THE STAR BUSINESSWEEK FEBRUARY 22, 2020
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THE CANOUAN REBRAND
The Caribbean’s tourism industry will always be in a state of perpetual competition between longstanding and established accommodation providers, and the newcomers who seek to stake their own claim. We see this battle play out daily at a local level between competing hoteliers, and nationally as the opening of a big, new hotel on one part of an island can naturally take away business from another part of it. But the scale and scope of recent activity on the St Vincent and Grenadines island of Canouan is a cut above the regular competition.
BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT Continued on page 4
IN THIS EDITION OF
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The Caribbean Taps into Podcasting Growth The region plays host to a wide variety of informative and dynamic podcasts. But like so many areas in the digital media landscape, the podcast industry is a story of rapid evolution, with the capacity for sudden change. Page 3
Global Competitiveness Wanes as World Economies Struggle More than a decade after the global financial crisis, the world’s economies are still not meeting competitiveness benchmarks and are failing to reap the rewards of the fourth Industrial Revolution, according to the World Economic Forum (WEF)’s 2019 Global Competitiveness Report. Page 5
Recent years have seen Canouan’s tourism identity get a major revamp thanks to a number of new drawcards (Source: Mandarin Oriental, Canuoan)
The World Economic Forum discusses global competitiveness and productivity at its annual general meeting in Davos in January 2020 (Photo courtesy WEF)
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FEBRUARY 22, 2020
INTERNATIONAL TRADE
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PREPARING FOR POST-COTONOU TRADE BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT
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rade and development in the Caribbean is nearing a crucial deadline. Time is running down on the Cotonou Partnership Agreement (CPA), a landmark piece of legislation signed two decades ago that forged important political and economic links between Caribbean, African and European nations. The CPA expires at the end of this month, giving stakeholders until March 1 to devise a workable replacement – a deadline that they look set to miss as negotiations roll on. Although progress has been made between the parties, challenges remain given that the global context is very different than it was at the turn of the millennium when the CPA was originally created.
WHAT IS THE CPA? Ratified in Cotonou, Benin in June 2000, the CPA carries a long list of signatories encompassing the then-members of the European Union and the nations that make up the African, Caribbean and Pacific States (ACP). In the abstract, the agreement was designed to eradicate poverty, support sustainable development and integrate the ACP countries more fully into the world economy. In its practical application, the CPA has allowed the EU to channel development funding into a variety of projects in the ACP through the European Development Fund (EDF) as well as establishing the Economic Partnership Agreements (EPAs) that govern treatment of ACP exports into European markets.
Post-Cotonou negotiations were high on the agenda as ACP dignitaries met for the 9th Summit of Heads of State and Government in Kenya in December 2019 (Photo courtesy ACP}
STUMBLING BLOCKS The CPA has been revised twice, once in 2005 and again in 2010, to reflect the changing geopolitical landscape. Now that the agreement is expiring entirely, it’s a chance for all parties to create something more suited to their current needs and goals. Negotiations to that end began in 2018 and areas of tension were apparent from the outset. Today’s European Union is a very different animal from that seen in 2000.
In the current climate of nationalism/ populism, nations are looking inward rather than out and politicians are under pressure to firm up borders and shy away from globalisation. Relations between the EU and its former colonies have become somewhat strained as a result, and the recent Windrush generation scandal in the UK only added fuel to the fire. Going into negotiations, the ACP Continued on page 6
SAINT LUCIA TOURISM AUTHORITY SENDS HAPPY INDEPENDENCE DAY GREETINGS TO ALL SAINT LUCIANS
NEW MEDIA
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FEBRUARY 22, 2020
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THE CARIBBEAN TAPS INTO PODCASTING GROWTH When it comes to podcasting, the Caribbean business community has made its voice heard. BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT
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he region plays host to a wide variety of informative and dynamic podcasts. But like so many areas in the digital media landscape, the podcast industry is a story of rapid evolution, with the capacity for sudden change. In 2020 we are now seeing the emergence of the ‘next big shift’ in the landscape. So what does this mean for the future of podcasts within the region?
