Execuwww.sxmexecutive.com tive .com
6 9 the business of patriotic fashion sint maarten development in 2018 15 global outlook 2019 19|ON THE COVER|baker tilly now, for tomorrow 22 build back better & beyond 23 who needs an accountant in 2020?
24 corporate social responsibility
26 taxation on sint maarten
30 hidden figures The Future of Auditing & Accounting.
36 The unfolding truth of the workplace
40 the nagico family
APRIL 2019 | SXMEXECUTIVE.COM | 1 Sint Maarten
Execuwww.sxmexecutive.com tive .com 43 69 through the eyes of our youth artificial intelligence who says drives customer dr. robot experience won’t win?
47 just for us women the addiction 73 Conquering Digital Distraction. gerene 49 thompson embracing life interactions how a st. maarten native over social media found her calling
50 75 step aside millenials, it’s time for gen z cervical cancer 78 the top 5 food trends 53 to watch in 2019 trading places Understanding the workings of the Stock Market.
58 investment opportunities
2 | SXMEXECUTIVE.COM | APRIL 2019 Sint Maarten Sint Maarten Execuwww.sxmexecutive.com tive .com
Execuwww.sxmexecutive.com tive .com EDITOR INBOX “High quality publication, Cadira Tyson; BBA speaks wonders of this little PROOF READERS island. I would love to explore Greta Rodney; BA, MAT development opportunities.” Carlene Prospere Louis; Bsc., Msc. EKAMPREET SINGH, PUNJAB, INDIA CREATIVE DIRECTOR Sammie Altius www.linkedin.com/in/sammiealtius “It’s like a Sint Maarten version of Forbes!” WEB DESIGNER/DEVELOPER Alexi Flanders TOURIST BUREAU
TECHNOLOGY SUPPORT “Great read, with the right Alexi Flanders content to engage, intrigue ADVERTISING OFFICE and educate.” Sint Maarten Executive.com Tommy Adamson, Private banker wealth management CONTRIBUTING WRITERS toronto, canada Shanica Richardson; BA Sharina Casseus; BBA “Really good initiative, long Kimberly Meyers; B.Comm MMkt overdue…love the content, we Fabian Louis; FCCA, CPA, MBA Tyhler Y. Louis are happy to be a part of this!” Carlene Prospere Louis; Bsc., Msc. The Harbour Dr. Gerene Thompson Greta Rodney Maarten Tervoort Sint Maarten Executive.com welcomes submissions and letters from our Erik van Engelen readers. Please email [email protected] with your contributions. Andrea Lewis The publisher is not responsible for unsolicited manuscripts or photographs. Linnett Gordon Submissions may be edited for clarity. We reserve the right to amend/replace or remove photographs which are not in keeping with the brand and standard DISTRIBUTION of our publication. St. Maarten, Netherlands, Toronto, Miami, New York, New Jersey, Caribbean, Dubai, India
FULLY ENDORSED BY THE SINT download our follow us MAARTEN FREE mobile app! Sint Maarten Executive.com CHAMBER OF St. Maarten COMMERCE AND INDUSTRY. Executive
APRIL 2019 | SXMEXECUTIVE.COM | 3 'Editor’s Corner WELCOME to
2019We take great pleasure in welcoming you back on the Sint Maarten Executive journey in 2019. Thank you once again for the support in our inaugural year. We remain committed to continuing our work with our publication, to grow and provide a platform for promoting Sint Maarten businesses. We have made a few adjustments to our business model including a reduction in the number of publications from four to three. This will allow us to focus on providing a more-timely service and create greater efficiency. We have bolstered our partnership with a number of major entities that have taken up sponsorship for specific sections of our magazine. We thank them for their credence as we continue this publication. Our viewership has expanded to well over half a million as we strive to grow our memberships with a number of business networks throughout the world. Our aim is to increase that access to well over a million business owners and entrepreneurs. We invite you to give us feedback on how well your business is doing! Let us know what markets or countries you would like to penetrate and we will help you get there. We are delighted to partner with accounting firm, Baker Tilly as our featured executive for this issue. Baker Tilly represents, independence, experience, integrity and commitment, which make them a profoundly competent, service- oriented, multi-disciplinary and collaborative organization. We are honored to be presenting them to our many readers and wish them continued success! In this issue, we focus on the changes in audit and assurance processes given the ongoing disruptions in various industries caused by new
4 | SXMEXECUTIVE.COM | APRIL 2019 'Editor’s Corner
technology. We also put a spotlight on women in business and offer some relevant, challenging and thought provoking Welkom in 2019 perspectives therein. We are in interesting Wij verwelkomen u graag op de Sint Maarten ze een zeer competente, servicegerichte, times and change is the only constant, Executive-reis in 2019. Nogmaals bedankt voor multidisciplinaire en samenwerkende which most assuredly calls for proactivity. de steun in ons inaugurale jaar. We blijven ons organisatie vormen. We zijn vereerd ze aan We are encouraging young writers to werk blijven doen met onze publicatie, om te onze vele lezers te mogen presenteren en share their ideas by introducing a new groeien en een platform te bieden voor het wensen hen veel succes toe! section called, “through the eyes of the promoten van bedrijven in Sint Maarten. In dit nummer richten we ons op de youth”, where one of their articles will be We hebben enkele aanpassingen gedaan veranderingen in audit- en assurance- chosen and published. aan ons bedrijfsmodel, waaronder een processen, gezien de voortdurende storingen vermindering van het aantal publicaties van in verschillende industrieën veroorzaakt vier tot drie. Dit zal ons toelaten om ons te door nieuwe technologie. We brengen We encourage you to concentreren op het bieden van een meer vrouwen in het bedrijfsleven ook in de kijker download our FREE mobile tijdige service en het creëren van grotere en bieden een aantal relevante, uitdagende app, which is now available to efficiëntie. en uitdagende perspectieven daarin. We We hebben onze samenwerking versterkt bevinden ons in interessante tijden en both Android and Apple users. met een aantal grote entiteiten die sponsoring verandering is de enige constante, die zeker Take us anywhere you want to hebben aangevraagd voor specifieke delen om proactiviteit vraagt. We moedigen jonge go with one click! van ons magazine. We danken hen voor hun schrijvers aan hun ideeën te delen door een geloofwaardigheid bij het voortzetten van nieuwe sectie in te voeren, genaamd “door deze publicatie. de ogen van de jeugd”, waar een van hun We are excited about our digital version Ons kijkerspubliek is uitgegroeid tot ruim artikelen zal worden gekozen en gepubliceerd. of the magazine, which has afforded us een half miljoen omdat we ernaar streven We moedigen u aan om onze GRATIS mobiele the opportunity to increase our readership onze leden te laten groeien met een aantal app te downloaden, die nu beschikbaar is voor in areas where hard cover publications will bedrijfsnetwerken over de hele wereld. Ons zowel Android- als Apple-gebruikers. Breng take some time to reach. doel is om die toegang tot ruim een miljoen ons overal waar u maar wilt door één klik! Continue to follow us on Facebook and ondernemers en ondernemers te vergroten. We zijn enthousiast over onze digitale versie Instagram. We are delighted that you We nodigen u uit feedback te geven over van het tijdschrift, die ons de mogelijkheid are joining us as readers and hope you hoe goed uw bedrijf het doet! Laat ons weten heeft geboden om ons lezerspubliek te will also join us as contributors. Here’s to welke markten of landen u graag zou willen vergroten in gebieden waar publicaties met another amazing year! penetreren en wij zullen u helpen daar te een harde kaft enige tijd nodig hebben om te komen. bereiken. We zijn verheugd om samen te werken met Blijf ons volgen op Facebook en Instagram. het accountantskantoor Baker Tilly als onze We zijn heel blij dat u als lezers bij ons bent uitvoerend directeur voor dit probleem. Baker gekomen en hopen dat u ook als bijdragers Cadira Tyson, Tilly vertegenwoordigt, onafhankelijkheid, deelneemt. Hier is weer een geweldig jaar! Editor ervaring, integriteit en toewijding, waardoor
contact us: 1 721 522 9220 download our follow us [email protected] mobile app! Sint Maarten Executive.com [email protected] St. Maarten www.sxmexecutive.com Executive.
APRIL 2019 | SXMEXECUTIVE.COM | 5 'Editor’s Corner
The Business of Patriotic Fashion BY GRETA RODNEY
As a child I would enjoy spending hours islands in the region to North America, sifting through books about flags. Even Canada, Europe and beyond, the target then the idea that each country had its market for patriotic fashion can be quite unique brand identified by set colours wide as many persons who reside away and or symbols made a lot of sense to from their homes crave for something me. Perhaps this is why many fashion authentic, fashion forward and patriotic, designers began to incorporate elements along with visitors who claim our island of their country’s flag into their designs. as their second home or home away from The American flag is probably the most home. With the increase of ease to sell well known for this marketing strategy. and ship products online, the market for Designers like Tommy Hilfiger have patriotic goods has its own unique market created iconic pieces that seamlessly that is worth tapping into. blend fashion and patriotism, despite there being a time prior, where some More than the flag… Americans thought the idea of wearing A few years ago the range of products the flag as a sign of disrespect. Today, with a St. Maarten print was probably many countries, especially those in the limited to cookie cutter souvenirs and Caribbean have begun using their flag other touristy memorabilia. You know, the is aware of global fashion trends, while as a fashion statement and a source for key chains, postcards, cups and mugs or the maintaining unique statement pieces and economic revenue. T-shirts with the corny phrases about over elements that speak to the history and drinking while on a Caribbean cruise. In our identity as a people. The expression Maybe it all started with a flagfest? recent years, however I’ve seen an increase “evening island chic” can now be heard to Flag fests promote the concept of repping in demand for clothing with a St. Maarten replace formal phrases like semi-formal. your country while reveling at a West touch that really speaks to locals as well Madras print is being used in more than Indian night of music, dance and energetic as visitors. Designers are incorporating just traditional fashion wear, just as St. fun. But as unique as island people are, a St. Maarten lingo, and symbols that tell Maarten patriotic fashion has gone beyond single flag is usually not enough to display cultural and education lessons about the flag. The general consensus now is you their country pride. As a result, finding our country. The island outline, national don’t have to wait for St. Maarten’s Day or creative means to dress from head to toe symbols, area code, size of our island, and Carnival to wear St. Maarten clothing. The in one’s country’s flag have definitely the flag itself are all being used to create quality and styles that are being produced increased, thus creating an opportunity modern t-shirts, tanks, flip flops, bags and are comfortable, fashionable and worthy for those who work in the areas of design other fashion items. of year round wear and that’s good news and print a unique opportunity for The Caribbean has a cultural identity for those who are keenly interested in entrepreneurial activity. As the Caribbean which those in fashion and design are bridging the world of patriotism, fashion ~ is made up of a Diaspora of people whose seeking ways to constantly reinvigorate and entrepreneurship! residences range from neighbouring into a trendy, fashion forward image that
6 | SXMEXECUTIVE.COM | APRIL 2019
eEconomic Review
SINT MAARTEN DEVELOPMENTS IN 2018
According to estimates of the Bank, Sint primarily lower foreign exchange earnings private consumption. Maarten’s real GDP contracted further from diminished tourism activities. A sectoral analysis reveals that the by 8.1% in 2018, following a contraction By contrast, imports rose related to pronounced contraction in Sint Maarten’s of 4.8% in 2017, because of the crippling construction material and services for real GDP during the first half of 2018 was damage Hurricane Irma inflicted on the reconstruction of Sint Maarten. predominantly caused by the dramatic much of the country’s production capacity. However, the imports by the wholesale & disruption of economic activities in both Meanwhile, inflationary pressures retail trade sector dropped due to lower the private and public sectors in the increased in 2018, largely because of a tourism spending and a decline in private aftermath of the historic hurricane. The rise in the prices of consumer goods and consumption. Domestic demand went up negative contribution of the public sector insurance premiums. driven mainly by increased investments by was primarily the result of a marked decrease in turnover tax collected. Activities in the manufacturing, utilities, wholesale & retail trade, restaurants & hotels, transportation, storage & communication, financial intermediation, and real estate, renting & business activities sectors contracted sharply in the hurricane’s aftermath. By contrast, only the construction sector experienced growth. Activities in the construction sector accelerated in the first half of 2018. Real value added grew mainly due to the repair and reconstruction activities that began almost immediately after the hurricane and continued apace throughout the country. There were, however, no major public projects started in the first half of 2018 as they awaited the necessary financing arrangements. By contrast, real value added in the Analysis of Sint Maarten’s GDP by the private and public sectors. In addition, manufacturing sector contracted in the expenditure shows that the estimated public consumption increased because first half of 2018, largely because of the economic contraction in 2018 was the of higher disbursements on goods & catastrophic damage Hurricane Irma result of a sharp decline in net foreign services. Meanwhile, private consumption caused to marine sector infrastructure. demand moderated by an increase in dropped due to increased unemployment, Private marinas in the Simpson Bay domestic demand. Net foreign demand particularly in the tourism sector, and Lagoon and docks in Philipsburg harbor dropped because of a steep decline reduced wealth. However, more purchases were adversely affected and could not in the export of goods and services of construction material and durable provide normal services at optimal levels at combined with higher imports. The goods by those who were covered by the start of the 2018 yachting season. dismal export performance reflected insurance moderated the decline in ê Read more
APRIL 2019 | SXMEXECUTIVE.COM | 9 eEconomic Review ê
In addition, activities in the utilities the first half of 2018, largely because Nontax revenues declined because the sector contracted sharply in the first of severely limited airport operational government decided to temporarily refrain half of 2018. Both water and electricity capacity, hampering its ability to process from transfers of dividend, surpluses, production dropped in the wake of several flights at once, and the acute and other settlements by government- Hurricane Irma, as demand from major shortage of hotel room inventory as a owned companies, particularly the utility consumers, such as hotels and other direct result of the hurricane’s damage. company, GEBE, in the aftermath of tourism-related businesses, along with Stay-over arrivals from all of Sint Hurricane Irma. Meanwhile, expenditures households, dropped significantly after Maarten’s main travel markets therefore went up due to more social security the severe damage to the country’s utilities fell dramatically. spending and more outlays on wages & infrastructure caused by the hurricane. In contrast to the dismal drop in stay- salaries and goods & services. Sint Maarten’s transport, storage, & over arrivals, cruise passenger arrivals to Also for the entire year 2018, the fiscal communication sector continued to suffer Sint Maarten increased in the first half position of the government of Sint because of Hurricane Irma’s aftermath. of 2018, a positive turnaround compared Maarten is expected to deteriorate. The Activities in the sector turned around and to 2017, mainly due to, among other government expects a budget deficit of fell sharply during the first half of 2018, things, the return of some loyal cruise NAf.144.4 million8 in 2018, a worsening due mainly to the drastically reduced lines, the quick and effective recovery of of NAf.71.9 million compared to 2017. airport-related activities, along with operations at the A C Wathey Cruise & Hence, the government of Sint Maarten relatively smaller declines in harbor-related Cargo Facilities, and the partial return or remains dependent on liquidity support activities. Airport-related activities shrank recovery of tourism-related attractions and from the Dutch State to finance part of in line with the decline in total passenger activities, such as tours and retail shops. the higher budget deficit. traffic because of the substantial damage to Activities in the real estate, renting, & the airport terminal and reduced capacity. business activities sector contracted in the Harbor-related activities decreased in line first half of 2018, primarily because of with the relatively small decline in the the sudden shock Hurricane Irma caused Activities in the real number of cruise ships and a larger decline to tourism-related activities, such as the estate, renting, & in freighters piloted into the harbor, timeshare sector and many companies that while the number of tankers that visited cater to the industry. business activities remained largely unchanged. Meanwhile, Finally, the financial intermediation sector contracted in container movements increased, reflecting sector also contributed negatively to Sint the shipment of reconstruction-related Maarten’s real GDP in the first half of the first half of 2018, items and consumer goods. Sint Maarten’s 2018, because the interest income of the primarily because of domestic carrier, Winair, also experienced domestic commercial banks decreased at the sudden shock a contraction, in line with the overall a faster pace than their interest expenses, decline in total passenger traffic at the and fees and other income declined due Hurricane Irma caused Princess Juliana International Airport due mainly to fewer bank transactions. to tourism-related to its limited operational state. The government of Sint Maarten The sharp, negative turnaround in recorded a deficit of NAf.71.9 million on activities, such as the activities in the wholesale & retail trade its current budget during the first nine timeshare sector and 7 sector in the first half of 2018 was largely months of 2018, a turnaround compared many companies that because of the adverse impact of the to the NAf.6.5 million surplus recorded hurricane on both domestic consumption during the first nine months of 2017. This cater to the industry. and tourism spending. deterioration was caused by a decrease in In addition, real value added in the government revenues (NAf.49.0 million) restaurants & hotels sector contracted combined with a rise in expenditures dramatically as a direct consequence of the (NAf.29.4 million). The lower revenues aftermath of the hurricane’s disruption to were the result of a decline in both tax regular economic activities and damage and nontax revenues. The decline in 7 Source: Financiële Concernrapportage/ to tourism-related infrastructure, such as tax revenues was caused by a drop in Uitvoeringsrapportage, derde kwartaal 2018 of the government of Sint Maarten. the Princess Juliana International Airport the proceeds from taxes on income & and major hotels. Stay-over arrivals profits, mitigated by an increase in the 8 Source: IMF 2018 Article IV Mission - Staff Concluding experienced a profound contraction in proceeds from taxes on goods & services. Statement, November 2018.
