St.-Lucia-Market-Guide-September-2004

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					St. Lucia Market Guide




                             St. Lucia
                                 Market Guide
                                  September, 2004




                                         Prepared by:
                         Tourism and Industrial Development Company
                           of Trinidad & Tobago Limited (TIDCO)
                                   Level 1, Maritime Centre
                                       29 Tenth Avenue
                                           Barataria
                                     Tel: (868) 675-7034
                                     Fax: (868) 638-3560
                                Email: trade-info@tidco.co.tt
                                   Website: www.tidco.co.tt


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St. Lucia Market Guide




                             TABLE OF CONTENTS

Political History                                                 3
Country Profile                                                   4
Government                                                        5
National Holiday                                                  5
The Economy                                                       6
       - Selected Macro-Economic Data                             6
International Trade                                               7
       - Trade Regulations                                        7
       - Restricted Imports                                       8
       - Compulsory Standard and Compliance                       9
Market & Distribution                                             10
       - Media                                                    10
       - Airports                                                 10
Trade Statistics                                                  11
       - Imports from Trinidad & Tobago                           11 – 13
       - Major Trading Partners                                   14
       - Potential Export Opportunities                           16
                       Construction                              16
                       Processed Foods                           17
                       Rubber Tyres                              17
                       Clothing, Apparel & Textiles              17
                       Paper & Printed Products                  18
                       Personal Care                             18
                       Industrial Chemicals/Household Cleaners   18
Investment Climate                                                19
       - Licenses                                                 19
       - Labour Legislation                                       20
       - Business Customs                                         21
       - Business Travelling                                      21
       - Utilities                                                21
       - Utility Costs                                            22
       - Free Trade Zones                                         22
Potential Investment Opportunities                                23
       - St. Lucia Special Development Areas Act                  23
       - Tourism                                                  24
       - Agriculture                                              24
       - Manufacturing                                            25
References                                                        26
Country Contacts                                                  27




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St. Lucia Market Guide

                                   POLITICAL HISTORY
St. Lucia is an island that is dominated by tourism and agriculture as its sources of
income.      The island has a fine natural harbour at Castries and was contested
between England and France throughout the 17th and early 18th centuries
(changing possession 14 times); it was finally ceded to the UK in 1814. Self-
government was granted in 1967 and independence in 1979.


The United Workers’ Party (UWP) dominated the island’s politics during the early
1990s, until the St. Lucia Labour Party (SLP) was reinvigorated under the leadership
of Kenny Anthony, who took over the party in 1996 and led it to electoral victory at
the 1997 General Election; the SLP also won an overwhelming majority at the most
recent poll, held in December 2001. The UWP has just three seats, while the
Progressive       Labour   (PLP)   has   ceased   to   exist   as   an   electoral   force.


On taking power in 1997, the new SLP government took a new tack in the country’s
foreign policy by establishing diplomatic relations with the People’s Republic of
China, which was to provide the finance for educational materials, construction of a
national stadium, a cultural centre, a new highway and a free-trade zone. Previously,
St Lucia had generally followed a uniformly pro-US line (including participation in the
1983 invasion of the fellow Caribbean Island of Grenada). Taiwan severed relations
with St Lucia in protest. Within the Caribbean, St Lucia leads the lobby for the
creation of a unitary Eastern Caribbean state, although progress has been slow, as
many of the islands favour a more gradual process of political and economic
integration. St Lucia has therefore reached agreement on a more limited union with
three other like-minded islands – Dominica, Grenada and St. Vincent.




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St. Lucia Market Guide

                                  COUNTRY PROFILE
STATUS                                   Independent (February 22nd, 1979)
CAPITAL                                  Castries
NATIONALITY                              St. Lucian
OFFICIAL LANGUAGE                        English
LOCAL LANGUAGE                           A French based patois is widely
                                         spoken.
CURRENCY                                 East Caribbean Dollar (EC$)
                                         Ex. Rt. US$1 = EC$2.70
AREA                                     616 sq. km
POPULATION                               164,213
POPULATION DENSITY                       720 per sq mile
ANNUAL GROWTH RATE                       1.27% (2001 est.)
LABOUR FORCE                             42.8% of estimated population
ETHNIC DIVISIONS                         Black 90%, Mixed 6%, East Indian 3%,
                                         White 1%.
RELIGION                                 Roman Catholics 90%, Anglican 3%,
                                         Other Protestant 7%.
CLIMATE                                  Tropical,    moderated     by   Northeast
                                         Trade Winds; dry season from January
                                         to April, rainy season from May to
                                         August.
TIME ZONE                                1 hour later than Eastern Standard
                                         Time (EST) and 4 hours earlier than
                                         Greenwich Mean Time (GMT).
TELEPHONE CODE                           Country Code is 758
ADMINISTRATIVE DIVISIONS                 11 Quarters: Anse-la-Raye, Castries,
                                         Choiseul,     Dauphin,    Dennery,   Gros
                                         Islet,     Laborie,   Micoud,     Praslin,
                                         Sourfriere, Vieux-Fort.
Source: CIA The World Fact Book 2002




