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Passed:  $388.9 Million Budget for TCI for 2022-2023

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By Deandrea Hamilton

Editor

 

#TurksandCaicos, May 12, 2022 – Government spending for the Turks and Caicos Islands is projected to swell by 20 per cent and the PNP Administration is optimistic about what the increase will mean toward national development.

According to the presentations, earnings for the TCI Government are expected outpace expenses in the Budget which was passed in Parliament on Thursday May 5, 2022 and it gives TCIG an additional $78 million as approved for spending in the new fiscal year.

“Despite, the challenges around the world, our policies and priorities are deliberately designed to position our country to continue its economic rebound through 2022 and 2023.   We are projecting that economic growth will be fueled by continued strong recoveries in the tourism, construction, and the real estate sectors.

Local authorities and the international rating agencies believe that as long as the strong performance in the tourism, construction, and real estate sectors remains, Real GDP will continue to grow.

They are forecasting a greater than 7% growth in 2022, and an average growth of around 5% for the following 3 years – i.e. 2023, 2024, and 2025.

This positive forecast comes on the heels of estimates that the TCI economy grew by more than 10% in 2021.

Notwithstanding the very strong growth last year, the GDP remains below pre-pandemic levels. Mr. Speaker, the economy is simply “catching up” after a significant decline of approximately 27% that it experienced in 2020.

Mr. Speaker, our Government will continue to use all the tools at our disposal to expand and diversify the economy, and most importantly create opportunities and prosperity for all our people,” said the Deputy Premier.

The PNP administration with its Budget presented under the banner: ‘An Economy that Works for All People, Opportunity and Prosperity’ has created a new category in the expenditure estimates, and it gives the National budget a category called Economic Affairs which due to its focus areas makes it the allocation leader.  For the first time in decades, health care will not get the lion’s share of the TCI budget, Economic Affairs will.

According to DP and Minister of Finance E. Jay Saunders this includes:  infrastructure development and land acquisition; tourism product enhancement, agriculture, catastrophic risk insurance; Environmental and Coastal resources; Energy & Utilities and Media & Communications.

“We want our people to live their best lives! We are laying the foundations to advance growth and development. We are creating a future that our people can look forward to and one that our young people can get excited about.

We made several promises in The People’s Contract on how we would create that future,” said Hon Saunders in his maiden Budget Communication.

The allocation for Economic Affairs is $103 million dollars; putting the new grouping at the top of the heap.

At No. 2 is health care.

“Mr. Speaker, the health of our people continues to be a significant priority of our Government. That is why we are allocating over $78.9M (20%) of the budgeted expenditure to health care delivery.  Our focus remains the provision of quality care, including: Public Health and Hospital Services; Mental Health; Research; Health Emergencies;  Dental; Laboratory Services; the promotion of Healthy Lifestyles, and Policy Planning.

The third largest allocation said Hon Saunders is $63.7 for public order and safety.

“Of this amount:  $32.5M will go towards Police Services; $19.2M is for the Law Courts, AG Chambers, Director Public Prosecution, Judicial Administration, and the Labour Tribunal; $8.2M for Public Order, including Disaster Management, Customs and Border Protection, Immigration, and Repatriations;      $5.4M for Prisons, Correctional, and Rehabilitation Services and $1.3M dollars for Fire and Rescue.”

In the No. 4 spot is what the minister called General Public services and including the Governor’s office, the Premier’s office and the House of assembly and Education rounds out the top 5 with an increase to $37.5 million this financial period.

“Like prior PNP administrations, we are increasing the education and training capacity of the TCI.  We are focused on creating modern schools that are accessible, equipped with the latest technical tools, and the right student/ teacher ratios.

We are creating curricula that provides the right mix of literacy, numeracy, and technology to best position our students to thrive in the global marketplace.

We are continuing our investment in early childhood, primary, secondary, tertiary, and vocational education with an investment of $37.5M.

Our priorities include:  Improving early childhood, primary, secondary, and tertiary education;  Providing scholarships to young people at the community college level; Maintaining recreational/sporting facilities;  Supporting TVET pursuits.”