10 | SXMEXECUTIVE.COM | APRIL 2019 eEconomic Review
Monetary Union Balance of payments developments According to estimates of the Bank, the deficit on the current account of the balance of payments widened in 2018 compared to 2017 as a result of a decline in the net export of goods and services and a worsening of the income balance. In contrast, the current transfers balance improved. The decline in net exports was caused by a drop in exports combined with higher imports. The poor export performance reflected, among other things, a decline in the foreign exchange earnings from stay-over and cruise tourism in Sint Maarten in the wake of Hurricane Irma. Foreign exchange earnings from activities that cater to Sint Maarten’s Sint Maarten’s total outstanding public private consumption. Meanwhile, the tourism industry dropped also. Meanwhile debt will increase during 2018 because of public sector is expected to put a drag in Curaçao, the refining fee of the Isla a rise in both the domestic and the foreign on growth as the expected rise in public refinery dropped because of the lower debt components. The domestic debt is investments will be insufficient to offset oil production during 2018 compared projected to increase due to more arrears the drop in public consumption. Public to 2017. The low production can be towards the social security bank, SZV, and consumption is estimated to decrease ascribed to the lower supply of crude oil the public pension fund, APS. Meanwhile, because of lower disbursements on goods from Venezuela, the seizure of PDVSA the increase in the foreign debt component & services. assets by the American oil company reflects a zero-interest loan from the Inflationary pressures are projected to ConocoPhillips, and the limited steam Dutch State for liquidity support following ease slightly during 2019, largely due to a deliveries by the CRU-plant. Furthermore, Hurricane Irma. Consequently, Sint projected drop in international oil prices the foreign exchange earnings from air Maarten’s debt-to-GDP ratio is projected mitigated by an increase in international transportation activities and the re-exports to reach 42.0% in 2018, up from the 32.6% food prices.9 by the free zone companies in Curaçao recorded in 2017. Following a natural disaster, resources went down. By contrast, foreign exchange should be channeled quickly, flexibly, and receipts from tourism activities in Curaçao Outlook 2019 efficiently while ensuring that they reach increased driven by a growth in both Real GDP in Sint Maarten is projected those most severely affected. However, stay-over and cruise tourism. In addition, to grow by 2.3% in 2019. This positive progress in the reconstruction of Sint foreign exchange revenues from bunkering economic turnaround is the result of Maarten has been rather slow. Further de- activities rose sustained by higher increases in both net foreign demand and lays will hamper Sint Maarten’s economic international oil prices. domestic demand. Net foreign demand recovery. Furthermore, a lower than pro- The increase in imports can largely will rise because of a faster increase in the jected real GDP growth in Sint Maarten’s be ascribed to a higher oil import export of goods and services compared main tourism markets will affect the bill in Curaçao due to the increase in to the growth in imports. The improved recovery of Sint Maarten’s tourism sector. international oil prices. In addition, oil export performance reflects primarily In addition, because of Hurricane Irma, products were purchased at higher costs higher foreign exchange earnings insurance premiums will increase signifi- from other suppliers besides the Isla from tourism activities. Additionally, cantly, which could discourage businesses refinery.10 In Sint Maarten, by contrast, ê imports will rise related to construction and individuals from insuring their prop- Read more material and services for the continuing erty and, hence, make the country even reconstruction of Sint Maarten. The higher more vulnerable to future disasters. 9 IMF World Economic Outlook, October 2018. domestic demand will be driven solely 10 Because of fewer oil products produced by the Isla by the private sector. Private investments refinery, Curoil N.V. purchased more oil products from other suppliers abroad. will increase along with a moderate rise in
APRIL 2019 | SXMEXECUTIVE.COM | 11 eEconomic Review ê
oil imports dropped. Furthermore, an union rose, albeit at a much slower pace to be addressed in both Curaçao and increase in the import of construction compared to 2017, mainly as a result Sint Maarten. Meanwhile, the external material in both Curaçao and Sint of an increase in the claims of foreign financing as a percentage of GDP Maarten contributed to the higher direct investors on their subsidiaries in remained about the same in 2018 (13.6%) imports. This increase was related to the the monetary union. Because the current compared to 2017 (13.5%). ongoing investment projects in Curaçao account deficit widened while the external As shown in Figure 6, the import and the reconstruction activities in Sint financing remained about the same in coverage dropped from 4.8 months Maarten. Furthermore, merchandise 2018 compared to 2017, gross official in December 2017 to 4.2 months in imports by the wholesale & retail reserves decreased considerably by an November 2018 because of the decline trade and utilities sectors, and tourism estimated NAf.350 million in 2018. in official reserves combined with higher expenditures abroad by residents went up As depicted in Figure 5, the current imports. If corrected for the inflow of in Curaçao. The growth in imports was account deficit as a percentage of GDP funds related to the bond issuances by moderated by a decline in the merchandise of the monetary union rose from 15.0% the governments of Curaçao and Sint imports by the wholesale & retail trade in 2017 to 20.2% in 2018. An increase Maarten, the import coverage would have sector in Sint Maarten and by the free in the current account deficit caused been 3.4 months in December 2017 and zone companies in Curaçao. primarily by a decline in exports points to 2.6 months in November 2018. The income balance worsened because competitiveness problems, which needs the decline in interest income received from abroad was more pronounced than the drop in interest income paid to abroad. By contrast, the current transfers balance improved significantly as a result of the inflow of funds related to the claims of local insurance companies to pay their clients in Sint Maarten whose insured properties were damaged by Hurricane Irma in September 2017. In line with the development on the current account, external financing into the monetary union is projected to rise, reflecting a worsening of the loans & credits, portfolio investment, and direct investment balances. The worsening of the loans & credits balance is caused by a deterioration of the net trade credits balance and a rise in non- residents’ deposits in the monetary union, moderated by an increase in foreign deposits of residents of Curaçao and Sint Maarten. The considerably less pronounced deterioration of the portfolio investment balance in 2018 than in 2017 can be explained by the increased appetite of local institutional investors to invest more funds abroad because of the gradually increasing international interest rates and improving securities markets. The associated outflow caused a significant decline in the official reserves in August and September 2018. Meanwhile, net direct investments into the monetary
12 | SXMEXECUTIVE.COM | APRIL 2019 eEconomic Review
Monetary Developments Outlook 2019 Throughout 2018, the Bank kept the The deficit on the current account of the reserve requirement, one of its main balance of payments will increase further policy instruments, unchanged at 18.00%. in 2019 as a result of a worsening of the Nevertheless, the amount of required income and current transfers balances. The reserves rose as a result of the higher worsening of the income balance will be base amount upon which it is calculated. caused by an increase of interest income Meanwhile, the Bank continued its paid to abroad while interest income policy to gradually reduce the amount of received from abroad will remain about outstanding certificates of deposit (CDs), the same. Meanwhile, net current transfers the other monetary policy instrument. into the monetary union are projected to Therefore, at the bi-weekly CD-auctions, drop due to a lower inflow of funds related the Bank offered a lower amount of CDs to the claims of local insurance companies than matured, combined with a higher to pay their clients in Sint Maarten haircut on the interest rate offered. whose insured properties were damaged Consequently, by the end of December by Hurricane Irma in 2017. By contrast, 2018, there will be no outstanding the net export of goods and services is CDs anymore and the auctions will be projected to increase because of a rise in temporarily suspended. exports, moderated by higher imports. In addition, on March 27, 2018, the The rise in exports will be driven by more Bank increased its official interest rate, the foreign exchange earnings from tourism pledging rate, from 1.50% to 2.00%. This activities in both Curaçao and Sint was the second increase since the historical Maarten. Furthermore, foreign exchange low level of 1.00% that was effective from receipts from air transportation services December 29, 2008. The previous increase and ship repair activities will go up. took place on March 20, 2017. However, a decline in the foreign exchange The Bank took this step following the revenues from refining and bunkering upward adjustments in the federal funds activities in Curaçao will moderate the rate and its impact on international growth in exports. The higher imports will interest rates and, hence, domestic money largely be caused by the reconstruction market rates. activities in Sint Maarten. However, a Up to October 2018, loans extended to decline in the import of construction the private sector contracted by 0.8% on services in Curaçao because of the an annual basis in the monetary union. completion of the construction of the In Curaçao, total loans dropped by 0.1%, hospital and lower oil imports due the result of contractions in outstanding to a projected decline in the average mortgages (-2.7%), and the “other” loan international oil prices, will moderate the category (-7.4%). By contrast, business increase in imports. loans (1.6%) and consumer loans (0.4%) Capital transfers into the monetary union increased. In Sint Maarten, private are projected to increase in 2019 because credit extension dropped of the inflow of financial aid from the by 2.6% due to declines in Netherlands through the World Bank for mortgages (-1.6%), business the reconstruction of Sint Maarten. As the external financing and capital transfers loans (-7.9%) and the “other” will be insufficient to cover the deficit on loan category (-24.7%), the current account in 2019, gross official moderated by an increase in reserves will drop further but the import coverage will remain well above the target consumer loans (3.5%). ~ of 3 months.
APRIL 2019 | SXMEXECUTIVE.COM | 13 Perennial Corporation ... forward thinking...
Our Services Include
Financial & Tax Advisory, Financial Statements Preparation Business Plan Preparation, Project Management, Tax Planning Estate Planning, Mortgage Brokerage, Insurance Agency Property Management & Real Estate Agency
Tel : 1 (721) 544-1215 Unit 19 Simpsonbay Yacht Club Simpson Bay www.perennialsxm.com eEconomic Review
GLOBAL OUTLOOK 2019
EXECUTIVE SUMMARY Global Outlook. Moderating activity and Regional Perspectives. The rebound in heightened risks are clouding global EMDE activity has stalled. The cyclical The outlook for the global economy has economic prospects. International trade upswing in regions with many commodity darkened. Global financing conditions and investment have softened, trade exporters has lost momentum, partly have tightened, industrial production has tensions have intensified, and some large reflecting a substantial slowdown in moderated, trade tensions have intensified, emerging market and developing some large economies, and is projected and some large emerging market and economies (EMDEs) are experiencing to plateau over the next couple of years. developing economies have experienced substantial financial market pressures. Growth in regions with large numbers of significant financial market stress. Faced Against this less favorable backdrop, commodity importers was solid but has with these headwinds, the recovery in EMDE growth has lost momentum, decelerated and is expected to stabilize emerging market and developing economies with a weaker-than-expected recovery in around potential. For all regions, risks to has lost momentum. Downside risks have commodity exporters accompanied by the outlook are increasingly tilted to the become more acute and include the possibility a deceleration in commodity importers. downside. of disorderly financial market movements Downside risks have become more acute. and an escalation of trade disputes. Debt Disorderly financial market developments Growing in the Shadow: Challenges of vulnerabilities in emerging market and could disrupt activity in the affected Informality. Informal sector output on developing economies, particularly low- economies and lead to contagion effects. average accounts for about one-third income countries, have increased. More Trade disputes could escalate or become of GDP and informal employment frequent severe weather events would more widespread, denting activity in constitutes about 70 percent of raise the possibility of large swings in the involved economies and leading to employment in EMDEs (of which international food prices, which could deepen negative global spillovers. To confront this selfemployment accounts for more than poverty. In this difficult environment, it is of increasingly challenging environment, a half). Informality is more widespread paramount importance for emerging market an immediate priority for EMDE in less developed economies with large and developing economies to rebuild policy policymakers is to brace for possible bouts agricultural sectors and higher shares buffers while laying a stronger foundation of financial market stress, rebuild of unskilled workers. While sometimes for future growth by boosting human capital, macroeconomic policy buffers as providing the short-run advantage of promoting trade integration, and addressing appropriate, and tackle adverse debt flexibility and employment, a larger the challenges associated with informality. dynamics, all while sustaining historically informal sector is associated with lower low inflation. In the longer run, the need productivity, reduced tax revenues, to foster more robust potential growth by and greater poverty and inequality. boosting human capital, removing barriers Overcoming the adverse implications to investment, and promoting trade of informality will require a balanced integration remains. mixture of policies that carefully take into account country specific drivers
APRIL 2019 | SXMEXECUTIVE.COM | 15 eEconomic Review
ê of informality. A well-designed policy Debt in Low-Income Countries: accounted for 40 percent of the increase in framework should include measures aimed Evolution, Implications, and Remedies. the world price of wheat and one quarter at reducing regulatory and tax burdens, Debt vulnerabilities in low-income of the increase in the world price of expanding access to finance, improving countries (LICs) have increased maize. Combined with government education and other public services, and substantially in recent years. Since 2013, policy responses, the 2010-11 food price strengthening public revenue frameworks. median-government debt has risen by spike tipped 8.3 million people (almost 1 ~ more than 17 percentage points of GDP percent of the world’s poor) into poverty. The Great Disinflation. Emerging market and has shifted toward non-concessional and developing economies (EMDEs) have and private financing. As a result, in most achieved a remarkable decline in inflation, LICs, interest payments are absorbing from 17.3 percent in 1974 to about 3.5 an increasing proportion of government percent in 2018. This achievement has revenues. The majority of LICs would be coincided with an even sharper decline hard hit by a sudden weakening in trade in inflation in advanced economies. The or global financial conditions given their great disinflation in EMDEs has also high levels of external debt, lack of fiscal been accompanied by growing inflation space, low foreign currency reserves, and synchronization as evidenced by the undiversified exports. Efforts to reduce emergence of a global inflation cycle. debt-related vulnerabilities are a policy It has been supported by long-term priority for many LICs, and a key focus trends such as the widespread adoption needs to be improving debt management of robust monetary policy frameworks and developing domestic financial systems. and strengthening of global trade and financial integration. More recently, the Poverty Impact of Food Price Shocks and disruptions caused by the global financial Policies. In the event of large swings in crisis also contributed to the decline in world food prices, governments sometimes inflation. However, a continuation of intervene to soften the impact on low and stable EMDE inflation is by domestic prices and to lessen the burden no means guaranteed. If the wave of of adjustment for vulnerable groups. structural and policy-related factors that While individual countries can succeed have driven disinflation since the 1970s at insulating their domestic markets from loses momentum or is rolled back, elevated short-term fluctuations in global food inflation could re-emerge. If the global prices, the collective intervention of many inflation cycle turns up, policymakers may countries may exacerbate the volatility of find that maintaining low inflation can be world prices. Policies introduced during as great a challenge as achieving it. the 2010-11 food price spike may have
16 | SXMEXECUTIVE.COM | APRIL 2019 APRIL 2019 | SXMEXECUTIVE.COM | 17 www.bakertilly.sx
Your career, let’s talk about it...
What are you doing tomorrow?
