Last Updated on October 2, 2019, 2:03 PM AST by Anthony Morris
An recent announcement by Minister of Infrastructure, Hon Ian Patches Liburd that a separate arrivals hall is to be constructed to accommodate passengers disembarking from ships berth at the second cruise pier, is not only a waste of taxpayers’ money, but could also generate a tremendous amount of business uncertainty and worry among stakeholders, especially Port Zante merchants.
“With only a single arrivals hall, high quality stores with World Class brands would continue to benefit from their prime spot locations, but where they also pay higher real estate rentals and the largest amounts of 6% Custom Duties to the Government year after year,” a merchant has said.
“Sadly, the previously unplanned second arrivals hall now threatens the business success of most of the merchants, and has created uncertainty and potential confusion among them,” said the merchant, who wished to remain anonymous for fear of victimization.
He noted no where else in the regional cruise destinations are there more than one cruise port entry point at one location.
“Such a standard has prevailed for both economic and security reasons. But it seems that this Government is blinded to what makes good strategic sense for St Kitts cruise tourism,” he said pointing out that construction of an additional entrance to Port Zante “is likely to kill the present successful structure for retail and small informal tours dispatching in St. Kitts.”
“When the berthing of ships become split on the two piers, the flow of passengers through two separate arrivals halls will completely breakup the customer flow into the less productive shopping and dispatching directions,” he said, predicting “there is no way property owners and tenant businesses can sustain year round expenses with a split of the flow of passengers.”
He is further of the view that a large percentage of the merchants involved are likely to be driven into losses, and ultimately out of business.
An informed stakeholder noted that St. Kitts now has a very slow six-month off season and by the looks of things next Summer will also be really bad.
“If you have two arrivals halls there is no way you can give enough to each side to sustain the businesses. In addition, you will make a mess of the entire Taxi stand, tour operators will get confused and it will be chaotic which will lead to a completely negative experience for the guests,” he pointed out.
In the words of another seasoned Indian merchant who also prefers to remain anonymous for fear of victimization: “I really do urge the government to think long term when it comes to a second entrance hall. It will not be possible for companies to sustain business if they start splitting the cruise ships on both piers and have two separate flows of passengers. I hope the Government rethinks this stupid idea and hear what we are saying. A new entrance hall can kill the entire retail business at Port Zante and you will soon see companies shutting down and leaving in the short to medium term. Patches Liburd and Lindsay Grant be warned.”
The second cruise ship pier is to become operational in October, but the recent passage of Tropical Storm Karen, could result in a delay, although there has been no official statement from the St Christopher Air and Sea Ports Authority (SCASPA) on how the grounding of the American Bridge barges will affect the total completion of the second pier.
Scheduled to cost EC$86.4 million under the then governing St Kitts-Nevis Labour Party administration, the cost of the cruise ship pier ballooned to a whopping EC$129.6 million price tag – EC$43.2 million more under the Timothy Harris-led Team Unity Government.
The St Christopher Air and Sea Ports Authority (SCASPA) secured an EC$91.8 million loan from the St Kitts-Nevis-Anguilla National Bank; EC$18.9 million from the St. Kitts and Nevis Social Security Board; EC$13.5 million from the St. Kitts and Nevis Sugar Industry Diversification Foundation (SIDF) and EC$5.4 million from the St. Kitts-Nevis-Anguilla Trading and Development Company (TDC).
The contractors, Canadian Commercial Corporation and the St Christopher Air and Sea Ports Authority (SCASPA) are involved in arbitration. The company has submitted a US$7 million for cost overrun which SCASPA is contesting.
Anthony Morris covers stories related to politics and regional developments. His in-depth reporting about governance and reforms makes him stand out in regional journalism, with a deep analysis of political trends and their impact on Caribbean communities.
