Caribbean Financial Action Task Force Reports Grim Findings

THE STAR BUSINESSWEEK FEBRUARY 15, 2020

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IN THIS EDITION OF

CARIBBEAN FINANCIAL ACTION TASK FORCE REPORTS GRIM FINDINGS The latest report from the Caribbean Financial Action Task Force (CFATF) is grim reading. Money laundering, human and drug trafficking, illegal gambling, tax evasion – Caribbean financial services providers are playing host to a range of evils, many of which are able to slip through the cracks of insecure, insufficient and inefficient regulatory structures.

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CARICOM’s Big Wins: Tracking its Progress over the Last Decade CARICOM has set itself an ambitious agenda for 2020, one that looks both inward and outward as it seeks to resolve regional issues while deepening international relationships.

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BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT Continued on page 4

CARICOM leaders meet for the 30th Inter-Sessional Meeting of CARICOM Heads of Government in St Kitts and Nevis, February 2019 (Photo courtesy CARICOM)

Half Empty or Hall Full: What’s Next for Caribbean Rum? The production of rum is a key part of the cultural identity of the Caribbean.

For generations, nations throughout the region have made rum for consumption at home and export abroad.

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The Financial Action Task Force held its Plenary Meeting in Paris this month (Photo courtesy the Organisation for Economic Co-operation and Development)

Rum’s place in Caribbean history is secured, but what about its future?

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THE STAR BUSINESSWEEK

FEBRUARY 15, 2020

CORONAVIRUS

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The STAR Businessweek PROUDLY PRODUCED BY STAR PUBLISHING CO (1987)

THE CORONAVIRUS’ IMPACT ON THE CARIBBEAN

BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

C E L EB R AT IN G U . S . B A S E D S AI N T LU CIA N S D U R I N G BL ACK H IST ORY M O N T H As the U.S. division of the Saint Lucia Tourism Authority (SLTA) celebrates Black History Month, we place spotlight on some United States based Saint Lucians, who have contributed to the Tourism Industry and continue to do so.

Taj Weekes is a Rastafarian singer-songwriter who heads a spirited reggae band named Adowa. Born in St. Lucia but molded by his international life experience, he is also a steadfast, robust, philanthropist, who founded his children’s charity, They Often Cry Outreach (TOCO). His efforts have acquired him the title of UNICEF Champion for Children for St. Lucia where he implements and executes various programs designed to enrich the lives of Caribbean children. Aside from his humanitarian habits, Taj has six acclaimed albums of musically daring reggae that sets him apart in the genre.

Another Saint Lucian making waves in the music industry is Michel Aubertin, a talented artist that sings reggae music infused with hip hop and in the same breath belts out classics from Frank Sinatra to Luciano Pavarotti. He has performed all over the world including the QM2, the largest ocean liner in the world, the World renowned Saint Lucia Jazz Festival, the Caribbean Cultural Festival (CARIFESTA), the 2010 FIFA Soccer World cup and is now setting the restaurant scene in NYC on fire belting out all the classics and songs from his original album “On Again”.

Among the key niches focused on by the SLTA, culinary and culture is another one, which has established great representation overseas namely, Shorne Benjamin. Chef Shorne’s culinary experimentation began at the age of seven in Saint Lucia. That passion propelled him to graduate from the prestigious French Culinary Institute and work alongside world renowned masters Chef Jean-Georges at ABC Kitchen and Chef James Jermyn at Maloney & Porcelli in New York. In 2010, Chef Shorne Benjamin joined the Andaz 5th Avenue (Hyatt) as a chef, where he continues today.

Over the years, Chef Shorne has added his inimitable signature to the dynamic realm of culinary artistry, a distinguishing style known as New Age Caribbean, which has earned him great respect in the culinary world. Some of Chef Shorne’s career highlights include cooking for the illustrious James Beard Foundation. He is a regular participant at the Food Network‘s Annual Wine and Food Festival in New York and South Beach, Citi’s Taste of Tennis events across the world, and at the Annual Rum & Rhythm Benefit Gala.