Baker Tilly is recruiting for Baker Tilly is recruiting a(n): Baker Tilly offers an attractive RAs, AAs, ACCAs, CPAs and benefits package, a pleasant tax advisors who have graduated • Audit Manager working environment and or are close to completing • Office Manager extensive career development their degree. • Senior Accountant opportunities. At Baker Tilly you will be part • Tax Advisor Please send your application to: of a professional firm with • Tax Assistant both international and local Baker Tilly clients, which has grown into an At Baker Tilly professionalism Goldfinch Road 11 established and well-respected and high quality standards Pointe Blanche, St. Maarten provider of tax, accountancy are prerequisites for our service [email protected] and advisory services in the to clients. T: + 1721 542 0448 Caribbean region. Baker Tilly has offices in Curaçao If you recognize yourself in this and St. Maarten. profile then apply today!
Now, for tomorrow
2999_BT_Vacature_General_8,5x11_SXM.indd 1 3/26/19 11:31 ô In the Spotlight
Who we are Baker Tilly in the Dutch Caribbean (Aruba, Curacao, St. Maarten & Bonaire) is an independent Baker Tilly member firm of accountants, taxadvisors and consultants.
With consistent year-on-year growth, Baker Tilly has become one of the top 5 firms in this region and combines her local expertise and approach with the power of an extensive international and global operating network.
Baker Tilly, St. Maarten Baker Tilly in St. Maarten is specialized in tailor made solutions regarding a wide range of accountancy services, consultancy, advise on international and local tax laws and tax compliance. Our highly skilled team of professionals create the perfect solution for every case combining our expertise and working together with the extensive international network of other Baker Tilly firms.
We create meaningful experiences with our clients to solve their most pressing problems and seize new opportunities. Our relationships with our clients are genuine. We understand their world today and provide insights that shape their tomorrow. We achieve our client’s goals through a thorough analyses of their financial situation and business goals to construct the most optimal strategy moving forward.
From our St. Maarten office Baker Tilly also services clients on Saba and St. Eustatius.
Accountants and Tax Advisors Baker Tilly’s team of accountants and tax advisors is dedicated to deliver exceptional results for their clients on St. Maarten, Saba and St. Eustatius. We bring together the power of our global network and focusing on sharing knowledge and resources to our clients and the (business) community in our region.
APRIL 2019 | SXMEXECUTIVE.COM | 19 ô In the Spotlight
Meet our Team
Maarten Tervoort Managing Director [email protected]
Maarten C. Tervoort (1984), Tax Advisor, graduated from the University of Maastricht (NL) with a master in International Tax Law in 2008. After graduating, he worked for an internationally oriented accountancy and tax consultancy firm in Eindhoven (NL) for over 4 years. During this period, Maarten gained extensive experience in international structures and in wage tax and formal tax issues.
Maarten’s interest in foreign tax structures and new fiscal regimes resulted in working for the Tax department of Bonaire, Statia and Saba (BES) as tax inspector. In the 2.5 years as tax inspector, he educated colleague tax inspectors on all different forms of taxation on the BES, particularly in formal tax law and litigation.
Maarten joined Baker Tilly in 2014 as tax manager, specializing in reorganizations of company structures, purchase, sale or renting of real estate, due diligence and (second) fiscal opinions.
Maarten has developed a secondary specialism in FATCA and CRS reporting. He became a frequent lecturer at the University of St. Maarten and guest speaker at organizations like the St. Maarten Hospitality and Trade Organization (SHTA), banks, and insurance companies. In his presentations, Maarten covers a wide array of topics such as tax planning, post hurricane fiscal opportunities, fiscal treatment of life insurances, eligibility for tax facilities and formal tax law. These and other topics are also featured in periodical columns and opinions in the Daily Herald newspaper.
In February 2018, Maarten was appointed as managing director with the mission to support Baker Tilly and its clients in post hurricane recuperations.
Synergy, determination and professionalism are among the key ingredients that make our teams able to handle all tasks assigned successfully. Whatever the size of the assignment, we can provide an experienced individual or team to meet each client’s specific needs.
20 | SXMEXECUTIVE.COM | APRIL 2019 ô In the Spotlight
Erik van Engelen Andrea Lewis Linnett Gordon Senior Audit Manager Supervisor Senior Assistant Accountant [email protected] [email protected] [email protected]
Erik van Engelen (1979) joined Baker Tilly Andrea Lewis (1983), Supervisor, is Linnett Gordon, Senior Assistant in February 2018 as a Senior Manager. He currently finalizing her Master’s degree Accountant, obtained her Bachelor of studied at the University of Groningen and in Accounting and Finance from Keller Applied Science degree in Accounting from obtained a Master of Science degree in Graduate School of Management. She The University of Curacao. Auditing. Erik started his career at PwC in holds a Bachelor’s degree in Economics Curaçao in 2003 with a focus on Financial and Finance from Florida State University. She joined Baker Tilly St. Maarten in Services. He finished his RA education at She started her career first as an intern 2012 and has over 8 years’ experience the Erasmus University in Rotterdam and at Deloitte in 2005. Upon completing in several industries including real moved back to the Netherlands in 2008 her studies abroad, she returned to estate, construction, education and semi and joined the international business unit the island and started working as an government organizations. of PwC in Amsterdam with Schiphol Airport Industry accountant before joining and TNT Post as most important clients. Baker Tilly, formally Hassink and Roos In 2019, Linnett will pursue her master’s After seven years of auditing he began to Financial Services, in May 2008. Andrea study in Finance with the goal of obtaining work for the Kingdom Government as a is a committed accountant with over 12 her CPA certification. financial supervisor on the Islands of the years extensive experience in financial former Antilles (College financieel toezicht) accounting services specializing in Linnett has gained experience with the from 2010 – 2015, on both Curaçao and advisory and structuring of small to following types of engagements: Sint Maarten. Prior to joining Baker Tilly he medium size businesses. Over the years, • Compilation of financial statements worked for Flynth in the Netherlands as a she has worked with clients in industries • Review of financial statements Compliance Officer. such as government institutions, utility • Implementation and restructuring companies, industrial organizations, internal processes Erik gained experience with the following real estate, medical institutions, and • Advisory and business support types of assignments/clients: private foundations. She has also gained • Budget preparation and analysis • Audit and review of financial experience with the following types of • Payroll preparation, reviews and statements assignments: compliance • Corporate governance; • Review of financial statements and other • Public Finance; reports; Linnett is very enthusiastic, attentive to • Compliance; • Compilation of financial statements; detail and a great team player. • Compilation of financial statements. • Quarterly and Interim reportings • CFO on demand Erik has also gained experience as a • Compliance; board member of the Dutch Caribbean • Business support and Advisory; Accountants Association in the function • Agreed upon procedures reports of treasurer and he founded the Young • Financial audits Professionals Dutch Caribbean Association. Andrea is result-oriented, ambitious, Erik is praised to be result-oriented, flexible, communicative, and most of all a ambitious, decisive, flexible and most of all great coach. communicative.
APRIL 2019 | SXMEXECUTIVE.COM | 21 ô In the Spotlight
Build Back Better & Beyond Baker Tilly’s View BY Erik van Engelen | Baker Tilly
The reason for this is that cruise ships All these passengers need to fly are getting bigger and cruise lines are in through our Airport which got getting mightier: they are earning more destroyed by the hurricanes. Rebuilding revenues on tours than on ticket sales, has started, the roof is near completion hollowing out the revenue potential of and people are working hard to reopen the Port and Tour operators. the first floor as soon as possible. Kingdom neighbor but also competing So how to outsmart these cruise Island is Aruba. Our relationship goes lines? One beautiful example of “Do back years when a lot of Arubans not ask what the Island can do for you, moved to St. Maarten to help the Building Back Better has become the but what you can do for the Island” is economy grow its tourism product back marketing slogan in the rebuilding Homeporting! Just a year after Irma and in the seventies and eighties. Aruba has process of St. Maarten, and rightly so. the Port of St. Maarten is welcoming its done very well in terms of supplying However, I would like to add a fourth B: first homeporting vessels with cruises the US market with leisure. They also Beyond. Build back better and beyond departing from St. Maarten. With all the invested in pre-clearance facilities which what we have already accomplished investments and related depreciation, is a great advantage for US tourists. and beyond the ordinary. In other the Port is not making a profit from this Pre-clearance is also part of the PJIAE words: diversify. I feel this is the only diversification in product and services, master plan and will further help the way to come back stronger after Irma but it is a major contributor to our St. Maarten tourism grow, both in and outperform the competition. Gross Domestic Product (GDP). Just Homeporting and stayover tourists. think of all these passengers flying in Irma and Maria were the worst through Princess Juliana International The Airport is a hurricanes in the history of St. Maarten, Airport, the stayover in hotels and Real Estate Company but almost two years later I dare to say apartments and food and beverages The Airport is currently on the intensive that they raised opportunities as well, these tourists our purchasing during care because of lengthy decision an opportunity to reset. If I look at the their short stay on St. Maarten. making procedures with regards to pre-Irma tourism product and service, it’s financing. When all this is settled, I see a very successful but also very Diversify Towards Airbnb the facilities need to be improved. outdated product. St. Maarten, unlike A less successful story is our Timeshare As an accountant of Amsterdam the surrounding islands with their niche market which, under international International Airport Schiphol the first markets, has put all its eggs in one downfall in demand and aging of its thing I learned that Schiphol is not an basket: mass tourism. And fortunately, clientele, has gone down. Where we see Airport. It is a real estate company, it has become very successful at that. cruise passengers increase and also that accommodates airplanes to land. Yet the success formula that ‘made St. a younger population we do not see 75% of its business is non aeronautical, Maarten great’ in the eighties has its young couples investing in a time share such as concession fees of the shops limits, especially as the tourism market condo. It is thus time to reinvent this and car rental companies, parking fees, has changed a lot since then. industry and diversify towards Airbnb etc. Building back a better airport in for instance. The demand for Airbnb my opinion is transferring an Airport Outsmart the Cruise Lines has gone up drastically, of course into a real estate company and as such Look at our port for instance. The good also boosted by the shortfall of hotel diversify the earnings model. news is: only a year after Irma the rooms. Also, tourists nowadays want cruise passenger experiences while to book a holiday last minute and from In short, I expressly advise St. on the island are set to break the the palm of their hands. And the best Maarten to look beyond. Beyond the record score of 9.1, according to the thing about Airbnb is that everybody traditional mass products, beyond FCCA. The Port of St. Maarten is back can benefit. I have always looked at St. the scope of a one service company on track to welcome about 2 million Maarten as an Island of entrepreneurs only, beyond the beaten track. As an passengers yearly. But unfortunately, and with Airbnb everybody can be an island of entrepreneurs, we can grab revenues are not increasing alongside entrepreneur through investing in short this opportunity and come back even this growing number of passengers. term vacation rentals. stronger than before. ~
22 | SXMEXECUTIVE.COM | APRIL 2019 ô In the Spotlight Who Needs an Accountant in 2020? BY Linnett Gordon | Baker Tilly
That is an interesting question given Are you a fast mover and would the fact that the majority of our you want to join our pilot group? services is accounting, or accounting Welcome to the 21st century! related such as payroll services. Just give us a call and one of our Although we are continuously accounting professionals will help you looking for ways to make ourselves transform your current accounting redundant, we believe that our added administration to a digital accounting value is not in the bookkeeping itself process. We will also train you and but in helping our clients analyze their your staff to be equipped with using numbers and plan ahead so they can this digital platform. realize their goals. As we approach 2020 we expect With this forward-looking approach, that most of our time will be spent we need to minimize the time our on advising our clients on their clients (and ourselves) spend on doing financial challenges at hand and the actual bookkeeping. That’s why present to them their monthly and/ we are teaming up with Twinfield and or quarterly reporting. We envision streamlining the bookkeeping process. you having access to your banking Twinfield is just an example of one of and accounting through your many accounting software suppliers, phone and upload pictures such as Quickbooks. We chose of bills or receipts that are Twinfield because it is user friendly automatically booked. and can be linked to other software. The old school method For example, software that scans and of book keeping is recognizes invoices and automatically about to change. No posts these invoices or Point of Sale more filing! No more systems and software. This makes printing! No more your, but certainly our life, a lot easier. scanning! Just full control in the palm We do not want to bore you with all of your hand. the names but look out for Basecone together with Twinfield, which will Welcome to 2020, be the driving force in automating welcome to your accounting process. After a Baker Tilly! successful period of internal usage of these solutions at Baker Tilly, we are currently running two pilot projects, T: +1721 542 0448 one on Saba and one on St. Maarten. www.bakertilly.sx
APRIL 2019 | SXMEXECUTIVE.COM | 23 ô In the Spotlight
CORPORATE SOCIAL RESPONSIBILITY BY ANDREA LEWIS | Baker Tilly
In the current economic environment, heard or read about the Exxon Development defined Sustainability as companies are becoming aware that Valdez oil spill, which occurred in “developments that meets the needs to continue growth and maintain 1989 causing the worst oil spill in of the present without compromising market share, they must align U.S history. The devastation had the ability of future generations to sustainability with their Corporate a negative impact on the ocean meet their own needs” (Our Common Social Responsibility (CSR). In the environment, sea animals and coastal Future, 1987). Big companies begun past few years, we have seen this communities as the oil spill spanned forming special committees to make trend grow in developed countries across miles of the affected coastlines sure that sustainability is an intricate where investors, customers, and and caused significant legal and part of their Corporate Governance now employees are more concerned financial consequence for Exxon. This by linking business strategies and with associating themselves with event prompted local communities as goals to their ethical responsibilities. organizations whose mission includes well as environmentalists to lobby for Sustainability in the way business sustainability in their Corporate legislation which brought about the leaders run companies will be Governance. For investors and “Oil Pollution Act” to hold companies transparent while keeping social and consumers, a certain way to cause accountable. To avoid a similar environmental norms. You may ask, change in an organization is through disaster, big companies have realized what does Sustainability and CSR evaluating the company’s CSR that a key ingredient in their business have to do with Accountants? Well, and holding the business leaders strategy is Sustainability. The World plain and simple, as accountants accountable. Many of us may have Commission on Environment and we understand business economics
24 | SXMEXECUTIVE.COM | APRIL 2019 ô In the Spotlight
and the business risks associated address key risks in timely manner and concise information to make effective in doing business. The risks of evaluate the successes and failures. decisions. The goal of management business leaders not adapting to was to operate efficiently and changes and innovations will only Renewable energy in Saba effectively while providing Saba lead to loss in revenues, opportunity Baker Tilly has a great understanding residents with reasonable priced costs, potential investors, and for the need of organizations to be electricity tariffs. possibly negative publicity. As the ready to adapt to changes within the economic environment advances market. We have taken note over Now, for tomorrow for our with technology, businesses need to the past few years that medium size communities and profession effectively adapt to new trends to gain organizations need a CFO on demand, In the current environment in an edge in capturing the market and/ as we help many businesses on the St. Maarten we have numerous or maintaining relevance in competing. island develop their strategy and challenges making it important for meet their goals. One key client, we organizations as well as people to The competitive advantage would like to showcase is Saba Electric be socially responsible. At Baker in sustainability Company N.V., formally known as Tilly, we have taken on 2 major CSR Sustainability is a trend that is GEBE N.V. Saba, who is now able to activities which are “Keeping a Cool spreading across businesses and operate at 100% on Solar energy. Head” initiative in collaboration with government agencies as society Saba Electric Company N.V. needed SVOBE to supply all of Milton Peters becomes more aware of taking a strategy to run an efficient energy College (MPC) classrooms with care of its social infrastructures, company after the dismantling of air-conditioning units by installing environment and atmosphere. There GEBE N.V. Saba. The company along Solar panels which should offset the is an increasing demand for more with the Dutch Ministry of Economic costs of using the air-conditioning business leaders to merge Corporate affairs decided early that it should units. We believe that students Social Responsibility within their be producing electricity at a lower need a comfortable environment to business models. Many business cost and to do so, they would need effectively learn. Many persons on leaders may want to make decisions to make significant investment Sint Maarten have passed through to move towards this new trend, by purchasing energy-efficient the classroom doors of MPC and have however they are faced with the diesel generators and creating gone on to make many wonderful and question of at what cost. This is where two Solar Parks. To help make this positive contributions to the island accountants become a key partner in vision a reality, various studies and and abroad. Therefore, we saw this helping organizations to plan, control, evaluation of the consequences need and are seeking partners and and implement their strategies of key implementations proved alumni of the school to help us make and goals into realistic figures. As critical. Because of the due diligence this a reality. Our second initiative is accountants, we prepare various carried out, it gave top management giving our local high school graduates performance measurements such the ability to make better critical and college graduates a chance as the cost-benefit analysis to decide decisions to reduce production costs by offering six and twelve month whether the investment(s) would yield and manage their expectations. On internships. We have noted that Sint acceptable returns. It is important February 19th 2019, the company Maarten has talented and determined to study and test suitable business went live with its 2nd Solar Energy youths who need a chance to prove models an organization can operate Park and installed battery storage themselves and we want to offer within where viability and sustainability which saves energy generated from the opportunity to learn about meet. Accountants analyze business daylight. This enables the company accounting, auditing, and taxation performance by conducting various to service the entire island with services. This will help our youths profitability analysis and structuring electricity for a maximum of 9 to 10 be prepared for the job market Key Performance Indicators to hours without using the powerplant. when they return to the island upon evaluate if the Actual performance This is a reality today, but planning completion of their studies. ~ is in line with expectations. Top was essential as top management management can effectively and needed to be clear about their efficiently use the information to goals and strategy along with timely
APRIL 2019 | SXMEXECUTIVE.COM | 25 ô In the Spotlight
WORLD BANK PROCUREMENTS Taxation on Sint Maarten BY Maarten Tervoort | Baker Tilly
After the destruction caused by Hurricane Irma, the Government of the Netherlands has made funds available for the reconstruction of Sint Maarten in the so-called “Sint Maarten Recovery, Reconstruction and Resilience Trust Fund” (hereafter: “SXM TF”) for an amount of up to 470 million Euros. The SXM TF is managed by the World Bank, which, together with the Government of Sint Maarten and the Government of the Netherlands, selects projects that can be entitled to funding through the SXM TF. The procurement plans for these projects are accessible via the website of the World Bank (www.projects.worldbank.org) for parties that are interested in participating.