REWIND As a media form, podcasts, at their core, are a modern phenomenon. The rapid growth of digital technology within our daily lives certainly created the conditions for which an episodic format of audio files, providing news and entertainment, could succeed. But really, it was not until Apple’s release of iTunes 4.9 in 2005 that the concept began to shift from technically possible to profoundly popular. The subsequent launch of the iPhone in 2007 provided an avenue for this growth to be supercharged, the years ahead seeing Apple and its competitors make access to podcasts via smartphone and tablet devices easy and intuitive. While ease of access to the market has been a central feature of podcasting culture for more than a decade, it would be a mistake to imagine that podcasting is the province of garage studios and basements; corporate media is now making big moves into the field. This momentum is underwritten by the rapidly flourishing popularity of podcasts generally. Stats show there will be 1.85 billion podcast listeners in 2023, skyrocketing in growth from the estimated 287 million doing the same in 2016. With blockbuster podcasts like ‘Serial’ and ‘Up and Vanished’ having achieved huge success – and Spotify having previously acquired start-ups Gimlet Media and Anchor, signalling in 2019 it would spend up to US$ 500mn in that year alone on new acquisitions – there is an increasing corporatisation of the podcast industry as commercial giants seek greater exposure to the growth. By default, this is not necessarily a bad thing; indeed, many fantastic podcasts would not have been made but for commercial backing. Precise podcast data can be difficult to acquire, given the nature
3. WE-SPEAK CARIBBEAN: GIVING A VOICE TO WOMEN IN BUSINESS This podcast is not only interesting listening – revealing the experiences of some of the region’s incredible female entrepreneurs and professionals – but also a great resource for anyone looking to build their life in business. For podcasts that provide insight on how to source financing and digitise your business, to those that discuss the value of having a mentor, this series is a must-listen to anyone starting out in business.
The Caribbean’s business community is producing a number of outstanding podcasters (Pixabay)
of engagement of the user, but a look at Podtrac’s top 15 US audience podcast publishers as of January 2020 affirms that the corporate sector is already wellrepresented. Familiar names, like the New York Times, ESPN, and NBC, feature in the top ten, among others like NPR and iHeartRadio, and their global audience is clear, given the millions of downloads they achieve. ESPN alone has 63 active shows and recorded 50,716,000 global downloads and streams in the month.
TUNING IN TO THE CARIBBEAN No Caribbean podcast is currently rivalling podcasting’s giants, such as comedian Joe Rogan who is held to have been achieving around 200 million downloads (including YouTube views) per month as of June 2019. However, the following podcasts showcase the business acumen and talented voices in this region. 1. ICT PULSE PODCAST This podcast does an outstanding job of applying a local context to global trends within Information and Communication Technology (ICT). As well as providing a specialist focus on particular national topics – such as episode 66 which details the innovative efforts of the National Commercial Bank Jamaica in Jamaica, or episode 76 that profiles the strides of St Kitts and Nevis’ ICT and telecoms industry – this podcast also regularly covers general trends and topics like the growth of eCommerce and online payments across the
region (episode 11) and what the future of work looks like (episode 87).
2. CARIBBEAN POWER LUNCH This podcast holds over 50 fantastic editions that profile “stories and lessons from black entrepreneurs and business owners from the Caribbean”, including episode 44, an interview with Saint Lucia’s Jessica Alexander (who featured in STAR Businessweek, March 9, 2019). CPL host Kevin Valley and Jessica dive into the story behind her company, Sa Nou St Lucia, alongside tactical tips for how to identify and serve your market, among many other intriguing topics of conversation.
