The End of Tourism and Manufacturing in St Kitts and Nevis?

As nations across the world unite in the fight against COVID-19, many have reacted by implementing mandatory “lockdown” measures, subjecting citizens and residents to strict physical distancing measures and restricting their movement. Few, however, have implemented measures as stringent as the smallest nation in the western hemisphere, the Federation of St Kitts and Nevis. In St Kitts and Nevis, a "State of Emergency" is expected to govern the dual-island nation for an ensuing six-month period.

Indeed, on Friday 17 April, the Parliament of St Kitts and Nevis called an emergency meeting to pass a resolution that would have extended the State of Emergency in the country for twelve months. An alteration was subsequently made, however, reducing the period to six months. A six-month State of Emergency is nevertheless colossal and could have far-reaching implications for the economy of St Kitts and Nevis.

Firstly, such a prolonged State of Emergency would undoubtably paralyse what former civil servant, Nigel Faron, calls “the bread-earner of the country’s economy,” the tourism sector. Tourism is undoubtably an area in which St Kitts and Nevis has a competitive advantage, it being one of the most unspoilt spots in the Caribbean. Attracting approximately one million tourists each year, particularly as an admired destination for cruise ship passengers, tourism plays a critical role in building the economy of St Kitts and Nevis. Accordingly, a significant number of local people in St Kitts and Nevis have livelihoods that depend on tourism, including fishermen, taxi drivers, tour operators, restaurant owners, and hotel developers, to name only a few. A downturn in tourism could therefore be devasting for the livelihoods of those connected with tourism across the nation.

Such a feat is likely however, should the State of Emergency indeed remain in place for six months. What kind of holiday-goer would choose an island subject to a mandatory curfew, with non-essential businesses closed and freedom of movement highly restricted, as their destination of choice for a relaxing getaway? Luckily for such tourists, there are 15 other Caribbean nations to choose from that would offer the vividly blue skies and sandy beaches they are seeking.

“With such an austere State of Emergency in place,” comments Nigel Faron, “foreign departments of nations such as the USA and the UK are likely to issue ‘Travel Advisories’ for their citizens considering travel to St Kitts and Nevis.” Travel Advisories are issued by nations worldwide cautioning their citizens not to visit countries undergoing turmoil, such as a State of Emergency. Considering this fact, it appears unlikely that St Kitts and Nevis will be observing a normal lifestyle by the end of this year; no commercial flights will land in the country and no cruise liners will berth at Port Zante for the foreseeable future.

The six-month State of Emergency will not only undermine the country’s tourism sector, but a major impact is likely to be had on the manufacturing industry of St Kitts and Nevis. Subject to business closures and mandatory curfews for six months, St Kitts and Nevis will inevitably become inefficient at fulfilling the requirements of its foreign customers and international importers, such as the USA and Canada. Issues will be seen as orders are denied and, by consequence, the countries that St Kitts and Nevis relies upon for imports will turn instead to other Caribbean nations. The knock-on effects of this will be severe as production costs skyrocket and factory workers lose their jobs.

“This prolonged State of Emergency will not only destroy the economy of St Kitts and Nevis, but it will also weaken the standard of living of Kittitians and Nevisians,” says Faron. “Citizens may even be unable to afford essential goods due to resulting price hikes at local markets.”

While the Government of St Kitts and Nevis has taken such action in order to curb the effects of COVID-19 on the twin-island nation, which has approximately 15 positive cases of the highly-contagious virus, the Government should also spare a thought for the country’s economy. For many citizens and residents of St Kitts and Nevis, a six-month State of Emergency leaves their prospects looking bleak. While COVID-19 must be dealt with, the tourism and manufacturing industries must be protected at all costs.

Apart from this, large number of people are upset with the decision taken by the government without proper expert consultation. Especially, those who were strong supporters of Team Unity during previous elections are now unhappy with the leadership. This will however, have a significant impact on the vote bank of Team Unity in upcoming general elections.