Economic Impact Study - St. Eustatius Government

Transcription

Economic Impact Study of Joremi,
St. Eustatius
A research on the socio-economic impact of development of the Joremi
property
Curconsult
Willemstad, Curaçao
July 2013
Curconsult
Research and economic advisors
Economic Impact Study of Joremi, St. Eustatius
A research on the socio-economic impact of development of the Joremi property
Report No 13-05
Prepared for Joremi Enterprises
By drs Roland O.B. van den Bergh
Economic impact study Joremi , Sint Eustatius
Curconsult N.V.
Renaissance Riffort 612
Curacao – Dutch Caribbean
Tel +5999 4612410
Email: rob@curconsult.com
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Curconsult
Economic Impact Study of Joremi, St. Eustatius
Table of contents
Executive summary ............................................................................................................................. 3
1.
Introduction and background of the Joremi project ............................................................. 4
2. Methodology of the economic impact study ........................................................................... 7
3.
4.
Development of Joremi ......................................................................................................... 9
3.1
Joremi and the strategic development plan ..................................................................... 9
3.1
Development of the Joremi area and economic impact................................................. 11
Economic Impact of the Joremi development ..................................................................... 15
4.1
Value added, indirect impact, induced impact and forward multipliers ........................ 15
4.2
Estimate of the economic impact of Joremi ................................................................... 17
4.3
Results of direct and indirect economic impact of the Joremi project ........................... 19
ANNEX:
I:
Sources and references ....................................................................................................... 23
II:
Assumptions of the economic impact of the Joremi project............................................... 24
III: Economic impact calculation of the Joremi project ............................................................. 26
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Curconsult
Executive summary
The Joremi property is situated on the southeastern side of the Dutch Caribbean island of St. Eustatius
(hereafter also referred to as Statia). The owners of the property, Joremi Enterprises, represented by Evan
Schwartz and Donna Spector, intend to develop the 75.7 hectare (=172 acre) area of land at White Wall, St.
Eustatius, for tourism, residential and commercial use.
After consultation of several experts in Statia, St. Maarten and Curacao, assumptions were made as to prices,
tariffs, available local and foreign workers, the need for imports, as well as local goods and services. These
were all needed for calculating the economic impact.
This impact study shows that realization of the master plan will result in:
A real economic growth of the Gross Domestic Product of Statia by 15.2%.
Creation of about 400 new full-time jobs. 155-160 of these jobs would be directly generated as a
result of the Joremi development, mainly in the maintenance, hotel and hospitality sectors. An
additional 230-240 local jobs would be created as a result of the spending of income earned by
employers and employees (multiplier or induced effects).
Direct tax revenues of approximately $ 2.7-2.8 million annually. These taxes would be levied on
imports, local economic activity, real estate and personal income. With induced effect tax revenues
would increase by approx. $6.8-6.9 million.
An increase of 750 in the population on the island. Also, the island would become livelier as a result
of more tourists visiting. On an average day, there would be an additional 175 tourists as result of
the Joremi development.
During the construction phase of infrastructure, houses, hotels and commercial spaces, at least 350-375 man
years will be provided for the population of Statia. The import of construction materials and other goods
would add approximately another $2.5-3.0 million in import duties.
A sustainable development of Joremi requires that attention be paid to flora, fauna, archaeological sites, as
well as to soil erosion. A study conducted by the St. Eustatius National Park Foundation (STINEPA) concludes
that there is no ecological hindrance to the proposed use of the area. The St. Eustatius Archaeological Center
(SIMARC) discovered 5 historical sites and various historical stone walls. It recommended integrating the
identified archaeological sites into the project design of Joremi. Lievense Consulting Engineers suggested the
construction of detention and retention ponds to manage rain water discharges, to prevent erosion. The
Joremi Master Plan, drafted by Miller Legg International, has integrated all these elements into the plan for
development of 67 residential lots of at least one acre. The plan also includes a 54-room hotel, a 34-unit eco
lodge, a boutique hotel, as well as some commercial development.
The master plan contributes to the philosophy, plans and implementation of the Structural Development
Plan, and is structured according to the principles and regulations of the Spatial Development Plan. However,
part of the area, as regulated in the Spatial Development Plan, needs to be amended in order to make the
development economically feasible. The research, as mentioned, shows that allowing proper residential
development will not harm the environment or the archeological value of the area. Furthermore,
development could contribute to substantial economic growth on the island.
The Joremi development consists of four phases: (I) preparation of the infrastructure, (II) residential
development, (III) construction of hotels and some commercial spaces (restaurant, shops, etc.) and (IV)
depending on market developments: construction of a boutique hotel and additional commercial spaces.
It is envisioned that development of the Joremi area will take at least 5 to 6 years, but could also be stretched
to 12 years depending on the development of tourism, foreign interest in a second home, as well as ideas of
investors on residential and hotel development.
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1. Introduction and background of Joremi project
The owners of the Joremi property, Joremi Enterprises, represented by Evan Schwartz and Donna Spector,
intend to develop their 75.7 hectares (=172 acres) piece of land at White Wall, St. Eustatius, for tourism,
housing and commercial use.
The plan entails the development of lots for middle and high-class housing, aimed at residents as well as
non-residents, who plan to buy a second home on the island. A substantial part of the area will be reserved
for tourism accommodation and development. The plan includes the construction of a 54-room hotel and a
34-unit eco resort. Furthermore, space is reserved for a boutique hotel and commercial activities, such as
restaurants and shops.
Box-1: Dimensions of the project according to the Joremi master plan
the Joremi-project
Joremi area : 172 acre ( = 75.7 hectares)
Planned development:
x
Road infrastructure and parking
x
Utilities (piped water and electricity)
Water treatment facility, detention/retention
x
reservoirs
x
Residential: 67 residential lots larger than
4,040 square meters
x
Hotel resort: 54 rooms
x
Eco resort and spa: 34 units
x
Restaurant/ boutique hotel
x
Commercial units
x
Park – open space
the area
Natural area mixed 2 (N-M-2): 44.6 hectares, 1
building per 44,515 sq.m. allowed
Natural area mixed 3 (N-M-3): 27.1 hectares, 1
building on a lot of 3,000 sq.m. allowed
Nature-National Park (N-P): 4.5 hectares, no
construction allowed
Archaeological sites: 6 sites have been discovered.
Site 5 contains remains of an 18th century family
home. This site will be reserved for use as a tourist
site and hiking trailhead
Zoning of Joremi Property according to map OV03-BP7 (special development plan)
Substantial efforts have been undertaken to develop the area in line with the Strategic Development Plan,
and in accordance with the Spatial Development Plan of the Government of St. Eustatius.