Chef Shorne has represented Saint Lucia’s burst of culinary flavors at several destination events, while live on Miami NBC 6 In the Mix and Most recently at the World Travel Market- London.

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Port side of the AIDAperla cruise ship (Image courtesy of AIDA Cruises)

ountries across the world are wrestling with the coronavirus outbreak.

First detected in China, the virus has spread globally, but especially to Asian nations. The US, Canada and several European states have also had confirmed cases. All told, already over 37,000 people have contracted the virus worldwide, the majority in China. Such a statistic is undoubtedly confronting, and the virus’ threat to both life and business is substantial, yet matters need to be considered in context, especially in the era of fake news when sensationalist headlines are always on offer.

When it comes to the Caribbean, how is the coronavirus likely to impact its key industry of tourism? And how comparable is the coronavirus to other outbreaks?

INFORMATION SHARING The ‘pneumonia-like’ virus that broke out in China’s Wuhan province was first officially reported to the World Health Organization by the Chinese government on December 31 last year, but evidence suggests it had existed there for some time. It is now clear that the Chinese government’s secretive nature and selective information sharing means its handling of the outbreak has left much to be desired.

Regionally there is a caution here, one that has hopefully been learned from a similar crisis. The experience

of Chikungunya in the Caribbean and the Americas (with world health officials casting suspicion on statistics provided locally due to doubts surrounding the reporting standards of some nations) shows that if governments are not ready to present a clear picture, other authorities around the globe will fill in the missing pieces of the puzzle.

International co-operation is important, not just in relation to containment of the virus, but for retention of commerce.

Whether intentional or otherwise, countries that do not keep pace with testing and reporting of an outbreak, risk doing immense damage to their commercial reputation. Presently, Caribbean nations are walking a tightrope, trying to balance the need to protect health with efforts to minimise the long-term commercial impact of the coronavirus.

LOCAL IMPACT OF A GLOBAL OUTBREAK This current outbreak remains a fluid situation; scientists are working hard to find a cure but the forecast is that a medical solution won’t be available until at least the middle of the year.

The capacity for Caribbean nations to brace and sustain amidst this challenge depends on how well each state can rely on procedures it has implemented, and this is indeed a new and different kind of crisis, especially given the vulnerability of the regional tourism industry to the Continued on page 6

CARICOM

THE STAR BUSINESSWEEK

FEBRUARY 15, 2020

CARICOM’S BIG WINS: Tracking its Progress over the Last Decade

BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

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ARICOM has set itself an ambitious agenda for 2020, one that looks both inward and outward as it seeks to resolve regional issues while deepening international relationships.

Among the areas of focus going forward are building greater ties with African nations, solving the longstanding problem of poor interisland transportation and enhancing regional connectivity.

The group’s optimistic 2020 plan has its sceptics. There is a big gap between promise and progress and CARICOM has had its difficulties and setbacks. It’s worth noting, however, that the organisation has also enjoyed a series of wins over the last decade.

As it heads into the next era, STAR Businessweek takes a look back at some of its biggest achievements.

TRADE AND INTERNATIONAL RELATIONSHIPS CARICOM has fostered links with several global partners since it was first established and has continued to advocate for the region throughout the last decade.

In 2014 the first Japan-CARICOM Summit took place, kickstarting a longstanding collaboration through the CARICOM-Japan Friendship and Cooperation Fund, which disburses Japanese investments to regional projects.

South-south co-operation also received a boost in 2017 when CARICOM members signed updated protocols to the CARICOM-Cuba Trade and Economic Cooperation Agreement, giving CARICOM producers duty-free access to Cuba for over 300 items including meat, fish, dairy, beer, rum and apparel.

In 2018 CARICOM began preparing for Brexit, working with the UK, the EU and the African Caribbean and Pacific (ACP) Forum to ensure continuity in trading relationships and maintaining CARIFORUM’s preferential access to the UK market. The UK confirmed that it would roll over the provisions of longstanding Economic Partnership Agreements and, in 2019, a formal agreement was signed to that effect.

