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Investing in St. LuciaThe National Development Corporation Seeks

Partners for Tourism-related Investment

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“A lot of investment is currently beingdriven by the Euro that is at an all time high.Being a dollar area, the Caribbean is anattractive destination,” says Nicholas John,Executive Chairman of the NationalDevelopment Corporation, the St. Lucianagency mandated to bring in foreign invest-ment.

In the Eastern Caribbean, Barbados isseen as the country to beat. Lately, however,that island has reached saturation point,particularly in the areas of hotel and leisureinvestment. Land is scarce and prices haveskyrocketed. St. Lucia is now considered thenew destination. Property prices are still rea-sonable and there is a lot of land to develop.

At present there is significant direct for-eign investment in the hotel sector.However, the authorities are seeking greaterparticipation in that sector.

In order to make the island more attrac-tive (sun, sea and sand are now insufficientarguments to persuade international enter-prises to set up shop) the Tourism IncentivesAct was created. Among other benefits, itprovides a 15 year tax holiday and customs

duty exemptions to all new investors in thehotel sector.

Armed with what it considers to be aninteresting package of initiatives, St. Lucia’sNational Development Corporation, theN.D.C., regularly goes shopping for foreigninvestment.

This is easier than it sounds and it is asomewhat tedious process. For every 1000contacts made, only 100 will show interest.Out of the 10 who actually consider invest-ing, only one will work out. Before trackingdown potential investors, the NationalDevelopment Corporation must firstresearch the history of each candidate andthen ensure that they have the money tofinance their projects and that they are ofsound repute.

Once a developer signs on the dottedline, the National DevelopmentCorporation will assist with internal bureau-cracy. In St. Lucia, the N.D.C. is touted asthe investor’s link to the government. Thereare several procedures that are particular toforeign investors and the N.D.C. is mandat-ed to smooth the way and speed up matters.

Foreign investment is vital to St. Lucia’s development. Tourism is the island’s

leading source of foreign exchange and investment in this sector is particularly

important. In the past, international conglomerates happened on St. Lucia by

chance and decided to invest in the island. But times have changed and

Caribbean countries are now competing for the same overseas money. In finan-

cial circles, all of the countries in the Caribbean basin are considered viable,

particularly for tourism-related projects. Foreign investment is no longer a hap-

hazard affair. The St. Lucian authorities have had to become far more organised

in order to stand out.

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The National Development Corporation,created in the 1970’s, falls under the Ministryof Economic Affairs and Development. It is agovernment entity but receives no subventionsand operates on private sector principals.

It also possesses some great assets. Over6,000 acres of land, located mainly in VieuxFort in the South of St. Lucia are vested in theNational Development Corporation.

A number of these sites are zoned fortourism development. The NationalDevelopment Corporation offers joint venturepropositions for these areas. The Corporationsupplies the land as equity; the developerbuilds, manages and markets the property.This arrangement allows the N.D.C. to partici-pate in the profits. However, there is room forflexibility and lands can be leased or sold out-right.

“We are not in the hotel business but wefacilitate plant and structure and encourageinvestment. It’s a good business model,” saysNicholas John.

The National Development Corporationowns the Coconut Bay Hotel in Vieux Fort.This 87 acre property is leased to Jamaicaninvestors for 99 years. US$12.5 million wereinvested by the N.D.C. to refurbish the property.

The proposed Ritz Carlton Hotel is beingbuilt on N.D.C. lands at Black Bay in VieuxFort under a joint venture arrangement. Otherlarge zones are in the negotiation stage withprospective developers. These include FondD’or at Dennery, Bois Chadon in Vieux Fort,a 300 acre site that includes the vast Mankotémangrove, and River Doree in Choiseul.

The immense Anse des Sables in Vieux Fort is also an N.D.C. property. TheCorporation intends to create leisure facilities along this stretch and encourage theconstruction of small hotels, restaurants, play parks and entertainment facilities. Thepurpose is to create a village for tourists.

“Our big sites are generating a lot of interest at this time,” says Nicholas John. The National Development Corporation has received favourable reviews from the

Caribbean Development Bank. In a recent assessment, the bank noted the ‘goodfinancial performance of the N.D.C.’ and wrote that the “Corporation’s liquidity posi-tion has improved.”