At first, a preliminary master plan was made for Joremi, to develop the area in an economically feasible and
sustainable way. Based on this plan, additional research has been done on the impact of the development on
flora and fauna, watershed and drainage, and presence of archaeologically valuable sites. This has resulted in
adaptations of the master plan. In the master plan of April 2013, attention was paid to the remarks and
recommendations of Lievense Consulting, STENAPA and SIMARC (see box 2).
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Box-2: Research executed / focused on the Joremi area
Research
Executed by
Results - recommendations
The Joremi Master Plan/
The Quill of Statia Master
Plan
Miller Legg International
(Miami, U.S.), 2013
Based on research and field study, the master plan proposes the
development of 67 lots for housing, 3 hotel sites (for 54, 34 and
15 rooms/units), 3 smaller commercial areas, a park and a
protected area. The plan also includes the layout of the road
infrastructure and utility lines.
Environmental Impact
Study
Lievense Consulting
Engineers (St. Maarten),
2013
The objective of the study is to make a request to amend the
special development plan, to allow residential development (to
change N-M-2 area into N-M-3 status).
The study looks into the local, national and international
legislation on nature conservation and zoning, and has come up
with a proposal to manage rain water discharges to prevent
erosion. Lievense suggested constructing 5 detention and 6
retention ponds.
Rapid ecological
assessment Joremi
Development White Wall
St Eustatius National
Park Foundation
(STENAPA)
The biologists of STENAPA completed an ecological assessment
of the Joremi area. The vegetation comprises a mix of native
and invasive species, which is typical for the area. In and around
the area, the protected Lesser Antillean Iguana might have its
habitat.
Based on its ecological assessment STENAPA recommends
to introduce an iguana-friendly habitat, to maintain trees and
cacti on site which is also helpful against erosion, carefully
develop roadways and paths with take soil erosion in to
consideration and avoid unnecessary run of rainwater and silt
into the Marine Park. Futhermore, STENAPA suggests to
cultivate an orchid garden.
An archaeological
assessment of Joremi
St. Eustatius
Archaeological Center
(SIMARC), 2012
Archeologist of SIMARC discovered 5 historical sites in the area
and various historical stone walls. It has been recommended to
integrate the identified archaeological sites and/or artifacts into
the project design of JOREMI.
Site 5, being an elite homestead of the 18thcentury is historically
the most interesting site. SIMARC suggests to turn this site into
a small museum or scenic place, for a heritage park and
trailhead.
Socio-economic impact
study
Curconsult (Curacao),
2013
See results of this report.
Box-3: Amendments to the Spatial Development Plan
The Executive Council of the Public Entity of St. Eustatius decides upon amendments of the Spatial
Development Plan after a period of fifteen (15) days, during which the draft amendment decision has been
made available for public inspection, with the opportunity to submit appeals. The period during which the draft
of the amendment decision is made available for public inspection is announced well in advance in regular daily
newspapers, published in Dutch and English, and distributed on the Island Territory.
This report elaborates on the socio-economic impact of the Joremi project on the economy and community
of Statia. The estimation of the economic impact is based on many assumptions, conditions and principles. In
the years to come, the impact may differ from the result as presented, due to deviations in the development
of the Joremi project.
At present, the Spatial Development Plan for St. Eustatius does not provide the opportunity to develop the
Joremi area in an economic and sustainable way. This has to do with the regulations in the Spatial
Development Plan for the N-M-2 area (see box 1). However, an amendment of the N-M-2 area of the Joremi
property, to convert it into N-M-3 status, can be requested from the Executive Council. Such a request should
be based on research which shows that:
x
the present landscape, natural and ecological values and qualities are not damaged
disproportionally
x
the project is correctly imposed on the landscape, is financially and economically feasible
x
proper storage and drainage of rainwater is in place and precautions to prevent erosion have been
taken.
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Curconsult
Contents of this Impact Study
Content
2
In this chapter the researchers describe what data sources have been used and how this data is
used to calculate the economic impact of the Joremi project.
3
The development and pace of development of the Joremi property depends on many aspects,
some are within reach of the owners, and others depend on (international) market developments
as well as on the Island Government. We describe the development of the Joremi area in phases:
development of : (I) infrastructure, (II) residential housing, (III) hotel construction and commercial
facilities, (IV) boutique hotel and expansion. The development of the property would take at least
5-6 years.
4
Terms such as direct and indirect economic impact, induced of multiplier effect are explained in
this chapter. Thereafter, the assumptions that go along with the impact calculations are discussed,
followed by the results of the calculations: the value added, employment, government revenues
and increase in citizens.
Annex
I.
II.
III.
An overview of sources and references is given
Assumptions of the impact calculation model are given
Outcome of the model simulations
Chapter
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Curconsult
Methodology of the economic impact study
The calculation of the socio-economic impact is based and derived from the Joremi master plan. There is no
assurance that developments at the area will follow the master plan in all of its details: size and dimensions
of residential lots, houses, hotel (luxury, eco and boutique) can be part of new views or insights as the
components of the project are prolonged and worked out in more detail.
To a large extent, the results of this socio-economic impact study rely on current assumptions of the master
plan. The most important assumption for the development of the Joremi area is that the investors, financial
institutions and/or project developers are interested in investing in housing, tourist accommodations and
commercial tourism-related facilities, such as restaurants and shops.
Calculations are made based on key data provided by
architects, construction companies, hotel operators,
government officials and personal individual
assumptions. Due to the fact that until now, no recent,
large-scale construction works have been realized on
the island, there is no warranty that the assumptions
about prices, costs, or percentage of local components
are correct.
The time frame in which the development will take
place is another uncertainty, because it will depend on
many decisions to be made by owners of the land,
government, investors/project developers and developments on the international tourist and second-home
markets.
To cope with these uncertainties we considered the time frame in which the development should take place;
somewhere between 5 and 12 years:
a very favorable development, in which it takes 5-6 years to develop the whole Joremi area;
a more middle of the road development, in which it takes 8-10 years to develop the Joremi area
a more cautious and step-by-step development, in which it takes approx. 12 years to develop the
property.
This study gives an indication of the total economic impact of the Joremi project for the island of Statia. The
impact on the Statian economy will differ if the development takes place within 5-6 years, or within 12 years.
In case the project takes 12 years, the economic impact in year 13 will be exactly the same, as compared to
the case in which the project was realized in 6 years.
Research approach
#
Phase
Activity
I.
Desk research & discussion with
Joremi owners
The project was discussed with the Joremi owners, as well as with
the organizations which studied the archaeological, ecological and
environmental impact, and which made the master plan.
II.
Data collection
Data from the Central Bureau of Statistics, as well as several reports,
were collected and checked.
III.
Interview and field trip
Interviews were held with members of the Island Council,
commissions, government officials, construction companies,
architects and entrepreneurs.
IV.