These and other national spending reveals came in the Budget Communication delivered by the minister on Tuesday May 3, 2022.

As the Budget Communication rolled out the future for spending, Hon Saunders introduced the plans with comparisons, providing some context on the economic performance of the Turks and Caicos Islands for the previous period.

“Mr. Speaker, the Import Receipts tell a story of feverish activity, especially in the construction sector.  As an example, total Merchandise Imports – i.e. imports into the country – for Calendar Year 2021 were valued at $485.9M, which was a year-over-year increase of approximately $136M (39%) over 2020.

And I am happy to report that 2022 is looking equally as strong.

During the first three months of 2022 (i.e., January – March), Merchandise Imports increased by $59.7M over the same period in 2021. In the first quarter of 2021, Merchandise Imports were valued at $93.9M. This year, first quarter imports were at $153.6M. That’s a 64% improvement!  Mr. Speaker, that is performance!”

Turks and Caicos Islands in the 2021-2022 fiscal year over-earned by $90 million dollars and underspent by $20 million dollars, for what was a banner year all around.

In what may be its best performance ever the TCI economy has generated a $391 million dollar revenue.

In addition to that, the government spent a staggering $20 million dollars less than was budgeted for the year 2021-2022.

“From this surplus, we put $67.6M into the country’s Cash Reserves, which increased it from $121.7M (the balance at the start of the financial year on the 1st April 2021) to $189.4M – the closing balance at the end of the financial year (i.e. 31st March 2022).

That is a 56% increase Mr. Speaker, and that is performance!

Mr. Speaker, due to the country’s strong financial performance under our Government’s stewardship, we have not had to draw down on any of the pre-approved debt facilities at our disposal. And as a result, Mr. Speaker, I am proud to report that we retired the $80M revolving Credit Facility obtained in 2020.”

DP Saunders said $5.8 million is for new projects including a mobile police station and a totally new station to replace the rundown facility which is home to Grand Turk police.

“An additional $1.4M has been allocated to enhance border protection and security. The TCI Regiment will see an increase in its reserve force by 20 officers, with 2 full time permanent posts. A Defence Board will be established to provide oversight.

12 Marine officers will be added to the Royal Turks and Caicos Islands Police Force (RT&CIPF), plus 10 new Immigration Officers. In addition, more money will be allocated to the RT&CIPF to improve intelligence gathering and investigations as we step up crime fighting efforts.”

With all this financial buoyancy from the last fiscal period, Deputy Premier Saunders said this coming financial period is forecast to be even better.

The government’s revenue is projected to hit nearly $400 million dollars well ahead of the 2025 goal.

“That is why I am delighted to report to this honorable house and to the listening public, that:

  1. Total Revenues collected for financial year 2021/22 was $391.1M, and 2. For the entire financial year of 2021/22 (i.e. from 1st April 2021 to 31st March 2022), which was our Government’s first year in office, every month, we achieved a surplus.

Mr. Speaker, I believe this level of annual revenues to be historic, but I stand to be corrected. Mr. Speaker, $391.1M is: $145M (59%) higher than the average revenues collected over the past 10 financial years, $77.3M (25%) higher than the $315M achieved in the previous best year (i.e. FY2019/20) over the past 10 financial years for revenue collections, $27.5M (7.6%) higher than our original forecast of $363.6M, and $188.8M (93.3%) higher than the Collections for FY2020/21 of $202.3M.

That is performance Mr. Speaker, but we should not be surprised, ‘as The plans of the diligent lead to profit…’ (Proverbs Chapter 21, Verse 5). Mr. Speaker, what seemed optimistic last year, with the blessings of God, now seems pessimistic.

Mr. Speaker, our healthy Operating Surplus, coupled with prudent spending practices, have allowed our Government to maintain a resilient Cash Flow position and strong Cash Reserves,” said E. Jay Saunders, the Minister of Finance, Investment and Trade and Deputy Premier of the Turks and Caicos Islands.

The National Budget was debated over two days and passed in the House of Assembly on Thursday May 5, 2022.

