Cruise passengers head to town from Captain Hodge Wharf. (John Halley photo)
PHILIPSBURG–Unlike the very hard-hit Princess Juliana International Airport, St. Maarten Harbour Group of Companies is poised to make a small profit for both last year and this year.
Harbour Group acting Chief Executive Officer/Chief Financial Officer Ton van Kooten told Parliament’s Committee for Tourism, Economic Affairs, Transport and Telecommunication on Wednesday that there was a US $10 million loss on the books for 2017, the year Hurricane Irma slammed into the country causing serious disruptions to the cruise and cargo shipping schedules.
A profit of $1.9 million was logged for 2018. A surplus of $1 million in cash flow is forecast for this year. The Harbour Group has some $25 million in liquid assets. That amount does not lend itself for much strategic investment and the Harbour Group’s loan-contracting ability is expected to be affected through 2025.
Tourism and Economic Affairs Minister Stuart Johnson said the Harbour Group needs capital investment and “creative decision-making” to bring about new cruise piers and food and beverage locations. These strategic investments are tied to keeping the port ahead of the now-very-competitive regional cruise market.
Port St. Maarten, the cruise arm of the group, registered 1.6 million passengers at the end of 2018 and is heading for the same numbers this year. The coming two years – 2020 to 2022 – are expected to bring an uptick in passenger arrivals to some 1.7 million or more.
On the cargo section, the Port saw a 24 per cent increase in island-based cargo and eight per cent in trans-shipment cargo in 2018 compared to 2017. The general recovery efforts are credited for the increase in container arrivals.
A five per cent increase in movement over the realised figures for 2018 is expected for 2019. To cope with the already increased container movement, the Harbour Group has initiated a plan for shippers to move out empty containers on a bi-weekly basis.
Last year saw “record-breaking numbers” for cargo activities, said Johnson.
The Port is working on bettering its cargo operations and recently replaced a one-acre bricked section with concrete for more durability.
Cargo stakeholders and concessionaires made investments totalling some $1 million in new equipment to ensure operations are on par with or above industry standards.
Cruise passengers spend in St. Maarten on average $142.23 per person, while crew members spend about $119.02 each according to the 2018 Economic Contribution of Cruise Tourism to the Destination Economies report commissioned by Florida-Caribbean Cruise Association (FCCA). Crew spending remained the same, but passengers shelled out less money than the previous $191. The survey was taken in “a depressed period from May 2017 to April 2018,” said Johnson who pointed out that cruise arrivals were down some 60 per cent due to Irma recovery in that span.
Reacting to complaints Members of Parliament said they have received from town stores about unfair competition from those at the Port, Alex Gumbs of Port Business and Development said most of the stores in the Port are satellites of those in town and major stores on the island market heavily on the cruise ships.
Source: The Daily Herald https://www.thedailyherald.sx/islands/85039-harbour-poised-to-make-small-profit
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