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St. Lucia Market Guide

                                        GOVERNMENT
St. Lucia is a constitutional monarchy. Executive power is vested in the British
Sovereign as Head of State, represented in St. Lucia by the Governor General who
is appointed on the advice of the Prime Minister. The Prime Minister must have the
majority support of the House, to which the Cabinet is responsible.              Parliament
exercises legislative power.


                                   NATIONAL HOLIDAYS
New Year’s Day                                             January 1
New Year’s Holiday                                         January 2
Independence Day                                           February 22
Good Friday                                                Date varies
Easter Monday                                              Date varies
Labour Day                                                 May 1
Whit Monday                                                Date varies
Corpus Christi                                             Date varies
Emancipation Day / National Heroes Day                     August 1
Thanksgiving                                               First Monday of October
National Day                                               December 13
Christmas Day                                              December 25
Boxing Day                                                 December 26
Source: National Development Corporation’s Guide to Investing in St. Lucia
(Holidays that fall on a Sunday are observed on the following Monday)




                                                   5
St. Lucia Market Guide

                                         THE ECONOMY


Changes in the European Union (EU) import preference regime and the increased
competition from Latin American bananas have made economic diversification
increasingly important in St. Lucia. Nonetheless, the economy is still dominated by
Tourism and Agriculture, primarily bananas.


Adverse weather conditions and the outbreak of leaf spot disease contributed to a
29.5 percent reduction in banana output in 2003.                 This deceleration was worse
however in the two main Windward Island producers, therefore, St. Lucia’s share
increased from 41 to 49 percent.


In terms of tourism, St. Lucia registered a 4.1 percent increase in total visitor arrivals
amounting to 703,381 in 2003. Despite competition from regional destinations, the
island recorded a 9.3 percent increase in stay-over arrivals to an all time high of
276,948 as additional visitors came from United States (4.3% growth), Europe
(17.6% growth) and the Caribbean (6.23% growth).


The current administration headed by Dr. Kenny D. Anthony will be undertaking
major initiatives such as preparation for World Cup 2007 through incentives for the
accommodation sector, health care reform and educational assistance for tertiary
level students.          The ICC World Cup 2007 is expected to significantly increase
arrivals and expenditure to the island.
Selected Macro Economic Data (2003):
GDP in millions US$                                                    $1,165
GDP per capita US$                                                     $5,400
Real GDP Growth                                                        3.71%
Exports (FOB) in millions of US$                                          $66
Imports (CIF) in millions of US$                                        $267
Inflation Rate                                                          1.0%
2003 United Nations Human Development Index Rank                           71
Source: Statistical Department, Ministry of Finance, St. Lucia



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St. Lucia Market Guide

                             INTERNATIONAL TRADE


Agreements and Memberships
St. Lucia is a member of CARICOM and CARIFORUM and is a signatory to a
number of trade agreements, including:


       Association of Caribbean States
       CARICOM
       CARIBCAN
       Free Trade of the Americans (FTAA)
       LOMÉ
       World Trade Organization (WTO)
       General Agreement on Tariffs and Trade (GATT)
       General Agreement on Trade in Services


Trade Regulations
As a CARICOM member, St. Lucia will accord duty-free treatment to virtually all of
Trinidad & Tobago’s exports to the market. In this regard, a CARICOM Certificate of
Origin must accompany the documentation. CARICOM Certification for exports to
St. Lucia may be obtained from:
TIDCO Trade Certification Unit            TIDCO Trade Certification Unit
Customs House                             PLIPDECO Port Complex
Corner Abercromby St. &                   Atlantic Ave, Point Lisas Industrial
Independence Square                       Estate Pt Lisas
Port of Spain                             Tel: 679-2492
Tel: 625-2363; 625-0520                   Fax: 679-2493
Fax: 625-2359                             Email: bbenjamin@tidco.co.tt
Email: hstraker@tidco.co.tt

Goods imported into St. Lucia are subject to:
       Consumption Tax
       Import Duty
       Service Charge (5% of the Customs Value)
       Environmental Levy of 1.5%
       Excise Duty on Alcoholic Beverages as follows:

