New chapter, same players

A lot is happening in the policy space days away from a national election. Almost appears as electioneering. Reported in the newspaper on April 16 was the renaming of the recently agglomerated Trade and Investment Promotion Agency (which merged ExporTT, Invests and the Creative TT to Global T&T).

I cannot help but think that we’re just going around the mulberry bush or playing merry-go-round when it comes to the imperative of non-energy diversification; agglomeration, break-up, consolidation and on and on. If only this is all it took to achieve increased investment inflows. The evidence suggests not.



The key players are selling this as a game-changer for T&T. To quote chairperson Franka Costello, “This moment represents a pivotal step in T&T’s journey towards global competitiveness. It’s the beginning of a new chapter (sounds familiar?) that will redefine how we represent ourselves to the world, how we compete on the international stage, and how we unlock the immense potential of our people and our industries.

” She goes on, “This integrated approach together brings talent, expertise and resources to deliver reliable information on key sectors and industries, support services for exporters and investors as well as guidance on the regulations and processes for establishing a business in T&T.” But, unless I’m wrong, it’s the consolidation of the same talent that has been in the three entities for years. And this is not the first time we have heard lofty ambitions only to be disappointed.

Recall, the “break-up” model chosen as ideal for tourism. In 2017, the single tourism development agency became Tourism Trinidad and Tourism Tobago. This was eight years ago.

What has the impact been on tourism? Of course, I don’t have access to targets which may have been set. But here is what is available with respect to tourism’s performance over the last six years. Data on percentage change in overnight tourist arrivals from 2019 to 2024 highlights a critical under-performance compared to most Caribbean peers.

T&T experienced a 13.4% decline in overnight tourist arrivals, dropping from 388,576 in 2019 to 336,696 in 2024. Of course, we must recognise the Covid-19 impact.

However, over the same period, Barbados experienced a 34.8% growth, Grenada 19.7%, and Aruba 39.

5%. Drilling down to the yachting industry, a growth industry referenced in the last budget. After over 30 years of industry lobby for change, yachts still must complete about 15 forms to enter our waters, compared to one harmonised online form to enter sister islands.

Clearly this bureaucratic impediment appears beyond the capacity of ministers and these two institutions established to change the trajectory of T&T’s tourism. On April 10, (CNC3), the president of the Tobago Hotel and Tourism, Reginald MacLean, predicted an extremely devastating Easter season for hoteliers on the island, with occupancy struggling to reach 50%. How then can we be optimistic about the new Global T&T? Both InvesTT and ExporTT were established since 2012 to support the growth and expansion of particular industries in the non-energy sector.

The Creative Industries Company Ltd was operationalised in 2014. What did these institutions accomplish over their years in operations? According to the InvesTT’s website, ten companies represent its success stories. Not industries, companies.

That’s less than one company per year of existence. How many of these are net earners of foreign exchange? I’ll bet, not one. ExporTT was “charged with generating export growth and diversification in the non-energy goods and services sectors.

...

building internationally competitive firms, improving the business environment, and harnessing the differentiating factors that set Trinidad and Tobago exporters apart in the global marketplace.” There is nothing on the website to help me assess accomplishments. Creative TT was mandated “to stimulate and facilitate the business development and export activities of the Creative Industries in Trinidad and Tobago to generate national wealth and, was responsible for the strategic and business development of the three niche areas and sub-sectors under its purview – Music, Film, Fashion.

” Where are we with this? How have InvesTT, ExporTT and Creative TT impacted non-energy export earnings, forex earning, import displacement, employment generation? I ask these questions, because we are now journeying with an amalgamated model, which, according to the chairperson, is “a shift from ‘siloed efforts’ to a strategic unified approach, one that is agile, data-driven, and globally connected, to drive meaningful economic outcomes, more jobs, more innovation, more opportunities for businesses across T&T.” These are nice-sounding words, but after millions, possibly billions, spent over the last nine eight (2015-2023), these are some of our realities: employment in non-energy manufacturing contracted by approx 10,000, employment in services contracted by approx 25,000, non-energy GDP contracted by 2.3%, food import increased from US$1 billion (TT$6.

79b) to US$1.2 billion (TT$8.14b) and in TT$ million, the non-energy fiscal deficit worsened from -12,464 to -31,302 (151%) New chapter, same old players.

How will the outcome differ? The author is an economist.