budget statement 2012.indd - Grenada Customs & Excise Division

For 2012, the ECCU is projecting growth of 2.4 percent. Like the
previous year, much will depend on the economic fortunes of the
United States and the United Kingdom which together account for 57
percent of stay-over visitors and 35 percent of merchandise exports.
A slowdown in the USA and UK and or an escalation of the Euro-zone
sovereign debt crisis will lead to a downward revision of projected
growth in the ECCU.
In addition, the recent decision by the UK Government to increase
the Air Passenger Duty (APD) from April 2012 is likely to hurt tourist
arrivals from the UK which account from 25 percent of arrivals to
the ECCU. In this context, we welcome Virgin Atlantic’s decision to
absorb the APD increase rather than pass it on to travelers from the
UK to the Caribbean.
2.4 OECS Economic Union
The Revised Treaty of Basseterre is now part of the domestic law of
Grenada, having been passed by this Parliament late last year.
In the context of advancing the Economic Union, Member States are
now elaborating a new OECS Development Strategy. Four sectors
have been identified as providing strong opportunities for achieving
the structural transformation. The sectors are:
1. Tourism
2. Agriculture
3. Creative Industries
4. Information and Communications Technologies
Alongside these are a set of enabling clusters which are intended to
support the process of transformation. These include foreign direct
investment, trade facilitation and transportation, reducing high
energy costs, addressing human resource deficiencies and labour
productivity challenges, public sector efficiencies and the enabling
environment for a vibrant OECS private sector.
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2012 Budget Statement