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St. Lucia Market Guide

HS Number                  Description of Goods           Excise Tax Rates
22082010                   Brandy, in bottles of a $15.00/litre
                           strength not exceeding
                           46%
22083010                   Whiskies in bottles of a $15.00/litre
                           strength not exceeding
                           46% in volume
22083090                   Other whiskies                 $15.00/litre
220840109                  Rum and Tafia in bottles $10.00/litre
                           of     a      strength   not
                           exceeding 46% in volume
22084090                   Other rum and tafia            $10.00/litre
22085010                   Gin     and     Geneva    in $15.00/litre
                           bottles of a strength not
                           exceeding 46% in volume
22085090                   Other gin and geneva           $15.00/litre
22086000                   Vodka                          $15.00/litre


Restricted Imports


Trinidad and Tobago is on a list of countries from which seafoods would require
testing for cholera and bacteria. In addition, the following items require an import
licence:


 HS TARIFF NUMBERS                         DESCRIPTION OF GOODS
03.01 – 03.04              Fish – fresh, frozen or chilled
0305.40                    Smoked fish
03.06 and 03.07            Crustaceans and mollusks
                           (whether in shell or not, fresh alive or dead) chilled,
                           frozen or salted, etc.
0401.001                   Fresh milk (not including UHT milk)
10.06                      Rice

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St. Lucia Market Guide

1101.009                        Wheat flour
1602.39                         Chicken patties
1602.509                        Beef patties
16.04                           Prepared or preserved fish, (Fish burgers, fish
                                fingers and fish patties.)
17.01                           Cane and Beet Sugar
2105.001                        Ice cream
6810.11                         Concrete blocks
8481.00                         Ferrules
8481.00                         Ferrule straps
9028.20                         Domestic and Commercial meters for measuring
                                volumes of water
0910.50                         Curry powder
19.02                           Pasta products
22.02                           Aerated beverages
34.06                           Candles
2201.902                        Malt beverages
2203.001                        Beer
2804.40                         Oxygen in cylinder
2811.21                         Carbon dioxide in cylinder
2901.002                        Acetylene in cylinder
8419.10                         Solar water heaters
9401.60                         Chairs and other seats of wood and upholstered
                                fabric
9403.60                         Other furniture of wood and upholstered fabric.
Source: Customs and Excise Division, St. Lucia



Compulsory Standards & Compliance
This program is designed by the St. Lucia Bureau of Standards to ensure that all
imported and locally produced goods for which there are compulsory standards
conform to acceptable health, safety, performance and labeling standards in order to
be retailed on the local market. It includes import monitoring, inspections of local

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St. Lucia Market Guide

manufacturing products, assessment and registration of labels and general market
surveillance for quality assurance and control. The compliance programme is critical
to consumers, manufacturers, retailers, importers and distributors as it helps to
prevent the entry of cheap sub standard products into the market and helps ensure
fair competition.


                         MARKETING & DISTRIBUTION NETWORK


Media:
There are three newspapers in St. Lucia.         The Mirror (Every Friday), Voice
Publishing (Every Saturday) and Star Publishing (Monday, Wednesday & Friday).
There are nine (9) radio stations, 2 AM and 7 FM and 2 television stations, one of
which is a community antenna television or CATV channel.


Airports:
There are two airports in St. Lucia, Hewanorra International Airport and George F.
Charles Airport which is serviced by Caribbean Star, Liat and other smaller
Caribbean carriers.


Other airlines include, Air Jamaica, Air Caribe, Air Canada, Air Martinique, American
Eagle, US Airways, British Airways, BWIA, Caribbean Star, Virgin Atlantic and
International Charters.




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St. Lucia Market Guide

                                      TRADE STATISTICS


St. Lucia’s main exports are bananas, clothing, cocoa, vegetables, fruits and
coconut oil.         Principal imports are food, manufactured goods, machinery,
transportation equipment, equipment and fuels.


10.3% of all imports into St. Lucia originate from Trinidad and Tobago. The top four
export items for 2003 are all energy related and account for 43% of total imports
from Trinidad.


