In the latter part of 2004, just before election, Anguilla took off with the start of the FLAG luxury project. That project was facilitated by a deregulated global banking system that allowed for easy, cheap money to be had, especially in the development of the real estate industry.
By 2008, it had all came crashing down. Banks suffered severe strain- with many of them collapsing and in some instances, in need of bailouts – businesses saw a significant fall off in receipts and individuals who just a year prior were spending like there was no tomorrow was finding it difficult just to get by.
Governments, especially those in the Caribbean chose to bury their heads in the sand. The Anguillian Government was no different. It is my opinion that the Government of Anguilla chose to misinform the people and carry on business as usual while all our institutions remain on the brink of collapse. Tourism arrivals to Anguilla plummeted from a high of 77,652 in 2007 to 57,891 in 2009. Servants were laid off around the globe. In Puerto Rico, over 15,000 civil servants were let go; in TCI, the UK, Ireland and every State in the USA public servants were losing their jobs.
In Anguilla, the British Government was insisting, with the support of the former Governor, Mr. William Alistair Harrison that up to 30% of the Anguilla Public Service be furloughed. We are all aware of what is going on in Barbados these days.
The 2009 budget envisioned spending over three hundred million and only realize a collection of just over one hundred and fifty-five million. The Government was spending as if it was the glory years of 2005 to 2007 and we ended up with the largest budgetary deficit in Anguilla’s history with no reserves – but; the people of Anguilla knew nothing of it. We knew nothing because the Minister of Finance at that time and his colleagues chose not to bring this information to the public. Neither did they produce a budget for 2010. This was the order of Government business during that time ladies and gentlemen.
The AUM came to office in February 2010 – last Tuesday marked four years to the day that we first entered the doors of the Secretariat with a plan for recovery called, “The Blueprint for Anguilla’s rescue and development!”
There is no doubt we, as a people have suffered through a tough economic stretch. As you know, in a short time, we, like the other political entities in Anguilla will unveil our cadre of candidates for the upcoming election and we will continue to articulate to you, our challenges and our accomplishments, our victories and our failures over the past four years and our plans for the next five/six years.
While it continues to be a tough period, we are still happy to report that there have been a significant number of investors coming to our shores and a number of them have started their projects. The times have obviously changed to when the country as a whole grew significantly with the two projects that actually started in 2004/05 namely, FLAG and KOR, commonly called the Viceroy project. We now know that only Viceroy made it to completion after going $200 million over budget and bailed out in September 2010.
Today, we must come to the harsh realization that investors are much more fiscally conservative as many of them are either spending their own cash or borrowing from hedge funds and pension funds and there is no doubt, they have all learned from the implosion of the global financial markets and the collapse of the real estate luxury market in 2008.
Now I turn to this. It is now no secret that the former administration signed no less than ten (10) Memorandums of Agreements (MOAs). To refresh our memory they were;
1. Flag Luxury – approved July 2002. This project was supposed to deliver 750 rooms over a 12 year period
2. KOR group – Barnes Bay approved in September 2004. We all know this project made it to the end and is now called the Viceroy Resort
3. KOR group – Savannah Bay/Sile Bay approved in January 2006 envisioning 825 rooms over a 15 year period
4. Altamer Expansion project; Ironically, Altamer first came to Anguilla under the leadership of the Hon. Hubert Hughes. Well, a MOA was signed in January 2006 for its expansion to 370 rooms over a period of 10 years
5. Paradise Holdings – Frangipani expansion which was approved in October of 2006 with the additional 75 rooms to be opened in 2009
6. Again, KOR Group – Meads Bay which was approved in December 2006 for another 350 rooms. This project was to be built on a 6 acre plot of land and it these rooms were to be built over a period of 10 years, beginning in 2009
7. Gumbs Family – Rendezvous Bay development and expansion project which was approved in May 2007 for 450 rooms
8. Lake-Kentish family – Conch Bay project –approved May 2007 for 730 rooms built over a period of 12 years, commencing September 2007
9. Harrigan Family – Madeariman Redevelopment project with an envisioned 105 rooms and lastly,
10. Adam Aaron – Cap Juluca redevelopment project which was approved in 2008 in the middle of the most contentious and expensive legal battle in Anguilla’s history. This project was approved in 2008 and envisioned 375 rooms built over 7 years for a grand total of 4,380 rooms.
What was deceiving to my mind was the fact that a mere two weeks prior to the election, the former AUF Government conducted grand ground breaking ceremony for an Etesian resort in Rendezvous Bay. Supposedly, this resort would be developed between Cuisinart and Anguilla Great House. On coming to office, we found out that it was all an election ploy and indeed, there was no such project!
I have listed ten, maybe, eleven projects that the former administration boasted of. How many of them happened in the ten years they were in office?
It is therefore strange to me when I hear the criticisms regarding the Memorandums of Understanding that this (AUM) administration signed. If one were to compare, we would see significant improvements in these documents complete with expiration dates and almost all of the MOUs we have signed has placed shovels in the ground. To note, two of the MOUs that were signed by this administration are now null and void due to said expiration.
The AUM Government signed MOUs with the following;
1. Starwood Capital (viceroy) September 2010. This saved the hotel from collapse and over the next few months, we will discuss this in more detail.
2. Solaire in Lockrum for a 50 room hotel –February 2011. That project has started and the Project Manager is Mr. Conrad Rogers with two great local contractors, Ram and Euroy Richardson
3. Zemi Beach Resort in Shoal Bay, 134 rooms – signed March 2011. That project is also started under the leadership of Vanburn Brooks of Morlens with the contractor being Brian’s construction and landscaped by Desmond Paul’s Unique Landscaping.
