Identifier
Created
Classification
Origin
09PORTOFSPAIN39
2009-01-28 14:49:00
UNCLASSIFIED
Embassy Port Of Spain
Cable title:
TRINIDAD & TOBAGO ECONOMIC HIGHLIGHTS FOR DECEMBER 2008
how-toVZCZCXRO7194 RR RUEHGR DE RUEHSP #0039/01 0281449 ZNR UUUUU ZZH R 281449Z JAN 09 FM AMEMBASSY PORT OF SPAIN TO RUEHC/SECSTATE WASHDC 9654 INFO RUCPDOC/DEPT OF COMMERCE WASHDC RUEATRS/DEPT OF TREASURY WASHDC RUCNCOM/EC CARICOM COLLECTIVE RUEHRC/USDA FAS WASHDC 0277 RUEHRC/AMEMBASSY ATO CARIBBEAN RHEBAAA/USDOE WASHDC RUEAWJA/DEPT OF JUSTICE WASHDC RUEANHA/FAA NATIONAL HQ WASHDC RUBDPLA/TSA HQ WASHINGTON DC
UNCLAS SECTION 01 OF 02 PORT OF SPAIN 000039
SIPDIS
SANTO DOMINGO ALSO FOR REGIONAL COMMERCIAL OFFICE
JUSTICE FOR OPDAT
E.O. 12958: N/A
TAGS: ECON EFIN EAGR EINV ETRD BEXP TD
SUBJECT: TRINIDAD & TOBAGO ECONOMIC HIGHLIGHTS FOR DECEMBER 2008
Notable economic developments in Trinidad & Tobago in December:
UNCLAS SECTION 01 OF 02 PORT OF SPAIN 000039
SIPDIS
SANTO DOMINGO ALSO FOR REGIONAL COMMERCIAL OFFICE
JUSTICE FOR OPDAT
E.O. 12958: N/A
TAGS: ECON EFIN EAGR EINV ETRD BEXP TD
SUBJECT: TRINIDAD & TOBAGO ECONOMIC HIGHLIGHTS FOR DECEMBER 2008
Notable economic developments in Trinidad & Tobago in December:
1. Inflation falling says CBTT
2. Tourism slows in Tobago
3. Legislative Agenda for 2009 - 2010
4. GOTT Encourages Comparison Shopping
5. GOTT Invests US $16.3 Million in Food Security
6. PriceSmart a Good Investment
1. Inflation falling says CBTT
--------------
In response to a slowdown in food price inflation, on December 19
the Central Bank of Trinidad and Tobago (CBTT) announced headline
inflation had fallen from 15.4% (year-on-year) in October to 14.3%
in November. Following this announcement, Caribbean Money Market
Brokers Limited (CMMB) lowered its inflation range forecast from
14.5-16% to 13-15%. High food and commodity prices have driven
inflation recently. In November of 2008, lower international food
prices caused the food inflation rate to drop from 33.4% to 29.8%
(year-on-year).
2. Tourism slows in Tobago
--------------
Tobago Hotel Association President, Carol-Ann Birchwood James,
commented that hotel occupancy in Tobago is at 50%. The shortage of
guests is expected to continue through 2009. Kevin Kenny, President
of Trinidad Hotel, Restaurant and Tourism, expects a drop of almost
30% for 2009. To combat slowing business, tourism professionals will
increase marketing to visitors from Trinidad. Trinidad's tourism
sector, dominated by conferences and business travel, is so far
showing no significant ill effect from the financial crisis. Hotel
owners anticipate doing good business from the upcoming Summit of
the Americas in April and Commonwealth Heads of Government meeting
in November.
3. Legislative Agenda for 2009 - 2010
--------------
The GOTT announced a legislative agenda for the next two years,
including legislation to regulate credit unions, deal with food
security and agriculture, and address discriminatory practices
encountered by HIV/AIDS patients in the workplace.
4. GOTT Encourages Comparison Shopping
--------------
The GOTT revealed it has spent US$100,000 to date to publish
comparative prices on fruits and vegetables, poultry and hardware
materials. Consumer Affairs Minister Peter Taylor cited "empirical
evidence that comparison shopping affects a downward trend of prices
on the local market." Minister Taylor hopes that by the year 2020
consumer awareness in Trinidad will be comparable to developed
nations.
5. GOTT Invests in Food Security
-------------- --------------
The GOTT announced it will spend US$16.3 million on infrastructure
to support large-scale commercial farms in order to reach its goal
of attaining food and nutrition security. Currently, T&T imports
80% of its food. Twelve large farms will be made available under
lease-hold arrangements. GOTT hopes that this initiative will also
contain food price inflation, which has been the major contributor
to domestic headline inflation.