Analysis / additional data &
information-gathering
Additional information about costs and market development for the
housing and hospitality sectors was gathered. Based on several
different sources, assumptions were made about the development of
the Joremi project, and an economic impact model was drafted.
V.
Reporting
The report is the result of phase 1-4. Before presenting the final
version, a draft version was discussed with several experts.
2.
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Curconsult
Curconsult has approached this assignment in a pragmatic way with the use a mix of methodologies, based
on the statistical information available and on our own estimates.
Because the statistical information available is often not recent and is limited, it should be noted that much
of the data presented and used, is not based on official publications and other data. The extrapolations,
assumptions and interrelationships were all determined by Curconsult. We conducted this study on a best
effort basis, based on our reputation as Caribbean economists, and based on our knowledge of St. Eustatius.
The methods and data used were discussed with other economists and experts in the field of impact studies.
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Curconsult
3.
The development of Joremi
3.1
Joremi and the Strategic Development Plan
Joremi Enterprises Inc. intends to develop the Joremi area by selling parts of the property for residential
development, hotel construction (international, eco and boutique) and other commercial activities (see box
1).
The development is in line with the Strategic Development Plan (SDP). The SDP is there to preserve existing
qualities such as culture, nature, Statia’s rich heritage, and the authenticity of a Caribbean island.
The SDP foresees that the population will grow from 3,500 in 2012 to 5,500 in 2030, and employment will
increase from 1,050 to 1,500.
Tourism has great potential for growth because of the island’s unique heritage, beautiful town, landscapes,
diving products, its terrestrial flora and fauna, and its strategic location in the Caribbean. More hotel rooms
are needed. The SDP mentions the need for 300 hotel rooms, compared to the present number of 75 rooms,
divided by 5 hotels. The designated sites for hotel construction, as mentioned in the SDP (p.45) are: Lower
Town, Zeelandia, and the area next to White Wall. Also, some 800 houses will be needed, in addition to the
existing 1,050 houses, to meet the demand (see SDP, p47). According to the SDP (p.48), the ‘Weg naar White
Wall’ area is suitable for mixed use: residential development, hotel accommodation, and horticulture have
been set aside.
Box-4: The objective of the Strategic Development Plan:
In the future, the population of St. Eustatius will enjoy a higher level of prosperity in a livable environment.
This implies:
Economic growth to reach a higher level of prosperity for the island and people of Statia. The
tourist sector, among others, provides opportunities to achieve this goal.
Develop and maintain amenities. A growth in the population is needed.
Careful planning is required to preserve and develop Statia’s special qualities.
Tourist amenities and facilities, new homes, investments in infrastructure, environmental management; all
need to be encompassed in a strategic, balanced plan.
To attract more tourism to the island (see SDP, p 35-36):
extend hotel capacity from 75 to 300*)
develop Lower Town to increase the capacity for tourism
develop activities and facilities (shops, restaurants, information points, dive shops, hiking and
historical tours
re-develop public buildings and other plots in the Historical Core of town
increase the number of retirees and construction of second homes
improve infrastructure (better roads, drinking water supply, sewage system, electricity and
communication network
Improve access (more flights, larger airplanes)
The success and progress of developing Joremi depends, to a large extent, on:
x
international development in the market for tourism, and for second homes in the Caribbean,
particularly as it relates to pensioners, divers, nature lovers and people who prefer tranquility
x
marketing of Statia as a tourist destination, place to (partially) retire, and the success of the
marketing efforts
x
success/progress in selling property to hotel and residential housing developers
x
the pace at which the projects are developed. This will depend on the interest for Statia as a tourist
destination and place for (partial) retirement. This will also depend on the price of a second home,
the cost of a vacation to the island, as well as the facilities and amenities offered in Statia.
x
The socio-economic development of the island of Statia in general.
*) SDP, because of the size of the island: it is better to develop smaller hotels, with room capacity of 30 to 70 rooms (SDP,
p36).
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Curconsult
At present, the real estate prices, houses as well as lots, are relatively low on Statia when compared to
1
neighboring islands such as St. Maarten, Anguilla, St. Barths and Saba .
Examples, prices of lots and houses on Statia and neighboring islands
Lots-Land
Island / region
St. Eustatius
Pleasure Estate
Oranjestad
Union Estate
Concordia
Roots
Fairplay
Saba
Hell’s gate
Rock Wall land
St. Maarten
Valley Estate
Weymouth Hill
Dawn Beach
Dawn Beach
Rice Garden
Oyster Pond
Almond Grove
Anguilla
East End
St. Barths
St. Barths/ Bay of St. Jean
2
Lot size
Price (in $)
Price/ m
1500
1200
4047
3986
3600
2800
86,900
97,826
210,000
173,305
180,000
136,956
57,93
81,52
51.89
43.47
50.00
48.92
742
923
70,000
135,000
94.34
146.26
700
794
1038
812
1496
796
1188
74,500
89,000
120,000
145,000
146,600
199,900
212,000
106.43
112.09
115.61
178.57
97.99
251.13
178.45
2024
109,900
54.30
2000
€1,800,000
€900
Rooms
Baths
m2 constructed
5
2
3
5
2
2
672
482
165
4
3
3
2
2
3
2
2
2.5
3
95+95
275
n.a.
300
3
2
4
2
214
2
2
Remarks
Includes fencing
Resort development
Ocean view
Ocean view
Ocean view
Ocean View
Ocean view
Houses (villas)
Island / region
Statia
Lampeweg
Cottage
Lodi Development
Saba
Zion Hill
St. Maarten
Middle Region
Pelican Key
Oyster Pond
Point Blanche
Anguilla
West End
East End
St. Barths
villa
other
Lot size
Price in $
pool
Traditional house – Historical Core
New, ocean view
3842
482
600
395,000
299,000
299,000
Pool, ocean view
n.a.
760,000
Ocean View, vacation villa, 2 stories
Ocean view
Mountains view
2 story, pool
206
700
1860
1700
290,000
545,000
495,000
695,000
Pool, ocean view
Ocean view
2000
1011
1,999,000
479,00
Pool, ocean view
898
€900,000
villa
3
3
Pool, ocean view
Sources: Remax, Century 21, St. Barths Reality
For more quotations see these and other websites of real estate agents.
680
€1,000,000
The local interest for such a project could be only a matter of time. If the NuStar oil terminal decides to
expand, if the Medical School is able to increase its number of students substantially, and if Dutch-focused
governmental and non-governmental institutions are interested in establishing themselves on Statia, this
could give additional boost to the project, generating more travelers to the island (for pleasure, as well as
business) and more demand for middle and higher-middle-income housing.
1
Although low compared to the neighboring islands, the local residents complain about rising prices for real estate and
property. For example, some interviewees noted that prices near White Wall have doubled in the last 4 years. They further
noted a continuous, autonomous, upward trend in the m2 price of land and expect that this trend will continue.
