Keeping Up with the Joneses

This was a 2016 movie, an action comedy, that described a seemingly perfect neighborhood where one set of neighbors finds it hard to keep up with the second rich set, which leads to a kind of a rat race, where the rich set buys and consumes, and the poor set wishes to keep up, at all cost. To fund that extra consumption, they must work harder, they don’t save, they get into debt, so keeping up with the Joneses is a difficult situation. It’s very stressful to know that you are living above your means, and that you are caught in a spend-spend-spend cycle.

The movie came to mind when I saw the AHATA CEO call to execute a nation tourism growth plan.

As an island we are working very hard, every tree, boulder, and turtle, are fully committed, to keep up with the wasteful ways of our government, the more we earn, the more they spend.

(We just heard of Awg 6.7M, allocated for a MAVO school in Paradera, not that Paradera doesn’t need it, it probably does, but they should try to repurpose some of existing structures, instead of building new.)

According to the interview on 24ORA, while Aruba plans well, it does not execute, and in view of the current burning issues, the scarcity in the labor force, and the challenges at RWZI, for example, the island should gather all stakeholders and move to action, on a national tourism growth plan.

One of my friends, writes: AHATA, Aruba Tourism Authority and the Aruba Chamber of Commerce have in the past repeatedly talked about the need to regulate tourism growth, and find a sustainable formula, but during the past five governments, headed twice by Nel Oduber, twice by Mike Eman and twice, with Evelyn Wever Croes at the helm, including once as a coalition, the process has been stalled, and the number of rooms on the island has doubled since 2001, the number of restaurants ballooned, the number of boats and bars and tourist attractions, sky rocketed.

We are living in a free market economy, with excessive red tape on one hand, and a seeming total laissez-faire, on the other.

It’s a mystery how it works, but I see new stuff popping up every day, and little routing upkeep.

Why has GOA stalled the process of regulation and supervision? Because it’s BIG, and it scares politicians, to have to make thoughtful long-term decisions, weigh options, and INCLUDE stakeholders, in decision making.

It’s much easier just to let the economy drive itself and grow, no checks and balances.

My friend explains that historically, GOA has only been actively pursuing two industries, tourism and oil, and that’s why we regularly hear about a new resort project, or an effort to revive some part of the refinery. Other than that, we haven’t heard about any real plans to introduce a new economic pillar.

There have been some diversification efforts, and much money was wasted on exploring this and that, including oil explorations in the wrong place, all that without success because it was all driven by politicians and their nepotistic appointees, instead of by professionals.

My friend counts three reasons why the job to stitch together a national growth plan for tourism has never been completely thought out, and never executed.

  1. Lack of adequate legislation
  2. Lack of professionals, scientists and engineers as leaders of the project
  3. We grew too fast

My friend points out the lack of adequate legislation, examples: We have little environmental law framework, we follow a politically-dictated National Ordinance on Spatial Development and we obey and similarly rushed Spatial Development Plan. Traditionally, the minister decides what goes, what doesn’t go.

For the lack of professionals to drive our economy, my friend points out that the ministers surround themselves with politically appointed friends and family members, who make decisions based on notions and no true evidence-based facts, and data.

He also indicates that because of rapid tourism development from 1986 to 1996, and the rapid population increase, we are now faced by a housing, infrastructure development and public services crisis, including big challenges in education, and health care.

And while tax revenue from tourism was soaring, the public sector was allowed to grow, becoming a source of political patronage. The tourism sector growth and its tax revenues needed to match the public sector growth and government spending. We needed to Keep Up with The Joneses. Tourism is forced to produce ever-more revenue matching GOA’s spending.

The pandemic didn’t help. And we’re now stuck with high interest loans, thanks to false pride. No, thanks, we do not need any financial supervision.

It’s expensive to do business in Aruba, it’s expensive to live here. We’re all paying our taxes today, it the 15th. I am sure we all feel GOA is digging too deep in our pockets and giving us too little in return.

The AHATA CEO should be complimented on the courage she shows in bringing up issues that GOA would rather overlook.

 

 

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January 15, 2024
Rona Coster