Unbiased look at the Sint Maarten Elections
French-side entrepreneur perseveres in difficult times
MARIGOT--For many people Marigot always had the potential to be the more attractive capital of the island and still has, to paraphrase a Kia commercial, "the power to surprise."
After all what could be more enticing to the vacationer than a little corner of France tucked away in the Caribbean, a sea front town with quaint streets, outdoor cafés, markets, shopping, the classic French boulangeries, fine restaurants , the ambiance, the savoir faire? Blend all of this with Caribbean culture and it should be a recipe for success.
The French-side enjoyed its heyday in the 80s and 90s with an up-market clientele, and Americans got a "good bang for their buck" against the franc. But then everything changed...cruise ships, growing impossibly bigger each year, brought a different type of mass clientele to the Dutch side, timeshare became a preferred type of accommodation, the euro was introduced on the French side, the global economic crisis started to bite in 2008, and Marigot lost its way, slipping into a decline not helped by the disparity of the euro against the US dollar.
Winds of change, however, are blowing through the French side in 2014. Spurred on by the absolute necessity to reverse the decline and stimulate the economy with new projects the Collectivité this year launched its waterfront development plan with a vital game-changer; a dedicated cruise ship pier, and a complementary project to reinvigorate Marigot. Studies are well under way for both projects and it bodes well for the future, not least for Marigot.
While a "new and improved" Marigot is still a couple of years away, the struggling French-side entrepreneur has persevered amid cycles of closures and openings, remaining optimistic and reflecting the still beating heart of Marigot. For this, the French-side entrepreneur is The Daily Herald's Person of the Year.
Figures from the Chamber of Commerce show a steady upward trend in inventory in the commerce sector (hotels, car rentals, shops, restaurants etc.) since 2011. There were 4,602 registered businesses in 2011, 4,697 in 2012, 4,740 in 2013 and 4,799 up to November 2014. Granted the increases are small but the movement is in the right direction. Additionally there were fewer closures; 252 up to November 2014 compared to 279 in 2013.
"The euro is going back down to a level where it's weakening to the dollar and that's giving the American tourist bigger buying power now," notes Chamber of Commerce President Jean Arnell. "The outlook for St. Martin is good over the next few years and there has been stability over the past five to six years.
"We are seeing confidence in the territory, considerable construction in HOPE Estate and there's interest again in Marigot. The rejuvenation of Marigot is going to make it more attractive again. And we need to leverage the two million cruise ship passengers that come to the island with better marketing as well as create more employment," he said.
Subscribing to the notion that Marigot is a town still in decline is giving it an undeserved image. The opposite is in fact true. According the Marigot Merchants Association (ACM) of the 220 boutiques in the town, about 10 are closed and most of those are on less frequented back or side streets. The former Little Europe on Rue Generale de Gaulle and Raisonnable on Rue Kennedy are high profile stores that one immediately notices as closed. Marina Royale still has two vacant restaurants that have not yet reopened.
But as the ACM quickly points out new shops and restaurants are opening as well with at least half a dozen new shops installed this year in Marigot, and more to come. Of note is the new Comptoir de la Chocolatière on Rue Generale de Gaulle, a six-figure private investment reflecting the confidence the owner has in Marigot. Howell Centre, thanks to the opening of Super U is enjoying a new lease on life and all of the shops there are rented out. West Indies Mall had only one shop vacant at last look.
"The real problem we have in Marigot is lack of people traffic because we don't have enough hotel rooms on the French side, and insufficient cruise ship calls to Marigot," explains ACM President René Mathon. "But this will be addressed in the water front plan.
Mathon and Treasurer Philippe Morel, who are both very confident for a bright future for Marigot, explained very high end stores such as Hermes and Mont Blanc closed two years ago because either the product or the price was not adapted to the changing market.
"Today the situation has stabilised because stores have adapted to the market," said Morel.