Caribbean News

Migration Is No Longer Just About Borders

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What Caribbean migration dialogues reveal about the region’s future

 

By Patrice Quesada, Coordinator, IOM Caribbean

Migration has become one of the defining issues shaping the Caribbean’s future—not simply because people are moving, but because our economies, labour markets, populations and climate realities are changing.

Over the past several weeks, I have participated in migration discussions at the global, regional and national levels. While each conversation was different, they all pointed to the same conclusion: the Caribbean is beginning to recognize migration not only as a border issue, but as a development issue.

The challenge now is moving from dialogue to action.

From Global Commitments to Caribbean Solutions

That shift was evident during the International Migration Review Forum held at the United Nations in New York, where Caribbean participation was particularly strong. Delegations from ten Caribbean countries, including ministerial representatives from Barbados and Belize, reinforced the region’s growing commitment to shaping international migration policy.

Two messages emerged clearly.

First, migration governance must be grounded in each country’s realities and supported by concrete national commitments. Second, migration cannot be viewed in isolation. It is closely linked to labour markets, demographic change, climate vulnerability and long-term development planning.

Every Caribbean Country Has Its Own Story

Across the region, governments are approaching migration through different lenses.

In Saint Lucia, the launch of the country’s draft migration policy reflected concerns about declining birth rates, labour shortages and continued emigration. The discussions recognised that labour needs, diaspora engagement, remittances, return migration and protection must all work together within one national strategy.

Jamaica demonstrated how migration planning can begin at the local level, with Clarendon becoming the country’s first parish to integrate migration considerations into its long-term development strategy.

Guyana, meanwhile, is managing migration in the context of rapid economic growth, balancing increased labour demand with worker protections and orderly migration systems.

Barbados has also begun incorporating migration into broader population planning as it addresses demographic decline and an ageing population.

The Bahamas has focused on disaster preparedness, bringing together government agencies to strengthen national plans for managing inter-island and cross-border movement during emergencies while safeguarding the rights and dignity of displaced people.

Different countries face different challenges—but all are recognising migration as an essential part of national planning.

The Caribbean’s Greatest Untapped Asset

One message resurfaced repeatedly throughout these discussions.

The Caribbean diaspora should no longer be viewed simply as a source of remittances.

Across the region, citizens living abroad continue to contribute through investment, entrepreneurship, professional expertise, advocacy and, in many cases, by returning home with new skills and experience.

The opportunity now is to engage the diaspora more deliberately as a strategic development partner.

Turning Dialogue into Action

Technical discussions held throughout May demonstrated that governments are beginning to move beyond policy conversations.

CARICOM, supported by the International Labour Organization and the Inter-American Development Bank, convened regional labour migration specialists to explore how migration can help address workforce shortages while ensuring fair recruitment and decent working conditions.

Together, these initiatives suggest the Caribbean is entering a new phase—one where migration is no longer viewed simply as movement across borders, but as a tool for economic resilience, demographic planning and sustainable development.

The conversations have begun.

The next challenge is ensuring they lead to meaningful action.

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Africa

Africa’s Latest Economic Report Sees Caribbean Price Pressures Easing

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By Deandrea Hamilton | Editor

For years, Caribbean families have endured relentless increases in the cost of food, fuel, housing and everyday essentials. Now, one of Africa’s leading financial institutions says the worst of those inflationary pressures may finally be easing.

The African Trade Report 2026, published by the African Export-Import Bank (Afreximbank), shows inflation across Latin America and the Caribbean fell sharply from 16.6 percent in 2024 to 7.6 percent in 2025. The report compares economic performance across the world’s major regions, placing Latin America and the Caribbean alongside Africa, Asia, Europe and advanced economies.

The figures suggest regional price pressures have moderated considerably after several years of high inflation driven by supply chain disruptions, rising energy costs and global economic uncertainty.

Consumers, however, should not expect prices to suddenly return to pre-pandemic levels.

Economists note that lower inflation does not mean goods and services become cheaper. Rather, it means prices are continuing to rise, but at a much slower pace than before. That distinction helps explain why many Caribbean households may still feel the strain at the supermarket, petrol station and on utility bills despite improving economic indicators.