                DESCRIPTION                                2003
OTHER MOTOR SPIRIT                                                    $76,608,482
OTHER KEROSENE TYPE                                                   $26,931,612
OTHER GAS OIL EXPORTED                                                $21,449,504
OTHER PETROLEUM GASES                                                 $10,351,287
CIGARETTES                                                             $8,875,404
BUILDING CEMENT (GREY)                                                 $8,298,794
UNSWEETENED BISCUITS                                                   $7,059,725
SWEET BISCUITS                                                         $5,795,890
OTHER FLAVOURED WATERS                                                 $4,741,757
POULTRY FEED, PREPARED                                                 $4,639,165
OTHER BARS & RODS                                                      $4,595,090
DOORS & THEIR FRAMES                                                   $4,351,316
LUBRICATING OILS                                                       $4,146,993
OTHER ORANGE JUICE                                                     $4,042,970
INDENTED BARS,RODS                                                     $3,785,905
OTHER PREPARED FOODS                                                   $3,013,506
STOUT                                                                  $2,879,373
TOMATO KETCHUP                                                         $2,671,181
RIGID TUBES & HOSES                                                    $2,640,967
PREFABRICATED BUILDING                                                 $2,526,455
PORTABLE RADIO                                                         $2,348,840
OTHER BARS & RODS                                                      $2,298,761
CEREAL,CEREAL PRODUCTS                                                 $2,287,240
OTHER PARBOILED RICE                                                   $2,124,507
OTHER STRUCTURES                                                       $2,110,603
OTHER                                                                 $93,367,383
Total TT Exports to St. Lucia                                        $313,944,713
Source: Central Statistical Office, Trinidad & Tobago



Basically the top ten items are cigarettes, building cement, unsweetened biscuits,
sweet biscuits, flavoured waters and poultry feed, prepared.




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St. Lucia Market Guide




Exports from Trinidad & Tobago have averaged about TT$331M dollars per year
since 1999 and has increased by 5% between 1999 and 2003. This increase was
largely due to an almost 55% increase imports of Mineral Fuels, Lubricants and
Related Materials where imports of other products either remained constant or
declined as in the case of Food and Beverages.


Year                 Quantity (KG)                  Value (TT$)
1999                        155,341,912                    $328,468,021
2000                        141,250,222                    $340,551,726
2001                        139,797,307                    $336,855,784
2002                        112,414,256                    $306,103,918
2003                        122,601,102                    $345,409,471
Source: Statistical Department, Ministry of Finance, St. Lucia



                Trinidad & Tobago's Exports to St. Lucia

    $400,000,000

    $300,000,000

    $200,000,000

    $100,000,000

                $-
                          1           2           3              4         5
        Year             1999       2000        2001         2002         2003
        Value (TT$) $328,468,02$340,551,72$336,855,78$306,103,91$345,409,47


Source: Statistical Department, Ministry of Finance, St. Lucia




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St. Lucia Market Guide

In 2003 the majority of imports from St. Lucia were beverages and tobacco. The
figure of TT$19.6M was an increase of over 400%.

             Trinidad & Tobago Imports from St. Lucia, 2003 by SITC
                                 Classification


                  Manufactured
                                              Other
                 Goods Classified
                                               2%
                 Chiefly by Material
                        24%




          Chemicals and
         Related Products
               2%

           Crude Materials
                2%                                               Beverages &
                                                                   Tobacco
                                                                     70%




Source: Statistical Department, Ministry of Finance, St. Lucia




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St. Lucia Market Guide

Major Trading Partners for 2003:
St. Lucia’s main markets for exports are United Kingdom, United States and
Barbados.



            ST. LUCIA'S MAJOR TRADING PARTNERS: EXPORTS
                              Other
                              17%


                Barbados
                   8%                            United Kingdom
                                                      48%




                  United States
                      27%


Source: The World Factbook, 2003



St. Lucia’s main markets for imports are Brazil, United States and Trinidad &
Tobago.

             ST. LUCIA MAJOR TRADING PARTNERS: IMPORTS

                           Other
                           25%


                                                   Brazil
                                                   46%


                 Trinidad &
                  Tobago
                    10%

                           United States
                               19%

Source: The World Factbook, 2003




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St. Lucia Market Guide




St. Lucia’s top ten imports overall for 2001 to 2003 are as follows:


  SITC                   DESCRIPTION        2003       % CHANGE         2002          2001
REVISION                                   (US$)        BETWEEN        (US$)         (US$)
                                                       2002 & 2003
334320      OTHER GAS OILS               $20,906,317         140%     $8,719,201   $16,437,350
764321      TRANSMISSION APPARATUS
            INCORP. RECEPTION APPARA.:
            PORTABLE RADIO-TELEPHONE     $18,321,537         644%     $2,462,755      NA
335199      OTHER MOTOR SPIRIT
            (GASOLINE)                   $16,007,346          12%    $14,314,535      NA
764329      TRANSMISSION APPARATUS
            INCORPORATING RECEPTION
            APPARATUS: OTHER              $9,921,912          -6%    $10,557,632      NA
897312      ARTICLES OF JEWELLERY OF
            GOLD                          $8,620,487          19%     $7,239,323       NA
661222      BUILDING CEMENT (GREY)        $5,022,297          30%     $3,857,461    $5,064,953
892199      OTHER PRINTED BOOKS,
            BROCHURES, LEAFLETS AND
            SIMILAR PRINTED MATTER        $4,932,125          90%     $2,593,927      NA
764150      TELEPHONIC OR
            TELEGRAPHIC SWITCHING
            APPARATUS                     $4,470,504         151%     $1,780,526      NA
334310      GAS OILS EXPORTED UNDER
            THE PROCESSING
            AGREEMENT                     $3,827,245          20%     $3,177,586      NA
046190      OTHER WHEAT OR MESLIN
            FLOUR                         $3,806,449          71%     $2,224,617    $5,027,774


