TCI News
Turks and Caicos in RECESSION; GDP to decline by $272.8 million
#Providenciales, Turks and Caicos – October 2, 2020 – The Turks and Caicos is now officially in a recession; it is another suffocating symptom of the coronavirus pandemic and to think, only slight inroads have been made by the World Health Organization in the effort to unravel who and what unleashed this mammoth of a crisis on the planet.
In a normal year, the Turks and Caicos Islands would have been hundreds of millions of dollars richer.
In this year, the ‘Unprecedented and Unpredictable Year 2020’, Sharlene Robinson who is Premier and Finance Minister of the UK overseas territory, has had to make a starkly different announcement about country earnings and the direct and trickle down effects due to the crushing impact on our leading industry: Tourism.
“The trigger point for a recession is usually two consecutive quarters of negative growth. All indications are that, despite having to go on lockdown at the end of March, the country experienced economic growth in the first quarter of this year. The second quarter, undoubtedly because of the necessary restrictions which had to be imposed, saw minimal activity and even though the level of activity in this quarter was more than the activity in the second quarter, when compared with the level of activity during the third quarter of last year, we are heading towards a second quarter of negative growth. Hence we can conclude that this economy is heading towards a recession,” said the Premier on September 10 in a national press conference held at the Office of the Premier in Providenciales.
That second quarter ended on September 30 for the TCI.
It means the Turks and Caicos is now officially two days into a recession and that translates into deep losses for this once burgeoning archipelago, which expected the economy to grow in 2020 by 5.4 percent.
Tourism contracted by 53 percent.
“In constant market prices it is forecast to decline from $303 million to 142.4 million or by $160.6 million,” informed Premier Robinson when Magnetic Media requested a dollar figure on the whopping shrinkage made known in her presentation early last month.
Overall, the Turks and Caicos Islands economy is forecast to contract by over 26 percent or $204.7 million.
Premier Robinson advised that GDP will “decline from US$ 1.2 Billion to US$ 924.6 million or by $272.8 million.”
During a House of Assembly meeting on August 17, Opposition Leader Washington Misick condemned the PDM Administration’s handling of the pandemic and surmised the country was facing a “deep recession.”
“The PDM does not understand what it will take to reverse the trend of this pandemic, nor the political will to try. They failed to take the measures needed between March 28th and July 22nd to put the needed resources behind the potential prevention and control of a surge of COVID-19 cases after the opening of the border and the resumption of business operations. They did not make the investment to acquire, train and undertake mass testing before the full relaxation of restrictive measures. What we should be looking at today is a reprioritisation of the budget focused on reversing the COVID-19 trend instead we are asked to approve reallocation of funding for a political agenda,” said Misick in his rebuttal of the Supplementary Appropriation Bill.
Washington Misick described the economy as being on “life-support” and the tourism industry as running “on fumes”.
And the future for travel and tourism is not looking bright.
An ominous ‘third wave’ of the highly infectious virus is sweeping the planet and the COVID-19 death toll has surpassed one million.
This confluence of crises is reviving extreme restrictions, extending barriers to travel and prompting unimagined measures to stem the flow and stop the spread of COVID-19.
New York Governor, Andrew Cuomo, on Monday signed an executive order which requires New Yorkers to quarantine for 14-days upon return from any country which the U.S. Centers for Disease Control (CDC) has listed at Level 2 or Level 3.
The Turks and Caicos, has since August 6, been charted as ‘Level 3: Reconsider Travel’.
“The east coast, and particularly New York, is a major gateway for visitors to our destination. Additionally, the USA market as of 2019 accounted for 82% of air arrivals to the Turks and Caicos Islands. Consequently, the Tourist Board and Ministry of Tourism have taken actionable steps in response to this decision. The Tourist Board, has reached out directly to New York’s Governor Andrew Cuomo’s office and the Ministry of Tourism is working closely with the Ministry of Health to address the CDC’s categorization of Turks and Caicos as a level 3 country, said the Ministry of Tourism and the TCI Tourist Board on October 1 in a joint press statement.
It may be a fight in futility though, as the Turks and Caicos has faced this ‘Coronavirus Blacklisting’ before. The United Kingdom, despite TCI being one of its overseas territories, has since August made quarantine mandatory for 14 days for anyone travelling from these islands.
Income from cruise ship travel is sunk. The CDCs ‘No Sail Order’, just hours before it was due to expire on September 30 is now extended until October 31, 2020.
Grand Turk, the cruise hub of the Turks and Caicos welcomed over 1 million cruise visitors each year but has not seen a ship in port since March.
Premier Robinson in her September 10 address announced budget reallocations to support an extended stimulus package to the tune of $5 million.
A food assistance program, a new round of stimulus payouts which would include ground transportation operators and for the first time, the National Insurance Board would financially support its contributors falling into unemployment or underemployment.
“Throughout this pandemic, TCIG has seen many policy shifts within its budget. To date, it is estimated that TCIG has paid out over $15.3m in expenses relating to the COVID-19 pandemic,” said the Premier.
The country awaits, however, activation of the new $5 million stimulus payout scheme. Details were promised for mid-September but to date government has been silent on when these funds will manifest for a people who have been in recession long before now and who fear the worst is yet to come.