This article addresses the fiscal consequences of funding of projects through the SXM TF for entrepreneurs doing business on St. Maarten, focusing on profit tax, turnover tax and wage tax.
Turnover tax 2 Taxable turnover generated by 1 The entrepreneur has rendered The taxable subject for the turnover tax entrepreneurs who are not resident services or delivered goods in relation (hereafter: “TOT”) is the entrepreneur. on St. Maarten, in the course of to a project that is funded through The TOT ordinance provides a definition their business, by delivering goods or solidarity-aid; for this term: “anyone who independently rendering services. carries out an enterprise or profession 2 The entrepreneur can substantiate that or exploits an asset in order to derive For the domestic entrepreneur this his activities are carried out under the recurring income from it”. means in principle that his entire turnover scope of the first criterion by issuing a The scope of this definition is generated by his business in St. Maarten substantiated declaration to the intentionally broad. It is not required is taxable for the TOT. Entrepreneurs that tax inspector. that the entrepreneur is actually making are not residing on St. Maarten are only a profit. In most cases, when running taxable subjects for the TOT if: Although there are no further directives a business, this business, whether it is a delivery of the goods takes place in pertaining to the declaration, it is likely carried out as a sole proprietorship or St. Maarten, or; that a document has to be attached to the as an incorporated entity, resident in St. monthly TOT return form. Maarten or elsewhere, will be considered b the services are consumed within For entrepreneurs that are working on an entrepreneur for the TOT. The TOT St. Maarten. World Bank Projects, we recommend rate is 5% on the compensation paid by requesting a tax ruling at the tax the customer. For instance, if an architect residing department in St. Maarten for the Not all turnover of the entrepreneur outside St. Maarten performs work on applicability of this exemption. qualifies as taxable turnover for the TOT. the Government Building, the service is There are basically two types: consumed in St. Maarten. This service is Profit tax then taxed with 5% TOT. Companies with their effective 1 Taxable turnover generated by However, no TOT is due when the management on St. Maarten are entrepreneurs who are resident on St. activity is explicitly tax exempt. One of considered fiscal residents of St. Maarten. Maarten, in the course of their business, the exemptions relates to solidarity-aid Effective management means in practice by delivering goods or rendering services; (in Dutch: “onderlinge hulp”) paid by for the decision-making process of the board. instance the Netherlands. Resident companies are subject to St. In our opinion, the SXM TF, qualifies as Maarten profit tax on their worldwide solidarity-aid as meant in this exemption. income. Non-resident entities are for Conditions governing this exemption are: example subject to St. Maarten profit
26 | SXMEXECUTIVE.COM | APRIL 2019 ô In the Spotlight
tax for business income derived from The divestment surcharge is 12% The wage tax is levied in brackets, a qualifying branch in St. Maarten, in the case of a new building (or the ranging from 12.5% to 47.5% for annual or income from real estate located in improvement of an existing building) income over USD 79,000. St. Maarten. The profit tax is levied at and 8% in the case of other assets. The The wage tax ordinance on St. Maarten an effective fixed rate of 34,5%. The percentage is calculated over the selling features a fiscally beneficial regime for taxable base for profit tax purposes is price or the transfer value and must be expatriates that come to work in St. the generated income minus deductible added to the profit in the year the asset is Maarten. Pursuant to St. Maarten’s expenses and allowances. No distinction is sold or transferred and the year after. expatriate facility, an employee may made between trading income and capital For hotels, largescale land development receive a gross salary as net salary. The gains. Both are included in the taxable and other businesses that substantially employer and the employee conclude an profit. For the profit tax biannual tax benefit the economy of St. Maarten, employment contract with a net salary return forms have to be submitted. specific tax holidays can be applicable, equivalent, whereby the employer takes When investing in assets for more than greatly reducing the profit tax burden for the wage tax for his account, without the USD 2,809 a year, the company is entitled these companies. obligation to gross up the salary. Moreover, to an investment allowance in the year of wages in kind or allowances (for example the investment and in the following year. Wage tax a car or house) to a maximum of USD The rate of the investment allowance is Wage tax is withheld by the employer 13,800 per year are untaxed. 12% in case an investment is made in new from the gross salary of the employee, An employee is eligible for the expatriate buildings (including the improvement of whereupon it is paid to the Tax Receiver facility if he or she directly prior to an existing building) and 8% in case an based on monthly tax returns. Wage tax employment in St. Maarten has lived investment is made in other fixed assets. should in principle be withheld if all four abroad during an uninterrupted period Certain assets are excluded from this of the following conditions are met: of five years. Furthermore, the person in facility, for example investments in land. question must have “specific expertise” that If the asset for which the investment 1 There is an employee; is not or scarcely, available on the local allowance has been applied is sold or 2 This employee is under labor contract; labor market. The employee should meet transferred (amongst others), a divestment 3 There is a withholding agent; certain standards for education, experience surcharge will apply as a result of which 4 The employee receives taxable wage. and under circumstances earn a fiscal the investment allowance is recaptured. The minimum wage. divestment surcharge is only applicable: When the employee is living on St. • If the asset is sold or transferred Maarten, the entire salary is taxable for Conclusion within 15 years, in case the investment the wage tax on St. Maarten. The wage Operating a business on St. Maarten allowance was claimed for an tax ordinance features a specific provision could lead to the levy of local taxes, for investment in a new building (or the pertaining to persons who do not live instance the profit tax, the turnover tax improvement of an existing building); on St. Maarten. These persons are only and the wage tax. Local tax legislation • If the asset is sold or transferred considered employees for the wage tax, comes with numerous obligations, but also within 6 years, in case the investment insofar this person fulfills his employment offers several tax incentives and facilities. allowance was claimed for an on St. Maarten or receives for instance If you would like to know more about the investment in fixed assets other than a a pension from former employment on fiscal possibilities on St. Maarten, please ~ new building (or the improvement of St. Maarten. do not hesitate to contact Baker Tilly. an existing building).
T: +1721 542 0448 www.bakertilly.sx
APRIL 2019 | SXMEXECUTIVE.COM | 27 28 | SXMEXECUTIVE.COM | APRIL 2019 Live Fit Flyer 2 8.5x11.pdf 1 3/20/19 10:33 AM
C
M
Y
CM
MY
CY
CMY
K
APRIL 2019 | SXMEXECUTIVE.COM | 29 4Eye On Business HIDDEN FIGURES The future of auditing and accounting
30 | SXMEXECUTIVE.COM | APRIL 2019 4 Eye On Business
Technology is driving many changes in how we interact, live, work, and play. This of course has forced businesses to amend the way they operate to facilitate those changes and frankly to survive. It is therefore critical that the audit profession keeps pace with these changes and be proactive enough in understanding how new technology trends can transform the audit approach. ê Read more
APRIL 2019 | SXMEXECUTIVE.COM | 31 4 Eye On Business
ê
As we embrace new technology, and have a robust understanding as highly skilled auditors of the future to how risks such as cyber threats will play an increasingly important have been mitigated? role in the business function, as Technology is already changing we place more reliance on their the face of the audit profession. judgment, knowing full well that Machines are helping us to do they too need to understand and audits faster, with a reduced risk be equipped due to the disruptions of error. caused by the continuous change Analytics have been a buzzword in technology. within the audit landscape for Moving into this future, a number of years now and it all stakeholders, audit firms, remains a pivotal part of the regulators and standard setters, move towards the audit of the companies, investors, must engage future. Improvements in analytics and collectively drive forward this capabilities are enabling auditors to transformation. Technology is concentrate their efforts towards outliers There is widespread debate around the in a population and allow 24/7 analysis of impact that advances in technology will already changing huge data sets. Suddenly testing complete have on the scope and relevance of the data sets rather than a sample based audit of the future. If we do not engage the face of the approach is achievable and the concept of with these developments, the outlook continuous audit within reach, allowing could be bleak at best, as the profession audit profession. auditors to test audit evidence in real time, as we know it will become less relevant with timely identification of issues and and at worst we might not remain in Machines are insights and allowing focus on anomalies business at all. However, if we harness the helping us to do in a population. opportunities that technology disruption Audit analytics has an important role in offers us then we have a very exciting and audits faster, raising the audit quality bar, in particular, integral role to play. enabling stratification of data and focused Over the past 10-20 years there has with a reduced testing of large or complex data sets. As already been a significant change in with many of the technology solutions how we all use technology – both in risk of error. which are going to become part of the business and socially. However the rate auditor’s future toolkit there is a critical of technology change around the corner great opportunity for the profession if it is dependency on the standardization of data is likely to be significantly greater than embraced. The biggest risk for auditors lies as a pre-requisite to being able to overlay any we have experienced to date. As an in doing nothing in response. these advanced tools. example, market researchers have indicated Some roles will undoubtedly be Going forward, there is a shift towards that by 2021 robots will have eliminated eliminated, however there will always be a predictive analytics – using analytics 6% of all jobs in the US. This is only two need for skilled, human auditors who can capabilities to predict events, explain years away and set against this backdrop apply sound judgment and arguably this when and why they might occur we have a profession steeped in tradition is even more important in an increasingly using simulation and modeling and and operating within rigid regulatory technological enabled world. After all, who also prescribing the most effective frameworks. Do these disruptive will decide what information should be path to maximize opportunities. Such technologies present an opportunity or a fed into these technology-enabled tools? developments will allow audits to be threat to the auditing profession? While Who will interpret and communicate the increasingly precise in targeting risk and this pace of change will be perceived as a results? Who will ensure that end users increase their relevance. significant threat by many it is a time of can rely on the output from these tools
32 | SXMEXECUTIVE.COM | APRIL 2019 4 Eye On Business
Artificial Intelligence (AI) models and structure of audit firms, the is dependent on collaboration within AI is simply the task of getting computers real transformation of the audit profession a complex ecosystem of companies, and machines to do tasks that require will occur as these exponentials converge regulators, standard setters and intelligence when done by humans. Most and combine with new technological government. The more likely route over the current AI is narrow, in that it is created disruptors, such as distributed ledgers – short to medium term is that some core to deliver a specific task within certain often referred to as the blockchain. building blocks of the blockchain concept programmed parameters. This means the will be incorporated into the way in which AI is reliant on humans providing initial private groups of companies transact. instructions and algorithms. One such example is the way in which Cognitive computing uses artificial blockchain can be used to record smart intelligence and machine learning contracts between entities. Such contracts algorithms to go beyond analytic could dramatically disrupt the way people capabilities and to learn to make do business. It is easy to see the advantages autonomous decisions. AI is considered a of users being able to interact with smart fundamental advance in driving efficiency contracts to invoke automatic execution and quality of output. of defined rules and as a way of securely The concept of AI is not new and is holding and transferring legal title of the being actively explored and rolled out in a asset. Details of how to account for the broad range of areas – from the healthcare Technology Horizon Scanning contract could also be included within sector to the automotive industry, from Blockchain the smart contract. This would enforce online advertising to credit agencies. Distributed ledgers are becoming an congruence between the recognition of Unsurprisingly, the audit profession is increasingly hot topic. The concept costs in one entity and the recognition of also exploring the opportunities and of a secure, distributed ledger of revenue in the other. Such transactions potential for harnessing AI within an information, which provides a platform are self-verifying meaning that someone audit approach. for representing and exchanging things auditing the recognition of revenue from Emerging technologies like AI of value could disrupt the way in which the contract would know that the other present the audit profession with many transactions are conducted and recorded party to the contract has agreed the costs opportunities to improve the way we work, in the future. Many organizations are incurred, either themselves, or through a provide better services delivered in a more starting to recognize the potential of trusted source of verification. efficient way and bring enhanced insight blockchain technology and some are And what is the longterm view? Put the into the audit process. investing heavily in experimenting in this concepts of smart contracts and triple Just take one example of natural language area. Over the last five years, blockchain entry accounting together and the world processing: using advanced machine has evolved from a cryptocurrency or of auditing looks very different. With all learning techniques, auditors are now payment system to a broad ecosystem of transactions verified by an independent able to quickly process, highlight, and digital automation opportunities. source (or the other party to the smart extract key information from electronic The blockchain provides an immutable contract) and a complete history of all documents. These cognitive capabilities record of a transaction established in transactions on the blockchain, focus can enable the auditor to assess a far broader code. Some have suggested the future move from the audit of transactions in a population set in its entirety, and focus possibility of triple entry accounting where year to auditing the terms of the smart efforts on key items of interest and insight every accounting transaction recorded contract itself. while the repetitive or low judgement area by an entity also has a corresponding Rather than waiting until year-end to of extraction is automated. posting onto a public blockchain. All the see the impact of an entity’s transactions Although automation, analytics and transactions on a public distributed ledger on their financial statements, auditing cognitive technologies in themselves are available to all the users in the network, could occur as smart contracts are created, have the power to disrupt how audits making the system transparent by design. before the transactions even take place. are delivered, and indeed the business In reality, this feels a little far off and Misstatements, either due to fraud or ê Read more APRIL 2019 | SXMEXECUTIVE.COM | 33 4 Eye On Business
ê
error could be stopped before they occur. and engaging in the debate, as well Auditing becomes real time – not an Technology as developing an agile strategy, is key annual event looking back at the past year, to successfully adapting to these new hence bringing a new lens to transparency disruption is challenges and opportunities. and corporate reporting. Most development efforts using not a distant Regulators and Standard Setters distributed ledgers remain highly Recent and future technological experimental, and practical applications future state – advancements demand a rethink of the and large-scale commercial solutions have regulatory environment. In the short term, yet to emerge. And of course it is not it is here and as auditors increasingly use algorithms without its negative press; the instability to identify outliers for testing there is an of Bitcoin is a seasoned discussion point. now. urgent need for regulators to reassess the More recently, the negative press associated relevance of the regulatory environment with the “hacking” of ledgers due to and adapt their focus. This means that potential flaws in the code have made efficient start up community. regulators need to work closely with audit people realise that the blockchain may not The response required is complex and firms to understand the experiments in be as impenetrable as previously thought. requires interactions from multiple progress and to make some wholesale Blockchain is still a relatively early stakeholders. Each of these stakeholders changes to regulatory requirements stage technology. However despite the is critical in ensuring the ability of the that in turn will shape individual firm very obvious current challenges and its profession to move forward. methodology and approaches. unpredictable journey to maturity, the Longer term disruptors, such as disruptive potential of distributed ledgers Auditors distributed ledgers , will require a remains significant. While there are many important completely new regulatory environment stakeholders, in discussing the future of the and accounting standards to ensure What this all means for the audit profession it is auditors themselves consistency of approach around Profession who should be seeking to drive the agenda. verification of ledgers, validation and As a profession that is steeped in There is a responsibility on audit firms, recording of transactions and the role that tradition and surrounded by frameworks particularly the largest firms, to continue oracles play verses auditors. and concern for regulatory challenge to invest in developing increasingly If we want something that is going it is going to take a concerted effort to technologically enabled audits. This needs to support technological developments embrace and proactively respond to the to involve some experimentation and an and be a meaningful and appropriate opportunities and challenges that the active ongoing dialogue with regulators as regulatory environment, we must ensure digital and technological revolution will new techniques emerge. that we do not simply try and shoehorn bring. Some of the biggest hurdles will be Increasing use of technology will result the new technology/approach into an around responding in an effectual way and in new challenges for businesses and new existing framework. There needs to be a having a forward-thinking mind-set. risks in the audit process. Auditors will transparent process and mechanism for Technology disruption is not a distant need to validate the design and controls developing these new frameworks with future state – it is here and now. If the around the platforms which host the new input from all key stakeholders. profession is going to remain relevant, software in addition to interpreting the The audit profession can be a big ship to these changes must be embraced and complex data sets that arise. turn and a concerted and proactive effort is the pace of change remains one of the All firms – regardless of size – have the needed on the part of regulators, standard biggest threats to the profession. If we potential to be disrupted by technological setters and audit firms to make this change are not proactive in our response to these advancement. While smaller and medium happen. There is a risk that existing laws technological advancements then the practices may not be able to invest in and regulations will act as a barrier to the traditional audit services and audit firms experimentation on a scale that larger pace of change and therefore action is are wide open to challenges from the more practices are able to, building awareness needed now to start the cogs of change.