The top ten imports overall (world) are similar to the top imports from Trinidad &
Tobago. This means that Trinidad and Tobago may be able to supply additional
imports to St. Lucia, subject to supply constraints.




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St. Lucia Market Guide

Potential Export Opportunities


The St. Lucian market is one that is not easily accepting of foreign products,
however, with good marketing groundwork it is possible to gain a foot-hold in the
market.


There is a wealth of opportunities for local companies to export goods to St. Lucia
although imports from Trinidad & Tobago accounts for 10% of total imports. Current
imports consist primarily of oil related products and there are opportunities for
diversification of the exports to the markets


Construction:
The country is currently in ICC World Cup Cricket preparation mode and is
constructing several hotels as well as upgrading existing infrastructure. One quarter
(1/4) of St. Lucian imports of cement based construction material currently comes
from Trinidad. Steel as well as glass building products are in demand and this
demand will be sustained in the next four to five years.


                                   TOTAL IMPORTS -
                               Selected Building Material
                                     Value    Value    Value    Value    Value
     Selected Building Materials     1998     1999     2000     2001     2002
                                    US$ '000 US$ '000 US$ '000 US$ '000 US$ '000
661 - LIME/CEMENT/CONSTR MAT'L         $4,416        $6,252   $4,863   $4,894   $4,062
665 - GLASSWARE                        $2,601        $3,547   $3,075   $2,759   $2,768
662 - CLAY/REFRACTORY MATERIAL         $1,890        $2,285   $1,660   $1,242   $1,515
663 - MINERAL MANUFACTURES
NES                                    $1,016        $1,569    $869    $1,022    $590
664 - GLASS                              $650         $682     $761     $434     $572
666 - POTTERY                            $507         $757     $730     $473     $482


667 - PEARLS/PRECIOUS STONES              $0            $1       $1      $13     $435




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St. Lucia Market Guide

Processed Foods, Beverages and Tobacco:
Imports of these items have been on a steady decline (20%) over the past five (5)
years because the St. Lucian market supports its local manufacturers. A local St.
Lucian condiments manufacturer is undoubtedly the market leader with even this
brand of bottled water (Baron) being dominant in the marketplace. In addition, other
than locally made food products, shelf spaces are shared with American food
products. Trinidad & Tobago items that have been found on supermarket shelves
have made in roads through St. Lucian subsidiaries of Trinidad parent companies for
example S. M. Jaleel’s soft drinks and fruit juices and Bermudez biscuits.


Rubber Tyres:
Rubber tyre imports in 2002 were valued at US$1.98M of this, imports from Trinidad
account for less than 1%. Total imports have remained fairly steady over the past
five years and there is a great opportunity for Trinidad and Tobago’s tyres to obtain a
piece of the pie.


       Product group         1998       1999          2000          2001         2002
                            US$ '000   US$ '000      US$ '000      US$ '000     US$ '000
625 - RUBBER
TYRES/TREADS                  $2,120      $2,371         $2,424        $1,937      $1,977




Clothing and Apparel; Textiles & Upholstery:
This sector has been enjoying an increase of approximately 70% after a decline in
2001. T shirts particularly are a big seller due to their mass appeal for tourists. It is
not uncommon however to find shops that do customized printing of t-shirts.


Textiles are in limited supply and in limited variety and it is a fact that many St.
Lucians travel to Trinidad to purchase this item. There are several opportunities to
export this item to St. Lucia from Trinidad & Tobago as a potentially cheaper source.




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St. Lucia Market Guide

Paper and Printed Products
Printed matter has remained fairly steady at an average of US$5.5M per year. Of
this, Trinidad & Tobago accounts for approximately 6%.          St. Lucia is a major
importer of brochures, pamphlets, postcards, newspaper print, calendars and
photographs.        Opportunities exist for Trinidad & Tobago manufacturers to gain
market share once the quality is equal to or exceeding that of other imports.


Personal Care Products
This group consists of toilet paper, napkins, sanitary napkins and diapers. Trinidad
& Tobago’s products have some presence in the market and imports are valued at
US$0.68M or 28% of total imports of these items.