"But unlike ten years ago shops have to be finely tuned in their management, and there is a very fine line between having too much stock and too little," interjects Mathon. "More experienced shopkeepers are better at managing this than others and that makes the difference between staying open or closing."
Morel dismissed the view that businesses have closed on the French side because of steep social charges and moved to the Dutch side.
"The Dutch side also has social charges and taxes," he argued.
Arnell agreed. "It's a misconception. Businesses thrive on demand. If there's an influx of people and there is demand, a business will stay open and deal with their cost structure based on whatever the labour charges are and they have not changed over the past 20 years. Businesses are not closing and going to the Dutch side. Businesses stay where the demand is. Having said that, luxury stores like to be in a confined area with other luxury stores and that is a challenge for us to provide for in the reorganisation of Marigot."
A spokesman from a firm on the Dutch side which assists French businesses in getting established with their papers and managing director's licences indicated that French companies have become disillusioned because of the long time, anywhere from six months to a year, it takes to get legalised on the Dutch side. In the meantime the investment made is not being put to good use and if a business opens while waiting for papers, it risks operating illegally.
Baie Nettle on the ocean side is another area that on the surface looks in decline but on closer inspection reveals a major renovation project for shops and re-opening of the Royal Beach Hotel, closed for four years now, is under way. In addition there will be 92 apartments for sale on the waterfront.
"Baie Nettle is a different concept to Marigot," explains hotel manager Michel Digiovanni, the assistant to the developer. "It's appealing for businesses here because it's quiet and close to Lowlands. Almost all of the shops are rented out and two more will be added.
The HOPE Estate Industrial Zone in Grand Case has been a great success for companies involved in fabrication since its inception due to its accessibility and ease of parking. A second phase is under way there and at least two more big companies are setting up shop. In addition retail outlets have sprouted up including banks, shops, restaurants, and a Simply supermarket.
Atlantic Signs moved there from Concordia seven years ago and has never regretted the move.
"We bought the land and built our own premises with a bank loan," explained owner Ronan Garnier. "It has turned out to be cheaper than renting. We can even buy materials here that we need for our business. And when we want to go the Dutch side we don't have to go through Marigot."
But the French side does not suit all businesses. Yamaha for one re-established itself in Cole Bay in 2013 after closing its store in Sandy Ground where it was operating since 2005 in a partnership with St. Martin Marine. It also had a store in Tamarind Plaza, Cole Bay, until 2008.
"We were not very comfortable with the impact of the economy over there," says Simpson Bay Motors (Yamaha) managing director Abdul Malak. "Business was not as good as we had hoped. The French side has to be assessed differently and needs to create more jobs that will improve security and the economy."
A shop owner who has been doing business in Marigot and the Dutch side for the past 31 years said he was still sceptical a waterfront development plan for Marigot will get off the ground. He also warned that taxation policies will kill the duty free spirit that existed on the island.
"It remains to be seen," he said of the waterfront plan. "I want to believe it. But there have been so many studies before and so much money spent and then it gets shelved until another political party comes along and it gets revived again. I sincerely HOPE it happens. But I have a slightly better feeling about it. There is some light at the end of the tunnel.
"I do notice an improvement in security after the efforts of law enforcement on both sides and surveillance cameras are helping to reduce and solve crimes and this is better for the economy," he said.
While developments on the French side impacts both sides of the island, an issue more localised to the Dutch side was the persistent talk about integrity. That materialised into an instruction by the Kingdom Council of Ministers to Governor Eugene Holiday to conduct additional screenings of ministers candidates following the August 29 Parliamentary Elections.
The call for additional screening on top of the screening process mandated by St. Maarten law, only came after the collapse of the National Alliance/United St. Maarten Party/Democratic Party coalition and the formation of the current United People's Party-led coalition.
With no less than three completed integrity reports with wide recommendations for changes within government, integrity or the lack there of is considered the "Topic of the Year".