As a media form, podcasts, at their core, are a modern phenomenon. The rapid growth of digital technology within our daily lives certainly created the conditions for which an episodic format of audio files, providing news and entertainment, could succeed
4. CARRY ON FRIENDS THE CARIBBEAN AMERICAN PODCAST The Caribbean business community is, like the region as a whole, a cultural melting pot; one that’s intimately engaged not only with the Americas that make up its neighbourhood, but the wider international community beyond it. Podcast host Kerry-Ann Reid-Brown describes herself as “50% Creative, 50% Business . . . 100% Jamaican”. Born in the region before relocating to New York, Kerry-Ann’s podcast covers an abundance of topics from Big Data to hurricane relief and recovery, to launching and running multiple businesses at once, doing so alongside touching on broader social topics like how Caribbean culture can be preserved through dance, and reflections on the experience of a Caribbean expat abroad. 5. ALWAYS BE BOOKED CRUISE PODCAST The cruise industry is essential to the region’s tourism industry, just as the tourism industry is essential to the regional economy. This podcast, produced by Tommy Casabona, dives in-depth on various topics, like the arrival of new cruise liners on scene, profiles of individual ports, tips and tricks for a great cruise, and even occasional interviews of industry personnel. For anyone who has an interest in this industry, this podcast provides a fascinating window into its latest happenings. SUPPORTING THE CULTURE The Caribbean has an incredible array of podcasters. If you’re keen to see such fine form among Caribbean podcasters continue, put on a pair SBW of headphones and start listening.
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FEBRUARY 22, 2020
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ST. VINCENT & THE GRENADINES
THE CANOUAN REBRAND Continued from page 1
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n the space of just a few years, this island and the nation in which it resides have experienced a number of major upgrades that serve as powerful drawcards for enticing tourists. These recent endeavours of the Canouan community are compelling, and are sure to offer some inspiration to others working within the tourism sector.
THE WAY IT WAS Looking back on it now, many would say it’s easy to see why Canouan was a prime candidate for a refresh. In the mid-2000s the island was – as journalist and travel writer Chris Caldicott called it – “a bit of a Donald Trump theme park”. Regardless of what people may think of Trump as president of the United States, the Trump brand achieved immense fame and recognition during his tenure leading it. Nonetheless, although the signature style of the Trump brand – the brash ‘in your face’ parading of glitz – has played well in New York, Las Vegas and other capitals of commerce, this style and the ubiquity of the Trump brand across the island, with a Trump Monte Carlo Casino, D.J. Trump luxury villas and Trump International Golf Club, arguably had at the very least a disconnect with the otherwise understated and serene nature of Canouan. PREPARING FOR A NEW ERA The groundwork for a new Canouan was literally laid with construction of its new runway; two Citation jets were also added, able to transport high-net-worth individuals (HWNIs) to and fro. Thus, the island’s branding as a place where – as Bloomberg mused – “billionaires go to escape millionaires”, now had the infrastructure to match. That said, the island happily accommodates anyone, however they arrive. The opening of the nation’s new Argyle International Airport in 2017 also meant that those seeking to disembark on the main island for some fun before venturing to Canouan, arrived at a worldclass airport – a key pillar, not only of the nation’s transport infrastructure, but its pitch to attract new investment from global accommodation providers and other businesses. A UNIVERSAL APPEAL Canouan is a pricey prospect for a holiday, with overnight rates for a one-bedroom ocean view room at the Mandarin Oriental (formerly the Pink Sands Club before a 2018 rebrand) currently starting at US$1,300 – among the most expensive in the Caribbean. Yet, its relative seclusion, abundance of pristine beaches and estimated population of under 2,000 appeals not only to those modern day tycoons seeking an island that calls them (as St Barts did to the Rockefellers), but also to the John and Joan Smiths of the tourism world who desire a holiday where
Canouan Island, St. Vincent and the Grenadines
luxury and nature harmonise. The high price of spending a night at the Mandarin Oriental means that those who can afford it know the odds are small that their room will adjoin another with some heavily-liquored and raucous college students on a backpacking adventure. The hotel has just 39 accommodations (a mix of suites and villas) so any guest will have no trouble finding a deck chair in the afternoon sunshine. Clearly the island of Canouan has constructed a distinct identity, but what can other accommodation providers and locales derive from this community?