34 | SXMEXECUTIVE.COM | APRIL 2019 4 Eye On Business
Companies and to train and to develop people with a Added to this is the potential to use the Technological change and its impact on different range of skills and abilities. crowd to deliver audit tasks – a future that internal and external audits will also bring While the broad business training that will be enabled by technology platforms challenge and opportunity for companies. qualification for the ACA provides is still and which will bring a whole new For example, boards and audit committees considered a valuable asset by graduates, dimension to the flexible and agile audit can demonstrate interest in how there is a risk that the profession is still workforce. technology-enabled their external audit is perceived by the majority to be very Future audits will be of a higher quality through supporting technology investment narrow in its graduate selection and enabled by technology, but this is only in internal audit. required skillset. part of the equation. Highly skilled From a governance perspective, boards For the future, the mix of skillsets is humans will always be needed to interpret and audit committees will need to be critical. The profession will need people and report the big data, to interact with appropriately resourced and sufficiently who have accounting skills but who are other humans on key judgement areas trained in order to understand the impact also extremely IT literate. Analytical and provide assurance around the new of technology on companies’ own financial capability is coming to the fore – and technologies that are generating the data. reporting processes, as well as being able also the ability to code and work with Technology is not a silver bullet – it to understand and challenge the work a range of new technologies. To meet is only as good as the data underneath. executed by auditors. this opportunity there are already some While the day-to-day remit of the auditor And, from a practical standpoint, if examples of audit firms recruiting in a may change, the opportunities for our ~ companies want to benefit from a more broader way than they have done in the profession are greater than ever. effective and efficient audit, they will need past and this trend looks set to continue. to be open to moving towards a more standardized format of financial data to enable analytics capability and cognitive software to be used without the prohibitive barriers of complex data manipulation which is often the case at present. Investors The investor community also has an important role to play. The clearer this community can be on what information they need, when it is needed and what level of assurance is required, the greater the chance of success. Investor needs can be met through more innovative, timely and relevant financial reporting, enabled by the types of technological developments highlighted above, but engagement and clarity of needs is key. What this means for the Auditor of the Future Significant change is coming and offers a huge opportunity for the profession to be more relevant and trusted than ever. This prize will require us to embrace change
APRIL 2019 | SXMEXECUTIVE.COM | 35 4 Eye On Business
The Unfolding Truthof the Workplace
36 | SXMEXECUTIVE.COM | APRIL 2019 4 Eye On Business
The physical workspace is going to design and how change significantly within the next 12 -24 smart changes months. Businesses are working smarter are being made to and hence targeting more productivity accommodate convenience in less space along with analyzing the and ease of conducting employee’s behavior and technological business anywhere we go. This tools. We are seeing some Financial will continue to further develop as Institutions already moving towards this we see more people working with this trend, with a few local Banks setting the business mindset. pace by establishing “smart offices” As a startup, we see a number of customer Here are some ideas that are driven organizations reducing their real becoming popular in smart estate commitments by allowing their office spaces: staff to migrate to the flex desk options as most of the employees work away from the Hot desking office while being connected to the people Get used to having no assigned seating. and resources and making use of useful This means multiple people can use a tools that help them do their work more single work station at different times of the efficiently. The future of the office space day. Remember how you used to check out will be less real estate. The workforce is books at the library? The same principle migrating to smaller devices, reduced office will apply, instead of reserving a book you areas and working remotely. will reserve desk space on-line – brilliant! The generation changing the way we do business is partly due to the millennials. Overlap zones In about 20 years, they will make up over As real estate in the office grows more 40 percent of the working population. and more at a premium, we will see This group is quite aware and comfortable interactive zones replacing individual with the reality of the shift in workforce desks. The purpose of these overlap zones and is willing to work hard in exchange is to encourage impromptu collaborative for additional personal wants and requests spaces. Zappos offices call this engagement for more convenience in their life. The “Collisionable hours”. These become traditional work week of 8-5 Monday opportunities where people come together to Friday is dead! We are already seeing to provide the highest level of input and work environments bridging the gap gathering of information. between work and personal life resulting in more flex spaces with a variety of areas Technology designated for relaxation, common rooms, A smart office wouldn’t be so smart game rooms, fitness etc. We will also see without technology. There is an increase lots of technology in work spaces. of employees expecting highly mobile We all know that working hard means technology solutions. As a result, employers working with the right mindset. The will be offering more packaged solutions, overall workforce has caught on to this on-demand resources and cloud services and they are willing to take their career to elevate work productivity and empower to the next level no matter what it takes. staff to work more efficiently and better Great inspiration for all of us but this align with their busy work schedules. also means office environments need to Smart office workplace is the way of the ~ offer more to their employees. We are future – are you ready for the change? already seeing the value of office interior
APRIL 2019 | SXMEXECUTIVE.COM | 37 SEPTEMBER 2018 | SXMEXECUTIVE.COM | 38 Did You Know?
Google LLC is an American On September 15, 1997, over the multinational technology BackRub title, Larry and Sergey company that specializes in registered the domain name of Internet-related services and their mushrooming project as products, which include online Google, a twist on “googol,” a advertising technologies, search mathematical term represented engine, cloud computing, by the numeral one followed by software, and hardware. It is 100 zeros. The name hinted at considered one of the Big Four of the seemingly infinite amount technology along with Amazon, of data the brainy pair coded Apple and Facebook. their fledgling search engine to mine, make sense of and deliver. Google wasn’t always the world’s Many wondered if Google was a second most valuable brand. misspelling of Googol. Long before it was a go-to verb, it was an obedient digital dog, In 1999, Google’s founders were merely finding and retrieving willing to sell the company to stuff, playing fetch for internet a web portal called Excite for users over and over again. In 1996, the founders Larry Page under $1 million. The story goes and Sergey Brin collaborated that after Excite CEO George Bell Eventually the little G – which on a pioneering “web crawler” rejected Larry and Sergey’s $1 started in 1995 as a Stanford concept curiously called million price for Google, the price University Ph.D. research project, BackRub. Some speculate was further negotiated down to grew into the big $367 billion- that the early search engine’s $750,000, but Bell still rejected dollar G we know and love-hate nomenclature was a nod to that. Whoops! As of today, today. No longer satisfied to retrieving backlinks. BackRub, Google’s is worth over $760 fetch links alone, the global tech which linked Larry’s and Sergey’s billion. The rest is history! This colossus now chases meatier, ‘90s-tastic original homepages, is a hell of an opportunity cost to more meaningful bones, like lived on Stanford’s servers for forego! Don’t miss those “Google” nailing the fastest Internet speeds more than a year, but eventually opportunities now! ~ on the planet, rendering human chewed up too much bandwidth. drivers obsolete.
APRIL 2019 | SXMEXECUTIVE.COM | 39 sExecutive Corner
The NAGICO Family Founded in 1982, the NAGICO Group has grown strategically and organically throughout the Caribbean and currently operates within 21 territories. The group is very customer focused and offers a family of property and casualty insurance – Property, Motor, Marine, Liability – as well as life & health products and risk solutions.
LIVE FIT, as the name of the plan increasingly popular with health-conscious suggests, is designed to encourage consumers. It is expected to be 2019’s most customers to focus on their lifestyle and popular trend in fitness, according to the to reward them for being healthy. Annual American College of Sports Medicine’s gym members and persons that utilize (ACSM) Worldwide Survey of Fitness fitness trackers and other wearables, Trends for 2019. The technology first depending on their wellness, can earn appeared as a fitness trend in 2016, when discounts of as much as 25 percent at it debuted as the number one trend in the time of initial purchase. Additional ACSM’s survey. NAGICO is leveraging NAGICO Group Launches LIVE discounts can also be earned in subsequent this type of technology to reward its FIT Plan to Promote Physical and years as persons become healthier. customers and to make the underwriting Financial Wellness in St. Maarten Balance is important in everything we process simpler, thereby enhancing the We are pleased to announce the launch do. We’re looking forward to helping customer experience. of our LIVE FIT health program in Sint NAGICO customers achieve balance in The launch furthers NAGICO’s goal of Maarten. The health plan will provide gym their own lives by promoting a healthy encouraging healthy lifestyles among its members and persons that use wearable and happy lifestyle through rewards and customers. In 2018, NAGICO hosted its technology the opportunity to earn significant discounts in premiums. Now, first Health Fair in Sint Maarten, which discounts on NAGICO’s flagship “Gold NAGICO customers can earn discounts attracted hundreds of participants. Plan,” and they will also receive up to based on how healthy their lifestyle is. It is clear that people are interested in $35,000 in critical illness coverage. Wearable technology is becoming their wellbeing, but due to limited budgets,
40 | SXMEXECUTIVE.COM | APRIL 2019 sExecutive Corner
they may not be able to afford private great pension solutions for individuals, so lives of its customers. medical insurance. NAGICO believes that you don’t have to be part of a group to save We have all been reminded of the need to hard work pays off, which is why we’ve for your future retirement. have adequate insurance and are searching created the reward system with the LIVE for ways to stretch our budgets to obtain FIT promotion. Our plans have many other great same. The Switch, Bundle & Save is the As part of the LIVE FIT program, features. These include, but are not newest promotion launched by NAGICO NAGICO is also offering free consultation limited to: in St. Maarten, designed to help customers sessions to interested parties on • Waiver of premium – NAGICO will save big without sacrificing reliability and financial planning. NAGICO’s team of pay your premiums so that your plan peace of mind. knowledgeable and experienced staff are continues. This comes into effect upon Taking advantage of this promotion available to provide information on its the total disability of a participant (i.e. is as easy as the name suggests: Switch, suite of life insurance products, which a plan member). Bundle and Save. Once persons satisfy the includes but is not limited to pensions/ • You can contribute additional funds following criteria: buy a new NAGICO retirement benefit plans. into the pension, at no cost, if for any motor or homeowners policy AND have reason you have extra cash. 2 or more policies (home and/ or motor) It is Never too Early or too Late to • If you change jobs within St. Maarten, with NAGICO (including the new policy Prepare for Retirement you will have the option to opt out of purchased), these clients are eligible We all dream about retiring at some stage your current plan and transfer to your to save Up to 15% on their premium; in our work life and usually in those dreams new employer’s plan, subject to the conditions apply. we see ourselves living a nice relaxed and local tax laws. This promotion is available for a limited most times lavished lifestyle. We envision • If you relocate to a country outside of time only, so we encourage customers to ourselves doing the things we put off or St. Maarten, you can obtain a refund, take advantage of this great opportunity never got to do while working. But, how subject to the local tax laws. to save big. For more information on many times do we think about what we this and other promotions, contact your need to do to make those dreams a reality? The above may sound overwhelming but the NAGICO Representative or visit us We have recognized that many NAGICO team will do all the work for you. online at www.nagico.com. pensioners struggle to make ends meet. Call or visit your NAGICO Representative It is difficult for them to cover their basic today and let us help you become closer to NAGICO Voted Number 1 Insurance living expenses each month, far less get to making your dreams a reality. Company in St Maarten 12 times do the things they dreamt of when they in a row were younger. NAGICO offers Switch, In an annual independent poll conducted It is very likely that you will agree that Bundle & Save! by the Daily Herald, NAGICO Insurances you won’t be able to live comfortably with was voted the Best Insurance Company on just the government contribution, so our the island for the 12th consecutive time. team will help you assess your current The online poll, gives everyone the finances as well as determine how you can opportunity to vote for the company, increase your future retirement income. which in their opinion provides the best NAGICO provides pension options for service and ranks highest in all aspects. groups as well as individuals. A group For a record breaking 12th time in a row, can be a company (i.e. an employer), an NAGICO Insurances was voted number 1. association, a church group, etc. Coverage The Management and Staff of NAGICO may also extend to the spouse of plan Insurances wishes to thank each of its members. Our plans are tax-approved customers and business partners for their which allows plan members and/or continued vote of confidence, trust, loyalty employers to save for retirement while and appreciation over the years. We are deferring taxes. NAGICO currently offers eternally grateful to you and promise to a guaranteed interest on the capital fund NAGICO designs all its policies and remain strong, reliable and resilient in our ~ which is reviewed every 5th anniversary of promotions with the client in mind and service to you. the plan (i.e. every 5 years). We also offer it strives to add value or complement the
APRIL 2019 | SXMEXECUTIVE.COM | 41
sExecutive Corner
Artificial Intelligence In recent times, we have made several leaps into the unknown. We also drives suggested ways to improve systems, which would lead to greater efficiencies and by extension better customer service customer experience experiences. We spoke of the unforgiving “transformation, created by the robotic invasion,’ but what we ignored was the impact this ‘artificial intelligence’ would have on the customer experience. First of all, lets understand what ‘artificial intelligence’ means. Artificial Intelligence (AI) is a rapidly advancing technology, made possible by the Internet that may soon have significant impact on our everyday lives. AI traditionally refers to an artificial creation of human-like intelligence that can learn, reason, plan, perceive, or process natural language. AI is simply the task of getting computers and machines to do tasks that require intelligence when done by humans In today’s connected world, it would make sense to consider using AI as a means to improve operations, drive customer engagement, and optimize your customers’ experience. Artificial intelligence focuses on making already “intelligent” systems capable of simulating human-like decision-making and execution-enabling those systems to perform functions traditionally handled by skilled human professionals to be completed at a much higher level, due to the speed and power available on modern “Man and machine always get a better computing platforms. AI systems can be very simple, like answer than man alone or machine alone.” business rules that replicate a simple Ginni Rometty, CEO, IBM human decision – or extremely complex – like executing real-time customer “conversations” in a call-center, while still providing a natural experience to the customer. Advances in data processing speeds, lower costs, big data volume, and the integration of data science into technology have made practical AI a reality for many organizations, and has brought it within reach of many more. Modern customer interaction ê Read more APRIL 2019 | SXMEXECUTIVE.COM | 43 sExecutive Corner
ê Improved Customer Journey Mapping systems now frequently include actual getting burned by a lower cost alternative. “learning” the ability of the system to The use of machine learning has made it AI contributes significantly to this aspect consistently improve performance through possible to identify patterns from customer of business as it allows brands to analyze interpretation of historical patterns, data gathered from different sources and to customer experience in real time. This actions taken, along and an understanding classify their behavior to distinct matching offers a distinct advantage since when a of what’s considered a successful outcome. personas at every point of their journey. buyer is dissatisfied an organization can Customer experience is a double-edged In the past, customer classification take effective remedial steps before they sword, in the sense that it can be a key assumed a linear movement and would spread the word and ruin the business driver of growth when perceived as not always accurately map the customer’s image. positive or a major risk point for your journey, but the advanced algorithmic Identifying and Solving Pain Points business when it fails. Today’s digital approach used in AI automation software business model is always seeking ways to identifies the right persona at every stage The key to making the customer journey enhance the customer journey in order to of the journey and makes it easier to a success is to ensure it is as comfortable stand out from the competition. achieve individualized approaches. as possible. At every step on this journey, In order to provide customers with a Accuracy in this regard has facilitated there is a potential drop-off point that tailored experience that will lead to higher organizations to plan their interaction could give them a reason to leave. AI conversions, a business has to identify with customers at the right point of the enables businesses to identify these drop- their needs as well as preferences and even journey thus fulfilling expectations and offs, assessing possible pain points that predict behavior. Artificial Intelligence (AI) taking customer experience to a new high. could have led to a customer’s departure provides the tools to facilitate this process. and thus reduce churn. Taking the time to Enabling Predictive Personalization AI makes use of available information study these patterns will aid businesses to to provide actionable insights from messy Businesses achieve optimal customer understand the shortcomings of products datasets and chaotic customer behavior. experience when they change their and services and streamline them. Aspects This, in turn, helps organizations to offer approach from reactive to proactive using such as the ease of navigation on a website the best possible customer experience. AI technology. This is made possible and accessing desired information will Let us consider some ways in which the when automated software assesses the have a significant effect on customer technology is improving on various aspects inventories of individual shoppers as well experience. of the customer experience: as their behavior and uses this insight to AI offers intelligent personalization predict their next moves. on websites by analysis of multiple data Transforming Customer Service Armed with such insight, a business points (e.g. location, device, demographics, AI-based virtual assistants and chatbots creates a unique experience for its etc.) and subsequently offering the most have transformed customer service customer base by integrating seamlessly appropriate content that best fits every by automating it and making it fast with their daily lives and catering to individual browser. and hassle-free. When customers face their needs before they are even aware of Customers appreciate a personalized difficulties, they want an immediate them. This level of customization makes a approach and always respond positively solution regardless of the day or time. customer feel that every brand experience to it. Businesses are becoming aware of Chatbots, unlike humans, function and product they purchase was tailor- this fact and taking advantage of it by seamlessly round the clock and are made with them in mind. using Artificial Intelligence to analyze therefore able to cater to this need. They customer behavior, identifying key habits Improving Reviews and Credibility also make use of data, both current and interests then offering enticing and historical, to create a 360-degree The virtual revolution has created an content that holds a higher guarantee of perspective on every customer, making it enormous range of options for customer conversion than a generic approach. possible to provide a truly personalized problems. In view of this information experience for each one. Such a tailored overload, a majority of customers opt to How can we use AI in Country Sint approach is more likely to lead to deal with the brands that have the best Maarten to make a change to the overall ~ conversion and create a loyal customer. reviews as this serves as a reliable measure customer experience? of their credibility. At times, they are even willing to pay a higher price to get a product from a reputable brand than risk