2
See www.nioz.nl
The constitutional changes have converted Statia into a special municipality of the Netherlands. As a result,
many public investments in medical care, education, social care and quality of the Dutch government have
been made, while other investments, such as a new Administration Building, upgrading of the road
infrastructure, a new airport terminal building, and investments at the harbor are planned.
Also, The Netherlands has requested The Netherlands Institute for Sea Research (NIOZ) to establish a
̀2.5 million Netherlands Institute for Scientific Research at Statia. This institute will, among others, manage a
2
€10 million fund for research projects .
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Curconsult
Low real estate prices (see table), the fact that the
island is now part of The Netherlands, and future
economic opportunities add to the feasibility of the
Joremi project. Some see it more or less as a matter
of time before prices of land and houses increase. It
is without doubt that increasing real estate prices
will support the development of the Joremi project.
A project like Joremi could be realized in 5 to 6 years,
or it might take some longer 8-10 years, or even
more, up to 12 years depending on the market
demand.
Below we will elaborate on the development of the Joremi area (see also Master Plan Miller Legg below) in
four phases:
I.
Preparation of the infrastructure
II.
Residential development
III.
Construction of hotels and some commercial spaces (restaurants, shops, etc.)
IV.
Dependence on market developments: construction of a boutique hotel and additional commercial
spaces
3.1
Development of the Joremi area and its economic impact
Phase I: Development and infrastructure
To develop Joremi and sell some parts for housing and tourism accommodation requires some initial steps.
The most important and logical steps are:
a. Make the area accessible. This requires clearing the area, leaving large trees untouched. This
includes the park area as well.
b. Connect the area to the electricity grid and to piped water.
Master Plan Miller Legg (1) dated 15 March 2013
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Curconsult
c.
d.
Provide road infrastructure and some parking areas. Coordinated with the road construction,
installation of electricity cables, water works and waste water system for the lots.
Construct retention and detention ponds to prevent erosion.
The capital requirements for a full development of the entire Joremi property are considerable, around US$
12-14 million.
Given the high costs of the total infrastructure needs, it is likely that the infrastructure will be developed as
the pieces of the project unfold. For instance, only after a number of houses or lots are sold will a new area
be developed for housing.
In addition to the infrastructure, historical sites 1-6 (see master plan) will be protected. The most historically
interesting archaeological sites will be preserved, in cooperation with the Government of Statia and NonGovernmental organizations (NGO’s). Some additional investments will to be made by the project developer
to protect and preserve these sites. This has already been foreseen in the master plan.
White Wall and the higher part of the area have the status of Nature-National Park. These areas will be left
untouched by human activities, other than those allowed by the Spatial Development Plan.
The development and infrastructural costs will be recovered by the sale of the property.
The largest part of the Joremi area, 44 hectares, has been reserved for residential development. All houses
will be built on large lots of at least one acre (=4,047 sq.m.). On average, there is one house at every 6,582
3
m2 . The surface area of the house is a maximum 500 sq.m. and the building height 10 m (=2 floors + pitched
roof). There are also regulations for some additional smaller buildings. On average, the price of a house, the
ownership of the lot included, will range from $350,000 - $550,000 (turnkey) for a luxurious one-story house
of 125 to 225 m2. If the owner prefers a larger lot or more facilities such as solar panels, construction of
cistern, swimming pool or tennis court, these costs should be added to the total investment. The shared road
system, access to water, sewage/waste water system, electricity and telephone, as constructed during
phase I, are included in the price of the land. Based on commercial prices of developed land with access to
basic infrastructure (road, water and electricity) next to White Wall, a square meter is sold for approx. $40-60
at the moment (2013 prices ,see table at page 8).
The developer can either decide to build houses for sale, or sell a lot to a new owner, who could construct his
own house there. Furthermore, he could develop many lots at the same time, or do it piece-by-piece, or build
4
one house at the time versus 5-6 houses at once . All lots are planned to be sold with a requirement for a
house to be constructed within a limited time frame.
At the end this residential area should combine the natural, landscape and archaeological values with a
comfortable spacious luxurious place to live and relax. A favorable development of the housing construction
will most probably raise the price of the land substantially.
The plan is to market these houses overseas as
second homes for families and pensioners.
It is foreseen that a substantial number of these
second-house owners will be willing to offer their
house to a rental pool, who will rent it to tourists,
business men and professionals temporarily on
the island. An association of owners (in Dutch:
vereniging van eigenaren) will be established for
the residential and commercial areas.
Membership will be mandatory, as well as
contribution to cover the shared costs. In addition
to the regulations of the building permit, an
aesthetics committee will be there at the start to
3
Includes road infrastructure, room for shared facilities and archaeological sites. The Spatial Development Plan
St. Eustatius requires one house on at least 3,000 sq.m.
4
Some experts on the island have stated that 5-6 is the maximum number of houses which can be constructed locally at
one time by local construction firms. Otherwise, contracting construction companies from outside of the island will be
inevitable.
Phase II: Residential development
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Curconsult
approve the design and monitor the construction.
Phase III: Construction of hotel accommodations
Phase III-A: hotel of international standards
Statia lacks a hotel of international standards. In the last decade, hardly any new hotel rooms have been
added. Also, the development of tourism to the island has been hampered during the last 10-15 years.
Causes of the lack of growth, compared to other Caribbean destinations have been: limited airlift, moderate
hotel accommodations, no development of the tourism product and insufficient destination marketing.
The crux for further development of the island is having a new hotel which is up to (international) standards.
This, combined with the development of the housing sector will trigger more airlift from other destinations
and investments, to upgrade the tourism product.
The master plan includes a 54-room hotel. The hotel is planned close to White Wall. The access road is from
Oranjestad to Fort de Windt, and covers an area of 3.2 hectares.
The hotel construction will not start until after phase I (the infrastructure) has been completed, or at least
until those parts necessary to construct a hotel are in place. Part of the hotel construction will be the
construction of a water treatment plant. This will include some pipe infrastructure as well.
Phase III-B: Eco-resort
A 34-units eco-resort is planned in an area of 5.6 hectares. According to the master plan, the resort will make
use of the natural beauty, and view of the islands and the Caribbean Sea. The eco-resort entrance will be
located next to the hotel, but will run up to the hill, so every unit will have a fantastic view of the Caribbean
Sea, as well as of the island into the direction of Oranjestad and the island of Saba. At the entrance, a resort
amenity and resort administration building has been planned.
It is foreseen that some units, in most cases four, will be grouped together in one building. The units will be
connected to the water treatment plant.
