UNCLAS BRIDGETOWN 000139

SIPDIS

SIPDIS

DEPT FOR EB/CBA - DENNIS WINSTEAD
COMMERCE FOR FSC SANTO DOMINGO

E.O. 12958: N/A
TAGS: AMCHAM ETRD EINV PREL SC XL
SUBJECT: Successful Commercial Outreach Trip to St Kitts

Ref: A) Bridgetown 95,
B) Bridgetown 49,
C) Guadalajara 100

1 (U) Summary: Poloffs conducted a week-long commercial outreach
trip to St Kitts during diplomatic week February 18 to 22. Poloffs
met with local business leaders, government finance and investment
officers, and hosted two receptions for the local American business
community, while promoting increased engagement among the private
sector firms in St Kitts and laying the foundation for the
development of a possible AmCham branch office. End summary.

FOUR SEASONS EYEING EXPANSION


2. (U) The American-owned, 400 room Four Seasons hotel has been on

Nevis for the last 17 years, catering to the high-end tourist
market. Four Seasons GM Andrew Humphries told poloffs of plans said
to be in the works for the expansion of the Nevis airport and a
planned increase of private and charter flights to the island,
particularly from the neighboring island of St. Maarten. He said
Four Seasons is expanding throughout the Eastern Caribbean with
projects in Barbados, Grenada and possibly St. Lucia. Four Seasons'
business is concentrated on the US market; with the majority coming
from the Northeast. He also noted that 40% of foreign visitors to
St Kitts and Nevis now come from the U.S., up sharply from the 25%
of a few years ago. He welcomed the possible formation of a local
AmCham.

RECEPTIONS FOR THE AMERICAN BUSINESS COMMUNITY A HIT


3. (U) The Embassy-sponsored reception In Nevis was held at a
local American owned business. There are a surprising number of
American owned firms on Nevis, with a range of businesses
represented - from small hotels and restaurants, to media outlets
and tax consultancies. There are also some American-owned offshore
finance companies active on the island, but they were unable to
attend the reception. Poloffs discussed the possibility of setting
up an AmCham in St Kitts and Nevis, and promised to hold regular
meetings with the American business community whenever we are on the
island.


4. (U) The reception in St Kitts was held at the American-owned
Marriot hotel. The Marriot Hotel is t

he biggest foreign investor in
St Kitts and has been a welcome partner to USG events in the past,
hosting many of our regional training activities. The hotel has had
a significant impact on tourism in St Kitts, including the dramatic
increase in tourism arrivals from the U.S. Marriot management was
quite receptive to the idea of creating an AmCham for St Kitts and
Nevis.


5. (U) The business community represented a diverse group,
including several deans from several of the US based medical schools
on the island, the hotel and tourism industry and the diamond and
high end retail establishments located at the cruise ship terminal.
Many of the American-owned firms in the Cruise Ship terminal are
based in St Martin, which has a large American business community,
perhaps the largest in the region.

HUGE CHRISTOPHE HARBOR PROJECT TO OPEN 2009


6. (U) Poloffs had extensive discussions at the reception with the
general manager of the Christophe Harbor development project.
Auberge and Firesky Corporations are developing a 2,500 acre hotel
and golf course project near the Marriot Property. Once completed,
the project will add hundreds of high end rooms to the hotel
inventory in the island and become a major employer and have a
significant impact on the economy of St Kitts, according to project
developers. The General Manager of the project is keen on having
an AmCham locate in St Kitts. He pointed out that with the recent
tourism boom, many more American firms are opening up operations in
St. Kitts.

EDUCATIONAL TOURISM - BOOMING BUSINESS


7. (U) There are now five foreign owned medical and veterinary
colleges in St Kitts and Nevis. Ross University operates a
veterinary and nursing college on the island and will be opening a
medical college in the near future; Ross also operates a well
regarded sea turtle conservation research program. The
International University of the Health Sciences operates a medical
college as well as a nursing college. In addition to their main
campus in St Kitts, they also have branch campuses in Dubai and
India. The Medical University of the Americas, which is based in
Nevis, has 500 students - about 40% are of South Asian Muslim
background (earning them the local moniker "Muslim University of the
Americas"). St Theresa's Medical University is the newest foreign
owned college in St Kitts, while Windsor University of Medicine
based in St Kitts also offers a MBA program. Each of these
universities has over 500 full time students and most say they are
expanding their operations. All of our interlocutors were
optimistic about continued growth of the sector in St Kitts. They
point out that they offer a very affordable medical education and
their graduates all have high pass rates in taking US Medical
boards. All of these colleges are US owned or affiliated, and most
if not all of their staff are American citizens and the majority of
the students are American as well. The economic impact of these
programs on St Kitts is tremendous as St Kitts only has a resident
population of 50,000 citizens.


8. (U) Poloffs held extensive discussions with St Kitts Investment
Promotion Agency, the Caribbean Central Bank, The Ministry of
Agriculture, the Ministry of Tourism, the St Kitts Chamber of
Commerce and the St Kitts Tourism Association (septel). All were
upbeat about the prospects of the American business community in St
Kitts and welcomed the possible formation of an American Chamber.

COMMENT

(U) Following the successful launch of an AmCham in Barbados, and on
the basis of the interest received during this visit, post believes
a separate St Kitts and Nevis AmCham is a sustainable proposition.
We are looking at a possible launch at the Marriot as soon as late
April. The statistics on educational tourism in St. Kitts and Nevis
are particularly intriguing. As noted ref (c), this market is
poised for even further growth, and a functioning AmCham should be
able to play a positive advocacy and assistance role for new and
existing American businesses on the islands.

Ourisman