44 | SXMEXECUTIVE.COM | APRIL 2019
sExecutive Corner
theAddiction Conquering Digital Distraction
The first solid-state electronic calculator When my 10 year old daughter asked was created in the early 1960s. Pocket- “Siri” to run calculations in order to solve sized devices became available in the1970s. Research shows mathematical problems, I have reason to Almost 50 years later, we ask the question, that smartphones support the hypothesis of the above writer did people become less smart as they who thinks smartphones do not help you placed less reliance on the brain especially are causing real get any smarter. to calculate simple task? The same is being discovered in the Let’s take a look at what we call the damage to our minds “office community,” as research has “smartphone.” While we didn’t start using and relationships, indicated that out of an eight-hour day, at the term “smartphone” until 1995, the least one full hour is spent dealing with first true smartphone actually made its measurable in seconds distractions from your smartphones and debut three years earlier in 1992. It was shaved off the average other social media. called the Simon Personal Communicator Steve Jobs unveiled the first iPhone. and it was created by IBM, more than 15 attention span, reduced Today, thanks to him, we can be anywhere years before Apple released the iPhone. and have access to what’s happening in the While the Internet, smartphones, and brainpower, declines in world and communicating instantaneously digital technology are all so appealing, work-life balance and with everyone we know, through a simple they do not really bring out our deepened thumb movement. intellectual ability. On the contrary, we lessen family time. More than two billion people around believe that the ‘smartphone” makes you the world now have this magic at their lazy, antisocial and unhealthy! fingertips and it’s changing the way we do ê Read more
APRIL 2019 | SXMEXECUTIVE.COM | 47 sExecutive Corner
ê countless things, from taking photos to Here are four ways to overcome can get you into a committed mindset ordering meals. digital distractions and become and force you to focus on the present. For all the many conveniences offered by more productive: There are many tools available that help smartphones, we however believe that the you work on any aspect of becoming a ills have begun to rear its uglyness. 1. Focus on one task at a time: A screen super achiever, but even in the digital The evidence for this goes beyond the full of apps makes it tempting to multitask. economy, it is the power of your mind that carping of Luddites. It exists, cold and Frankly, we believe that multi tasking is a differentiates the mediocre crowd from ~ hard, in a growing body of research by myth. There is nothing called multi tasking. real high performers. psychiatrists, neuroscientists, marketers In our view we believe it is pure distraction and public health experts. What these and added confusion in your day-to-day people say – and what their research shows activities. Focus on one task at a time, as – is that smartphones are causing real this brings you closer to accomplishing the damage to our minds and relationships, end results expeditiously and accurately. measurable in seconds shaved off the average attention span, reduced 2. Set boundaries: Interruptions are killers – whether it is your phone ringing in 4 hrs/day brainpower, declines in work-life balance and lessened family time. the middle of an important conversation They have impaired our ability to or the status update from your team How much time remember and make it more difficult to member on a social media platform. did people spend Both cases distract you and let your daydream and think creatively. They make on their mobile us more vulnerable to anxiety, make us mind wander away from the task at hand, careless, irresponsible beings proven by a requiring you an average of 20 minutes to phones in 2017? surge in road accidents. They are addictive, get back on track. if not in the contested clinical sense then According to comScore’s 2017 for all intents and purposes. 3. Cut your day into slices: Cross Platform Future in Focus But, can we live without them? I don’t Real productivity masters don’t waste a report, the average American think so! So then, what can we do to minute of their highly valuable time. They adult (18+) spends 2 hours, 51 overcome their obvious distraction? learn how to work with their time not minutes on their smartphone against it. Set your timer on your phone every day. That’s about 86 for 25 minutes and give your undivided hours a month! attention to just that task for the allotted time. Go for a 5-minute break before eMarketer also released a you start your next productivity slot. It’s study in 2016 that gives a unbelievable how much can be done in significantly different answer. just a few hours of attentive work time. Their mobile research report shows total time spent by 4. Prioritize: “Urgent” and “important” mobile users as 4 hours, 5 are not the same thing, even in the minutes per day. digital era. Whenever something pops up at your device as a to-do, ask yourself Their study does also include just two questions: a) is this part of my tablet users, and only includes core focus topic today? b) is there a real active mobile device users, urgency behind this? And only those both of which could account tasks that get a “yes” to both answers for the more-than-hour per need to be taken care of right away. All day difference. the other ones are deleted, disregarded, Despite all technological advancement, postponed or delegated. SOURCE: hackernoon.com there is neither an app nor any gadget that
48 | SXMEXECUTIVE.COM | APRIL 2019 sExecutive Corner
Embracing life interactions over Social Media “the more social media we have, the more we think we’re connecting, but the opposite holds true, in reality we are actually disconnecting from each other!”
With the onset of various social as persons seemingly hide behind media platforms since the mid-2000s, social media. Irrespective of the there is no doubt that social-media fact that social media platforms are platforms are gradually overpowering gaining importance daily, no one can the normal day-to-day conversations. replace or rule out the need for live Unlike what most persons may think, interactions. Whether it is the “trust social media is not just about informal factor” or the “human connection discussions. With the ongoing social ” the reality is that social media is media trend we see businesses ruining live, in person interactions! incorporating several levels of social According to business-centric media into their business model as resources, communities have they have come to the realization that discussed and decided on the fact without a social media presence they that it is better to go ahead with live would be missing out on a significant conversations rather than depending market. Persons can now sit in the entirely on social-media platforms. comfort of their living rooms and log On the other hand, almost all into meetings, that are thousands organizations, implement social media of miles away. Here lies the success into their operation as a key function and effectiveness of the social media and have focused their growth platforms. primarily on it. Notwithstanding the above, This decision depends heavily on platforms such as Facebook, Twitter the nature of your business and what and much more are cannibalizing drives the bottom line. Businesses the live interactions and have need to strike a balance and find encouraged persons to distant ways where the right mix can be themselves from each other, failing maintained, as both methods do have to identify emotions and actions their place in the business model. ~
APRIL 2019 | SXMEXECUTIVE.COM | 49 sExecutive Corner
Step Aside Millennials,
Some of you may never have heard of the term Generation Z and probably neither the terms Millennials or Generation Y, so we will start by first getting an understanding of each.
Millennials, also known as Generation Y or the Net Generation, are the demographic cohort that directly follows Generation X. The term Millennials refers to anyone born between 1981 and 1996. Anyone born from 1997 onward will be part of a new generation referred to as Generation Z. While the two are closely related, their characteristics are so very different. As a business owner, it is important to understand their traits to be able to attract and recruit the right fit. The analysis below speaks to the differences between the two, which would assist in your recruiting efforts.
How Generation Z Differs from Millennials Easily Distracted More Price Sensitive 1Today relevant is constantly being refined and Gen Z 3Millennials are more price sensitive than Gen Z. It is lives in a world of continuous updates. Gen Z processes explained that they came of age during the recession, so information faster than other generations thanks to apps automatically they adopted the then ‘norm.’ Sixty-seven like Snapchat and Vine. Thus their attention spans might percent of millennials surveyed said that they would go to be significantly lower than Millennials. the website to get a coupon, whereas only 46% of Gen Z polled said they would do the same. Millennials also tend Better Multi-Taskers to click on more ads; 71% of Millennials in a recent poll 2Though Gen Z can be less focused than their Millennial said they followed an advertisement online before making counterparts, they can quickly and efficiently shift a purchase, however only 59% of Gen Z’ers said the same. between work and play, with multiple distractions going They will pay for what they want regardless of the cost. on in the background, working on multiple tasks at once. Talk about multi-multi-tasking, just imagine how this type Gen Z is Full of Early Starters of ability can reshape the office! 4Many employers are predicting that more teens, between the ages of 16 and 18 will go straight into the workforce, opting out of the traditional route of higher education,
50 | SXMEXECUTIVE.COM | APRIL 2019 sExecutive Corner its time for… GEN Z
and instead finishing school online, if at all. Would you appreciated, they’re going to move on. It’s not about them make a major investment, possibly leading to years of being loyal to the business. debt to come, knowing there are new, more affordable (not to mention more convenient) online alternatives Gen Z is Big on Individuality coming up every day? Gen Z knows the true value of 7Gen Z’ers were born social. In fact, over 90% of Gen Z has independence, and knowledge is no exception here. If a a digital footprint. Arguably as a result of the celebrities Gen Z’er knows they are capable of learning something and media they follow, Gen Z seeks uniqueness in themselves, or through a more efficient, non-traditional all walks of life primarily through the brands they do route, you can bet they’ll take the opportunity. business with, future employers, etc.
Gen Z is More Entrepreneurial Gen Z is More Global 5It has been discovered that “the newly developing high 8Millennials were considered the first “global” generation tech and highly networked world has resulted in an entire with the development of the internet, but as more of the generation thinking and acting more entrepreneurially.” world comes online – Generation Z will become more Generation Z desires more independent work global in their thinking, interactions, and “relatability.” Over environments and are generally driven to start their own 50% of adults worldwide ages 35+ agrees that “kids today business someday. An interesting note to be considered have more in common with their global peers than they is that many Gen Z identifying factors can be traced back do with adults in their own country.” Diversity will be an to the recession in 2008, from their frugality, to their expectation of Generation Z. value of experiences, and increased likelihood to become entrepreneurs. This generation grew up with technology and for them it is probably hard to go without their devices. If this Gen Z has Higher Expectations younger generation is constantly on their phones or 6than Millennials devices and not watching as much live TV, we may Millennials remember playing solitaire, coming home to experience a massive shift in advertising methods and dial-up internet and using AOL. Generation Z was born marketing messages. into a world overrun with technology. What was taken as amazing and inspiring inventions, are now taken as These are interesting times for employers and business a given for teens. When it doesn’t get there that fast owners, it is therefore important to identify the shift in generations. Understanding Gen X, Y and Z is the first they think something’s wrong. They expect businesses, ~ brands and retailers to be loyal to them. If they don’t feel step to your business success. You are warned!
APRIL 2019 | SXMEXECUTIVE.COM | 51
ï Small Business Corner
TRADING PLACES Understanding the workings of the Stock Market
Corporation PRICE APPRECIATION CAPITAL GAINS AND LOSSES A corporation is a company that is a As the company grows, your piece of • When investors sell stocks for more separate legal entity owned by stockholders. the pie grows as well. If the company is than they paid, the profit made from In other words, the corporation functions successful and grows by 25%, the value of the sale is the investor’s capital gain. like a single person separate from your shares will grow as well. its owners (stockholders). Thus, the • When a stock sells for less than the stockholders have limited liability, (the investor paid for it, the investor suffers investment in the stock they own). a capital loss. EQUITY AND RISK CAPITAL The money an investor uses to buy stocks is called equity capital. Because you can make or lose money through investments, you must determine the amount of money that you can afford to lose without harming your standard of living. The COMMON STOCK amount of money an investor can afford Common stock represents ownership in a to lose is called risk capital, and that corporation. When you buy common stock, is the amount that should be invested. you are buying the corporation’s factories, MORE ON DIVIDENDS Remember, invest only what you can buildings, and products. Common stock is • Dividends are paid out of a afford to lose. sold in shares. Each share of common stock corporation’s profit after taxes have represents the basic unit of ownership of been paid. The corporation can, TYPES OF CORPORATIONS the corporation. however, retain part of the profit and • Corporations may be classified in reinvest it in the corporation. This many ways. If stock is available for STOCK OWNERSHIP portion is known as retained earnings purchase by the public, it is an open Stock is like a Pizza, each share of stock and it is frequently used for research corporation. represents an equal piece of the pie and development or expansion. A (company). corporation doesn’t have to pay • The corporation is required by law dividends. to disclose its financial condition. MAKING MONEY TWO WAYS Most large corporations are open • Price appreciation occurs when you • Dividends do not even have to be paid corporations. sell your stock for more than you paid with money. The board of directors for the stock. can elect to issue stock dividends. • A closed corporation is one whose • When this is done, the current stock is not available to outsiders, it • Dividends are the portion of a stockholders would receive more does not issue stock to the public and corporation’s profit that is paid to shares of the corporation’s stock rather is not required to disclose its financial shareholders. than cash. condition publicly. ê Read more
APRIL 2019 | SXMEXECUTIVE.COM | 53 ï Small Business Corner
ê
AUTHORIZED STOCK THE ANNUAL REPORT • Issued shares are the shares actually All corporations must issue stock. The An annual report is a financial report issued and sold to investors. state issuing the Articles of Incorporation issued to stockholders at the end of each authorizes the number of shares a operating year. An annual report will • Shares repurchased by a corporation corporation can issue. That number present the financial condition of the are called treasury shares, or treasury represents all the shares a corporation can corporation, the names of the board of stock. issue without going back to the state and directors, the location and date of the next requesting that the state allow more shares stockholder’s annual meeting, an auditor’s • Shares purchased by stockholders to be issued. report verifying the authenticity of the are called outstanding shares, shares financial data, and the shareholder’s letter. standing out in the hands of the ISSUED STOCK public. These are the shares of stock that the BALANCE SHEET AND INCOME company has sold (issued). The issued STATEMENTS shares represent ownership. Authorized • The balance sheet lists the but not issued are held for future sales to corporation’s assets and liabilities. raise funds (capital) for future growth. (What they own less what they owe)
• The income statement lists the revenue (income), expenses, and profit or loss for the year. (How much money did they make)
• A stockholder can get a good MARKET VALUE VS BOOK VALUE idea of the financial condition • The market value of a stock is the of a corporation from analyzing price people are willing to pay for the the balance sheet and the income stock at present. The market value is statement. Some corporations will determined by the demand for the even include a five-year financial corporation’s stock. summary. • The book value of a corporation is equal to its total assets minus its total SO YOU WANT TO GO PUBLIC STOCK MARKET TERMINOLOGY liabilities. (Balance Sheet) When a company wants to go public, or to SECURITIES AND EXCHANGE be traded on stock exchanges, it must meet COMMISSION PRIMARY VS SECONDARY some strict standards. The Securities and Exchange MARKETS • The New York Stock Exchange (you Commission is a watchdog agency. It • When stock is issued to the public don’t start here) helps to protect the investor by enforcing for the first time by a corporation, it • A pre-tax income of $2.5 million for federal laws pertaining to the stock is called a primary distribution. (IPO) the previous year or $2.0 million a market. The SEC monitors securities, The company is purchased by an year for two previous years stock exchanges, corporate reporting, investment bank and they sell shares • Net tangible assets of $18 million investment firms, stockbrokers, and to investors. • Two thousand shareholders who each public utility holding companies. have 100 or more shares • After the primary distribution of • At least 1.1 million publicly held STAGES OF STOCK’S LIFE stock, all subsequent sales of the shares • Authorized shares are the shares a stock take place in secondary markets • Outstanding shares with a value of corporation is allowed to issue. (for example, the New York Stock $18 million Exchange or the Over-the-Counter Market).