4. Manoah in Shoal Bay approved December 2012 another 30 rooms. The project has now submitted its material listing for duty free concessions for its construction and they have informed us that they will be hiring three local contractors to do this project; starting in the first half of this year.
5. AJ Capital Partners (Malliouhana) redevelopment project approved February 2013. This too has started under the Management of local project Manager, Tandem Limited part owned by Anguilla’s own Frederick “Daddy” Harrigan. Local contractors such as the capable and professional DLG who is tasked with the development there of the initial 55 room hotel compliment.
6. The Reef Hotel (on the Gold course). That project has also started. Contractors include Daddy’s construction and others local sub contractors.
7. ANANYA in Meads Bay- contracted to Brian’s construction
8. Frangipani redevelopment project of which we recently granted duty free concessions. The contractor being Keithly Hughes’ Neat Pools and construction
9. Ravco/Best Western which was signed in September of 2013. This will bring a number of rooms to the Valley and I am happy to report that they have already submitted their plans and their construction concession listing.
10. In Meads bay, a young award winning architect, Mr. Ian ‘Sugar George’ Edwards has acquired the six acre block of land there and is well on the way to developing a wonderful project comprising of a 55 to 60 rooms. Outline planning approval has been granted.
11. In August of 2013, we signed a MOU with Ce Blue that will see an expansion of the project there and while it is, the former Government asked and received a number of handcuffs from the developers of this project, the Hon. Evan Gumbs asked for a fire truck and I am happy to report that this truck will be arriving on island shortly.
12. We have just given way to a new owner/developer for the Altamer project that will bring value to that project with an injection of capital to upgrade and expand the beautiful Altamer.
The investment confidence in this Government is at an all-time high. Not only did we sign these understandings but they have started and will expand the employment opportunities for our people. We must not forget the investment by Mr. Reynolds when he built ANI art School which is developing the artistic talent on island. The school was built by the capable, Glenford “Power” Hughes. The cooperation and partnership that has been forged by this Government and the St. James School of Medicine has seen it grow from just around twenty two students in 2010 to almost four hundred today.
We are not yet done. We are working hard on the restoration of Cap Juluca and you will hear some great news very soon regarding that project. After over two decades of conflict and deprivation, the best days of Cap Juluca seem to be ahead. I will not say any more on that and let actions speak louder than my words.
It is no secret that Anguilla is more visible today than at any time in the past. More people around the world know about Anguilla now than at any time in our history. This is our desire. This was our plan and this is why our tourism numbers are on the rise once again. Our visibility and our reputation have had a knock-on effect on our numbers. Our stay over visitor arrivals have climbed from 57,891 in 2009 to 69068 in 2013 and those visiting the island for the day has grown tremendously from 54,224 in 2009 to 82,235 2013. While we are not yet where we want to be, there is no doubt that this is growth and we are on the move in the right direction.
Our support for the Festival del Mar and new initiatives such as the Anguilla Choice awards, The Anguilla Music Awards and the Anguilla Fashion Expo that will be hosted here this very month is unwavering – our support for the arts including Moonsplash and the British Dependency US Tours cannot be understated. We will continue to elevate our people and work with the arts and artists to fulfill their potential. There is no doubt, our local videographers, makeup artists and the like benefited from the production of video and television initiatives that we have embarked upon.
We are working diligently on our Tourism product development program which includes a Marine Heritage Center and the Big Spring Enhancement program in Island Harbour, the archeological and Amerindian Heritage center in Shoal Bay, the East End Pond Enhancement and the Anguilla Craft and recycling Center in West End. There is no doubt that these initiatives will enhance our product and elevate our standing in the highly competitive hospitality market. I must thank the hard working Jasmin Garraway for all the work she has done and continues to do for Anguilla.
There are four more exciting foreign investment projects on the horizon. From all accounts, they may very well begin this year. They will be in Savannah Bay, Cinnamon Reef, Shoal Bay and Limestone Bay.
With that said, we must not forget our local investors. There is so much to speak about. One address is not enough to speak about all that is happening and on the verge of happening. As we all know; the former administration decided to extend the airport in Wallblake. To my mind, this was an error in judgment as there were already studies and initial plans done for the development of an airport that could accommodate transatlantic commercial flights. Mistake aside, we must now do all we can to ensure that it is a viable project and that is why I have gone out and encouraged several airlines to fly to our destination. They include Cape Air, Tradewind Aviation and soon, Winair. We are not yet done as we are in discussions with other operators while we continue to support the local air carriers such as Trans Anguilla, Air Anguilla and Rainbow Express.
The Development of the Anguilla /St. Maarten dock and the reintroduction of the Dolphin Discovery along with our foray into the cruise industry have brought opportunity to our shores. The staff at Safe Cargo is doing a tremendous job with Seaborne Cruises since we were able to attract them to Anguilla.
As I have said before, there is much to speak about and we will have this conversation over the next few months. I am confident that we are on the rise again. Together Anguilla; East, West, North and South, we will lift this island and its people up.
It is our job to ensure that Anguilla is a better place tomorrow than it was yesterday.
Our journey has not been easy. We did not expect it to be but we have risen to the challenge.
Our journey started in the pits of the recession but bit by bit we are clawing our way out and we are forecasting great things on the horizon. Anguilla is truly on the rise again and with the reputation that we have as a clean, above board administration; with the reputation the island has as the culinary destination of the Caribbean with some of the world’s best beaches, the world’s beach bars and Villas and indeed, the world’s best people, we will rise again.
In the very near future, we will unveil all our candidates to the Anguillian public. The Anguilla United Movement has gone through tremendous transformation in recent times as it transitioned into a ‘young’ party – AUM – Generation next!
Thank you and may God continue to bestow his blessings upon our nation.
(Published without editing by The Anguillian newspaper.)