That same year, CARICOM reached out to new markets, launching the first UAE-Caribbean Cooperation Forum in Dubai in November.

Students celebrate after taking part in a CARICOM animation workshop in Guyana, November 2019 (Photo courtesy CARICOM)

HURRICANE HELP The past ten years have seen a series of devastating storms, including Joaquin, Matthew, Irma, Maria and Dorian, and the CARICOM community has mobilised to help – deploying teams from the disaster relief agency, CDEMA, to storm-stricken areas.

In 2017, following hurricanes Irma and Maria’s destructive path through the islands, CARICOM hosted a UN Pledging Conference which generated around US$ 1.3bn in pledges and over US$ 1bn in loans and debt relief.

Over the past few years CDEMA has developed a Model National MultiHazard Early Warning System Policy Guide to help islands better prepare for natural disasters and, in 2019, the agency established a partnership with Airbnb to facilitate emergency housing in the wake of disasters. This collaboration followed on the heels of a similar MOU with mapping charity MapAction to improve data gathering, mapping and analytics.

ENERGY AGENDA The CARICOM Energy Policy was formally approved in March 2013, and followed by the CARICOM Sustainable Energy Roadmap and Strategy in 2015.

Since then, renewables have been pushed to the forefront in the community’s energy approach.

In 2017 CARICOM established CCREEE – the Caribbean Centre for Renewable Energy and Energy Efficiency.

Based in Barbados, the centre is helping the community meet its 47 per cent renewables by 2027 target through projects that invest in innovative energy solutions, policy development in member countries and data gathering.

Last year India announced it would partner with CARICOM to deliver a

US$ 150mn line of credit for solar, renewable energy and climate change related projects.

Change is also being effected at the grassroots level. CARICOM member states agreed, in 2018, to phase out incandescent bulbs and approved the Regional Energy Efficient Building Code.

YOUTH ENGAGEMENT In 2012 CARICOM unveiled its Youth Development Action Plan which established a network of national Youth Councils under the umbrella of the Regional Caribbean Youth Council.

Over the past decade the community’s focus on young people has taken a holistic view, focusing on both economic and societal factors. Workshops on skills training, crime reduction and entrepreneurship have taken place all over the region, and young people have been given an opportunity to advocate for their own interests through the annual ‘Ask SG’ event. This initiative, which was first established following a 2010 report

In 2014 the first JapanCARICOM Summit took place, kickstarting a longstanding collaboration through the CARICOM-Japan Friendship and Cooperation Fund, which disburses Japanese investments to regional projects

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from the CARICOM Commission on Youth Development, allows youth ambassadors to consult with the CARICOM Secretary-General in a forum ahead of the Heads of Government meeting.

AGRICULTURE Agriculture in the Caribbean is a huge sector, spanning from fisheries to farms. CARICOM policy in this area has been largely guided by the Common Agriculture Policy which addresses food security, export development and the integration of technology.

Last year CARICOM teamed up with the Caribbean Development Bank to look at the region’s sugar industry. The US$ 97,488 project will assess the sustainability of sugar production with the ultimate aim of reducing the region’s refined sugar imports.

Another industry on the brink of revival is the coconut sector.

In 2013 CARICOM, through the Caribbean Agricultural Research and Development Institute (CARDI), began an EU-funded industry development project. The EUR 4mn initiative aims to enhance the competitiveness of the region’s coconut industry and capitalise on its newfound popularity among the health and wellness consumer niche.

As the region moves into the next decade, CARICOM and CARDI hope to make use of emerging tech in the agricultural sector. To this end, workshops and training sessions on ICT tools have taken place on a number of islands, funded by the Japan-CARICOM Friendship and Cooperation Fund.

CULTURAL INDUSTRIES The Caribbean Festival of the Arts (CARIFESTA) is the linchpin of CARICOM’s cultural calendar.

