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MARIGOT--Estimated Gross Domestic Product (GDP) per inhabitant in French St. Martin is 14,700 euros, the lowest of all French territories with the exception of Mayotte (6,575 euros), and less than Dutch St. Maarten where the equivalent GDP is estimated at 16,018 euros per inhabitant.

The above was just one of the findings in the 98-page 2013 report on the French-side economy presented Monday by officials from Institut d'Émission des Départments d'Outre Mer (IEDOM). President of the Territorial Council Aline Hanson and President of the Chamber of Commerce Jean Arnell were also present to hear the report.

IEDOM publishes each year a report for each territory based on information collected from legitimate sources to provide a snapshot of local economies. The focus for St. Martin is on the budget of local government and two of the main pillars of the economy, tourism and construction.

St. Barths showed the highest GDP at 35,700 euros followed by New Caledonia 29,905 euros, Martinique 20,655 euros, Guadeloupe 18,919 euros, Polynesia 18,867 euros, Reunion 18,549 euros, and French Guiana 14,893 euros.

GDP is one of the primary economic indicators that gauge the country's health and represents the total dollar value of all goods and services produced over a specific time period.

Director of IEDOM Jean-Marie Paugam, one of the two presenters of the report with Bérangère Callamad responsible for studies and credit-lending establishments, noted the GDP of French St. Martin is attributed to "a very strong demographic growth of 27 per cent between 1999 and 2010."

Despite the lack of statistics from the National Institute for Statistics and Economic Studies (INSEE) Paugam summed up the state of the economy in 2013 as "fragile" where different sectors were "struggling to bounce back despite timid indicators of a recovery."

Tourism: The report indicated tourism overall performed better in 2013 than in 2012 but the French- side was still unable to capitalise on the trickle-down effect of tourism from the Dutch-side where 90 per cent of visitors arrive first. But it noted the island continues to retain its attractiveness as a destination.

"French St. Martin still remains detached from the good tourism health of the Dutch-side," commented Paugam.

The total number of visitors to the island in 2013 was 2.451 million, of whom 73 per cent were cruise ship visitors. The Port of Marigot received 5,161 cruise ship visitors (an increase of 7.7 per cent) and 133,229 inter-island passengers (-6.1 per cent) where 90 per cent of passengers chose Anguilla as their destination.

Grand Case Airport received 199,701 passengers, slightly less than in 2012. Air Caraïbes accounted for 54.8 per cent of the traveller market, Air Antilles Express 37.8 per cent, and St. Barths Commuter 7 per cent. The total air passengers for 2013 (both airports) was 670,000.

Hotel sector

The hotel sector has 713 rooms in four-star and above properties and 693 in three-star properties, compared to 1,610 in 2011 and 1,760 in 2010, a drop in hotel rooms of 20 per cent over three years. By contrast hotels of one or two stars, or not classified, rose by 244 per cent, to 272 rooms.

The average hotel occupancy rate in 2013 was 53.6 per cent, an increase of 3.8 points. The number of room nights also rose by 7.6 per cent to 292,600. However in 2009 there were 300,000 room nights recorded but with an occupancy rate of less than 50 per cent. The tourism sector employed 1,431 persons in 2013 of whom seven were part time or supplementary employees.

Construction sector

While 2014 looks to be better for the public works sector with on-going projects such as social housing, the construction of Cité Scolaire in La Savane, currently the biggest project on the French side, completion of the media library, water reservoirs etc, it experienced a bad 2013. The number of salaried employees dropped by 11 per cent to 381, in contrast to 600 in 2009 and 425 in 2012.

IEDOM indicated the public works sector (BTP) is the fourth employment provider after that of services and trades (34.3 per cent), hotels and restaurants (25.1 per cent), and commerce (21.8 per cent)

Financial difficulties of the Collectivité, exorbitant social charges that construction companies have to pay, and less demand from the private sector were among reasons for the sector's decline in activity along with a decline in construction permits; 59 permits were issued in 2013, 54 in 2012, 66 in 2011, 75 in 2010, and 97 in 2009; between the years 2006 and 2009 averaged 130 but dropped to below 100 from 2009.

Applications for construction permits have also been consistently in decline, from 176 in 2006, 142 in 2008, 118 in 2010, 81 in 2012, and 101 in 2013.

Commenting on the unemployment rate on the French side of 27.3 per cent with 4,301 persons out of work as of the end December 2013, Paugam suggested the Dutch side has an unemployment rate "two times less than that of the French-side due to its more liberal policies favouring employment."

As for IEDOM's perspective for 2014, the director said it will be a year of "total uncertainty."

"Tourism and the construction sector are still in a fragile state due to lack of demand. Even if the Collectivité is moving forward with the Bay of Marigot project it won't have any effect on the economy in 2014," he concluded.