The Caribbean shows why it has one of the most dynamic construction sectors in the world with over $60 Billion USD to be invested in upcoming years.
As the Caribbean begins to emerge from six years of economic slowdown, including two of recession, it is essential to find ways to nurture and strengthen this budding recovery. Economic growth was the central factor behind the region’s striking social and economic achievements of the last decade.
It is crucial to rebuild the foundations for economic recovery. Infrastructure stands out as one of the main enablers to enhance productivity and sustainably boost the domestic growth engines.
The vast majority of construction projects happening in the Caribbean over the years have been within the hospitality sector. This is the result of a number of the islands including Dominica, Grenada and St Kitts and Nevis putting programmes in place to incentivise development and investment.
The IMF forecasts growth to expand generally by 1.1 percent this year and 2 percent in 2018.
The May 2017 Pipeline Report shows 39,434 rooms in 226 hotel projects Under Contract in the Caribbean/Mexico region. The total represents a 39.0% increase in rooms Under Contract compared with May 2016.
Under Contract data includes projects in the In Construction, Final Planning and Planning stages but does not include projects in the Unconfirmed stage.
The Caribbean/Mexico region reported 13,503 rooms in 82 projects In Construction for the month. Based on number of rooms, that is a 7.0% increase in year-over-year comparisons.
Three countries in the region reported more than 1,000 rooms In Construction:
Antigua and Barbuda
Antigua has signed more large-scale hotel development deals in recent years than any other country in the Caribbean.
a new terminal at V.C Bird International Airport
$740 million USD development with two five star hotels on Guiana Island that consist of 1300 residential units, a casino, a golf course, a conference centre and a marina.
The economic outlook for the Bahamas is improving based upon gains in tourism and construction.
Construction on USD 3.5 billion Baha Mar resort has resumed with a target opening in late 2017.
Barbados is developing deeper ties with China to promote it as a tourist destination for Chinese visitors and investment.
Plasma Gasification Waste to Energy Plant costing $240 million USD
Reconstruction of the Casuarina Beach Hotel to the value of $100 million.
Sandals Barbados is renovating from 280 to 500 rooms.
Growth in the next few years is expected to be in the range of 1.0 – 2.5% driven by lower energy prices, well contained inflation and a stronger macroeconomic backdrop.
Morgan’s Point hotel development
St. George’s hotel project
British Virgin Islands
Economic performance is expected to improve as a result of the modest economic growth in North America, as well as the improvement in the construction sector.
Expansion of Terrance B Lettsome Internation Airport
In an effort to stimulate growth and diversify the economy, the government created Cayman Enterprise City that is 100% exempt from all taxes.
Many PPP Projects
Expansion of Owen Roberts International Airport with a larger terminal
Health City – new oncology and outpatient units, medical school
250 million luxury resort at St. James Point on Grand Cayman.
Havana Jose Marti International being expanded and renovated
36 new developments currently being planned or built. Nine of them are in Havana with Varadero, Cayo Las Brujas and Cayo Guillermo also seeing new hotels.
The 2017 budget is themed “Building a More Resilient Dominica” and the government is focused on overcoming the effects of Brexit and other effects to the country. The governments Citizenship by Investment Programme to help the economy with three developments:
Bois Cotlette Estate in Soufriere
Jungle Bay Resort in Morne Acouma
Silver Beach Resort & Spa in Picard
This country remains one of the fastest growing economies in the region. The GDP is expected to grow by 5% in 2017, achievable with the increase in performance in agricultural, mining and quarrying sectors. It is estimated that between 2016 and 2019, more than 18 000 new hotel rooms will be added. This comprises 55 new hotel projects and more than $2 billion worth of investment. The country’s goal is 10 million annual visitors by 2023.
Major projects include:
Thermo-electric Power plant
The Extended Credit Facility (ECF) supported programme has helped with growth and restoring fiscal and debt sustainability.
$2 billion Grenada Resort complex
Hog Island has seen work commence with a luxury hotel, a national park, a marina village and a wellness centre.
The country has seen a lift in hotel development in recent years, with the addition of several new hotels concentrated in Port-au-Prince like the Royal Oasis, the Mariott, the Royal Decameron Indigo Beach Resort & Spa.
Economy is expected to grow by 2.1 % in 2017 as the economy begins reaping the benefits of an improved macroeconomic policy framework.
Major projects include:
$600-million road connecting north & south Jamaica
Two Royalton hotels
Courtyard by Mariott
Two five-star Ocean by h10 Hotel properties
Start of nine Jamaican hotels by Karisma Hotels & Resort
$1.5 billion deep water container port
Expansion on the Panama Canal
Three luxury hotels with 2,400 rooms;
The Tourism Support Act of 2016 was passed, designed to facilitate the development and growth of the tourism industry.
St. Kitts & Nevis
Also with one of the fastest growing economies, the twin islands have seen a wave of new investment.
United Airlines has launched a weekly non-stop service from Newark to St. Kitts.
Hyatt is slated to open the Park Hyatt St. Kitts, the first-ever Park Hyatt property in the Caribbean
Christophe Harbour – 2500-acre resort community.
During 2016 and the first half of 2017, St Lucia has seen 700 new hotel rooms opening as well as a new marketing campaign to push for new investment on the islan.
110 room Papillon Hotel
115 room Harbor Club
361 room Royalton