The report also points to a relatively stable regional economy. Gross domestic product growth for Latin America and the Caribbean held steady at 2.4 percent in both 2024 and 2025, suggesting economic expansion continues, albeit at a modest pace.

For Caribbean governments, the findings provide cautious encouragement. Lower inflation can reduce pressure on household budgets, improve consumer confidence and give central banks greater flexibility as they balance economic growth with price stability.

Perhaps most intriguing is the source of the analysis.

Rather than coming from a traditional Western financial institution, the assessment comes from Africa’s premier trade finance bank. The report treats Latin America and the Caribbean as an important global economic region and repeatedly highlights the growing importance of ties between Africa and its diaspora, including the Caribbean. It argues that stronger economic, trade and investment relationships across what it calls “Global Africa” could become a powerful driver of shared prosperity in the years ahead.

For Caribbean readers, the report offers more than encouraging inflation figures.

It provides an outside perspective on the region’s economic performance and serves as a reminder that the Caribbean is increasingly being viewed not only as a tourism destination, but also as an emerging partner in trade, investment and global development conversations.

As governments continue searching for ways to ease the cost of living, Africa’s latest economic report suggests there is at least one reason for cautious optimism: the pace of price increases across the Caribbean is finally beginning to slow.

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Cruise Decline Emerges as Turks and Caicos Tourism Watchpoint

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By Deandrea Hamilton | Editor

PROVIDENCIALES, Turks and Caicos Islands – While the Turks and Caicos Islands continues to celebrate growth in its high-value overnight visitor market, tourism data shared in April 2026 suggests another critical sector of the industry deserves closer attention.

Experience Turks and Caicos reported that stayover arrivals climbed five percent during the first quarter of 2026, with 203,587 visitors between January and March—10,557 more than during the same period in 2025.  March, traditionally the destination’s strongest month for overnight tourism, also posted a three percent increase over the previous year.

But tucked within the same report was another statistic moving in the opposite direction.

Cruise passenger arrivals fell by 16 percent during the first quarter, with 344,287 passengers visiting the destination compared to the same period in 2025.  Preliminary figures for March also showed a seven percent year-over-year decline to 116,911 passengers—even though the destination welcomed an additional cruise ship call during the month.

The report offered no explanation for the decline, placing its emphasis instead on the continued strength of the stayover market and a series of international marketing initiatives designed to sustain overnight visitor growth.

Among those efforts are a partnership with TravelView to distribute destination videos to more than 80,000 travel advisors across the United States, expanded engagement with travel professionals in the United Kingdom through the UNITE Caribbean programme, and increased participation in tourism trade shows in Canada and Latin America.

Those initiatives are aimed primarily at attracting overnight visitors—travelers who typically stay longer and generate significantly more spending within the local economy than cruise passengers.

However, the decline in cruise arrivals raises important questions, particularly for Grand Turk, where the cruise industry remains a major economic driver supporting taxi operators, tour companies, restaurants, retailers and other small businesses that depend heavily on ship calls.

Following publication of the report, Magnetic Media was informed that cruise arrivals have been trending downward, suggesting the first-quarter figures may not represent a one-time fluctuation but part of a broader pattern.

If that is the case, industry observers will be looking for answers.

The report does not indicate whether the decline reflects changes in cruise line deployment, smaller vessels serving Grand Turk, reduced passenger occupancy, itinerary adjustments, or increasing competition from other Caribbean destinations.

Whatever the cause, the contrast between the two sectors is striking.

One segment of the tourism industry continues to post record gains through expanded air service and targeted destination marketing. The other appears to be facing headwinds that have yet to be publicly explained.

For the Turks and Caicos Islands, where tourism remains the country’s economic engine, understanding the reasons behind diverging performance in the stayover and cruise sectors will be essential to long-term planning.

As the destination moves into the traditionally slower months of the tourism calendar, attention is likely to turn not only to sustaining growth in overnight arrivals but also to whether the Government and Experience Turks and Caicos can identify the factors behind the cruise slowdown and outline a strategy to reverse what now appears to be an emerging trend.

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