Phase IV: Boutique hotel
Some of the area is reserved to develop a small boutique hotel with approximately 15 rooms. The
construction of a boutique hotel has been left out of this impact study. If there is a demand for this kind of
accommodation, or if project developers see a niche for a boutique hotel, a decision to develop and
construct a boutique hotel can quickly be made, because most of the infrastructure will be in place. This
boutique hotel be either part of one of the existing hotels or operate independently. In the master plan, on
the east side, an area of 0.4 hectare has been reserved for this development at the bottom of White Wall.
Phase III/IV: Commercial area
The business plan has reserved approx. 2.4 hectares for commercial development. It is foreseen that in the
first years only a limited area (in square m2)
will be used for commercial activities, such as
a restaurant, convenience store and
tour/dive operator. The commercial area will
cover three plots, one next to the hotel, one
at the entrance of the eco-resort and one in
front of the boutique hotel.
It makes economic sense to start developing
tourism-related facilities, such as a
restaurant, shops and office space at the
same time that the hotel is being
constructed. The size of these facilities will be
limited in the beginning, but there is
potential for future expansion when more
houses become occupied. Then, another project, the Eco-resort, will be constructed.
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Curconsult
Planning of the Joremi project
Below, we show a table for the development of the different parts of the Joremi project. This time schedule is
based on that of the owners of the Joremi Enterprises. It is based on a relatively steady development in a
period of about 5-6 years. Within this time span, the plans for residential housing, hotel accommodations and
commercial facilities will be realized.
If the development takes more time to realize, the economic impact of the project will require a longer
period before reaching its maximum permanent potential.
This planning is based on the assumption that the project will start soon after the Executive Council has
approved the development of the project (includes changing the zoning status of N-M-2 area). The planning
is further based on the assumption that the Statia Governmant’s infrastructure improvements have
progressed sufficiently, to have extended water and utilities as necessary to the Joremi property entrance.
Under this assumption the project will start with the development of much of the infrastructure for the
Joremi area, which will take at least 2 years. When road access and connection to the electricity grid and
piped water for the first 22 houses is guaranteed, the construction of the first 22 houses can start. When the
first houses have been completed, the construction of the 54-room hotel will begin, according to the
schedule of the hotel developer. After the houses and hotel have been completed, the plan foresees the
building of a 34-unit eco resort. During the construction of the hotel and houses, some commercial buildings
(shops and restaurants) will be built as well.
As mentioned, the development will take at least 5-6 years to finalize. However, tourism development, the
market for second homes and the development philosophy of the developers will determine the pace of the
development.
The Joremi project in phases based on a rapid development in approx. 5-6 years
Planning of the Joremi development
year -->
Phase
1
2
3
4
5
6
7
8
9
10
11
12
Building & construction
I
Infrastructural works
II
Residential housing construction
III-A Hotel construction
III-B Eco resort construction
III/IV Commercial building + restaurant construction
Boutique hotel
Operations
Renting or use of residential houses
Hotel operation
Eco resort operation
Restaurant and shops operational
Boutique hotel
part of economic impact
optional, not included in the impact
IV
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Curconsult
4. Economic Impact of the Joremi development
The economic impact study of the Joremi development examines the economic contribution of the project to
the economy of the island of Statia. With respect to the economic impact, we differentiate between the
value added to the economy of Statia, the employment generated by construction works, as well as by
renting houses, and the offering of tourist accommodation to second home owners and tourists.
Construction, as well as management of the accommodations will give rise to taxes, such as import duties,
sales tax (A.B.B. = algemene bestedingsbelasting), as well as real estate tax (vastgoedbelasting).
Below, we will explain some of the economics used to estimate the economic impact of a project such as the
Joremi project.
4.1 Value added, indirect impact, induced impact and forward multipliers
Some of the economic jargon will be explained below so that the reader can arrive at a better understanding
of what economic impact includes.
Indirect economic impact
To be able to do their business, the construction companies, hotels and other businesses rely on various
island industries to provide them with the necessary goods and services, ranging from building materials,
equipment and energy, to professional services, the so called intermediate costs.
Based on these intermediate costs we can estimate the indirect economic impact of the Joremi project.
During the period of investment (construction), most of the intermediate costs will consist of purchases of
building and construction materials, as well as payment to contractors and workers from outside of Statia.
The indirect impact is limited, compared to other and larger economies with a larger local industrial sector
and more diversified economy. The indirect value added consists of shipping, handling, custom clearing, local
transport and taxes.
The intermediate costs of hotels, ‘management’ of second homes and other commercial activities, such as
tour operators and shops on the island as a result of the Joremi development, will consist of direct
production. This includes the purchase of consumer goods and services, utility costs, interest, depreciation,
gross profit and taxes. If the project is financed abroad and the profits go to non-residents, the indirect effect
on the Statian economy will be less. This is also true for hotel, tour operators, shops, landscaping firms, etc.,
which are established on the island. These businesses need many of their goods and services to be imported
Value added
The Gross Domestic Product (GDP) is defined as
the sum of the value added of the different
sectors in the economy. The value added of an
industry is the industry’s gross turnover minus the
intermediate costs. These intermediate costs are
all the goods and services that are used as inputs
in a production process. In most of the trade and
service industries, the value added is, to a large
extent, determined by wage costs, operational
costs (such as energy and telecommunications),
depreciations and operational results.
To determine the value added of the Joremi
project we need to focus on the local impact only.
This means that all the work which is done outside of Statia, all temporary foreign workers (except for their
local consumption) and operational results, will not have an impact on the economy of Statia.
With respect to the local value added for Statia, we need to differentiate between the impact of the
construction and infrastructural works (one-time impact), and the impact of the additional new home owners
and tourists visiting the island (structural impact).
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Curconsult
from St. Maarten or elsewhere. Because of this large foreign component, the indirect economic impact on an
island such as Statia is much smaller when compared to a large country. If the product or service is provided
on the island, the indirect value added (or indirect economic impact) of these intermediates will be higher.
Forward multipliers
Although not included in the economic impact study, there are the so called forward multipliers. Examples of
forward economic effects are the expansion of the old, or expansion of the present airport; the investments
in the increase of water and electricity production, the expansion of the telephone and internet facilities, and
for example, the increase in hospital beds and number of class rooms on the island. This project, in
combination with other economic developments on the island, might result in economic growth, which will
5
See “Multiplier Effect”, in Economicae, an Illustrated Encyclopedia of Economics, Ralph T. Byrns, University of North Carolina
Induced employment and value added effects
The economic impact of an industry is not only
reflected in its direct and indirect effects on the
labor force and the income of the nation, but also in
the fact that these effects themselves lead to
additional spending, and additional income and
employment. This is the so-called multiplier effect.
The multiplier effect occurs when one person's
spending becomes someone else's income, and
some of the second person's income is subsequently
spent, becoming the income of a third person, and
so on.