To gain inroads into this market, specifically in the case of toilet paper and napkins,
the accommodation sector may be the best route. Again, quality is a major factor
and then pricing.


Industrial Chemicals/Household Products
Total import value for these items is US$3.2M. Of this approximately 24% originate
in Trinidad & Tobago. More in-depth research will need to be done to determine
which brands have secured this share of the market.




                                            18
St. Lucia Market Guide

                               INVESTMENT CLIMATE


The National Development Corporation of St. Lucia was established in 1971 to
promote the economic development of St. Lucia. The organization functions as an
investment, trade and export promotion agency, providing a range of business-
oriented services to the public, including attracting foreign investment, sourcing
technical assistance and identifying sites for hotel development.


The Corporation has embarked on a campaign of ‘St. Lucia, Discover the
Possibilities’ to highlight the island’s lucrative investment opportunities. The targeted
sectors are Information Technology, Manufacturing, Agri-business and Tourism.


Business Procedures and Legal Requirements
Business registration must be done through an attorney/lawyer registered and
operating in St. Lucia. The following procedure applies:
    1. Submission of a request for a name search
    2. Declaration of compliance
    3. Preparation of Memorandum of Association
    4. Preparation of Articles of Association, Notice of Directors and Notice of
        Address
    5. Issuing of a certificate of Incorporation


The following is an estimation of legal fees:


Certificate of Incorporation                    $3,000 (minimum)
Filing Fee                                      $25 per additional copy
Stamp Duty for Statutory Declaration            $500
Filing Fees for Business Name                   $125


License
All foreign individuals and companies who intend to conduct business in St. Lucia
and own more than 49% of the company’s shares require a Trade License. The


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St. Lucia Market Guide

Ministry of Commerce, Investment, Tourism and Consumer Affairs issues Trade
Licenses at a fee of EC$1,000. In the case where the license is to be held by a
person or company involved in selling goods where average stock does not exceed
EC$10,000, the fee is EC$500.


Labour Legislation
Working hours are a standard forty (40) hours a week. Overtime is paid time and a
half and double time for Sundays and public holidays.


The minimum employment age is sixteen. If an employee is below this age, the
employer is required to keep a juvenile register.


Dismissal can be without notice within the first 12 weeks, thereafter:
12 weeks – 2 years                 -      1 week’s notice
2 years – 5 years                  -      2 weeks’ notice
5 years – 10 years                 -      4 weeks’ notice
10 years and above                 -      6 weeks’ notice


Minimum Wage is as follows:
Tourism Industry                   -      US$3.60 - $3.70/hr.
Manufacturing Industry             -      US$2.50 - $3.17/hr
Agriculture, Hunting & Forestry    -      US$2.20 - $3.15/hr
Information Technology             -      US$3.25 - $3.85/hr


Business Hours are generally from 8:00 am to 4:00pm on weekdays and 8:00am to
12:00 noon on Saturdays.




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St. Lucia Market Guide




Business Customs
Meetings can be scheduled with confidence at any time of the day and in the
individual’s workspaces. Attire is semi-formal and can range from a polo jersey
(dress down Friday) to a simple shirt and tie. Suits are rarely ever worn due to the
climate.


Business Travelling
The best hotel for large meetings and conventions is the Rex St. Lucian. However,
there exists on the island several four and five star hotels that cater to both leisure
and business tourists. There may be in effect a late check out fee of US$20.00 if the
intention is to leave after 12:00 noon. This fee is rarely waived.


Departure tax is US$16.00 for CARICOM Nationals and US$20.00 otherwise.


St. Lucia has a reliable public transport system, however, it is much better to hire a
dedicated driver to ensure a reliable service. This cost ranges from US$75.00 to
US$100.00 a day.


Utilities
St. Lucia Electricity Services (Lucelec) is the sole utility providing electricity and is
diesel-generated at:
       240 volts single phase
       415 volts three phase
       Frequency of 50 Hertz
       Cost per kilowatt/hour is EC$0.45


Water is made available by WASCO and the supply is constantly being upgraded to
meet the growing demands of the island. In the meantime, water is much touted as
a precious limited resource and it may not be uncommon to face low tap pressure or
even at times no running water. Tanks and pumps are therefore a necessity.