There have been four CARIFESTAs in the past decade, beginning with the newly revamped festival held in Suriname in 2013. Since then, the event has grown to showcase the best of Caribbean art, music, dance and writing. The 2019 festival, held in Trinidad and Tobago, included over 20 countries.

Recognising the importance of the so-called ‘orange economy’, CARICOM has been looking at financing traditionally under-served niches and began working with the Caribbean Development Bank to launch the Cultural and Creative Industries Innovation Fund. The Fund gives grants of up to US$ 150,000 to projects in five niches: fashion, visual arts, music, audio-visual design and festivals, and began its first SBW round of funding last year.

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THE STAR BUSINESSWEEK

FEBRUARY 15, 2020

ANTI-MONEY LAUNDERING

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CARIBBEAN FINANCIAL ACTION TASK FORCE REPORTS GRIM FINDINGS Continued from page 1

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hile the islands have cleaned up their act considerably, bowing to pressure from international bodies, the results of the CFATF investigations show that criminal activity continues to dog the sector, sullying the reputation of the regional industry and further driving the de-risking trend as international banks sever their correspondent banking relationships (CBRs).

It’s not all bad news, however. The organisation highlights strides made in investigating and prosecuting moneylaundering cases and suggests that greater focus on these achievements can help mitigate the reputational damage inflicted by financial fraudsters.

LEGAL LOOPHOLES The CFATF is an anti-money laundering/combatting the financing of terrorism (AML/CFT) group comprised of 25 Caribbean countries, including Saint Lucia. Its latest activities uncovered corruption and fraud around the region, aided by weaknesses in legislative frameworks.

According to the CFATF, several jurisdictions, failing to recognise trust structures in their domestic law, are providing trusts to clients under foreign laws. This limits the ability of local authorities to provide the kind of stringent oversight that is necessary, making these financial vehicles vulnerable to corruption.

In addition, trust companies are leaving themselves open by taking on complex structures that may mean more profit, but are more difficult to police. The greater the complexity, the higher the bar for comprehensive due diligence. The CFATF suggests that some member countries are failing to create and communicate minimum due diligence standards for the industry – something that is especially vital in jurisdictions where authorities are lax in tracking and updating beneficial ownership of trust vehicles.

CASH CONCERNS The majority of the CFATF member states are cash-based economies, leaving them open to a myriad of abuses as criminals find ever more innovative ways of concealing and moving cash. While all jurisdictions require cash and currency declarations at their borders, the system is far from invulnerable.

Given the fluidity of movement within the region, cross-border co-operation is crucial and the CFATF says member states need to do more to share information and harmonise specific laws. In particular, a real-time

Left to right: Daniela Tramacere, EU Ambassador to Barbados, Dawne Spicer, Executive Director, CFATF and Andrew Frection, Project Manager, CFATF meet at the CFATF XLVIII Plenary in Barbados (Photo courtesy CFATF)

sharing database could help strengthen AML procedures – something that poses a challenge given that most jurisdictions still rely on the physical filing of declaration forms. Of the countries surveyed by the CFATF, just over half voiced support for a Memorandum of Understanding with other jurisdictions

The CFATF investigation found that most criminal cash seizures are in US dollars and are predominantly coming from, or going to, the United States. Most couriers are male, aged 26-40, and prefer airports to other modes of transport

prior to information sharing. However, there was little agreement over exactly how that sharing could take place.

The CFATF investigation found that most criminal cash seizures are in US dollars and are predominantly coming from, or going to, the United States. Most couriers are male, aged 26-40, and prefer airports to other modes of transport. Seized cash is often linked to drug, weapons or human trafficking. Between 2007 and 2011, there were 508 investigations relating to human trafficking among CFATF member states.

Of these cases, a mere 95 resulted in convictions.

REPUTATIONAL DAMAGE Given the capacity for fraud in the Caribbean’s cash-reliant and legislatively lax environment, it’s unsurprising that international banks are wary. As big-name providers such as RBC, CIBC and Bank of America abandon or retrench from the market, regional banks are losing business, credibility and profits.

