THE STAR BUSINESSWEEK JANUARY 4, 2020
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IN THIS EDITION OF
10 NEW YEAR’S RESOLUTIONS FOR THE CARIBBEAN
New Year is typically a time of reflection and, although many resolutions inevitably fall by the wayside, January is a good month to take stock, identify problem areas and commit to positive progress. The Caribbean has plenty of challenges ahead and island stakeholders would do well to ponder the way forward. Continued on page 4
SBW THE STAR BUSINESSWEEK
Achievement Tourism: Why the Next Generation of Travellers is All About Goals Tourism is an ever-changing business. While vacationers used to be content with lounging on a beach, rum cocktail in hand, they are now more aware, more demanding and more conscious of their impact. Page 3
BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT
Hiking the Pitons is a bucket list item (Photo courtesy Caribbean Tourism Organisation)
Caribbean Influencers Making a Success of Social Media The rise of the online era has fundamentally transformed the way in which we live and work. When it comes to marketing, social media has often blurred these lines. Page 5
The cruise industry will continue to grow in 2020, forcing Caribbean destinations to work even more closely with the tourism giants (Photo courtesy Pixabay) Patrick and Steve of Uncommon Caribbean
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WHAT ARE THE TOP CIP JURISDICTIONS AND WHY? BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT
HAVE AN
Inspired Holiday
AND WISHING YOU SMOOTH SAILING INTO THE NEW YEAR!
A HOLIDAY GREETINGS FROM THE TEAM AT SAINT LUCIA TOURISM AUTHORITY
www.stlucia.org
For citizens of the world there’s no shortage of passports on offer in 2020
new year and decade begins following the immense growth of citizenship by investment programmes over the past few years, both in terms of the CIPs available, and the uptake of them by interested parties; so too, the closely related and complementary offerings such as residency by investment programmes. Among the current CIP-offering nations, recent times have seen those that have maintained a well-established lead continue it, just as some countries have seen the popularity of their CIPs surge due to structural reforms and other changes. For Caribbean nations looking to identify the best path for their own CIPs in future, an appreciation of what has underwritten the demand for the world’s most popular programmes is essential.
USA The Land of the Free has long enjoyed a healthy lead as the most popular destination for those with the desire and money to make a new life
abroad. That said, lately it has been a difficult chapter for the EB-5 visa and investment migration agents, owing to the uncertainty surrounding the EB-5’s future; with recent months seeing it granted extensions in Washington DC to prevent its expiration, amidst a political scandal and accusations of corruption in the programme. In December 2018 it was reported that waiting times had ballooned to as long as 15 years, with anxiety among applicants further heightened surrounding the lack of programme guidelines about what happens to money invested by applicants during that time. Nonetheless, with as many as 10,000 EB-5 visas granted a year since 1990, and the previous minimum investment of US$500,000 revised to US$900,000 earlier this year, the immense profitability of this visa for the US has bolstered supporters’ calls for its continuance.
