In response to the TripleP@Sea program which aims at improving the sustainable development of the island, tourism is being considered as an important concept to improve this development. This thesis forms a part of this masterplan and is a first attempt to examine the economic impacts of tourism on St. Eustatius by means of an I-O model. Prior research to the tourism sector has been performed by Van Duin (2015), Van de Kerkhof et al (2014), Sneek (2014), Van der Lely et al (2014) and Spies et al (2015). Furthermore, reports such as the SDP (2010), the EDP (2004) and several publications of the CBS are providing information related to the tourism sector. This research has elaborated on these sources in order to estimate the economic impacts.
From the previous section, it became clear that most of the impacts are taking place in the hotel and restaurant sector. Those are the sectors that are mostly directly affected by the tourism expenditures.
Other sectors that are directly affected are the trade, transport and other services sector. The total impacts consist not only of the direct effects, but also of indirect effects that are taking place in the other sectors. Overall, the tourism sector is responsible for 38.42 jobs and 45.65 jobs when 1500 tourist arrive on Statia. In the situation of 2000 tourists, this is between 53.45 and 80.85 jobs and for 2500 tourists this varies between 66.80 and 101.03 jobs. This means that tourism sector has a share between 3.49% and 9.18% of the total jobs on the island, depending on the number of tourists. The total value added that the tourism sector generates varies between 1 and 2 million dollars.
To obtain the results of this research, two sources of important information are required for this research. First of all, data are needed about the number of tourists and the expenditure pattern of these tourists. Secondly, national I-O tables are required in order to calculate the impacts. Going back to the first source of information, the CBS is keeping track of the number of tourists. Their data is considered as inaccurate by several stakeholders on the island though (Van Duin, 2015). The numbers from Van de Kerkhof et al (2014) and the deteriorated position in air accessibility indicate that the actual number of tourists is much lower. The results are therefore based upon a number of tourists which is considered as more reliable according to Scubaqua (personal communication), which keeps a record of an important source of tourism, diving. Because the I-O model is a linear model, the impacts can easily be estimated if the actual number of tourists would be higher. Therefore, the pendency regarding the number of tourists is definitely a constraint, but one that could relatively easy be overcome. If this would lead to reliable impacts is uncertain, but that would be because of the properties of the model. This is something that will not be discussed. Also, the results of the tourist expenditures are biased by the time span of this research. Data from Van de Kerkhof et al (2014), who performed his study during April and May, has been used to obtain more reliable results. Still, there is a data gap in this area. For example, now there is one average expenditure profile based on all the tourists, while it would be more realistic to develop separate ones for all the different types of tourists
53 such as divers, hikers and business tourists. Another remark should be made about the expenditures
related to accommodation. The results from this research and from Van de Kerkhof et al (2014) indicate a substantial lower average amount of expenditures to this sector, namely 42.71 and 56.67 dollar, compared to the actual prices for the accommodation facilities which can rise up to 300 dollar per night. This is because a part of the tourists do not spend the night on Statia or stay with friends or families instead of booking an accommodation. Also Van Duin (2015) found out that divers, who always stay more than one day on the island, ‘’only’’ spend 90 dollars a day on accommodation. Considering the second point, the position of St. Eustatius makes it difficult to apply an appropriate I-O table. From a legal point of view, St. Eustatius belongs to the Netherlands. The economic structure of the Netherlands is however completely different compared to St. Eustatius. The ones of Malta and Aruba are therefore used instead.
It has become clear that this research has faced some limitations and data problems. The reason for this situation is because of the limited research to this topic on St. Eustatius. Better results can be obtained by creating a better view of the tourist profiles. First of all, more insight is required in the tourist arrivals. For now, the CBS has estimated this number at 14,600, but it is unclear what this number actually means. When one wants to estimate the impacts on a more reliable way, it should be known how many divers, hikers and business tourists arrive and how many of them create an actual impact on the island. Therefore, more data is required regarding the expenditures of the different types of tourists.
The application of I-O tables from Aruba and Malta is done because nothing is available for Statia (or the other Dutch Caribbean islands). It is also very unlikely that this will happen anytime soon, looking to the small amount of data that is currently available. Also, the OECD is publishing I-O tables from only big developed economies. I-O tables from small island economies are only very scare available.
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58 Overview:
Appendix A National coefficients Aruba 1999 Appendix B CILQ coefficients Aruba 1999 Appendix C FLQ coefficients Aruba 1999 Appendix D Regional coefficients Aruba 1999 Appendix E Leontief Inverse matrix Aruba 1999 Appendix F National coefficients Aruba 2011 Appendix G CILQ coefficients Aruba 2011 Appendix H FLQ coefficients Aruba 2011 Appendix I Regional coefficients Aruba 2011 Appendix J Leontief Inverse matrix Aruba 2011 Appendix K National coefficients Malta2011 Appendix L CILQ coefficients Malta 2011 Appendix M FLQ coefficients Malta 2011 Appendix N Regional coefficients Malta 2011 Appendix O Leontief Inverse matrix Malta 2011 Appendix P Questionnaire
Appendix Q Calculation market-basic prices
A
60 B
C
62 D
E
64 F
G
66 H
I
68 J
K
70 L
M
72 N
O
74 First of all, I would like to thank you for participating in this research. The objective of this research is to analyse the economic impact of tourism on St Eustatius. Answering this questionnaire makes it possible to derive the expenditure profiles of the tourists. All the answers are anonymous and the data will be used for scientific purposes only. Participation is voluntary and optional. If you have any questions contact me: joosta.huijbregts@wur.nl.
St. Eustatius
1. How did you arrive?
o By plane o By boat
2. Is this your first time visiting St Eustatius?
o Yes
o No, it is the ………time
3. How many nights are you staying on St Eustatius?
……….
4. Have you visited, or are you planning to visit other regions in the Caribbean during your stay?
o No
o Yes, namely……….
5. What is your main purpose for visiting St Eustatius?
o Diving
o Flora and fauna o Cruising
o Cultural heritage
o Visiting friends or relatives o Business
o Other, namely………..
6. How are you accommodated on St Eustatius?
a. Hotel b. Apartment c. Pension/B&B d. Cruise ship
e. I do not spend the night on St Eustatius f. Other, namely………
Expenditure profile:
7. What was your household income before taxes of the last year (in US dollars or Euros)?
o Less than 25.000$ o Less than 22.155 euro o 25.000 to 34.999$ o22.155to 31.016 euro o 35.000 to 49.999$ o 31.016 to 44.310 euro o 50.000 to 74.999$ o 44.310 to 66.465 euro o 75.000 to 99.999$ o 66.465 to 88620 euro o 100.000 to 149.999$ o 88620 to 132.930 euro o Prefer not to say o Prefer not to say
8. Please indicate how much you spend at St. Eustatius on each sector in dollars/euros or as a percentage of total spending’s:
Sector Total spending in
dollars/euros
Percentage 8.1 Accommodation
8.2 Food and drinks
8.3 Local transportation on the island (taxi, bus)
8.4 Museum 8.5 Diving 8.6 Shopping
8.7 Car and scooter rental 8.8 Boat rental
8.9
Other,namely………
Demographic information:
9. What is your age?
………
10. What is your nationality?
………..
11. What is your gender?
………..
12. With how many persons are you traveling?
……….