However, the CFATF indicates that the present situation is not quite as dire as it was when de-risking first began impacting the market in 2015. The task force surveyed 227 financial institutions between June 2018 and April 2019 and found that around 68 per cent of financial

institutions said that their operations had been negatively affected by de-risking, but only 55 banks (24 per cent of those surveyed) had lost CBRs within the past 3 years. Of those banks, 44 lost between one and three relationships and 8 banks lost between 4 and 10. The reasons given by the retrenching banks included low profits, heavy compliance costs, fear of regulatory sanctions in their home country and the perceived risk of the jurisdiction.

CRACKING DOWN While most CFATF members are now compliant, or largely compliant, with FATF standards on AML/CFT, the perception remains that the Caribbean is a high-risk region comprised of highrisk jurisdictions. The report, however, highlights that progress is being made in terms of investigations and prosecutions of money-laundering and corruption cases. The problem is that, because of inadequate records and communication, the good news about these high-profile collars is not getting through.

Several such cases derive from the Cayman Islands. Examples include an incident where investigators discovered a Cayman-based firm was receiving high-value wire transfers from an overseas company with ties to state-level corruption in its home jurisdiction. The Financial Reporting Authority flagged the activity and alerted overseas financial intelligence units. In another instance, the Cayman authorities uncovered a crossborder currency exchange scheme with links to a large drug trafficking ring.

Recent cases concerning identity fraud and ATM fraud have been successfully prosecuted in Grenada, with the latter involving an East Asian national who had been cloning card holders’ information onto dummy cards and using these to withdraw large amounts of cash from ATMs in Grenada.

Another inventive criminal in Montserrat was arrested for cheque kiting – where cheques are written for a series of accounts, all with insufficient funds, and the criminal relies on the time it takes each cheque to clear to falsely inflate his balance.

One of the biggest, and most alarming, frauds examined by the CFATF concerns government salaries in Trinidad and Tobago. A large criminal network, encompassing government employees and their friends and relatives, conspired to move funds from a government agency to personal accounts and shell companies under the guise of salary payments. Orchestrating the activities was a payroll officer at the agency who helped siphon off the funds by falsifying the payroll documentation. The scheme was years in the making and involved multiple personal and loan accounts; one participant laundered over TT$ 3mn (almost US$ 0.5mn) before being caught.

When the case was brought to court, over 100 money laundering charges were laid against 11 defendants for US $3.5mn.

CARIBBEAN RUM

THE STAR BUSINESSWEEK

FEBRUARY 15, 2020

HALF EMPTY OR HALL FULL: What’s Next for Caribbean Rum?

BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

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trade deals alone. There has also been a concerted effort in recent times to ‘re-invent’ rum, in the same way that gin and beer have consolidated a new identity in many markets around the world. Rum producers have been seeking to give the drink a revamp that highlights its premium offerings, and the revenue data shows that the push is working.

he production of rum is a key part of the cultural identity of the Caribbean. For generations, nations throughout the region have made rum for consumption at home and export abroad. Because of rum’s ubiquity and the sizeable industry that surrounds it within this locale, it’s seen as the region’s signature drink, in the same way as wine in Italy, or sake in Japan.

Even though this identity is wellestablished, it would be a mistake to regard it as static, or consider it immune from changing environmental circumstances or growing competition from abroad. As emerging trends indicate, the rum industry is set for a momentous period as it moves into a new year and new decade.

THE GLOBAL INDUSTRY AT A GLANCE The international rum industry is projected to generate US$ 17bn of revenue during 2020. What may be surprising to some of our valued readers here, given the iconic connection between this region and rum, is that the biggest rum-producing nations of the world are not within the Caribbean but are the United States and Germany. However, there are certain caveats that factor in (see below) and unquestionably Caribbean nations have much to look forward to when it comes to growing their own market share in the near future.

A TOAST TO BREXIT Although some Britons may be bereft that the UK has officially left the EU, Caribbean rum producers are wellplaced to celebrate such news. In March 2019 the CARIFORUM-UK

The Caribbean brand is certainly a selling point.