UK Brexit woes notwithstanding, UK residency remains extremely desirable globally to those with deep pockets. Continued on page 6
TOURISM
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ACHIEVEMENT TOURISM: Why the next generation of travellers is all about goals
JANUARY 4, 2020
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qualification, taking a course on the basics of sailing, learning to sportsfish or getting to grips with kitesurfing. Outdoorsy tourists are also likely to be looking for those bucket list items BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT and top of that list has to be hiking a UNESCO World Heritage Site. The iconic Pitons are a chance for visitors to set foot ourism is an everon unique volcanic formations while changing business. testing themselves with a 2,526ft hike While vacationers up the more traversible Gros Piton. Less used to be content strenuous, but no less memorable, are the with lounging on a Sulphur Springs where visitors can take a beach, rum cocktail dip in a natural spa and mud bath. in hand, they are now more aware, The Saint Lucia Tourism Authority has more demanding and more conscious been pushing its festival calendar as part of their impact – forcing operators of a recent marketing drive to funnel in the space to keep a close eye on tourists into local activities and this can trends and niches. also align with the achievement crowd, Tourism analysts predict that the some of whom consider it a bucket 2020 tourist will make decisions list item to attend a genuine Caribbean based not just on their wallet, but carnival. also a deeper need for personal fulfilment, planning trips with FUTURE TRENDS their heart as much as their head. It’s not just festivals that can leverage They want to learn new skills, have adventurous tourists; like most niches in unforgettable experiences and do the wide and complex tourism market, something completely out of the box. achievement tourism dovetails neatly Saint Lucia is ideally placed to hone with several other upcoming sub-sectors Gaining a diving certification is a common goal for Caribbean tourists taking advantage of in on this brand of ‘achievement and trends. the region’s crystal clear waters (Photo courtesy Caribbean Tourism Organisation) tourism’ with a raft of unique Heading into the next decade, offerings that allow visitors to more tourism tech will move more to the fully engage with the island’s people addition, around 70 per cent of tourists WHAT DOES THIS forefront of the industry. Virtual and and its environment. from the major markets of the US, the UK MEAN FOR SAINT LUCIA? augmented reality will allow visitors and Canada are looking for bucket list Saint Lucia is tailor-made to jump on the access to experiences that may have experiences. TRANSFORMATIVE TRAVEL achievement tourism bandwagon. The previously been out of reach, such Acquiring a new skill is also high A close cousin to experiential traveller who wants a skill rather than a as extreme sports, while a focus on on the list of priorities, according to tourism – where travellers are souvenir presents an opportunity to teach personalised marketing using big data TripAdvisor’s Experiences Trends Report visitors about the island’s industry and looking to experience a new activity, will help experiential tourists select which shows that bookings for classes culture or place – achievement history. and customise their own adventures, and workshops spiked in 2019 – growing The cocoa sector has been particularly tourism takes it one step further as as well as recommending new options 90 per cent from the previous year. The ambitious tourists push themselves pro-active in maximising these kinds of tailored to their needs. Online operator world’s most booked class and workshop opportunities. The Hotel Chocolat-owned to reach new goals in an unfamiliar Booking.com recently polled 22,000 was Roman Gladiator School, a familyenvironment. Rabot Estate offers a ‘bean to bar’ tour users and found that 59 per cent wanted friendly course that teaches fighting This could mean gaining a where tourists can make their own chocolate technology to offer them a ‘wildcard’ techniques in a Gladiator School close qualification or certification in a bar from beans they roasted themselves. to introduce them to something entirely to the Roman Colosseum. Other popular certain area, fulfilling a long-held life Similarly, the Emerald Estate farm at Anse new, while 44 per cent intended to use options on the booking site included salsa Chastanet allows guests to get involved goal, ticking items off a bucket list or an app to pre-plan their destination lessons in San Juan, surfing at Sydney’s simply doing something challenging. in its Chocolate Lab and make their own activities. Bondi Beach and a pottery class in These tourists want to engage with confections. Luxury travel network Virtuoso Cambodia. their destination and go home with Food and Drink is a fast-growing segment predicts that 2020 will see a boom in Aside from classes and workshops, bragging rights. of tourism as visitors realise that one way to ‘carpe diem’ travel and identified six TripAdvisor data show that the fastest According to a recent survey from get to know a destination is by eating with the core trends that will affect the market growing segments in the experiential/ the Expedia Group, the top three locals. The Little Lucian cooking class instructs next year. These include the desire to achievement niche are offerings that are concerns for tourists when they would-be chefs in the art of Caribbean cuisine, develop an emotional connection with family-friendly, centred around wellness book a trip are the activities they as does Cook Like a Lucian, Flavours of St a destination, celebrate a milestone and and cultural or themed activities. Outdoor Lucia and Spices Cooking School. will be participating in, having a have an adventure. Luckily for Saint activities, food and wine trips and sailing/ Skill-hunters can also check out Saint ‘once in a lifetime’ experience and Lucia, it’s capable of delivering SBW watersports also saw growth. engaging with local culture. In Lucia’s aquatic offerings by gaining a dive on all three.
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NEW YEAR’S RESOLUTIONS
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10 NEW YEAR’S RESOLUTIONS FOR THE CARIBBEAN
Another issue in connectivity is the lingering debate over roaming charges. There are positive signs that this will be resolved in 2020 with CARICOM ICT members approaching telecommunications providers in late 2019 to discuss removing roaming rates throughout its 15 member states.