54 | SXMEXECUTIVE.COM | APRIL 2019 ï Small Business Corner
STOCKHOLDERS on that company’s stock were exchanged. ANOTHER STOCK MARKET People who buy stocks are stockholders. Eventually the exchange moved indoors INDICATOR When either preferred or common stocks and became known as the New York Another major index is the Standard and are purchased, the stockholder receives a Stock Exchange (also referred to as the Poor’s 500 Stock Index. This index of 500 stock certificate. Big Board). key stocks also deals with corporations listed on other exchanges and is a much BUYING AND SELLING STOCKS broader based index than the Dow Jones STOCK MARKET Industrial Average. • A security exchange, commonly called a stock exchange, is a nonprofit COMPANY RISKS? organization that provides facilities A company risk is a risk that affects the for its members to buy and sell stock prices of one company or industry. securities. Demand for a product is a company risk. If a company’s product or service is in • The members of a stock exchange high demand, the price of its stocks will are brokers who buy memberships generally rise. If a company’s product or (called seats) so that they may use the service is not in demand, the price of its ~ exchange. Only members can trade on STOCK BROKERS stocks will generally fall. the floor of the exchange. • An investor who wishes to buy stock will most likely place an order with a • The nation’s largest stock exchange stockbroker. A stockbroker is an agent is the New York Stock Exchange licensed by the SEC to buy and sell (NYSE) located in New York City. securities for clients. The American Stock Exchange (AMEX), also located in New York • A stockbroker who works for a City, is the nation’s second largest full-service brokerage firm provides exchange. There are also smaller research information, suggests regional exchanges, such as the Pacific, investment strategies, and offers Midwest, Cincinnati, Philadelphia, advice on market conditions. and Boston exchanges. • A stockbroker who passes a very • In addition to exchanges based in the comprehensive securities test known United States, there are also various as the “Series 7 Exam” is called a international exchanges, such as those registered representative. located in Tokyo, London, Frankfurt, Zurich, Paris, Milan, Amsterdam, • A stockbroker receives a commission Stockholm, Brussels, Sydney, Hong based on the total dollar volume of Kong, Singapore, and Toronto. each order. The commission rate varies with each brokerage firm. STOCK EXCHANGE A stock exchange is very similar to a large INDICATORS FOR INVESTORS swap meet or flea market. According NTSE INDICATOR to legend, it originated in 1792 when The Dow Jones Industrial Average (DJIA), businessmen met under a buttonwood often called the Dow, is an index of 30 tree on Wall Street and signed an major corporate stocks listed on the New agreement that they would trade stocks. A York Stock Exchange. company’s name was called out and bids
APRIL 2019 | SXMEXECUTIVE.COM | 55
"we got you wired!.... making connections since 1991!"
GIVE US A CALL! +17215803229 [email protected] V Investment Opportunities
Introducing Sint Maarten/ Saint Martin
58 | SXMEXECUTIVE.COM | APRIL 2019 V Investment Opportunities
Welcome to ‘The Friendly Island’
The island of Saint Martin/Sint Maarten The treaty of Concordia of 1648, Sint Maarten/ Saint Martin is a three-and- also known as the “The Friendly Island” established that residents on either side a-half-hour flight from New York, a two- is the smallest landmass in the world could be commercially active on the and-a-half-hour flight from Miami (Florida) shared by two nations and sits at the other side without any border controls. and 45 minutes from the islands of heart of the Antilles Archipelago in the Sint Maarten changed constitution status Guadeloupe and Puerto Rico. The island Northern Hemisphere, between the Tropic on the 10th of October 2010 and has lies at around 7,000km and eight flight of Cancer and the Equator. The northern acquired the status as “country within hours from Europe. Neighbouring islands side (Saint Martin) is governed by the the Kingdom of the Netherlands”. The include Anguilla, St. Barts, Saba, Statia, French (France) covering 21 square miles Northern side (Saint Martin), is an overseas Saint Kitts and Nevis. and the southern side (Sint Maarten) collectivity of France since 15th July 2007, governed by the Kingdom of Netherlands with the official language being French. The capital of Sint Maarten (southern) is covering 16 square miles. On the southern side the official language Philipsburg and Sint Martin (northern) is Dutch, however English is commonly is Marigot. The island has 37 beaches The island of Saint Martin/Sint Maarten spoken on both sides of the island. stretched along the coastline. Pic Paradis is located in the Caribbean Sea, 18.02 is the highest point on the island rising latitude and 63.07 longitude, 150 miles There are two airports on the island. The to approximately 340 meters (1200ft) southeast of Puerto Rico and 1200 miles Princess Juliana International Airport above sea level. The climate on the island southeast of Miami, with neighboring located in Simpson Bay on the Dutch is tropical and is situated within the islands of St. Barth, Anguilla, Saba, Sint side plays a strategic role in terms of Atlantic hurricane belt. Saint Martin/Sint Eustatius / Statia, Saint Kitts and Nevis. international flights and development of Maarten’s temperature on an average is It lies towards the north of the Lesser neighboring islands. L’Esperance Airport 27 °C (80.60 °F) yearly. The average yearly Antilles, created when the Atlantic Plate located in Grand Case on the French side rainfall is 45 inches (114 cm). slid under the Caribbean Plate to form the is much smaller and less busy, serving string of islands that includes Sint Martin. private aviation and regional flights. Tourism is the primary industry on the island. The construction of the cruise ship berth at Point Blanche in 2001 has stimulated the industry and its economy, and now generates over 1,500,000 cruise visitors per year. Simpson Bay Lagoon has made Sint Maarten the yachting center of the Caribbean, homeport to some of the world’s most outrageous mega yachts including Steve Job’s “Venus” and Roman Abramovich’s “Eclipse!” Our doors are open for investors… Welcome Home ~
APRIL 2019 | SXMEXECUTIVE.COM | 59 V Investment Opportunities
te rra zas
Luxury apartments SINT MAARTEN · Dutch Caribbean [email protected]
60 | SXMEXECUTIVE.COM | APRIL 2019 V Investment Opportunities
Imagine waking up to Steve Jobs Venus or the stunning 83.5 metre Feadship Savannah cruising in the Bay, as some of the most exquisite yachts sail in through the lift bridge – this is the life!
on two acres of land. Each condo has a unique view from every vantage point within. The units are being constructed with exquisite finishes with each one having their own personalized swimming pool.
Terrazas Residences is a two-minute walk to Kimsha beach, home of the Heineken Regatta and is nestled in the heart of the Simpson Bay activities. Here, you truly get a taste of Sint Maarten and European cuisine.
View of Simpson Bay Lagoon Terrazas Residences promises to be a once in a lifetime investment opportunity, which will Located in the heart of Simpson Bay with a not remain on the market for long. Take full panoramic view of the Simpson Bay lagoon, advantage to earn a piece of the rock! Unity Bridge and Airport are some of the many simplicities you would enjoy. Imagine waking Terrazas Residences will be developed over up to Steve Jobs Venus or the stunning 83.5 two phases, with the first phase being nine metre Feadship Savannah cruising in the Bay, units scheduled to be completed by end of as some of the most exquisite yachts sail in year 2018. The units are in combinations of through the lift bridge…ahhhh this is the life! one, two and three bedrooms. Prices range from US$550,000 to US$1,200,000. Enjoy Terrazas Residences consist of two towers the benefits of 24-hour security in a gated with nine condominium units in each making luxurious community. a total of eighteen units. All perfectly situated
Each condo has a unique view from every vantage point within. The units are being constructed with exquisite finishes with each one having their own personalized swimming pool.
APRIL 2019 | SXMEXECUTIVE.COM | 61 V Investment Opportunities
We’re located here!
OBI HILL OBI HILL R E S I D E N C E
RESIDENCE Sint Maarten Dutch Side OBI Hill Residences is a magnificent addition to the condominium inventory on the Friendly Island of Sint Maarten. Located in the well sort after Belair community only 5 minutes from Phillipsburg and 10 minutes from some of the most astounding beaches in the Caribbean, here’s to you owning a piece of the rock! REAL STATE For more information call us at 1 721 524-4096 or visit our ararchitecture designka development NZE website www.obihillresidences.com
62 | SXMEXECUTIVE.COM | APRIL 2019 V Investment Opportunities
10 Reasons to Choose Sint Maarten
1. Friendly and Safe.
2. Best Port for Yachts – Most marinas, boat yards and supply stores are all duty free.
3. Most Cosmopolitan Island on Earth – Only 37 square miles, but 2 nations and over 80 nationalities.
4. Great Investment Opportunities.
5. European/Caribbean Culture with American Comforts.
6. Instant Island Addiction – Most visitors come back every year, many own a piece of paradise in one of St. Maarten’s best condos.
7. Best Caribbean Shopping – Duty free bargains everywhere.
8. Best Nightlife.
9. Best Dining – Known as the Caribbean gourmet island.
10. Great Beaches – From an active beach scene to remote stretches of sand and clothing optional beaches.
APRIL 2019 | SXMEXECUTIVE.COM | 63 V Investment Opportunities Villa Préstige
Nestled on the hills of the well sought after Indigo Bay Development, Villa Préstige is strategically located in one of the most captivating spots in Sint Maarten, mid way between the city of Phillipsburg and the ever popular Simpson Bay touristic hang out. Come and enjoy luxurious living!
Immersed in the surrounding hills with a breathtaking view of the Indigo beach, Villa Préstige exudes relaxation the minute you walk through the front door! Awake to the crashing of the waves of the Indigo beach or watching the Allure of the Seas make its way into the harbor. Villa Préstige, the name says it all, elegant, sophisticated and distinguished!
Experience a unique vacation tailored for you! With fully equipped modern living. The 3-bedroom spacious villa sleeps six, embracing your comfort! Experience luxury with a huge verandah overlooking the Indigo beach with your own private swimming pool! Sit in the comfort of your villa enjoying the sweet fresh sea breeze! This is Caribbean living! Yours to enjoy!
64 | SXMEXECUTIVE.COM | APRIL 2019 For reservations please email: [email protected]
APRIL 2019| SXMEXECUTIVE.COM | 65
Z Through the Eyes of Our Youth
Through the Eyes of Our Youth
One of the great liabilities of history is that too many people fail to remain awake through great periods of social change. Every society has its status quo protectors and its fraternities of the indifferent who are notorious for sleeping through revolutions. Today, our very survival depends on our ability to stay awake, to adjust to new ideas, to remain vigilant and to face the challenge of change. – Rev. Dr. Martin Luther King, Jr.
With this ever-changing world it is therefore important to share their ideas and research with us. We will be to take stock of our surroundings and recognize that we highlighting as many youth as possible who are willing to are at a point where our kids could be greatly impacted contribute articles of interest with our esteem readers. if we don’t empower them and open up their eyes to For this publication, we’ve singled out one such article embrace those changes. written by a 17 year old who has a keen interest in the development of technology and the apparent changes We at the Sint Maarten Executive Magazine.com are it will have on various industries. We invite you to playing our part to acknowledge and empower the encourage your children to read and partake in this younger generation by affording them an opportunity publication, after all they are our future leaders.