The National Development Corporation is also the owner of the Pointe SeraphineDuty Free Complex located in Castries. Situated on a six acre site, with 42 stores anda restaurant, it is the island’s largest duty free shopping facility.

Pointe Seraphine Duty Free Complex is strategically placed in the centre of theCastries Redevelopment Project, a government initiative that will transform St. Lucia’scapital into a designated duty free shopping centre. The National DevelopmentCorporation will play a crucial role in making Castries a new Caribbean destination.

The entire waterfront will be reshaped into a shopping and entertainment area.Residential zones will be created and a new terminal will be constructed at the GeorgeF.L.Charles Airport. Emphasis is to be placed on accommodating private jets. Theairstrip will also be lengthened.

In the July 2007 edition of Fortune Magazine, entitled Special Investors Edition,St. Lucia’s redevelopment plan was featured in a special advertiser’s section. It notedthat in St. Lucia around 40,000 passengers aboard 27 cruise ships disembark everymonth for lunch and to see the sights.

“This potential cannot be ignored,” said St. Lucia’s then Prime Minister, Sir JohnCompton. “Besides land-based tourism, we are also going to redevelop Castries, thecapital, and expand our main deepwater harbour and reserve it for the cruise liners.We also want to build up to three more berths.”

Sir John added: “We have generous tax incentives and the National DevelopmentCorporation is working to attract investors and guide them through the red tape.”

The current container park situated in the port of Castries will be relocated to thenew industrial hub at Cul de Sac, south of the capital. A convention centre is plannedfor the vacated site that is now prime real estate in the heart of Castries.

“St. Lucians should participate in the development of St. Lucia, and the NationalDevelopment Corporation, in the name of the St. Lucian people facilitates invest-ment,” says Nicholas John. “We are creating activity and creating the environment toattract investors.” The National Development Corporation has been attracting foreigninvestment to St. Lucia for the past 35 years.

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Anju Silvers 453-0175BBG ComunicationsBagshaws of St. Lucia Ltd 452-2139Bureau de Change/Bank of St. Lucia 456-6000Café Tropical 452-7411Caribbean Resources 454-8557Clear Blue Store 451-9746Colombia Emeralds 453-2629Coco Joe’s 459-0992Courtey Taxi 452-1733Diamond International 453-6399Duty Free Caribbean (perfume) 453-2629Duty Free Caribbean (Liquor) 453-2629DutyFreeShoppers/CaribbeanRes. 451-7840Ferry 450-3595Foster Inc 452-6441Harry Edwards 451-6799Heather Floissac 452-4761

Helen Volson 452-0758Heritage Tourism 468-4607Images/ Imcon 452-7870Jazz Shop 452-4094Jewellers Warehouse 453-7281Just Leather 453-2305Koko Tok / Ship Shape 452-9294Lady Floissac 452-7865Made in Paradise/ Made in St. Lucia 458-1455National Car Rental 450-8577Nature Pur 458-0510Oasis/Sea Island Cotton Shop 452-3674Pamela St. Jules (Cart) 451-8383Paramount Appliances 453-0855Paulinus/Anne Clifford (Cart) 453-8727Peer/Pirana Joe 453-0851Perfect Time 452-7223Raffles 456-0206

Rainbow Tail 452-7677Reminista Clement (Cart) 451-6025Sandals 452-3081Sea Island Cotton (Oasis) 452-3674St. Lucia Heritage Tours/Tourist Board 451-6508Sunshine Bookstore 452-3777TanzaniteThe Gallery 451-6116The Land Shop 453-6757The Lava Flow 451-9746The Rum Shop 459-0301Timbuk Too/ Simon & Bird 452-3674Tommy Bahamas 452-3674Touched by The Sun 456-5013Viking Traders 450-1520Virgina Roberts 452-1892Wincraft (Images)

Duty Free Pointe Seraphine

a must stop on your Caribbean holiday

No visit to St. Lucia would be complete without a stop at duty-free Pointe Seraphine.

9Overlooking the harbour on the outskirts of downtown Castries, thebest duty-free shopping the Caribbeanhas to offer is waiting for you.