Continued from page 1
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hen it comes to making regional New Year Resolutions, STAR Businessweek has some suggestions:
1. TACKLE DIVISIONS WITHIN CARICOM Integration and collaboration is a fine goal for 2020, but CARICOM has not always delivered on this front. To truly harness the region’s collective power, divisions within the group have to be effectively addressed. Going forward, the hot button issues will likely centre around implementation of the CSME, in particular its contentious free movement provisions. Late in 2019 the community turned to the Caribbean Court of Justice to determine whether members have the right to opt out of clauses on free travel and free movement around the region, as seen in the Eastern Caribbean with Antigua and St. Kitts and Nevis. The court’s final word on this will have implications for the entire Caribbean as other states closely eye this evolving issue. 2. INCREASE RESILIENCY EFFORTS No-one in the Caribbean needs to be reminded of their vulnerability. Whether it’s external economic shocks or natural disasters, the islands are often hit on all fronts by events beyond their control. This makes resilience a top priority this year and every year. In terms of building a hurricane-proof region, governments have a number of actionable items including strengthening their domestic emergency infrastructure, investing in better building codes and enforcement of those standards, and working more closely with regional agencies such as the Caribbean Disaster Emergency Management Agency and the Caribbean Public Health Agency. A policy of more affordable disaster insurance would also help islands become more resilient in their recovery efforts. According to CARICOM Secretary-General Irwin LaRocque, there is a 66 per cent protection gap between the economic costs of damage and insured losses – in comparison to the 55 per cent shortfall seen in developed countries. 3. COMBAT CRIME Rising crime levels are affecting every part of life in the Caribbean, from health and education to the economy and investment. No island is exempt and the scale of the problem is delivering significant reputational damage, thereby dampening tourism and foreign investment. While there is no single best approach to crime, focusing on the region’s young
8. EXAMINE PUBLIC HEALTH ISSUES
Greater representation on the world stage will benefit the region next year (Photo courtesy United Nations)
CARICOM has suffered from internal divisions arising over the CSME and other controversial issues (Photo courtesy Glynn Morris)
people plays a vital role. Empowering Caribbean youth, economically and socially, will require more regional investment in education, technology, entrepreneurship and public health. And because crime on one island affects the entire Caribbean, intra-regional co-operation on crime strategies and policies is a must. Pockets of success, such as the recent drop in violent crime and gang activity in St. Kitts and Nevis, can be a useful lesson for other small nations.
4. RAMP UP DIVERSIFICATION Tourism will continue to be the main driver of the Caribbean’s economy, but a varied approach to investment and development will help the region fortify its finances over the long term. Too often, potentially profitable industries are left to wane (the beleaguered sugar sector) or simply under-appreciated (the untapped fashion industry). 5. ADDRESS UNEASY RELATIONSHIPS WITH CRUISE GIANTS Cruise companies are both friend and foe to the Caribbean. While they generate a huge portion of overall tourism revenue and invest heavily in facilities, they also snap up land for private island destinations, carry a heavy environmental footprint and have been accused of sidelining local operators in favour of on-ship services.
2020 should be the year that the Caribbean pushes back, demanding more stringent waste restrictions, securing more advantageous development deals and taking a hard look at the gap between what cruise giants promise and what they deliver.
6. HALT CLIMBING YOUTH UNEMPLOYMENT There has been progress in the area of soaring youth unemployment (which is an issue for every Caribbean island) but this momentum must carry through into 2020. In Saint Lucia 44.3 per cent of youths aged between 15 and 24 are out of work, according to data from the World Bank. To tackle the problem, the Caribbean Development Bank is focusing on entrepreneurship, helping young people get the tools to create their own opportunities. CARICOM is taking a holistic approach, addressing societal causes and working to reduce crime and violence among young people. Education is also a factor, both in terms of improving access to education and improving standards. 7. REGIONAL COLLABORATION Regional co-operation and integration has never been more important as economic and geopolitical threats scale up in 2020. Better integration isn’t just simply a matter of diplomacy but pragmatic solutions to problems that have kept the Caribbean divided for decades, such as intra-regional transportation and trade.