CALLING OFF GADGETS A hotelier does not need to be on Canouan to offer guests a chance to disconnect from daily life. As well as a number of yoga, meditation and similar wellness retreats that ask people to put aside the digital devices, increasingly accommodation providers are looking to implement strategies that reduce constant gadget use on-site. Some offer rewards, such as free snorkelling trips and desserts, to those guests who agree to do away with their phones for a few hours, while other providers take a firmer approach, implementing a total ban on the use of devices in certain public areas. Ultimately such an approach must always allow for some shades of grey
but the growing popularity of devicefree zones shows that while some guests delight in collecting an array of holiday snaps for social media, others still relish the traditional approach to a holiday that allows them to power down, relax and spend some quality time away from their phone.
The groundwork for a new Canouan was literally laid with construction of its new runway; two Citation jets were also added, able to transport high-net-worth individuals (HWNIs) to and fro. Thus, the island’s branding as a place where - as Bloomberg mused - “billionaires go to escape millionaires”, now had the infrastructure to match
A TOUCH OF LUXURY A hotelier in the region considering a shakeup of their offerings does not need to match Canouan in its construction and other capital outlay to reap the benefits of similar moves. After all, a resort does not need to rely on having private jets nearby, as oftentimes, amidst a sea of competition, the promise of complimentary collection in a private car from the airport can ease a potential guest’s final apprehensions about the trip, worried that transport from baggage claim to beach sands will be a headache. By creating a holiday experience that offers a guest the comfort of great accomodation and all amenities but without the perpetual flash of a smartphone camera, there can be every expectation that, just as Canouan is appealing to privacy-conscious HWNIs, so too can another Caribbean resort, at a different price range, appeal to those longing for a holiday that allows them the old-fashioned opportunity to ‘get away from it all’. The hotelier would be establishing a unique niche in an economy where the value of maintaining digital well-being and pursuing digital detoxes is increasingly recognised. Meanwhile, Mandarin Oriental intends to build on its official regional debut in Canouan. The hotel group has announced a new location in the region, in Grand Cayman, set to launch in 2021.
GLOBAL COMPETITIVENESS
THE STAR BUSINESSWEEK
FEBRUARY 22, 2020
GLOBAL COMPETITIVENESS WANES AS WORLD ECONOMIES STRUGGLE BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT
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ore than a decade after the global financial crisis, the world’s economies are still not meeting competitiveness benchmarks and are failing to reap the rewards of the fourth Industrial Revolution, according to the World Economic Forum (WEF)’s 2019 Global Competitiveness Report. In keeping with the WEF’s pessimistic outlook, several of the world’s most developed economies slid down the rankings in this year’s report. Singapore was the world’s most competitive economy in 2019, pushing the United States out of the top spot and into second place. Hong Kong, the Netherlands and Switzerland make up the remainder of the top five. The big hitters such as the United Kingdom, Canada and Germany all fell this year, showing that even the G20 countries experienced challenges in the stagnant economic environment.
MEASURING PRODUCTIVITY As its name suggests, the Global Competitiveness Report tracks how competitive a region and countries are in comparison to their global counterparts. To get an accurate assessment, researchers examine factors relating to productivity. These include infrastructure, ICT adoption, macro-economic stability, health, the labour market, business dynamism, innovation capability and market size. The report looks at 141 economies, which account for 99 per cent of global GDP. The Caribbean is viewed as a region with Latin America, and not all Caribbean countries are evaluated due to shortages of available data. Of the ones that were, the WEF rates Barbados as the most economically competitive nation in the Caribbean, putting it at number 77 on the global rankings. The Eastern Caribbean island is closely followed by the Dominican Republic, Trinidad and Tobago and Jamaica – ranked 78, 79 and 80 respectively. It’s a mixed bag for the Caribbean nations included in the research. Jamaica and Trinidad and Tobago lost ground this year due to rising crime and slowing export growth, while Barbados and the Dominican Republic moved up the ranks. Barbados scored highly in terms of health, its stable financial system and its adoption of technology and the Dominican Republic
The top ten most competitive economies, according to the 2019 Global Competitiveness Report (Image courtesy WEF)
benefitted from a strong labour market. In the Latin America/Caribbean region as a whole, Chile is the top performer (33rd) and Haiti the worst (138th).