                                             21
St. Lucia Market Guide




Utility Costs - Electricity
Industrial Rates                                EC$0.318 per unit from 1 – 180 units
                                                EC$0.368 per unit from 181         units
                                                upwards
Commercial/Hotel                                Low tension EC$0.468
                                                High tension EC$0.428




Utility Costs – Water
(Monthly water rates per thousand (1000) gallons)
Commercial                                     EC$20.00
Hotel                                          EC$22.00
Ships                                          EC$40.00
Government                                     EC$14.00
Domestic                                       Less than 3000 gallons – EC$7.35




Free Trade Zones, Industrial Estates & Business Parks
The St. Lucia Free Zone is located next to the international airport in the south of the
island, and includes an administrative building and 11 warehouses, with fully
equipped office and showroom space of different sizes. The warehouses range in
size from 4,500 sq ft to 11,200 sq ft and rental rates are US$5.00 to US$6.00 per sq
ft, per annum.


The Hewanorra, Vieux Fort Industrial and Vieux-Fort Free Trade Zones in the
island’s south are managed by the National Development Corporation.                    The
Corporation also manages (4) other industrial estates in the east, northeast, north
and northwest of the island to attract investment in information technology,
manufacturing and light assembly type operations.




                                               22
St. Lucia Market Guide

                         POTENTIAL INVESTMENT OPPORTUNITIES


St. Lucia Special Development Areas Act
This Act is aimed at promoting balanced spatial and economic development of the
island. Incentives are given to businesses in these areas that have the necessary
infrastructure and amenities for business development. The areas are Vieux Fort,
Anse La Raye, Soufriere, Canaries and Dennery. The map below outlines the three
areas.




                                                        2

                                       1




                                                    3




                         Source: LonelyPlanet.com



The following are types of businesses that qualify for concessions:
        Conference Centres
        Residential complexes


                                                23
St. Lucia Market Guide

       Commercial or Industrial buildings including office complexes
       Other facilities directed towards expansion of the tourism sector
       Water based activities
       Tourism projects highlighting the heritage and natural environment of Saint
        Lucia
       Arts and cultural investments
       Agricultural-based activities
       Fisheries based activities


The National Development Corporation is solely responsible for the development of
investment opportunities in St. Lucia.        The company has identified tourism,
agriculture, manufacturing and information technology as the areas targeted for
investment.


Tourism:
Tourism is the single largest contributor to the St. Lucian economy accounting for
12.5% of GDP. Over the past six (6) years, arrivals have increased by 50%. St.
Lucia has one of the highest growth rates in stay-over arrivals (17%) amongst
leisure destinations.


Agriculture/Agri-business:
St. Lucia’s agriculture sector has been undergoing restructuring over the past ten
years with a view to long-term development.         This restructuring is two-fold and
involves the improvement of the traditional banana industry and the diversification of
the sector into tradable crops. The latter approach involves linking the sector with
manufacturing and tourism.


The following areas are earmarked for development:
       Technological upgrading of existing farms
       Commercial farming of non-traditional crops
       International marketing of non-traditional export crops
       Agricultural engineering and related support services

                                             24
St. Lucia Market Guide

       Agricultural Research application and plant propagation




Manufacturing:
The Manufacturing Sector expanded by (5%) five percent during 2002 after two
consecutive years of decline. The contribution of this Sector to Gross Domestic
Product (GDP) increased to 6.3% percent, the largest contribution since 1998. Food
and Beverage production is the largest segment of the manufacturing operations on
the island.
Opportunities for potential investors exist in the following areas:
       Processed Foods
       Pharmaceutical Products
       Processing of industrial and household waste
       Production of household products and light industrial tools & materials
       Production of packing materials
       Electronic Assembly




                                             25
St. Lucia Market Guide

                                     REFERENCES


       Budget Address 2004 – 2005 by The Honourable Dr. Kenny D. Anthony,
        Prime Minister and Minister for Finance, Economic Affairs, International
        Financial Services and Information.
       CIA World Fact Book 2002
       Customs & Excise
       International Trade Center
       LonelyPlanet.com (Map of St. Lucia)
       Ministry of Agriculture, Forestry and Fisheries
       Ministry of Commerce, Investment and Consumer Affairs
       Ministry of Finance, Publications
       RBTT Bank Caribbean Limited
       St. Lucia Bureau of Standards
       St. Lucia Chamber of Commerce, Industry and Agriculture
       St. Lucia National Development Corporation: Brochures and Investment
        Guides
       Star Publishing Company
       Statistics Department, Ministry of Finance, International Financial Services &
        Economic Affairs




                                              26
St. Lucia Market Guide

                                COUNTRY CONTACTS


MINISTRY OF AGRICULTURE FORESTRY AND FISHERIES
Sir Stanislaus James building
Waterfront
Castries
St Lucia, West Indies
Tel: 1758 452 2526
Fax: 1 758 453 6314
Email: dps@slumaffe.org

MINISTRY OF COMMERCE, INVESTMENT AND CONSUMER AFFAIRS
Heraldine Rock Building
Waterfront, Castries
St Lucia
West Indies
Tel: 1758 468 4200
Fax: 1758 453 7347
Email: mitandt@candw.lc