The Caribbean Public Health Agency does an impressive job in view of its limited resources but the bulk of the responsibility to protect public health lies with individual states, especially since climate challenges and the Caribbean’s aging population will only exacerbate public health issues. With disturbingly high rates of diabetes, heart disease, cancer and obesity, the onus should be placed on educational programmes and a holistic lifestyle approach. Creating a safe infrastructure is also a priority as outbreaks of Chikungunya, Zika and other mosquitoborne diseases increase in frequency and severity. Over-crowding, inadequate sanitation and ineffective public education campaigns can turn a contained outbreak into a widespread crisis.
9. STRENGTHEN THE CARIBBEAN VOICE With the Caribbean is vulnerable to the whims of international players, the region must have a loud voice on the global stage with strong representation at the United Nations, the World Economic Forum, the Commonwealth Heads of Government meetings and other high-level summits. As Prime Minister Chastanet said in his address to the UN Assembly at the end of 2019, “I would like to be able to boast of a United Nations where small nations such as mine receive a fair hearing and genuine empathy, when appropriate. To some, that may seem like a high ideal but I submit that it is the minimum owed to States like Saint Lucia.” 10. END GENDER INEQUALITY The Caribbean has come a long way since the islands won their fight for independence. However it is still lagging behind more developed nations in the area of gender equality. Women in the region are at risk – from violence, lack of economic opportunities and limited access to education. Gender-based violence is a particular concern. According to UN Women, three of the top ten recorded rape rates in the world occur in the Caribbean and around 35 per cent of women in the region live in fear of being sexually assaulted or killed. A fifth of Jamaican women report being sexually abused before reaching the age of 18; and in Guyana, one in every two women experiences violence at the hands of their partner. Heading into 2020, one of the most important New Year’s resolutions for the Caribbean has to be creating a safer region for its women.
SOCIAL MEDIA
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CARIBBEAN INFLUENCERS MAKING A SUCCESS OF SOCIAL MEDIA BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT
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he rise of the online era has fundamentally transformed the way in which we live and work. When it comes to marketing, social media has often blurred these lines. Today a business that aspires for a strong customer base must give deep thought to showcasing the social aspect of its offerings and to promoting its brand on the same social media platforms used by people to connect with family and friends. Businesses operate within these channels to make their brand more enticing to their existing audience while also reaching out to new ones. Across the Caribbean, entrepreneurs and business identities that pursue this strategy with particular success obtain the coveted title of ‘influencer’ in the eyes of their industry and the wider public. A profile of influencers within the Caribbean not only reveals many tremendous success stories of the digital era, but also gives an insight into how your business can use their techniques for your own audience growth. So, beyond the most famous celebrities with a Caribbean connection, like Barbados’ Rihanna (@badgalriri – 77.9m followers), Jamaica’s Shenseea (@shenseea – 2.1m followers) and Saint Lucia’s Daren Sammy (@darensammy88 – 777k followers), which influencers are building their businesses and the Caribbean brand online?
PATRICK AND STEVE OF UNCOMMON CARIBBEAN Patrick and Steve are two brothers from St Croix in the US Virgin Islands. They are the founders of Uncommon Caribbean, an online portal devoted to looking beyond the surface-level attractions of Caribbean islands and diving in-depth on the region’s unique and authentic cultural history, from island to island. Just as this emphasis is sincere, their social media also features a heavy selection of quintessential Caribbean backdrops like yachts, sunsets and highend alcohol to ensure the new likes and follows keep coming on their Instagram account that currently has almost 17,000 followers. SUZANNE AND MICHELLE OF 2 SISTERS AND A MEAL In much of the media the Caribbean’s rich and distinctive culinary tradition can sometimes unfortunately get lost amidst broader Latin American cuisine, or simply be overshadowed by national giants of the region like Mexico and Brazil’s offerings. Jamaican-born sisters Suzanne and Michelle, the founders of 2 Sisters and a Meal, are changing that, celebrating a diverse variety of local fare, from “dishes born out of slavery and a lack of resources under English colonial rule” to
Saint Lucian cricket sensation Daren Sammy (pictured) is not only popular on the pitch. He’s amassed a large online fandom of three-quarters of a million fans — propelling the growth of his personal brand
more contemporary offerings. By placing an emphasis on the unique gastro identity of this region throughout all they do, they’ve streamlined their offering to all those (predominantly) interested in Caribbean cuisine while also drawing on inspiration from other cuisines and regions around the world. With almost 20,000 people following their Facebook page, it’s clear these two sisters have struck a chord with all who love this region’s food.