6. Mexican Company Sells 49.9 Million TCL Shares
-------------- --------------
Mexican cement company Cemex announced plans to sell its 20%
shareholding in Trinidad Cement Limited. TCL is a major producer
and marketer of cement and ready-mix products in the Caribbean.
Anthony Haynes, general manager of a TCL subsidiary, said the sale
"is not likely to have any affect on our operations." Cemex is
reportedly selling the shares in an effort to recover from a year of
losses due to the global financial crisis.
6. PriceSmart, a Good Investment
--------------
US-invested retailer PriceSmart announced it will open a fourth
location in Trinidad in 2009 with a projected cost of USD 30
million. The store will be located in San Fernando and open in
November. In 2008, PriceSmart's three existing warehouse stores
enjoyed a 20% growth in sales and reported TT$1 billion in local
PORT OF SP 00000039 002 OF 002
sales.
KUSNITZ
SIPDIS
SANTO DOMINGO ALSO FOR REGIONAL COMMERCIAL OFFICE
JUSTICE FOR OPDAT
E.O. 12958: N/A
TAGS: ECON EFIN EAGR EINV ETRD BEXP TD
SUBJECT: TRINIDAD & TOBAGO ECONOMIC HIGHLIGHTS FOR DECEMBER 2008
Notable economic developments in Trinidad & Tobago in December:
1. Inflation falling says CBTT
2. Tourism slows in Tobago
3. Legislative Agenda for 2009 - 2010
4. GOTT Encourages Comparison Shopping
5. GOTT Invests US $16.3 Million in Food Security
6. PriceSmart a Good Investment
1. Inflation falling says CBTT
--------------
In response to a slowdown in food price inflation, on December 19
the Central Bank of Trinidad and Tobago (CBTT) announced headline
inflation had fallen from 15.4% (year-on-year) in October to 14.3%
in November. Following this announcement, Caribbean Money Market
Brokers Limited (CMMB) lowered its inflation range forecast from
14.5-16% to 13-15%. High food and commodity prices have driven
inflation recently. In November of 2008, lower international food
prices caused the food inflation rate to drop from 33.4% to 29.8%
(year-on-year).
2. Tourism slows in Tobago
--------------
Tobago Hotel Association President, Carol-Ann Birchwood James,
commented that hotel occupancy in Tobago is at 50%. The shortage of
guests is expected to continue through 2009. Kevin Kenny, President
of Trinidad Hotel, Restaurant and Tourism, expects a drop of almost
30% for 2009. To combat slowing business, tourism professionals will
increase marketing to visitors from Trinidad. Trinidad's tourism
sector, dominated by conferences and business travel, is so far
showing no significant ill effect from the financial crisis. Hotel
owners anticipate doing good business from the upcoming Summit of
the Americas in April and Commonwealth Heads of Government meeting
in November.
3. Legislative Agenda for 2009 - 2010
--------------
The GOTT announced a legislative agenda for the next two years,
including legislation to regulate credit unions, deal with food
security and agriculture, and address discriminatory practices
encountered by HIV/AIDS patients in the workplace.
4. GOTT Encourages Comparison Shopping
--------------
The GOTT revealed it has spent US$100,000 to date to publish
comparative prices on fruits and vegetables, poultry and hardware
materials. Consumer Affairs Minister Peter Taylor cited "empirical
evidence that comparison shopping affects a downward trend of prices
on the local market." Minister Taylor hopes that by the year 2020
consumer awareness in Trinidad will be comparable to developed
nations.
5. GOTT Invests in Food Security
-------------- --------------
The GOTT announced it will spend US$16.3 million on infrastructure
to support large-scale commercial farms in order to reach its goal
of attaining food and nutrition security. Currently, T&T imports
80% of its food. Twelve large farms will be made available under
lease-hold arrangements. GOTT hopes that this initiative will also
contain food price inflation, which has been the major contributor
to domestic headline inflation.
6. Mexican Company Sells 49.9 Million TCL Shares
-------------- --------------
Mexican cement company Cemex announced plans to sell its 20%
shareholding in Trinidad Cement Limited. TCL is a major producer
and marketer of cement and ready-mix products in the Caribbean.
Anthony Haynes, general manager of a TCL subsidiary, said the sale
"is not likely to have any affect on our operations." Cemex is
reportedly selling the shares in an effort to recover from a year of
losses due to the global financial crisis.
6. PriceSmart, a Good Investment
--------------
US-invested retailer PriceSmart announced it will open a fourth
location in Trinidad in 2009 with a projected cost of USD 30
million. The store will be located in San Fernando and open in
November. In 2008, PriceSmart's three existing warehouse stores
enjoyed a 20% growth in sales and reported TT$1 billion in local
PORT OF SP 00000039 002 OF 002
sales.
KUSNITZ