According to a Dewar’s spokesperson in 2019: “With laws for Scotch whisky relaxing and opening new opportunities for brands like Dewar’s, Caribbean Smooth will debut as the first in a line of innovative cask-finished extensions.”

Economic Partnership Agreement, signed between the UK and multiple Caribbean states, including Saint Lucia, was welcomed by the West Indies Rum and Spirits Producers Association (WIRSPA).

As a result of this agreement, any exports to the UK from signatory nations will not be subject to tariffs. As well as being good for local banana and sugar cane producers for whom the UK is a key export market, it is great for rum makers, especially as the end of 2019 saw news that rum sales in the UK had broken the £1 billion ceiling.

Such a feat is not simply a chance occurrence, or attributable to favourable

NO HOPE FOR HAVANA? US rum giant Bacardi has been trying to reclaim its title as the biggest rum seller globally. 2018 saw it make solid inroads with sales performance, lifting global case sales from 16.8 million on the previous year to 17.1 million. Nonetheless, the brand has not been without controversy lately as a Washington DC decision poured flames on the fire of a regional rum dispute.

Although Cuba accounts for only approximately 3.5 per cent of the global rum market, this share is more than that of other regional nations like Barbados (2.7 per cent), Nicaragua (1.6 per cent), Trinidad and Tobago (1.4 per cent) and Panama (1.2 per cent). While the United States’ annual production volume means that Americans are unlikely to be short of a bottle if an occasion arises, Cuba is embattled in the Trump era, trying to maintain an industry that produced almost 400,000 hectoliters of rum worth US$ 136mn during 2018.

The Trump government’s re-activation of the Helms-Burton law is a growing headache for the nation’s Havana Club brand, with the Cuban state seeing a competing foreign ownership claim by Bacardi. Presently Bacardi distills and sells Havana Club despite the dispute, doing so via the bottling of Puerto Rican rum under the HC name.

This means that Bacardi does not suffer from the sanctions and need not

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wait until this contest is settled to begin using the brand, but Cuba’s Havana Club and other Cuban producers continue to feel the squeeze.

THE PROS AND CONS OF A CARIBBEAN CLIMATE The legacy of hurricanes – most recently the carnage of Irma and Maria – is evident in the production of local rum. The British Virgin Islands’ Tortola brand, Beam Suntory’s Cruzan Rum Distillery in the US Virgin Islands, and Puerto Rico’s Don Q Rum all suffered as a result.

When compared to the global strength and scope of a brand like Bacardi, it speaks to a bitter reality that remains a key challenge for Caribbean rum producers, and many Caribbean industries generally: the capacity to maintain and grow market share can be wiped away in an instant by the savagery of a hurricane.

That said, there is something of a silver lining in any assessment of environmental factors that can impact the local industry.

Although climate change and its effects threaten to embattle liquor production in colder climates (a 2018 heatwave caused numerous Scottish distillers to halt production for an extended period with some reportedly losing a whole month’s work before the year ended), the distillation process in the warm Caribbean is not impacted in the same way by a change in temperatures. While rum, unlike other liquors, can easily be made in many parts of the world, the Caribbean’s warmer climate sees the maturation process occur at a significantly faster rate. By way of example, liquid evaporates in this region at a rate of up to 10 per cent per year, whereas in Scotland it tops out at 3 per cent.

As a result, the Caribbean will retain a natural advantage for many years to come. The climate here makes it easier and quicker to produce brilliant tasting rum and, even if competition is growing from beyond the region, SBW so too are export opportunities.

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FEBRUARY 15, 2020

CORONAVIRUS

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THE CORONAVIRUS’ IMPACT ON THE CARIBBEAN Continued from page 2

consequences of this virus spreading.