MINISTRY OF EDUCATION, HUMAN RESOURCE, DEVELOPMENT, YOUTH & SPORTS
Francis Compton Building
Waterfront
Castries
Tel: 1758 468 5201
Email: mineduc@candw.lc

MINISTRY OF EXTERNAL AFFAIRS, INTERNATIONAL TRADE AND CIVIL AVIATION
 th
7 Floor
Graham Louisy Building
Waterfront, Castries
St. Lucia, West Indies
Tel 758 468 4519
Fax 758 452 7427
Email foreign@candw.lc

MINISTRY OF FINANCE, ECONOMIC AFFAIRS
AND INFORMATION SERVICES
Prime Minister's Office
Graham Louisy Administrative Building
Waterfront
Castries
Tel: 758 468 2184
Fax: 758 468 2122
Email pmoffice@candw.lc

MINISTRY OF FINANCE, INTERNATIONAL FINANCIAL SERVICES & ECONOMIC AFFIARS
Statistics Department
Chreild Building
Micoud Street
Castries
St Lucia, West Indies
Tel: 1758 453 7670/0494
Fax: 1758 451 8254
Email: edwins@stats.gov.lc or statsdept@candw.lc




                                           27
MINISTRY OF FINANCE, INTERNATIONAL FINANCIAL SERVICES & ECONOMIC AFFAIRS
Customs and Excise
Jeremie Street
Castries
Tel: 1758 468 4800
Fax: 1758 453 2967
Email: customsdept@candw.lc

MINISTRY OF HEALTH HUMAN SERVICES AND FAMILY AFFAIRS
Chaussee Road
Castries
St Lucia
Tel: 1758 452 2859/453 1960
Fax: 1758 452 5655
Email: health@candw.lc

SMALL ENTERPRISE DEVELOPMENT UNIT (SEDU)
Heraldine Rock Building
Waterfront, Castries
St Lucia
West Indies
Director: Mr. Peter Lorde
Tel: 1758 468 4220

ST LUCIA AIR AND SEA PORTS AUTHORITY
Po Box 651,
Castries
St Lucia
Tel: 1758 452 2893
Fax: 1758 452 2062
Email: slaspa@candw.lc

ST LUCIA BUREAU OF STANDARDS
 th
4 Floor, Ives Heraldine Rock Building
John Compton Highway
Castries
St Lucia
Tel: 1758 453 0049/456 0546
Fax: 1758 452 3561
Email: slbs@candw.lc
Website: www.slbs.org.lc

ST LUCIA CAHMBER OF COMMERCE, INDUSTRY AND AGRICULTURE
P.O. Box 482
Vide Boutielle
Castries
Tel: 1758 452 3165
Fax: 1758 453 6907
President: Mrs. Thecla Deterville
Executive Director: Mr. Brian Lousiy
Email: info@stluciachamber.org

ST. LUCIA HOTEL AND TOURISM ASSOCIATION
P O Box 1504
Castries St. Lucia
West Indies
Tel 1758 452 5978/ 758 452 0913
Fax 758 452 7967
President: Anthony Bowen
Email: slhta@candw.lc or windjammer@candw.lc
                                                              St. Lucia Market Guide 2004

ST. LUCIA MANUFACTURERS’ ASSOCIATION
c/o St. Lucia Distillers
P.O. Box 823
Castries St Lucia
West Indies
Tel No 1758 451 4258
Fax No 1758 451 4221
Email: info@stludistillers.com or md@sludistillers.com


ST LUCIA NATIONAL DEVELOPMENT CORPORATION
Block B NIS Building
Waterfront, Castries
Castries
St Lucia
Tel: 1758 452 3614
Fax: 1758 452 1841
Director: Mr. Wayne Vitalis
Chairman: Mr. Michael Chastanet
Email: develcorp@candw.lc


ST. LUCIA SMALL BUSINESS ASSOCIATION
c/o Piton Farms Mineral Water Company
Patience Estate
Mon Repos
St. Lucia West Indies
Tel: 758 455 3477
Fax: 758 455 3115
Email: piton@candw.lc

MIRROR PUBLISHING CO.
PO BOX 1782
Castries
St Lucia
Tel: 1758 452 4628
Fax: 1758 451 6503
Email: mirror@acandw.lc

STAR PUBLISHING
Massade
Gros Islet
Tel: 1758 450 7827
Fax: 1758 450 8694
Email: slustar@candw.lc

VOICE PUBLISHING
Darling Road
Tel: 1758 452 2590
Fax: 1758 453 1453
Email: voice@candw.lc




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