IANTHIA SMITH OF MINISKIRTS AND MICROPHONES It could be said that Ianthia Smith is to fashion what Suzanne and Michelle are to cuisine. Working out of the Bahamas, her Miniskirts and Microphones online portal sees the journalist and fashionista provide her followers with a very cosmopolitan blog, mixing commentary on societal trends and daily meditations with glamour shots of chic fashion lines alongside health and beauty topics. Usually, combining such different topics into one online offering could be risky but Ianthia’s intense passion for what she covers, makes it work, and helps explain why she’s amassed over 12,000 followers on Instagram. JOANNA E OF joannae.com For many people who wish to travel, the opportunity to do so isn’t limited by finances, but time. Joanna E was born in
the region and retains a strong kinship to it as she showcases the ability to travel while still working full time. In finding a unique target audience for her blog, Joanna has won a following among ‘cash-rich but timepoor’ travellers, making it no surprise she’s collected over 7,600 followers on Instagram for all her hard work.
CINDY ALLMAN OF bookofcinz.com A Jamaican now living in Trinidad and Tobago, via her website, Cindy Allman has rapidly emerged as a leading figure of Caribbean literary discussion. Calling herself a ‘Caribbean Bookstagrammer’, Cindy has underscored: “I keep inserting the word Caribbean before Bookstagrammer because I think it is important for me to remind myself and you where I am from and why I started this Bookstagram page, to begin with.” Over the past year Cindy read 140 books, started a book club and even began her own ventures in writing. Her clever use of coffee, elegant tables and other interesting backdrops on Instagram has made what could otherwise be routine regular updates of books she reads into fantastic pieces of media in their own right, and seen her Instagram following grow to almost 6,400, and counting. LIKING THE CARIBBEAN’S FOLLOWING These businesses profiled have built a
following utilising techniques that are essentially universal. Such strategies could find solid success outside the region, just as they have within it. Nonetheless, for a region that has been seeking to broaden its identity, showcase its dynamism and highlight its modernity, the diversity of influencers within the Caribbean is priceless. Undoubtedly it’s worth double, triple – if not more! – the price of any conventional marketing strategy by official authorities that will be unable to offer the audience such a personal and direct connection like a social media influencer can. Even if many such influencers now ultimately have their own marketing teams to assist them behind the scenes, the perceived personal connection remains at the forefront. For any marketer or business leader seeking to build their enterprise’s brand going forward, there’s a key lesson here: the business of good social media is never strictly business – make it personal!
WHO ELSE WE’RE FOLLOWING https://www.instagram.com/ knowyourcaribbean/ https://www.instagram.com/majahhype/ https://www.instagram.com/ comperelapin/ https://www.instagram.com/ shecaribbeanmag/
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WHAT ARE THE TOP CIP JURISDICTIONS AND WHY? Continued from page 2
unique niche in the market and, accordingly, has done a strong trade in investmentfor-passport transactions. Although the performance of the country’s CIP industry has gone through its ups and downs – with its CIP no stranger to multiple major scandals – it is understood that the nation today holds over 16,500 economic citizens, with a current starting price of US$150,000 for an individual CIP. With an estimated population of around 53,000, it is clear that this CIP has fundamentally reshaped the nation’s population and the government’s treasuries year by year.
Dominica’s CIP approved 2,100 applications in the 12 months between July 1, 2018 and June 30, 2019; likely a world record
Following the high profile poisoning of Sergei and Yulia Skripal in 2018, the UK government pursued a clampdown on the nation’s investment migration visa. It didn’t deter demand, however, with the first half of 2019 seeing a rise in applications that require at least a £2 million outlay of funds, in return allowing an approved applicant the right to reside and work in the UK for five years, and apply to settle after that. 255 people were approved for a tier-1 visa in the first half of 2019 alone.
