Tourism Without Benefits and the Blue Economy

By Kwame Nkosi Romeo

People's power can assure actual change with a new vision of empowerment for the people of Antigua and Barbuda. Simultaneously, the people's revolution must obliterate dictatorial control over lives and livelihood and reorganize that power into the people's hands for a legitimate democracy and decent future to arise!

It is time to end the political coercion and regain control of people's destinies by transforming the oppressive system. The masses' vote is a powerful representative for a promising future that can end the political cabal's autocratic control. This unchecked institutional power must be terminated for sustainable livelihood to survive and thrive. 

The Antigua and Barbuda regime's indifference to people's needs is responsible for growing unfairness, inequality, and deprivation. Soaring poverty is a crisis as the government seeks to retreat from one of the most critical Sustainable Development Goals (SDG) targets: Feeding the nation. Since inaccessible access to affordable capital, partial government policy, and worsening infrastructure undermine food security with the shocking reality of food import bills.

Five examples of imports originating from the USA 2011 - 2020: 

Meat, poultry US$113,647(m), dairy products and eggs $18,688(m), vegetables US$18,686 (m), other foods US$53,296(m), and bakery products US$20,098 (m). The dominant nonfood items were fuel oil, valued at US$783,761(m), and petroleum products, US$734,607 (m). Within those periods, US commodities exports to Antigua and Barbuda amount to US$3,396,894,000 billion (b).  Between 2011 and 2014, the United Progressive Party (UPP) accounted for 21.23% and  ALP 2015- 2020 78.77% of US$3,396,894,000 (b).

 

Antigua and Barbuda's agriculture is underfunded, dating back decades. Recent examples clarify that point. Between 2015 and 2021, allocation totals US$39,215,514 m (EC$105,881,889 m), averaging US$5,602,216 m (EC$15.1 m ) yearly. The total represents 32.085% of the US$122,222,222 m (EC $330 m) given to affluent business people in 2018.

The alternative to the aforementioned is developing agriculture, not enriching the wealthy. One such proposal outlined a growing method for fresh herbs and lettuces, the product advantages, and environmental benefits of these methods encompassing greenhouses, hydroponic, and open fields growing 35 to 45 various fruits and vegetables based on two options: 

1 -Total area M2 202,000 or (49.9152871 acres) costing US$8.3 million (m)  

2-Total area M2 303,000 or (74.8729306 acres) costing US$11.6 m

The above cost covers site analysis, including water analysis, climate area and environment, construction design, irrigation, system planning, service areas, and packing houses. Plus, consulting and supervision for farm and greenhouse.

Still, the government favors dominant food interests, personal aggrandizement, and millions in concessions to affluent business people above progression and sustainability. After all, the twin-island state can realize a level of food security. Most imported vegetables can be grown for a fraction of the cost, either in open fields, hydroponics, or greenhouses.

Next, since feeding the nation is a priority, animal husbandry and linking the production with the consumers and procurement of the tourism sector will contribute to the development of food security.

In the same way, the tourism sector needs more in-depth evaluation since Antigua and Barbuda is an economy of starvation rather than flourishing goods. Although essential to the economy, there are no local benefits in its configuration; ownership, upward mobility, and tourism multiplier effect are absent. Likewise, agriculture linkages to this economy are non-existent. 

Consequently, CARICOM must assess direct investment in transportation infrastructure that motivates growth and capitalize on the emerging Blue Economy.

As reported by the World Bank Document NO: AUS16344 SEPTEMBER 2016, the global blue economy is estimated to be valued at US$1.5 trillion. Caribbean maritime accounts for 76.4% of the underestimated revenue of $450 billion (B) from the Caribbean Sea. Still, these gains are absent from peoples' livelihood in Small Island Development States (SIDS).

So Antigua and Barbuda prime minister Gaston Browne giving YIDA exclusive rights over our rights to the sea and Exclusive Economic Zone (EEZ) reduces the shared inheritance of future generations. Furthermore, the YIDA agreement is evil and violates the UN Convention and other rules of international law involving the twin-island nation's independence over their territorial sea.

Moreover, the twin-island nation sovereignty outlined in the United Nations Convention on the Law of the Sea is usurped by the high-handed ALP government and ceded to YIDA. Don't be fooled. The YIDA arrangement was a precursor for the enormous financial bounty from the much-touted blue economy. A people's government must cancel that crooked deal.

By 2030, the blue economy is estimated to contribute US$3 trillion to the world's GDP. However, Caribbean governments are incapable of any conversion of this value. Sixty years since the Canadian government gifted two custom-built cargo/passenger ships, Federal Palm and Federal Maples, to the West Indies Federation in 1961, no other local shipping line has existed ever since. Thus, the moment is advantageous for CARICOM to formulate a functioning relationship toward achieving revenue benefits from the Caribbean Sea, cutting down on import expenses, and building economic power to develop the nation's genuine independence.

Where are CARICOM bulldog tenacity and radicalism?

Cruise tourism accounts for 11.5% of the $450(B) revenue generated from the Caribbean Sea but is of little value to the community. For instance, between 2008 to 2016, St.Lucia cruise and stayover visitors spent amount to US$5,542.96 billion (b): cruise tourism amounted to US$190.37 million (m) or 3.434%, while stayover visitors recorded US$5,352.59 (b) or 96.565%. 