APRIL 2019 | SXMEXECUTIVE.COM | 69 Z Through the Eyes of Our Youth
WHO SAYS? BY ‘YOUNG WRITER’ TYHLER LOUIS According to market research company Frost & Sullivan, A.I. DR. ROBOT in the healthcare and life sciences sphere is projected to grow by 40 per cent per year, to WON’T WIN $8.5 billion in 2021. Healthcare artificial intelligence (A.I.) is already a billion dollar industry, taking global markets by storm. Companies invested in healthcare A.I. include Google, Apple, Dell, and Hewlett-Packard (hp), so it’s obvious this market is big business. According to market research company Frost & Sullivan, A.I. in the healthcare and life sciences sphere is projected to grow by 40 per cent per year, to $8.5 billion in 2021. Although development and news surrounding artificial intelligence seems to have recently skyrocketed, the use of A.I. in medical health isn’t new in the slightest. It is already present in spinal surgery, as the development of the Renaissance, created by Mazor Robotics, allows surgeons to place screws in spines with 99 percent accuracy, 9 percent higher than traditional practices. “We can soon expect to see that Watson, a question answering computer system capable of virtual reality has a place in training answering questions posed in natural language developed by junior surgeons…” IBM, assists healthcare teams by Susan Neuhaus, University of Adelaide sifting through patient data, the latest evidence-based medicine, quality standards, and regulatory requirements. Additionally, Woebot, the world’s first artificially intelligent mental health chatbot, has over two million conversations a week across more than 130 countries. A randomized controlled trial at Stanford University showed that the college students aged 18–28 years significantly reduced the symptoms of depression in 2 weeks after chatting with Woebot. At the Children’s National Medical Center in Washington, surgeons have recently developed a surgical robot, Smart Tissue Anastomosis Robot (STAR), which can suture soft tissue. Children’s National states the goal of STAR
70 | SXMEXECUTIVE.COM | APRIL 2019 Z Through the Eyes of Our Youth
is “to create smart surgical tools that a type of insecticide that A common idea raised when have the best techniques of experienced came from the jeans that he surgeons programmed into tools so that had purchased from a street debating the negatives of artificial optimal efficiency, effectiveness, and vendor, and as the pants safety are delivered consistently.” An were not washed, his skin intelligence in the medical field is the artificial intelligence system developed at had absorbed the poison. the University of Adelaide can predict a (TMF) goes on to explain difficulty technologies will face in person’s life span just as well as a human that an algorithm would mimicking empathy. doctor. Susan Neuhaus, a professor from not be able to make that the University of Adelaide states, “We can diagnosis and that setting soon expect to see that virtual reality has up a diagnosis along with a place in training junior surgeons. There’s treating patients are not linear processes. radiology, not knowing whether it is a also augmented reality, where you make Although data and analytics are crucial, feasible profession or not. Toby Walsh, cancer margins visible in theatre so that these diagnosis require problem solving a professor at University of New South you no longer have to wait for pathology skills inaccessible to robots and algorithms, Wales, stated he “wouldn’t advise my to know whether you got it all out.” as all patients and their lifestyles differ, children to specialize in pulmonary disease However, even with the rapid as well as diseases and how they react to or radiology because these are areas advancements being made in technology these different lifestyles, meaning no case leading the charge in the use of artificial and its advantages, many believe that is the same and requires the attention of intelligence.” He also went on to say, “the this is merely a hype and temporary fear human physicians. best diagnostics we have for pulmonary surrounding these medical professionals. Kai-Fu Lee, a technology executive and disease today is a computer program.” A common idea raised when debating the founder and leader of Sinovation Ventures Some like to think that it has never been negatives of artificial intelligence in the had shared with CNBC that artificial “technology versus humans” and that medical field is the difficulty technologies intelligence and robots are likely to replace the consistent and constant portrayal of will face in mimicking empathy. It is 50 percent of all jobs in the next decade. technology opposing humans through said that at the core of empathy is the This will include A.I. taking the place of media must be put to an end. With its process of building trust. The Medical radiologists, taking jobs in pharma and increasing value and heavy investment Futurist (TMF) explains that real life surpassing the skills of surgeons. Vinod from some of the biggest companies in physicians can build trust between their Khosla, founder of Khosla Ventures, the world, unemployment is inevitable patients simply by listening to them, co-founder of Sun Microsystems, and and it is ignorant for one to think that acknowledging their needs, expressing Silicon Valley investor billionaire venture smart robots and artificial intelligence compassion and understanding. Currently, capitalist, believes that machines will will not soon dominate healthcare. From patients would not trust robots or substitute 8 percent of doctors in the my perspective, I strongly believe in algorithms with decisions ranging from future in a healthcare scene that will be advancement through technology and whether or not take a certain painkiller driven by entrepreneurs, rather than actual support the move to further develop to decisions that are life-altering. medical professionals. English Canadian A.I., which would seemingly increase Additionally, (TMF) raises the point that computer scientist, Professor Geoffrey the level of accuracy in healthcare. I also physicians have a non-linear working Hinton, stated it’s “quite obvious that we think that while there may be some level method. They reference an episode of should stop training radiologists.” Hinton of unemployment, we would see a greater House M.D., an American television went on to explain that radiologists are diversity in the healthcare sector, as new medical drama, in which the team was “the coyote already over the edge of jobs will be created. One of the big medical unable to determine how a young boy had the cliff who hasn’t yet looked down.” breakthroughs in 2018 was the technique been poisoned. The team considers all of In a presentation at the GPU Tech to “edit” embryos to avoid genetic diseases. the ordinary diagnostics and tests such Conference in San Jose during May of Who would ever think 20 years ago that as drugs, food poisoning and pesticide 2017, Curtis Langlotz, the Professor of we would be able to Cure diseases through ~ poisoning. However, these diagnosis and Radiology and Biomedical Informatics gene editing (CRISPR technology)? treatments had all worsened the patient’s at Stanford University, explains how he state. Unintentionally, the team had received an email from a student of his discovered the boy had picked up phosmet, who questioned if he should go into
APRIL 2019 | SXMEXECUTIVE.COM | 71 www.barefootwine.com Just for Us Women
JUST FOR US WOMEN
While less than 5% of women hold a CEO position at Fortune 500 companies, these women represent vital roles as they represent the often overlooked female potential worldwide! This by extension also represents leadership for women in St. Maarten. Becoming a good leader takes a combination of time, knowledge and some knack. For women in leadership roles, the quest for equitable representation and treatment alongside their rise to leadership can prove to be even more daunting, as women often need to prove themselves a bit more than their male counterparts and have to work harder to gain the respect of their peers. While closing the gender gap still has a long way to go, one thing is for certain; Some of the best and most powerful leaders who persevere are women!
We at Sint Maarten Executive.com are doing our part to highlight strong progressive female leaders from Sint Maarten who have done well for themselves and continue to make our country proud as progressive leaders here and abroad. We believe in promoting equality and have thus introduced a new addition to our publication called, “Just for us Women!” We are therefore proud to present to you our first feature, Dr. Gerene Thompson!
APRIL 2019 | SXMEXECUTIVE.COM | 73 Just for Us Women
From Hospitality Management to Higher Education Administration How a St. Maarten Native Found Her Career Calling
She envisioned herself to the likes of Perry president roles, you will notice the difference.” Mason, a problem solver and an advocate for Despite the statistics, Gerene is committed those who needed one. Her path did not lead to her goal of one day becoming a College to a courtroom, but instead to the classroom President. She stresses the importance of being where a visionary presence in higher education a visionary in leadership. “You have to write emerged. Dr. Gerene Thompson is currently the your own story, create your own narrative. I’ve Dean of Arts and Sciences at Pasco- Hernando had people tell me that I would never achieve a State College where she supervises faculty at particular goal and with grit and determination five (5) campuses in Tampa Florida’s Pasco- I’ve surpassed their expectations.” And this is Hernando counties. the vision that drives her, helping others who Gerene, a native of St. Martin is an alumna are underrepresented reach their goals. She of the Methodist Agogic Center (MAC) and admittedly has a soft spot for non-traditional the St. Maarten Academy. After earning a students, who make up about 40-50 % of the pre-law degree from Barry University and a state/community college population. These are Master of Arts in History from Midwestern individuals who don’t come straight from high State University, she returned home in 1995 Gerene M. Thompson, PhD school to college. People who come back later in and began her working career in the field of life to finish or even to start a program. “People hospitality. During the day, she was climbing returned to school to pursue a Master’s degree like me who find what drives them later in life the corporate ladder as the Administrative in education with a concentration in Student should still have a means to access their goals” Director of Sales and Marketing at Sunterra Affairs Administration. Having found her and while it may not be in a courtroom, she is Resorts, but at night, she was teaching History calling, Gerene went on to earn her PhD in advocating for those students daily. as an adjunct instructor at the University of St. curriculum and Instruction with an emphasis Martin. These two somewhat contrasting fields in Higher Education Administration in 2017. Gerene offers the following three (3) of: capital driven sales economy, versus a people “In addition to mentorship, it’s important to tips/Takeaways for Women aspiring to driven education and training economy were have the right tools,” said Thompson. “In order leadership positions. her first encounters with leadership. to have their seat at the table, Women need “Mentorship is key,” says Gerene. “While to invest in themselves and equip themselves 1. Find a female mentor: The way women at Sunterra Resorts I thrived under a female for the job they want.” Thompson is sure to have to navigate systems is completely leader who taught me the importance of highlight that this does not have to be in the different than it is for men, a female communication and the skills needed to form of formal education. “People have to mentor will understand the subtleties work with different people/personalities. remember that education spans more than Understanding individuals’ motivations, needs degrees. This is why I love working in the 2. Get the tools you need to succeed and adapting accordingly is a huge part of state/community college system, because we and learn to communicate effectively: being an effective leader. Many leaders are in stress the value of certificates and workforce Think formal and informal education; the positions they are today, because of their programs in addition to degrees.” Understand how to work with different connections to strong mentors.” As a leader in Higher education, when asked persons/personalities The interpersonal communication skills if she thought higher education was a field acquired from her time in hospitality proved where disparities between men and women did 3. Write your story and be visionary - invaluable when Gerene transitioned to not exist, she poignantly responded, “Although Create your narrative, no one can the University of St. Martin (USM) as the women are represented frequently, we aren’t tell your story better than you; follow Director of Admissions in 2001. During represented equally at various levels in higher your vision and don’t allow anyone or her three (3) years in this position, Gerene education institutions. If you compare the anything to limit what you can achieve successfully increased enrollment by 30%. Her number of women in low to mid management time at USM piqued her interest in higher positions at colleges and universities versus Written by Greta Rodney-Thompson education as a career and 3 years later, she the number of women in vice president and (Teachergretasworkshop.Weebly.com)
74 | SXMEXECUTIVE.COM | APRIL 2019 Just for Us Women
What are the symptoms of Women’s Health cervical cancer? Cervical cancer doesn’t usually cause symptoms until it’s in advanced stages. Also, women may think the symptoms are related to something else, such as their menstrual cycle, a yeast infection, or a urinary tract infection. Examples of symptoms associated CERVICAL with cervical cancer include: • abnormal bleeding, such as bleeding between menstrual periods, after sex, after a pelvic exam, or after menopause • discharge that’s unusual in amount, color, consistency, or smell CANCER • having to go to urinate more The cervix is the area of a female’s body between her vagina and frequently uterus. When cells in the cervix become abnormal and multiply • pelvic pain rapidly, cervical cancer can develop. Cervical cancer can be life- • painful urination threatening if it goes undetected or untreated.
A specific type of virus called human papilloma virus (HPV) causes All women should have cervical screen according to national guidelines. Also, if almost all of the cases of cervical cancer. Your doctor can screen you experience these symptoms, talk to for this virus and precancerous cells, and they can suggest your doctor about screening for cervical treatments that can prevent cancer from occurring. cancer.
How do you get cervical cancer? HPV causes a majority of cervical cancers. Certain strains of the virus cause normal cervical cells to become abnormal. Over the course of years or even decades, these cells can become cancerous. Women who were exposed to a medicine called diethylstilbestrol (DES) while their mothers were pregnant are also at risk for cervical cancer. This medicine is a type of estrogen that doctors thought could prevent miscarriage. However, DES has been linked with causing abnormal cells in the cervix and vagina. ê Read more
APRIL 2019 | SXMEXECUTIVE.COM | 75 6 Just for Us Women ê WHAT IS HPV? How is cervical cancer diagnosed? What is the outlook? Doctors can diagnose the presence When it’s detected in its earliest stages, HPV stands for human of abnormal and potentially cancerous cervical cancer is considered one of the papillomavirus. It’s the cells through a Pap test. This involves most treatable cancer types. According to swabbing your cervix with a device that’s the American Cancer Society, deaths from most common sexually similar to a cotton swab. They send this cervical cancer have declined by 50 percent transmitted infection. swab to a laboratory to be examined for in the past 30 years. Getting regular Pap Some types can lead precancerous or cancerous cells. tests to check for precancerous cells is The American Cancer Society thought to be one of the most important to cancer. recommends women begin cervical cancer and effective means of prevention. Getting screenings by getting a Pap test at age 21. vaccinated against HPV and undergoing What is HPV? You should get this test at least every three regular Pap test screenings can help you HPV is associated with causing cervical years until you turn 30. When you’re 30, reduce your risk for cervical cancer. cancers as well as genital warts in most you should continue to have a Pap test instances. HPV is sexually transmitted. every three years and begin HPV testing. How can you prevent HPV and You can get it from anal, oral, or vaginal You should get HPV testing every five cervical cancer? sex. According to the National Cervical years if the first test is negative. You can lessen your cervical cancer risk Cancer Coalition, HPV causes 99 percent The HPV test is very similar to a Pap by reducing the likelihood you’ll get of cervical cancers. test. Your doctor collects cells from the HPV. If you’re between the ages of 9 and More than 200 types of HPV exist, cervix in the same manner. Laboratory 26, you can get the HPV vaccine. While and not all of them cause cervical cancer. workers will test the cells for the presence there are different kinds of HPV vaccines Doctors categorize HPV into two types. of genetic material associated with HPV. on the market, they all protect against According to the National Cancer This includes DNA or RNA of known types 16 and 18, which are the two most Institute, HPV types 6 and 11 cause 90 HPV strands. cancer-causing types. Some vaccines percent of all genital warts. These HPV Even if you’ve had the vaccine to protect provide immunity against even more HPV types aren’t associated with causing cancer against HPV, you should still get cervical types. It’s ideal to get this vaccine before and are considered low risk. HPV types cancer screenings as the American Cancer becoming sexually active. 16 and 18 are high-risk types. They cause Society recommends. Other ways to help prevent cervical 70 percent of cervical cancers. These HPV Women should talk to their doctors about cancer include the following: types can also cause: the timing of Pap tests. Circumstances • Get routine Pap tests. Talk to your • anal cancer exist when you should be tested more doctor about the recommended frequency • oropharyngeal cancer often. These include women who have a of Pap tests based on your age and • vaginal cancer suppressed immune system due to: medical conditions. • vulvar cancer • HIV • Practice safe sex. Have your partner • long-term steroid use wear a condom each time you have sex. HPV infections are the most commonly • an organ transplant • Don’t smoke. Women who smoke are at sexually transmitted infections in the Your doctor may also recommend that greater risk for cervical cancers. United States. Most women with HPV you get a screening more frequently based will not get cervical cancer. The virus often on your circumstances. resolves on its own in two years or less Source: www.healthline.com without any treatments. However, some people may continue to be infected long after exposure. HPV and early cervical cancer don’t always cause symptoms. However, your doctor will check for the presence of abnormal cells in the cervix through a Pap Time for a Pap Smear? smear at your annual exam. You can also be tested for the HPV virus during this exam.
76 | SXMEXECUTIVE.COM | APRIL 2019
GFood for Thought Foodthe top 5 Trends to watch in 2019 From more automation to new flavors and “motherless meat,” here are the top dining trends in 2019, according to the latest report by global food, restaurant and hotel…
2 Increased Automation Now that automated dining experiences are becoming more common, get ready to see more robots next year. These won’t be your average face-recognizing automatons or AI-powered ordering More people will systems in fast food restaurants, but 1 eat at home robots that actually make your food, Why eat out when there are plenty delivering room service of reasons to eat in? Given the in hotels, and “self- increasing prices of food away from driving” robots home versus the steady prices in taking orders plus supermarkets, more diners will stay escorting customers home in 2019. According to NPD, half to specific tables at of the people’s dining expenses are sitdown restaurants. spent eating out, yet 82% of the meals With this new generation are prepared at home. Increasing of gadgets entering the workforce, rent, higher cost of living and tight it’s no wonder why according to a finances are the driving factors. In recent article at the New York Times, addition to rise in prices, millennials hotel employees around the world are not afraid to cook. A study by are become increasingly concerned Better Homes & Gardens indicates by their new rivals and would take job that millennials prefer to order in security over higher wages. while spending time watching Netflix than going through the hassle of dinning in.
78 | SXMEXECUTIVE.COM | APRIL 2019 GFood for Thought
Rise of lab-grown, 4 “motherless” meat Plant-based diets are still going strong in 2019 in a different way. Rather than eating meat the traditional style, there will be more lab-grown meats and related proteins that will change how you (and very likely self-proclaimed carnivores) see food. Here’s an oversimplified way to describe the concept: You pluck a cell or two from an animal instead of killing it, then breed it on an enormous scale. While the jury is still out on its taste, green supporters will love all the potential benefits elimination of ranches Mainstreaming of and slaughterhouses, reduction 3 Marijuana of greenhouse gases and energy As marijuana becomes legal in consumption, just to name a few. more jurisdictions in North America, Foreseeably, there will be pushback. which will eventually trickle down Given dairy sales will get hurt by the to the Caribbean, there will be a big success of faux milk, ranchers are consumer shift from sodas and beers launching campaigns to prevent these to hemp and marijuana drinkables. engineered proteins from being called Now, understand that this pertains “meat” at all. to Cannabidiol or CBD from hemp that can mellow you out and perhaps relieve pain; not the THC compound Non-Dairy Milks from marijuana leaves that will get 5 you high. Obviously, not everyone Consumers will continue to move will jump on board right away. Early away from dairy whether they need adopters will likely be millennials, to or not. And plenty of companies followed by vegans and vegetarians are stepping up to meet those and the wellness crowd. The interests and needs. Along mainstreaming of marijuana will be those lines, the hottest found in restaurants and bars—with non-dairy milk seems to be chefs putting together CBD tasting oat milk. It’s not new but new dinners and mixologists crafting CBD products have recently been cocktails. Interesting St. Maarten launched and more are slated to Restaurateurs, who ever jumps on be launch. first, will steal the pot!
APRIL 2019 | SXMEXECUTIVE.COM | 79