PORTUGAL The Portuguese golden visa is not small change, with the starting price requiring a Euro 350,000 real estate investment. Nevertheless, it has proven enticing for citizens of the world seeking residency in an EU member state, as well as those intent on leaving behind a life elsewhere. Portugal has recently been the beneficiary of a substantial uptick in demand from Brazilians, owing to the shared language, an embattled economy in Latin America’s largest nation, and even some expats choosing to exile themselves in the era of controversial President Jair Bolsonaro. Growing interest has not only been consistent from the Latin American nation but, at times, record-breaking, with July of 2018 seeing a 16-month record high in the number of applications made, and the programme forecast to make a total of Euro 806 million by the end of 2019. As of September 2019 almost 8,000 residence permits had been issued via the national scheme, and it injected a total of around US$4.95bn into the nation between 2012 and 2019.
QUEBEC Although intake is currently paused until mid-2020, the Quebec Immigrant Investor Programme is among the most popular in the world, with a backlog of almost 20,000 applications cited as the reason for the suspension in October 2019. Unusually for an investment migration programme, Canada’s maintains a regionspecific requirement. As well as having to prove a legally-acquired personal net worth of CA$2mn, and being prepared to invest CA$1.2mn, an applicant must “intend to settle in the province of Quebec”. This, distinct from other golden visas which commonly allow an approved applicant to live wherever they wish in their new nation’s borders. Though this pause will see a divergent result in the normal trend, it is known that between 2001 and 2016 the programme generated in excess of CA$700mn via the investment visas.
ASSESSING LOCAL VALUE IN THE GLOBAL MARKET This list illustrates how some CIPs (and RBIs) have established a strong record of ongoing demand. However, as the experience of nations like Turkey shows, a rethink of an offering and subsequent alteration of an existing programme can result in an immense uptick in interest. In this new year, as new CIPs continue to come onstream, nations with underperforming CIPs have a dual incentive to pursue such changes: to drive fresh demand and protect against major damage to their reputational integrity.
The Saint Lucia Registry of Companies & Intellectual Property Company Incorporations Name: Inspire758 Inc.
Name: Irie Kids Inc.
Description: Holding company
Description: Charitable organization
Directors: Desmond Faucher, Sherwin Paul
Directors: Lisa Jarvis,
Date Incorporated: 10/12/19
Denise Breakall, Kim William
Chamber: Gordon, Gordon & Co.,
Date Incorporated: 11/12/19 Chamber: RDM Chambers
Name: Inspire758 Luxury Travel Inc. Description: Luxury taxi service Directors: Desmond Faucher,
Name: MZP Productions Inc. Description: To manage production servcies
TURKEY In September of 2018 Turkey announced it would reduce the minimum cost of its investment migration visa from US$1mn to US$250,000. The result saw the real estate market record a 150% increase in foreign buyer sales by the end of 2018, and forecasts for the end of 2019 were that foreign-buyer sales would lift from US$4bn to US$10bn. During this period Turkey has rapidly ascended to being among the most popular of CIPs in its region.
Sherwin Paul, Leslie Popo
Directors: David Roberts, Robert Koenigsberg,
Description: Broadcast services
ST KITTS AND NEVIS As a pioneer of the CIP, commencing back in the 1980s, it is no surprise that this Caribbean nation has carved out its own
PIF Corporate Services Inc.
Directors: Wayne Whitfield, Anya Whitfield
Date Incorporated: 11/12/19
Date Incorporated: 12/12/19
Chamber: Fosters Chambers
Chamber: TM Antoine Chambers
Date Incorporated: 10/12/19 Chamber: Gordon, Gordon & Co.,
Directors: Wayne Whitfield, Anya Whitfield Date Incorporated: 12/12/19 Chamber: TM Antoine Chambers
Name: Paradise Hospitality Ltd. Description: Food vending
Name: Choice Media Network Inc.
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