Impetus:2003-4 –5.9% growth in hotels and restaurants –7.8% wholesale/retail trade –4% government services –4.7% banking and insurance.

• Impetus:2003-4– 5.9% growth in hotels

and restaurants– 7.8% wholesale/retail

trade– 4% government

services– 4.7% banking and

insurance

Tourism

• Total visitor arrivals grew – +4.5% in 2003– +15.5% in 2004– 8.1% decrease in 2005

• Cruise arrivals– -18%– 60% of all arrivals

• “Stayover” segment +6.5%• Yachts +21.9%• Excursionists -34.1%

Oil prices +27%Hurricanes -activeTerrorism

• Growth in European visitors due to– Relative value of US dollar– Perception of Caribbean as

safe destination

• “Tourism receipts account for 71% of total export of goods and services”

Agriculture• 2004 +1.8%, 2005 -22%• 2004 Bananas =47%of Tot• 2005 1.3% of GDP

– 2004Expanded by 17.7%– 2005 Decreased by 36.2%

• Non-traditional crops =25% – 2004-Declined 2.4%– 2005 -16.9%

• Other sectors– Fisheries 2004+.3%, 2005-6.8%– Livestock 2004-14.2, 2005+2.2

Bananas

• Total exports from Windward Islands • 2004 +15.9%. 2005 -25.7%• St. Lucia’s 2004 +3% to 54% of total• 2005 -29.1% to 52% of total• Contributing factors

– Hurricane Ivan, Sept. 2004, Roseau valley– yellow sigatoka or leaf spot disease

• deterioration in field maintenance/crop husbandry

Bananas

• 11.4 percent fall in purchases by supermarkets• Hotel purchases-16.0 percent, despite an increase in

stay-over arrivals. This highlights the weak linkage between the two sectors, which was exacerbated the poorly organised marketing structures that exist in the non-traditional sector.

• There continues to be a need to strengthen the linkages between the agricultural and the hotel sectors. However, there are issues of availability, consistency and quality of crops supplied. Moreover, farmers who currently have working capital constraints have had some difficulties adjusting to the payment systems under which hotels operate.”

Manufacturing

• +6% in 2004, +13% in 2005• Spurred by government

incentives and increased domestic demand

• Constraints– Diseconomies of scale

– Cost of energy

– Cost of shipping to external markets

• 7% of total employment• Beverages constitute 50% of

all manufacturing exports

Communications/Telecommunications

Communications/Telecommunications

• 2004 +4.6%• 11.3% of real GDP• “cellular, internet and cable sub-sectors continued to

grow albeit at a slower rate relative to 2004. 9.6 percent decrease in cellular minutes sold.”

• the land line component continued to decline in both subscriber base and activity, a trend which began with the introduction of the new mobile companies in 2003.

Electricity

• 4.8% increase in electricity generated• All categories except industrial recorded increases in

consumption• 3.2% increase in domestic consumption

– Vs. 6.2% increase in commercial consumers

• Number of hotel consumers increased 8.3% but demand increased 2.6%

• 2004 price LUCELEC paid +30% to $3.82/gallon• 2005 +55% to 5.87/gallon

– 2004 Fuel surcharge +23% to 22.6 /unit. Highest in eight years– 2005 +42% to 32.1c

Alternative sources of energy

• The Government of Saint Lucia is currently working on a National Energy Policy.

• Geothermal• Solar

– Working with the United Nations Industrial Development Organization to develop a solar financing project; aimed a promoting benefits of solar water heating and procuring solar energy amongst low-income households.

• Wind– Continuing to encourage development of wind

energy– Received technical assistance under the

Caribbean Renewable Energy Development Project (CREDP)

– Help Lucelec acquire 71 acres– Measuring equip. provided

• Landfill gas– Undertaken assessment of potential for

capture of landfill gas; feasibility studies have produced promising results

• Hydroelectricity– Study conducted on potential of John

Compton Dam– Potential for construction of small plant with

installed capacity of 200kW

Misc. statistics of interest

• Population: 162,311

• Birth rate: 15.3/1000 population– US rate: 13.9 (2002)– Kenya: 40.13

• Infant mortality rate: 14.7/births– US: 6.8– Kenya: 62.62

Construction• Public sector construction expenditure more

than doubled to $134.5 million,

• “During 2005, the level of tourism investment within the domestic economy was unprecedented. This high level of investment can be associated with the International Cricket World Cup which will be partly hosted by St. Lucia in 2007.”

• Properties expected to open in 2005:– Four new hotels

• 590 new rooms/apartments/villas• Construction costs: $85 million

• Properties under construction 2005 ($130million)– 30-home timeshare resort (Soufriere)– 20-condo complex (Rodney Bay)– 50-villa, 144-condo and marina facility (Rodney Bay)– 300-room Beaches Resort (Rodney Bay)

• Continued investment in road infrastructure– Castries/Gros Islet highway upgrade– East Coast Road

• Planned $34.2 million government expenditure to upgrade Beausejour Cricket Ground

• WASCO expenditure of $5-7 million on Northern Water Supply project– Increase supply by 25%