THE GLOBAL CONTEXT In terms of regional results, AsiaPacific is the most competitive, followed by Europe and North America. The rise of the East can be attributed to strong performances by Singapore, Hong Kong, Japan and China. Although lagging in 67th place, Vietnam is the country which has shown the most improvement in its rankings, according to the report. At the other end of the scale, subSaharan Africa is the lowest ranked with 25 of its 34 economies scoring below 50. While there have been improvements in Namibia, Rwanda and Uganda, the region is still far short of global targets, particularly in relation to health. It’s a different story in North Africa. Together with the Middle East, MENA continues to be a region on the rise and the WEF has particular praise for its progress in ICT adoption and well-developed infrastructure. Israel is ranked 20th, the UAE 25th and
Qatar 29th. Kuwait shows the most improvement of the MENA states, moving up 8 places to rank 46th. Rankings aren’t everything, however. A more holistic approach to the data shows that, despite losing out on the top spot, the US remains top in categories such as innovation and business dynamism. The Nordic countries are the most technologically advanced,
In keeping with the WEF’s pessimistic outlook, several of the world’s most developed economies slid down the rankings in this year’s report. Singapore was the world’s most competitive economy in 2019, pushing the United States out of the top spot and into second place
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showing innovative approaches to living conditions and social protection and, when it comes to green growth, Denmark, Uruguay and Zimbabwe have increased their renewable energy capacity the most. While the Caribbean trails well behind the best performers in all categories, its strongest areas are health, infrastructure and macroeconomic stability. Its weakest areas are in innovation capacity, institutions, ICT adoption and market size.
UNSUSTAINABLE The lofty Sustainable Development Goals set in place by the United Nations came with a deadline and, according to the WEF, the world is not on track to meet those targets by 2030. The pace of extreme poverty reduction is slowing; one in nine people are experiencing hunger and, as of 2015, 46 per cent of the world’s population were struggling to meet their basic needs and living on less than US$5.50 a day. The WEF takes a progressive approach to addressing the competitiveness gap, stressing that economic growth doesn’t just happen but must be nurtured by forwardthinking policy makers who are not just fiscally-minded but also take into account environmental and social constraints. But with countries such as the top-ranked Singapore still falling short, how can the Caribbean catch up? Through ‘investment-led stimulus’, suggests the report. In particular, investment that prioritizes productivity in infrastructure, human capital and R&D. These should also be accompanied by structural reforms that make it easier for businesses to flourish – a longstanding issue in Caribbean nations. Education is also a vital component to cover skills gaps in the workforce, increase digital proficiency and encourage innovative thinking. Any move towards greater uptake of technology should come with a corresponding investment in human capacity, according to the report, and low-income countries such as those in the Caribbean should be wary that increased technology and globalisation often have the knock-on effect of increasing inequality. 2020 will be a tough year for the global economy, according to the WEF which warns of a “likely downturn”, meaning that it will be more important than ever for developing countries to shore up their economic resilience. While external shocks such as climate concerns and trade and geopolitical tensions cannot be ignored, domestic obstacles remain the primary reason for subdued SBW growth in the Caribbean.
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INTERNATIONAL TRADE
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PREPARING FOR POST-COTONOU TRADE Continued from page 2
nations sought greater movement and skill-sharing while the EU looked for enhanced management and oversight of migration to crack down on illegal immigration. Another area that the EU is keen to revisit is development financing. Having poured millions into its less developed partners through the EDF, the bloc is now attempting to tighten its belt and move from its role as a wealthy donor to a more reciprocal arrangement. The European electorate has been feeling the pinch of austerity for several years now and has less tolerance for expensive development assistance programmes that have no domestic impact beyond adding to the rising public debt. In response, the EU is proposing to refinance the EDF, mainstreaming it into the Union’s 20122027 multi-annual budget. Fractures within the EU have weakened its position and none more so than the high-profile snub from one of its most powerful members. Formally exiting from the Union earlier this month, Britain is now free of its European agreements and this leaves the CPA in an uncertain position. While CARICOM has negotiated separate EPAs with the newly-independent UK, their absence from the CPA is likely to have a significant impact on political allegiances and development funding. The EU is not the only group at the table showing cracks, however. The ACP has also waned in the 20 years since the CPA was first signed. Though its members share certain common goals and concerns, not all developing or lowincome countries are alike and it must be noted that the ACP encompasses three very different regions and 79 nations. The ACP is in the process of revising the Georgetown Agreement in preparation for its new incarnation as the Organization of ACP States and is also fending off overlap with the African Union, which has been quietly building its own bilateral relationship with the EU. At risk of being sidelined, Pacific and Caribbean partners have begun looking to other southsouth allies such as Brazil. The rise of China and the Middle East North Africa (MENA) bloc also points to an era where old alliances must be redrawn and the traditional model of a united ACP front against with the dominant EU has grown stale.