In 2017 Chinese tourists took some 131 million trips overseas (including mainlander trips to the Special Administrative Regions of Hong Kong and Macau). This represented a 7 per cent increase on 2016. Faced with the present outbreak, Royal Caribbean and Norwegian Cruise Lines have announced a ban “until further notice” on any passengers who hold passports from China, so the local impact will be felt in the long-term fallout, as this crisis will not end soon.

Royal Caribbean alone has indicated that it stands to lose some US$ 50mn and expects to take a hit of 25 cents per share following the cancellation of eight cruises originally set to depart from China. In another sector, just as the SARS epidemic cost global airlines US$ 7bn, the financial impact from coronavirus is expected to exceed that.

Despite the best efforts of individual nations, history suggests that the fallout could be indiscriminate across regions.

Following the outbreak of the coronavirus, Saint Lucia took action by prohibiting the entry of the 3,000-passenger AIDAperla cruise ship on February 1. Dominica followed suit the next day. With other Caribbean nations, like Trinidad and Tobago, and Jamaica, also implementing coronavirus-related travel bans, maintaining regional health and tourism revenue could ultimately come down to ensuring that a ‘weakest link in the chain’ does not break.

As a result of the Ebola outbreak, Sierra Leone saw a 50 per cent dip in its tourist arrivals from 2013 to 2014. Even though travellers were cautioned to avoid the Ebola zone in West Africa, nations as far away as Kenya (over 3,000 miles to the east) saw a substantial decline of tourism revenue due to the perception that the entire continent was a risk.

If, many months from now, the Caribbean has retained its record as a coronavirus-free region, then the worst effects of the virus on health and tourism will surely be avoided. Nonetheless, beyond tourism alone, China’s growth has been so rapid, and its connections within the global economy have become so deep, that this current outbreak is truly on a different level. Just as the World Bank’s 2002 estimate of China’s GDP of

Royal Caribbean alone has indicated that it stands to lose some US$ 50mn and expects to take a hit of 25 cents per share following the cancellation of eight cruises originally set to depart from China

The coronavirus currently has no cure and provides a unique containment challenge distinct from any global outbreak prior (Source: Pixabay)

US$ 1.471tn now seems small compared to its latest 2018 estimate of US$ 13.608tn, so too does China’s ascent from the world’s sixth-largest economy in 2003 to today being the second-largest, mean that even fewer nations can hope to shake off the economic downturn that Beijing now faces domestically, and that all states trading with it must contend with globally.

PURSUING REGIONAL DEFENCE AND RECOVERY When all factors are considered‚ the Caribbean tourism industry is set to sustain a heavy hit as result of the coronavirus outbreak. As Africa’s experience with Ebola showed, perception can have more impact than the facts when it comes to disease containment. So,

even if most, if not all, Caribbean nations successfully prevent a local case of contraction, the fear of this virus is likely to keep many would-be travellers from booking a cruise (or similar holiday) until it is certain that this outbreak has been contained.

For countries like Saint Lucia there can be some solace in the fact that there has been strong growth in tourism in recent years, and so the fundamentals of future growth, separate from this crisis, remain promising. In the meantime, regional nations must prioritise their defence against the coronavirus threat until a cure is obtained. The focus on economic recovery can begin once lives are no longer endangered.

The Saint Lucia Registry of Companies & Intellectual Property Company Incorporations Name: L.I.D. Designs Inc. Description: Home renovations and maintenance Directors: Isa Alexander, Lloyd David Date Incorporated: 13/1/20 Chamber: Fosters

Name: Datasense Inc. Description: Statistics company to consult in areas of data analysis Directors: Nyo Serieux Date Incorporated: 27/1/20 Chamber: Self-incorporated

Name: B.O. General Welding & Marine Ltd. Description: Welding and marine services Directors: Buffalo Odlum, Jacqueline Andrew Date Incorporated: 27/1/20 Chamber: Tax and Corporate Law Offices

Name: A & N Vehicle Rentals Inc. Description: Vehicle rentals Directors: Kim Alister Florent Date Incorporated: 28/1/20 Chamber: Amicus Legal

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FEBRUARY 15, 2020

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