SALT CAY — Residents say Salt Cay’s prolonged water shortage remains unresolved, with no visible activity or relief from the measures Government said would be advanced last week.
The crisis began in June after a critical filter failed at the island’s reverse osmosis plant, severely disrupting local water production.
Residents told Magnetic Media Tuesday morning that neither the replacement filter nor the promised bulk shipment of emergency water appeared to have arrived.
Minister of Innovation, Technology and Energy E. Jay Saunders, however, said the filter is already on Salt Cay.
“The RO filter is on Salt Cay and it’s being installed,” Saunders told Magnetic Media.
The large emergency water shipment has not materialised. Saunders said transporting more than 1,000 gallons in a single container requires a barge, and officials are still attempting to source one.
Government had previously indicated that it would try to deliver up to 2,500 gallons to partially replenish Salt Cay’s depleted storage tanks while repairs continued.
Saunders had initially projected that the RO plant would be fully operational by August 19. He now says the system is expected to return to full operation “in a few days.”
For residents, however, the immediate reality remains unchanged: the shortage continues, the bulk water has not arrived and the promised relief is not yet flowing.
PROVIDENCIALES, Turks & Caicos Islands: — Beaches Turks and Caicos Resort recently collaborated with the Royal Turks and Caicos Islands Police Force and the Department of Social Services to support a youth camp hosted at the Oseta Jolly Primary School, underscoring the resort’s ongoing commitment to youth development in the Turks and Caicos Islands.
The camp, which brought together security forces, government agencies and private sector entities, focused on equipping young participants
with practical life skills and character-building tools. A team from Beaches Turks and Caicos’ leadership and training departments joined the programme to deliver sessions on basic table etiquette, dining mannerisms, polite demeanour and public speaking fundamentals, all designed to help the students present themselves confidently in formal and professional settings.
General Manager of Beaches Turks and Caicos, Deryk Meany, said the resort views national development as an integral part of its corporate social responsibility. “We are always happy to be supporters in the development of the youth of the Turks and Caicos Islands. We continue to commit our team to help in creating the next generation of leaders who will provide support to the islands and help in its development,” Meany noted.
The initiative also received strong endorsement from the Ministry of Education, Youth, Sports and Community Development, which has been championing holistic programmes aimed at building well-rounded young citizens. Minister Rachel Taylor highlighted the importance of collaborations like the camp in helping youth access structured guidance and mentorship. “We are happy to join in celebrating the growth and development of our youth here in the Turks and Caicos Islands. Beaches Turks and Caicos continues to be one of our primary supporters in helping to develop well rounded individuals. This commitment from this resort has grown with the vision of the youth ministry to help in their overall development,” she said.
Taylor further emphasized that the camp’s timing was especially significant, coming as youth across the islands seek positive outlets and
constructive engagement. “This camp came at the most ideal time for our adolescents. With the support of our governor, the security forces, the social services along with Beaches Turks and Caicos, we are confident that the training needed for them to improve is on the right track,” she added.
Beaches Turks and Caicos Public Relations Manager, Orville Morgan, described the collaboration as an exemplary model of cross-sector partnership. “To be able to join with the security forces to provide support for the youth of the Turks and Caicos Islands is exceptional. We are happy to provide the necessary support to equip them to grow into being productive citizens of these islands,” Morgan said.
He noted that the resort team focused on practical etiquette and hospitality-driven skills that can be carried into the youths’ future experiences. “As a team, we were able to share in the basic table setting and dining etiquette for them, skills we are sure that they will be able to use in their next fine dining experience,” Morgan added.
Organizers expressed optimism that the camp’s blend of discipline, mentorship and soft skills training will have a lasting impact on participants. With stakeholders pledging continued support, the Beaches Turks and Caicos team and their partners aim to expand similar initiatives, further investing in the personal and professional growth of the next generation of Turks and Caicos Islanders.
TCIG knew from April that fuel factor could surge almost 80%; Minister says $500 cost-of-living payment was part of Government’s response
PROVIDENCIALES — The Turks and Caicos Government knew months before July’s shocking electricity bills that consumers faced a potentially massive increase in the fuel factor.
Minister of Information Technology and Energy E. Jay Saunders revealed Friday that Pelican Energy warned his Ministry in April that generation fuel costs were projected to rise from $3.09 per gallon in May to $4.79 in June and July.
That translated into a projected fuel factor jump from about 17.5 cents to 31 cents per kilowatt-hour — an increase of almost 80%.
Saunders said he personally advised Cabinet of the projected increase and presented options for cushioning the impact.
He characterised Government’s $500 cost-of-living payment as its “initial response” to rising fuel costs, before a separate fuel-factor subsidy was approved.
Cabinet records show Government agreed on June 24 to provide funding to mitigate the fuel-factor impact, with the relief programme approved July 8.
Eligible residential customers — those averaging less than $1,500 monthly over the previous three bills — are capped at 22 cents per kWh from July through October.
Pelican confirmed Friday that Government’s contribution was already applied to July bills, meaning the bills now triggering widespread public outrage would have been even higher without the subsidy.
Saunders did not disclose the programme’s total cost.
His admission that Government knew since April, however, raises another question amid the backlash: why were consumers not directly warned by Government about the scale of the approaching increase?
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