The 36th ACP-EU Joint Parliamentary Assembly which took place November 2018 in Cotonou, Benin (Photo courtesy ACP)
PROGRESS SO FAR According to those involved in the negotiations, the new and improved CPA will not materialise by March 1. Instead, it’s likely that the ACP and EU will create an extension giving them until December 31, 2020. In the two years since the post-Cotonou negotiations began there have been two rounds of discussions, the most recent concluding in April 2019. The first stage tackled the basics – addressing the overarching principles of the original agreement and re-establishing strategic priorities such as those relating to human rights, social development, inclusive economic growth and environmental sustainability. In this first round, the friction points included an obligation to “promote and respect sexual orientation and gender identity”, to which the ACP objected, and the principle of sovereignty, with the ACP seeking a policy of nonintervention on internal conflicts. There has also been considerable back and forth over trade, with the EU pushing ACP nations for more liberalisation of their markets and to go beyond their WTO obligations. Despite these hurdles, enough consensus was reached for the talks to go forward, and a second round began in 2019, this time on developing regional protocols with the individual regions of the ACP. Discussions on the Caribbean side are
being largely led by a Central Negotiating Group (CNG) comprised of the Dominican Republic, Guyana, Jamaica and Saint Lucia at the ministerial level, alongside an Ambassadorial CNG whose remit is technical discussions in collaboration with a delegation from Brussels. These negotiations are currently ongoing. The slow but steady progress seen in the first stages of the post-Cotonou negotiations appears to have entered more of a holding pattern with very little to show on the regional protocols and several crucial, hot button issues still at a standstill – such as development and post-Brexit trade. With much still to be determined, and a worrying silence from stakeholders so far this year, it remains to be seen if there will be a new agreement on the table by December.
The Saint Lucia Registry of Companies & Intellectual Property Company Incorporations Name: VLG Incorporated Description: Real estate acquisition and development Directors: Lisa Monrose Date Incorporated: 8/1/20 Chamber: APA Business Conduit
Name: Express Rentals and General Services Ltd. Description: Rental of equipment, vehicle and construction services Directors: Benjamin Dalkhan Date Incorporated: 7/2/20 Chamber: SEDU
Name: Faithful Homes & Services Ltd. Description: Real estate Directors: Yannil Sam Date Incorporated: 6/2/20 Chamber: SEDU
Name: A-ONE Construction Ltd. Description: General construction Directors: John Joseph, Sylvester Edgar, Robert James Date Incorporated: 7/2/20 Chamber: SEDU
Name: Danfin Inc. Description: Financial advice, training, consultancy Directors: Catherine Fanus Date Incorporated: 6/2/20 Chamber: SEDU
Name: Great Physician International Inc. Description: Herbal products Directors: Ronda Archer, Kay Leonce Date Incorporated: 12/2/20 Chamber: SEDU
Name: BIODE Ltd. Description: Biodegradable products Directors: Keisha Little, Krishna Khodra Date Incorporated: 6/2/20 Chamber: SEDU
Name: Chefcity Global Group of Companies Inc. Description: Trade Directors: Trecia Jules, Francis Jules Date Incorporated: 12/2/20 Chamber: SEDU
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FEBRUARY 22, 2020
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FEBRUARY 22, 2020
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