This (cumulative) extra income will lead to extra
spending, for which extra output will have to be generated. The actual height of the multiplier depends on
many factors, one of which is the willingness to spend this extra income for consumption. This is called the
marginal propensity to consume. This mps is usually smaller than 1, meaning that some income will be used
as savings. The smaller the mps, the lower the multiplier effect. With an mps of 0.8 (meaning 80% of extra
income will be spend on consumption), the multiplier could be around 5.
However, other factors that influence the height of the multiplier are “leakages”, withdrawals from spending
other than savings. Withdrawals include taxes and imports—a case in which the funds we spend go into the
hands of foreign suppliers. A major cut in spending may also occur when the income of migrant workers and
foreign companies working on Statia (for example gross profits of exploitation surplus) is transferred to
accounts abroad.
For all these reasons and more, statistical estimates of the value of the autonomous spending multiplier
5
determine its maximum real value to be around 2 .
Determining an adequate multiplier effect for Statia is not easy. Fundamental data, such as the marginal
propensity to spend, is not available. From CBS data on national accounts, we learn that the savings ratio for
the Netherlands Antilles is about 19 percent for the last known years (2004-2008), but has been declining
rapidly these past few years. This could indicate that the mps is high (>0.8). We expect that leakage from
spending income on imports is very high.
Lacking other useful data, reverting to the “global” statistical estimate of the multiplier seems appropriate for
Statia, with the observation that due to very high import ratios, the leakage to abroad may cause the
multiplier to be less than 2. For Curacao it has been adjusted to 1.8. For Statia, we expect the ratio to be
smaller. However, in our calculations we apply the induced effect only to wage income, which includes the
wage income as a result of the intermediate costs. We do not apply it to taxes (these go straight to The
Netherlands), to interest and depreciation (the project is financed by foreign direct investment (FDI) ), and to
entrepreneurial income (entrepreneurs and home owners are expected to spend these revenues outside
Statia).
Because we only take into consideration the wage income, the leakages are related to the costs of imports of
goods and services. Although substantial, we expect that at least 40-50% will represent value added to the
island. Here, we estimate the multiplier on income from wages somewhat conservatively at 1.5.
16
Curconsult
lead to an increased need for more infrastructure and public facilities. The point is that forward multipliers
are not included in any serious economic study anymore. This is because of the highly speculative nature of
these effects, as well as the difficulty to earmark such development to one single event, such as the Joremi
project. However, the size of this project will have an impact on the island that will go beyond the direct,
indirect and induced value added.
Estimate of the economic impact of Joremi
The estimate of the economic impact of the Joremi development is based on many assumptions and
principles. In the annex to this study we summarized all data and key figures on which we based our
calculations. These data have been used in a coherent spreadsheet.
The most important assumptions are summarized in the schedule below.
#
I
Phase
Infrastructure
Inputs for the economic impact calculation.
It has been calculated by a construction company that the costs of providing the entire road
infrastructure (access road and parking), walkways on the property, lighting, water/sewage
and utility lines, retention and detention reservoirs will cost approx. $12-14 million.
On the island, the existing construction companies cannot deal with such a large project,
considering all of the experience and knowledge needed for its execution. Therefore, some of
the equipment and skilled workers will from abroad. Almost all construction materials will
need to be imported.
It is estimated that materials will constitute approx. 55% of the cost of the infrastructure (in
economic jargon: intermediates), are imported to the island. However, some local activity is
involved (and thus, economic impact) in shipping and local transport of the materials
(shipping, harbor, local transport etc.).
The other 45% are the costs of labor, interest, depreciation and gross profit. Because the
main contractor will be foreign, and most of the skilled workers will be immigrant laborers on
the island for this project, only the local value added is estimated at 50% of the nonconstruction materials part. These are local sub-contractors on Statia, as well as local labor
employed by the contractor. The construction activities will take four (4) years.
Maintenance costs of the infrastructure is set at 2% annually. The local value added
component of these maintenance cost will be around 50%. This will become effective in year
4 after the infrastructure is completed.
Note 1: Cost of providing the infrastructure will be passed on to the buyers of houses, commercial facilities
or to the buyers a lot in the price of a square meter.
Note 2:The assumptions on the timeframe of the infrastructure can be discussed. However, changes in the
phasing of the development and financing of the infrastructure will hardly influence the economic impact
other than that it stretches the impact over a longer period of time.
II
Residential
housing
67 houses will be constructed on a plot of, on average 5,924 sq.m. (gross). Purchase of the
land is set (for the time being) at $40 sq.m.; this could rise to $60 or more due to market
developments and more favorable location of the lots.
Construction of houses: on average, this will cover 150 sq.m.; construction cost will be about
$1,500 per sq.m
On average, a residential house at Joremi will cost approx. $350,000 - $550,000 *).
Construction will start if infrastructure is ready. Annually, 1/3 of the houses will be
completed. Total investments: approx. $27 million
Of the contract price, 55% is for materials; 45% labor, interest, depreciation and gross profit.
Of this 45% it is assumed that 2/3 are labor costs.
Because of the large plots, substantial amounts will be invested in fencing and landscaping.
Many of the goods and plants will come from outside of Statia (55%).
Maintenance of the house will cost 2.5% annually (approx. $10,000). Maintenance of the
garden will be 5% of the initial landscaping costs (approx.. $3,000). There is a significant local
value added component in these amounts.
III-A
6
Hotel6
The construction of the 54-room hotel will take 2 years and will cost around $8.1 and $2.0
million for land purchase and landscaping*).
A foreign construction company will build the hotel. However, it will subcontract local
construction companies and workers. About 60% of the construction sum will be used for
At present there are 5 hotels with approximately 75 rooms. The utilization rate is 50%. The total number of overnight
stays is around 14,000 a year. A significant part of stay-overs are persons working for NuStar, the Government of
The Netherlands, or professionals who are on the island to do their job.
4.2
17
Curconsult
#
Phase
Inputs for the economic impact calculation.
materials. The remaining part will be used locally. The local value added for landscaping is
somewhat larger than for construction**).
III-B
Eco resort
The 34-unit eco resort will take 2 year to build and will cost $4.25 million to construct. The
landscaping, fencing etc. is calculated at $1.1 million.
The other assumptions are similar to that of the hotel (see III-A)**)
III/IV
Commercial
buildings
During the construction of the houses (II), the hotel (III-A), a restaurant, convenience store
and a shop for a tour operator will be constructed. The investment is approx. $1.0 million for
a 500m2 sq.m block*).
The assumptions made here are similar to those of the hotel (III-A).
Economic impact
of tourist &
second home
owners
Residential homes are partly occupied by the owner, and partly by tourists who rent these
homes. On average, the occupancy rate is 40% with 3.0 persons in the house.
Hotels will have an occupancy rate of 60%, an average room rate of $ 212 (hotel) and $185.50
(eco resort). One room/unit is occupied by 1.8 person.
