based on the number of views of the digital content that the client is expecting and for the digital content to be hosted. The everyday user can download the app for free. Who makes up your target market? Gilland Avril: Because of the market research carried out, I’ve found the target markets vary; so to meet those markets, different versions of Peekaboo will be created. Versions would be made to meet the tourism, education, law enforcement and marketing/promotion markets. What do you project in terms of downloads, advertisers and investors? Gilland Avril: The key thing for me is to get the right companies and partners on board. This would allow me to tap into their database of clients/followers to enable a greater download rate of the app, so even before the app goes fully public, those sort of collaborations would need to be established. From your market research, who is most likely to download or invest in Peekaboo? Gilland Avril: Marketers, companies or businesses that focus heavily on marketing and promotions of products and services. The app was initially created as a means to add value to products for the tourism industry. When static picture/ images come to life with little to no modifications to existing products, you have added value to the same product at the same price; so I am hoping entities like the SLHTA, TEPA, Tourism Authority and Invest Saint Lucia come on board. To learn more about Gilland Avril’s Peekaboo, you can reach him at ngage.slu@gmail.com

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