Economic and Financial Review - June 2019

June 2019 Economic and Financial Review SAINT CHRISTOPHER (ST KITTS) AND NEVIS

Citizenship by Investment receipts, a slowdown in global growth, and adverse weather.

private sector projects such as the ongoing construction of the Ramada Hotel and renovation works at the Four Seasons Resort in Nevis also boosted construction activity. Value added in the tourism industry is estimated to have increased in the period January to June 2019, relative to the same period last year, chiefly on account of higher stay-over arrivals. The number of stay-over arrivals grew by 11.9 per cent to 74,380, reflecting higher demand in all major source markets. In particular, upticks were registered in arrivals from the USA (6.8 per cent), which remains the largest source market, Canada (79.7 per cent), the Caribbean (6.2 per cent) and the UK (3.3 per cent). Notably, arrivals from the USA and Canada were boosted by increased airlift while the hosting of the annual St Kitts Music Festival brought additional visitors, particularly from the Caribbean market. Continued marketing efforts also contributed to the improvement in stayover visitor arrivals. The number of yacht passengers also increased, by 52.0 per cent to 2,881. Meanwhile, there was a 1.0 per cent dip in the number of cruise passenger arrivals to 655,001 and a 13.5 per cent decrease in the number of excursionists was recorded. Consequently, total visitor arrivals are estimated to have

Real Sector Developments Real sector preliminary indicators reveal that growth in the Saint Christopher (St. Kitts) and Nevis economy, in the first six months of 2019, was fuelled largely by activity in the construction sector and the tourism industry. Construction activity remained buoyant in the first half of 2019 primarily due to high public sector investment spending. In the public sector, capital spending by the government increased by $26.5m to $78.8m, mainly associated with the upgrade of the island main road project, the road improvement project, the rehabilitation of the Old Road Fisheries Complex project, the construction of residences led by the National Housing Corporation (NHC) and other infrastructural improvements in Saint St Kitts; the hospital expansion, the construction of the new water taxi pier and road works in Nevis, among other capital projects. The construction of the second cruise pier and airport rehabilitation works by the St. Christopher Air and Sea Ports Authority, also contributed to robust public sector construction activity. The advancement of

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Eastern Caribbean Central Bank