The hotels are run on ‘cost base’**) with an annual budget of $1.65 for the hotel and $0.85
million for the eco resort.
The assumption is that every tourist (or family member of the home owner) spends $100.daily, no included costs for accommodation. It is calculated that on average, an additional
175 tourists / second-home owners are on the island. The local value of these expenditures
are substantial, close to 2/3.
Employment
The direct employment of the Joremi project is calculated based on the local value added.
In general, 2/3 of the local value is expected to be used for paying salaries to local laborers,
employees, staff and management. According to national accounts (CBS, Windward Islands,
2006, adjusted for CPI), the gross cost of a construction worker is $25,800 annually and
$28,400 for Statia.
Taxes
The most important federal (Dutch) taxes are:
sales tax (ABB) on most imports - 6%, and on local economic activities - 4%
real estate tax - 0.4% of the value of hotels, and 0.8% on real estate (commercial
and second homes), with a threshold (foundation costs) of $50.000
income tax - 30.4% with a threshold of approx. $10,000 (excl. child benefits and
elderly surcharges)
No profit tax is levied on the island.
*) Purchase of land is not included in the impact calculation. The value of the land will increase because of the investments in infrastructure.
The impact of the investments in infrastructure is included and estimated in phase I: the infrastructural investments.
**) The hotel is managed on cost base: all local cost are paid for. This includes among others management, staff and personnel,
maintenance, local purchase of goods and services but no depreciation and no or limited marketing costs. Most of the hotel revenues will
be paid for via the booking agencies and transferred directly to the hotel management company.
New insights can result in more accurate and
realistic estimates. Therefore, the economic model
we use to calculate the value added, employment
and government revenues can be easily adjusted
whenever new facts and figures become available.
7
In the case of high inflation, the outcomes as presented can become less realistic. However, on the other hand, if allprices
are up with the same percentage on the island and worldwide, the effect of inflation on the Joremi project will be limited.
During the development of the model, we have
taken into account the feasibility of the
development of the project, as well as each of the
different parts (residential house, hotel, eco resort
and other commercial activities).
To simplify the impact model, we refrain from
including a cost of living or inflation index into the
7
numbers .
18
Curconsult
The results of direct and indirect economic impact of the Joremi project
Local Value Added
The local value added is based on the local value of construction, hotel operation, renting of houses and
tourist expenditures. In the local context, value added consists of the direct and indirect local value and the
induced local value (see Ch.4). Based on this development, the total local value added will increase
substantially. In 2013 prices, the structural increase in the economy will be $15.2 million.
Value added Joremi Project, year 1-12
20,000
18,000
16,000
14,000
Direct and indirect value added
(Federal tax excluded)
12,000
In $ '000
10,000
Multiplier (induced) effects
8,000
Total Local Value added Joremi
project
6,000
4,000
2,000
0
1
2
3
4
5
6
7
8
9
10
11
12
Based on CBS (Netherlands Antilles) and projections by AIB, in 2010 the Gross Domestic Product of Statia was
8
$ 71.5 million. If we assume that the economy grew in real terms by 4% , and make adjustments for inflation,
9
the 2013 GDP will be approximately $94.9 million .
Based on our calculations and the GDP of today, there will be a structural GDP increase of 15.2%.
The increase in the GDP will be felt after year 1, when construction starts. The economic impact will increase
further during years 3 and 4. The impact on the economy will peak in year 4, when economic activities are
generated from construction, as well as operations.
Value added of Joremi project as percentage of 2013 GDP, year 1-12
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
1
2
3
4
5
6
7
8
9
10
11
12
Employment
If the Joremi property houses, hotels and commercial activities are realized, this will increase the total labor
10
force after some years with approx. 155-160 Full Time Equivalents (FTE’s), which is an increase of 11.4% in
the employed workforce on the island.
During the first years, construction activities on the island will provide (temporary) local employment. It
should be noted that during the construction phase, almost half of the laborers will be recruited from the
other neighboring islands.
8
Although recent estimates of GDP are missing, it is realistic to presume that the economy has grown during the last
couple of years due to the increase of the population on the island (see. www.cbs.ln)
99
CPI increase Statia between 1Q 2010 and 1Q 2013: 17.93%. Estimate of inflation 2010-2013 (3 years period): 18%.
10
Source: De arbeidsmarkt in Caribisch Nederland 2013, Ecorys 29 mei 2013. The employed population is estimated at
1,380 in the first quarter of 2013.
4.3
19
Curconsult
It should also be noted that if the development of Joremi takes longer, construction workers (temporary
employment) will be stretched over a longer period, while the permanent increase in employment will be
realized some years later.
Construction activities and new economic activities at Joremi will result in multiplier (or induced) effects. It is
estimated that the total increase in employment in FTE’s will be close to 400 FTE’s.
Temporary and permanent employment, Joremi-project, year 1-12
500
450
400
Employment in FTE
350
Temporary employment (in FTE)
300
Permenent employment (in FTE)
250
Induced employment
200
Total Employment (in FTE)
150
100
50
0
1
2
3
4
5
6
7
8
9
10
11
12
Taxes
The Dutch Government levies most of the taxes, such as the sales tax (ABB) on imports and on local
production.
Furthermore, there is a real estate tax of 0.8% for all second-home owners and commercial property. For
hotels it is 0.4%. No corporate income tax is levied. However, there is personal income tax with a flat
percentage of 30.4%, with a threshold of $10,016 (For one child the untaxed sum increases with $1,284 to a
max. of $2,568. For the elderly there is a surcharge of $455). For an annual income of above $250,000, the
percentage is 35.4%.
In total, the Joremi project will generate a structural tax increase of around $2.7-2.8 million annually.
Taking into consideration the induced (or multiplier) effects, the total increase in tax revenues will be $6.86.9 million.
Total tax revenues Joremi project for Dutch government, year 1-12
4,000
3,500
3,000
ABB
2,000
Real estate tax
1,500
Estimate wage/income tax
1,000
Total Direct Tax revenues, for
Dutch Government
500
0
1
2
3
4
5
6
7
8
9
10
11
12
in $'000l
2,500
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Curconsult
Population
11
The population of the island of St. Eustatius grew from 3,583 in 2010 to 3,897 in 2013 by 8.8%. The average
population growth has been around 4% over the past years. Besides natural growth (the difference between
the number of births and deaths), migration accounts for most of the population increase. Most immigrants
come from the U.S.A., The Netherlands, and the Dominican Republic.
An influx of new residents means that careful accommodation and integration is needed to prevent
segregation of population groups, and a feeling of displacement or estrangement from one’s familiar
environment by the ‘indigenous’ population. The government’s aim is to let the population grow from 3,900
12
in 2013 today to 5,500 in 2030 , although some foresee that this target can be reached by 2020.