Again in 2017, St. Lucia cruise and stayover visitors spending amounted to US$813,444,445 million (m): cruise tourism amounted to US$22,777,778 or 2.8%, while stayover visitors recorded US$790,666,667 m or 97.2%. Cruise visitors account for 60.338% and stayover visitors 39.6618% of the 973,548 visitors.

In addition to wealth extraction, these cruise behemoths leave the Caribbeaners to suffer environmental misery: hurricanes, rising sea levels, and non-communicable diseases.

• This adversity was evident after Hurricane Dorian's significant destruction of Bahamas offshore islands on September 1, 2019, and the Royal Caribbean Cruise Line (RCCL) & Disney Cruiselinre unforgiving $1.0 (m) donation each in 2019. Imagine $1.0 million of RCCL $1.8 (b) net profit in 2018.- a measly 0.06%. Insultive!

Three Cruiseline dominate the Caribbean cruise sector: Carnival Corporation, Royal Caribbean Cruises, and Norwegian Cruise Line. Together, they accounted for nearly $6 billion in profits and over 70% of the cruise market in 2018.

The people are not empowered to control the economy's commanding heights meaningfully. (Carnival, Royal Caribbean, and Norwegian & Disney cruise lines are in a fierce battle for domination in the cruise industry - here's how they stack up June 30, 2019.)

Of the 3,022 ships that arrived in Antigua and Barbuda between 2018 and 2020, 28.127% were passenger vessels, and 71.872% or 2,172 vessels were cargo vessels. The consequence of COVID saw a reduction between 2019 and 2020 of 40.4% from 839 to 500. Indeed, workers within the industry are affected. There is populous empathy for their plight, but it is adverse to a government unable to strategize the way forward. 

What does the cruise ship offer besides the head tax and polluting our ocean? The cruise line employment is from the Pacific-rim countries, and US companies do provisioning.

What have the people gained after more than 74 years? Not a damn thing!

A report delivered by Ivor Jackson at the sub-regional level on April 25, 2003, points to the economic impact of the yachting sector as being more lucrative than cruise tourism, and these figures are consistent close to two decades later: 

"Yachting attracted approximately 25,000 visitors annually who contributed 4.5% of total tourism expenditure, in contrast to cruise ship arrivals, which brought in 300,000 persons but contributed only 3.1%." -The Report of the Sub-regional Meeting on the Contribution of Yachting to Development in the Eastern Caribbean.

So, too, a World Bank (WB) document examining visitor spending habit in the Eastern Caribbean confirm the same practice. For instance, cruise ship passengers' meager spending accounts for 4.76% whereas stayover total 95.24%: "... stayover visitors spend significantly more than cruise-ship passengers—roughly US$50 vs. US$1,000 per visitor for the OECS in 2012—" (Directing Tourism in the Eastern Caribbean: the case for a regional ferry)

According to the Caribbean Tourism Organization (CTO), in 2015, the Caribbean recorded 28.7 (m) stayover tourists, and 24.4 (m) cruise passengers produced a total spend of about US$30 (b). Of this amount, around US$2.4 (b), or 8%, came from cruise passengers, while stayover visitors spent US$27.6 (b), or 92%. 

Still, Prime Minister Gaston Browne dispossessed the public of Fort James Beach Antigua (FJBA) by transferring the possessions of the state to the Royal Caribbean Cruise Line (RCCL). FJBA is to be converted similarly to the exclusive rights 260-acre Labadee on the north coast of Haiti. RCCL trademarks the name Labadee after Marquis de La'Badie, an enslaver.

Finally, diversification of tourism is crucial; another priority must be on formulating Caribbean shipping lines in alliance with China, Japan, and South Korea. Shipping accounts for 76.4% of the underestimated revenue of $450 billion (B) from the Caribbean Sea. Four major containerized vessels comprising Crowley, Seaboard Marine, A.P. Moeller - Maersk, Dole, and four US ports dominate US exports to the Caribbean: Port Everglades, Fla, Port of Miami, Wilmington, Del. and West Palm Beach, Fla.

Between 2010 and 2019, five Caribbean countries of the 15 member States predominated in the Twenty-Foot Equivalent Unit (TEUs) movement of goods: Jamaica, the Bahamas, Trinidad and Tobago, Haiti, and Surinam account for 37,669,032 (m) or 92.46% of CARICOM total 40,741,275 (m). The 15-Member CARICOM States add up to 0.60 % of 6,834,799,866 (b) world TEUs. 

On top of that, five Associate Members of CARICOM contributed 963,305 TEU, with the British Virgin Islands (BVI) and Cayman adding 347,538 and 524,300 TEU of that amount. Thus, the totals of the 15 Member and five Associate Member States combined amount to 41,704,580 TEU or 0.61% of the world TEU movement. (UNCTAD- United Nations Conference on Trade and Development Statistics)

Why can't the Organization of East Caribbean States (OECS) or Caricom start promoting authentic Caribbean travel, emphasizing the culinary delight of the nation-states, adding more small, more ideal cruises, and positioning Caribbean airlines to bring in visitors? The nation-states will provide provisioning for the vessel, create employment, and organize environmental practices. Much better can be done than what is happening now!

 

What will it take to rise from the depth of despair? Time for radical change!