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http://www.aruba-bb.com/viewtopic.php?f=11&t=78020Many Good Things Await Aruba In 2010, But The Island Has Big Challenges Too.January 8th 2010, Aruba.
ORANJESTAD-Arubans view the year 2010 with great optimism. The newly
elected government has ambitious plans for the island in 2010. A few of
the campaign promises of the elected government have already been
accomplished in the past 60 days. The government has managed to
convince KLM to restart direct flights from Amsterdam to Aruba as of
February 2010. The flights were suspended in March of 2009 due to market
conditions. One of the biggest campaign promises is the elimination of
the turn over tax of 3 percent. The government has gradually reduced the
turn over tax by 1.5 percent effective as of January 1st 2010, and will
eliminate the turn over tax entirely by 2011. In addition the government
has increased welfare assistance by 25 percent effective as of January 1st
2010, this to make up for the lost of purchasing power of the last 8 years.
The government will spend additional millions of U.S. dollars on
aggressive marketing of the island as a tourism destination abroad, big
infrastructure expansion and upgrade projects, fighting crime, invest in a
much safer traffic, renovation of the island's city centers, increase of
household purchasing power, investments in education, more focus on the
island's environment, and overall well being of the citizens.
Tourism
An increase of between two and five percent in stay-over arrivals is
projected for the island in 2010. The Minister of Tourism is working on
privatizing Aruba Tourism Authority, and is aiming at attracting visitors
who are likely to spend more on purchasing goods and services on the
island. The Minister of Tourism is also working on reinstalling an airlift
taskforce with the aim to maintain good relations with present carriers
flying to the island, to attract new carriers, and to open new gateways.
Much focus will be put on diversifying the tourism generating markets for
Aruba, mainly through attracting more visitors from Europe, South America
and the United States west coast. Aruba is very dependent on stay-over
visitors from the United States east coast, which makes the island
economy vulnerable.
Education
The government wants to spend millions on renovating the island’s
schools in 2010. A new high-school will be constructed in the district of
Noord, and a few schools will be expanded to accommodate more
students. The government wants to reintroduce obligatory military service,
this mainly to reinforce discipline among the island's youth. The
government will subsidize part of the costs of school books for students.
To fight the island’s brain drain, students who return to Aruba within three
years after completing their studies abroad will have their Aruban study
loan exempted.
Cities
Oranjestad and San Nicolas are at the dawn of renaissance. One of the
government’s biggest priority in the 4 year period is to rejuvenate the
downtown areas of both cities. Oranjestad will be again a vibrant city, and
the place to be which it once was. The renovation of the mainstreet in
Oranjestad and surrounding streets ( including Wilhelmina Straat) is set to
start in mid January 2010. The government will go ahead with the master
plan to relocate the container harbour from Oranjestad, and have the
cruise terminal expanded to accommodate more cruise vessels. The
waterfront area of the city will be expanded with parks and squares. In
addition, the government wants to bring back the fruit and vegetables
market back to waterfront Oranjestad. The downtown area of San Nicolas
will be developed and renovated into a Caribbean style city with the focus
on the city's past as a melting pot of Caribbean cultures.
Infrastructure
The government has requested a study on the feasibility for a 4 lane
highway between San Nicolas and Oranjestad. The present highway
between both cities is the busiest on the island, and the congestion on
that highway grows every year. The government is also studying the
option of improved public transportation between both cities. Money is
allocated to construct the island's first bicycle path which will run from
San Nicolas to Oranjestad. The government has shown renewed
commitment to have the Oranjestad by-pass completed. The government
has reserved money to purchase the last land lots to have the project
started. The completion of the by-pass is expected to alleviate traffic
congestion in waterfront Oranjestad.
Refinery
The biggest challenge for Aruba in 2010 is to reopen the oil refinery in San
Nicolas. Valero Corporation has temporary closed the refinery in the
summer of 2009. Hundreds of employees are still being paid but are
uncertain about their jobs. Valero wants to sell the refinery and there are
potential buyers. The most serious buyer at the moment is PetroChina.
The government is presently deliberating with PetroChina, and is
demanding that the eventual buyer invest in making the refinery
compatible to other modern refineries in the World. That demand will
require over 1 billion dollars in upgrade investments. The refinery in Aruba
was completed in 1929, and is not as efficient as most other modern
refineries in the world today. During his New Year speech, Governor Fredis
Refunjol has warned the island to think of a future without the refinery.
There is a chance the refinery will be closed for good, and dismantled.
The government is working on to avoid that scenario.