The Joremi project will increase the population of the island by 155-160 employees. This will give an excellent
opportunity to the unemployed to find a job, and to the low-employed to move upwards in the labor market.
However, a substantial percentage of these new employees will be immigrants. Many of them will have a
partner and kids. We expect that the total number of new residents (or immigrants) on Statia will be double
the amount of the number of employees. Most will arrive some time (a year) after the immigrant worker will
have started working in Statia.
It can be calculated that based on an occupancy rate of 60%, with an average room occupancy of 1.8 at the
hotels and 40% in the Joremi houses with 3 stay-over tourists, there will be (on average) an additional 175
tourists on the island.
Altogether, it can be concluded that after some years Statia will have 950-975 more people on the island, of
which approximately 750 will be new permanent residents on the island.
Increase number of persons in Statia as result of Joremi-project , year 1-12
1,000
Increase in residents on Statia
900
800
Average number of additional
tourist on Statia
700
600
Kids and spouses
500
400
Additional Employees (FTE)
300
200
100
0
1
2
3
4
5
6
7
8
9
10
11
12
11
12
Source: CBS, Nederland, www.cbs.nl (statline)
Source: St. Eustatius Strategic Development Plan, p.10
An increase in population will result in an increase in the consumption of health care and education.
Experience from surrounding islands has shown that most new immigrants are 25/30 to 45/50 years of age.
Construction will bring mostly men to the island, who will stay there for the period of the project. More
women will be recruited as employees in the hospitality sector afterwards.
21
Curconsult
I:
Sources and references
II:
Assumptions economic impact
III:
Economic impact calculation Joremi project
ANNEX
22
Curconsult
Sources and references
x
x
x
x
x
x
x
x
x
x
x
x
x
Island Territory of St. Eustatius, Economic Development Plan 2004-2007, St. Eustatius, March 2004
Island Territory of St. Eustatius, Social Economic Initiative (SEI), St. Eustatius: Implementation Plan “the
Historical Gem”, St. Eustatius July 2007.
Public Entity St. Eustatius, St. Eustatius Strategic Development Plan, St. Eustatius, October 2010
Public Entity St. Eustatius, Spatial Development Plan (AB 2011 No. 10), May 10, 2011[p
Aruban Investment Bank, Current and projected economic impact study of Nu Star Oil Terminal in St.
Eustatius, Aruba, December 2011
Haviser, dr J.B.; Stelten M.A., R. (St. Maarten Archaeological Center [SIMARC]), An archaeological
assessment of the Joremi N.V. property, St. Eustatius, Dutch Caribbean, December 2012
Pointek, S; Madden H. (St. Eustatius National Park Foundation, STENAPA), Rapid Ecological Assessment
Joremi NV Development White Wall St. Eustatius, Netherlands Caribbean, St. Eustatius, 2013
Lievense Consulting Engineers, Environmental Impact Assessment, White Wall Development Plan St.
Eustatius, St. Maarten, April 2013
Miller Legg, Joremi Property St. Eustatius Land Use/Zoning Plan, Florida (U.S.A.), March 2013
Miller Legg, The Quill of Statia Master Plan, Florida (U.S.A.), April 2013
Ecorys, De arbeidsmarkt in Caribisch Nederland, Rotterdam, Mei 2013
Ecorys, De positive van de overhead Caribische Nederland als werkgever, Rotterdam, Mei 2013
Statistical Yearbook Netherlands Antilles, 2010, Central Bureau of Statistics, Willemstad 2011
Consulted websites:
www.rijksoverheidcn.com
www.statia.gov
www.belastingdienst-cn.nl
www.cbs.nl
www.centrury21islandrealty.com
www.remaxislandproperties.com
www.sabaislandrealty.com
www.sintbarthrealty.com
www.sibarthrealtyestate.com
I:
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Curconsult
II: Assumptions economic impact Joremi project
Assumptions , key figures and data
Impact investments in Joremi Project
Assumptions , key figures and data
200
50
50
Infrastructure needed for development of area
Road infrastructure, access to lots (residential &
x$1000
x$1000
x$1000
x$1000
Start up costs
maintenance infrastructure
local labor
labor as % of local value added
commercial)
Connection on the grid (electricity)
Connection on the water distribution network
access road and parking
walkways on property
lighting & garbage parking
50
100
50
5,000
2,450
850
x$1000
x$1000
x$1000
x$1000
x$1000)
x$1000
water & sewage & utility lines
cost during construction
retention reservoirs
2,500
300
185
x$1000
x$1000
x$1000
6
135
units
x$1000
number of retention reservoirs
detention reservoirs
number of detention reservoirs
conservation of archaeological sites
5
50
units
$1000, in particular site 5, lumpsum
Material component + equipment + interest
Local value added, non material
55%
50%
Residential
number of houses
average lot size
average size of house
average construction costs sq m.
clearing, garden, fenching, infra, etc. sq.m
67
5924
150
1.5
0.01
units
sq.m (90% of residential area)
sq meters
x$1000
x$1000
Residential
maintenance houses
local maintenance
materials as part of maintenance
landscaping - gardening costs
local landscaping
site preparation
other (developers fee, …)
25%
15%
of investment in house & lot
of investment in house and lot
occupied, in % of days a year
daily expenses per house (2 pers./house)
% materials in construction costs
domestic component in materials
value added, not in Statia
domestic contractors + laborers, construction
construction time house
estimate price of lot (sq. m)
55%
0%
15%
60%
9
0.040
Hotel
number of rooms
price per room (approx. 32 m2), incl. facilities
size of lot of hotel
54
150
32,000
Purchasing area, sq m
domestic contractors + laborers
domestic laborers garden etc.
domestic value added garden etc.
construction period
Eco resort
number of units
price per room (approx. 25-50 m2), incl. facilities
size of lot for eco hotel
purchasing price sq m2
0.040
0.005
60%
0%
40%
80%
60%
2
34
125.0
57,000
0.025
0.002
55%
p.m.
2%
50%
66.7%
value added local expenditures
Average number of persons per house
2.5%
75%
40%
0.0005
100%
40%
100
50%
3.00
of investment in house and lot
(max.) months
x$1000
units
x$1000/room, incl. ABB
sq m2
x$1000
x$1000
Hotel
Average occupancy rate
Average room rate
number of management & staff
employees
persons a room
60%
212
4
32
1.8
years
units
x$1000 /room
in sq m
x$1000
USD, ABB included
Eco hotel
Average occupancy rate
Average room rate
number of management & staff
employees
persons a room
60%
185.5
2
17
1.8
Start up costs (excl. consultant and architect fees)
Design & engeenering works
On site investigation
Kadaster
Impact exploitation Joremi projects
24
Curconsult
25
Curconsult
III: Economic impact calculation - Joremi project
26

Economic Impact Study - St. Eustatius Government

Transcription

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