Present Market Conditions
Geographically known as the West Indies in the Caribbean region, an archipelago of mostly English speaking island countries, which has chartered membership in an organization named the Caribbean Community (CARICOM), charged with the responsibility to bring about social and economic unity among its members. The Organization of Eastern Caribbean States (OECS) is a sub-division within CARICOM that have accomplished economic unity with a single Central Bank and Currency. The Eastern Caribbean Central Bank (ECCB) has maintained it Eastern Caribbean Dollar at EC$2.70 to the United States Dollar.
Other regional institutions such as; the Caribbean Regional Technical Assistance Centre (CARTAC), based in Barbados, which provides technical assistance and training in core areas of economic and financial management at the request of its participating countries and The Caribbean Centre for Money and Finance which is a policy research institution established by central banks of the region and the University of the West Indies (UWI), to undertake studies and provide information for monetary and financial policy issues for the region and the Caribbean Development Bank intended to be the leading catalyst for development resources into the Region, working towards the systematic reduction of poverty through social and economic development, all are key in developing the united Caribbean Community.
CARICOM Country
|
Main Sector
|
Population
|
Gross Domestic Product US$
|
GDP per Capita
|
Currency – US$
| |
Anguilla, OECS
|
Tourism
|
14,436
|
$131,659,259
|
$9,120.20
|
EC
|
$2.70
|
Antigua & Barbuda, OECS
|
Tourism
|
85,536
|
$742,988,889
|
$8,686.27
|
EC
|
$2.70
|
Bahamas
|
Tourism
|
342,400
|
$7,208,240,000
|
$21,052.10
|
BH
|
$1.00
|
Barbados
|
Tourism
|
275,719
|
$3,894,850,000
|
$14,126.16
|
BD
|
$2.00
|
Belize
|
Tourism
|
333,200
|
$1,358,700,000
|
$4,077.73
|
BZ
|
$2.00
|
British Virgin Islands, OECS
|
Tourism
|
24,004
|
$837,001,000
|
$34,869.23
|
US
|
$1.00
|
Dominica, OECS
|
Tourism
|
72,514
|
$236,288,889
|
$3,258.53
|
EC
|
$2.70
|
Grenada, OECS
|
Tourism
|
90,343
|
$357,455,556
|
$3,956.65
|
EC
|
$2.70
|
Guyana
|
Agriculture
|
758,000
|
$1,087,760,000
|
$1,435.04
|
GY
|
$200.00
|
Jamaica
|
Mixed
|
2,698,000
|
$12,746,450,588
|
$4,724.41
|
JA
|
$85.00
|
Montserrat, OECS
|
Tourism
|
5,097
|
$27,900,000
|
$5,473.81
|
EC
|
$2.70
|
St. Kitts & Nevis, OECS
|
Tourism
|
40,131
|
$290,703,704
|
$7,243.87
|
EC
|
$2.70
|
St. Lucia, OECS
|
Tourism
|
159,585
|
$623,500,000
|
$3,907.01
|
EC
|
$2.70
|
St. Vincent & the Grenadines, OECS
|
Tourism
|
118,432
|
$374,551,852
|
$3,162.59
|
EC
|
$2.70
|
Trinidad & Tobago
|
Energy
|
1,576,000
|
$21,195,809,524
|
$13,449.12
|
TT
|
$6.30
|
Total Region
|
6,593,397
|
$51,113,859,260
|
$7,752.28
| |||
Source: The latest data from Local Central Banks & Statistical Offices
For more on the Caribbean Economy go to:http://www.ccmf-uwi.org/files/publications/economic_report/cepr_2010-06.pdf
Tourism Sector
The majority of the Caribbean territories’ Governments depend heavily on Tourism to generate, foreign exchange to pay for imports and foreign debt servicing, and tax revenues to finance their national agendas. Most Governments allocate large recurrent percentages of their national budgets, into pooled funds, to support the Tourism sector with joint foreign advertising campaigns and capital infrastructure investment to add and refurbish the existing room stock. The Caribbean regions’ Tourism sector has been redefined to expand from sun, sea and sand into an event hosting model, in response to the Cruise Ship business model, which basically as floating hotels selling multiple destinations keeping the greater part of passengers’ revenue on board through all-inclusive activities. Events, ranging from business seminars and social conferences to entertainment festivals and specialty environment tours, along with the traditional venue, beach and gambling activities promoted at group rate pricing to compete.
Transportation Sector
The regions’ main economic sector is overwhelmingly tourism. Hence, the transportation links by air and sea are both crucial, moving both people and cargo. The dominant international airline is, a newly financially restructured Caribbean Airlines, majority owned by the Government of the Republic of Trinidad & Tobago, which recently expanded to operated routes and aircraft previously held by the now defunct Air Jamaica. Caribbean Airlines competes with American Airlines, British Airways and Delta to transport visitors in between the region and major world destinations. In the region, air travel is dominated by LIAT, which is owned by several the territories’ Governments, and whose smaller aircrafts are geared for island hopping and to feed the larger international carriers. Large Cruise ships operate in the region but only for passengers boarding at an international port. Passenger sea travel in between the region is limited to inter-island ferries, where available, or hopping a freight or fishing vessel. Both air and sea international container cargo are bulk delivered to the largest ports in the region and repackaged, as necessary, to reach its final destination.
Energy Sector
The majority of these islands states and even on the South and Central American continent rely heavily on Diesel fuel to heat water into steam, to drive its turbines to produce electricity for its main distribution grid. The regions’ transportation sector also uses diesel and gasoline fuel. Making the regions’ economies ultimately dependent on hydrocarbons and its refined products, the twin island Republic of Trinidad & Tobago, which has a well developed hydrocarbon industry, and a recently negotiated deferred payment deal with the Republic of Venezuela, supplies the region. It is noteworthy, that almost all electricity generated in Trinidad & Tobago is fired by Natural Gas and incentives are in place to convert vehicles to run on Compressed Natural Gas. Barbados has a well advanced solar powered industry. Jamaica has a small wind powered generation farm. Guyana has invested in a hydro-electricity plant and on the island of Nevis electricity is now generated from thermal energy.
Business Services Sector
The Business Consultancy and Management Services sector is a multi-discipline, highly competitive field which, due to advances in technology, is no longer restricted by geographical borders and is presently experiencing growth across cultures, religions and many other social boundaries. Led by economists specializing in international marketing, seeking and identifying new and feasible opportunities, to win or increase market share. Followed by financial experts, involved in venture capital, private equity and other forms of mezzanine funding, who are in search of superior returns on investment, and supported by corporate lawyers and accountants, strategies are designed and implemented to penetrate, merge or acquire a market presents.
