happinessisland - summit communications

INVESTMENTInterview: Prime Minister Nelson Oduber on whyU.S. investors should consider Aruba Page 2

INTEGRITYThe island is fast developing as a reputableinternational financial center Page 3

BEYOND THE BEACHESA wide range of activities to complement theperfect sun and sand location Page 4

PORT OF CALLRecord numbers of cruise ship passengers are paying a visit Page 7

FLYING HIGHState-of-the-art facilities for travelers at Queen Beatrix International Airport Page 8

GOING PRIVATEServices grow as telecommunications firmbegins new era after privatization 0

A S P E C I A L A D V E R T I S I N G S U P P L E M E N T T O T H E N E W Y O R K T I M E S M A G A Z I N E

This supplement has been produced and sponsored by Summit Communications.It did not involve the reporting or editing staff of The New York Times.

ArubaKnown as ‘the island where happiness lives’, Arubais one of the Caribbean’s top vacation destinations.Just 15 miles north of Venezuela, and easily accessiblefrom the United States, Aruba’s tropical climate,perfect sandy beaches and warm turquoise sea arereason enough to go there. And there’s so muchmore to enjoy and explore—which is why so manyof its visitors return again and again to this uniqueand fascinating holiday hotspot.

HAPPINESS ISLAND

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INTERVIEW NELSON ODUBERAruba’s Premier talks about investment, safety and tourism

Nelson Oduber took over as Prime Ministerfollowing a landslide victory for his People'sElectoral Movement Party (MEP) at the pollsin September last year. The MEP won 12 outof 21 Parliamentary seats making it the firstsingle political party to take control of theisland since the early 1980s.

What kind of foreign investment is Aruba looking for? We are working to improve the service andquality that we offer—this is the directionwe are going in now. We are looking forinvestors for premium hotels in the privatesector. We want to invest more in ourcommunications, airport and service industry.We recently took a $100 million investmentcommitment. Announcing investment likethat is great, it inspires confidence. Lastweek I had investors interestedin Aruba from Hong Kong. Thisis impressive. They see thepotential in Aruba. They want tocome with a different conceptof tourism.

Why should U.S. investorscome to Aruba as opposed toany other Caribbean island? We have a lot of Americaninvestors already on the island.We are associated with theEuropean Union through beingpart of the Dutch Kingdom. That relationshipis important. We can introduce ourselveseasily in the European market. Our goodrelations with the U.S. and the EU give usthe capacity to act as a bridge of markets.We speak their languages—the wholeadministration of the private sector isconducted in English. We have goodinfrastructure, water, electricity, airport andtelecommunications, and our education isvery high level. We will also continue tooffer incentives to investors.

Is Aruba a safe destination for foreigninvestment?It is important for a country to have politicalstability if it is to attract investors. Aruba isvery safe and stable. We are the only partyin the history of Aruba that ever won amajority without a coalition. Investmentsare secure here. We have supervision of ourfinancial sector and we can use the Dutchsupreme court. Our relationship with theDutch is crucial. They guarantee our financialsystem and human rights. Both internationaland local investors are well treated here. Youcan bring your money in and take it out ofthe country without any problems. Integrityis a key factor. We have been working onthis with the Organization for EconomicCooperation and Development (OECD).Integrity is what the world is looking for and

this is what we offer.

How important is tourism andwhat is being done to developthe sector? Tourism is the most important pillarof Aruba’s economy. We have towork with the private sector, topromote and market Aruba. Wehave to differentiate ourselvesfrom the other Caribbean islands.We have to work on our identity,culture and heritage. Arikok park,archaeological sites, marine

biodiversity, art and culture are all important.We need to show our tourists things otherthan the sea, sun and beaches of Aruba.We will have a new golf course and we arelooking for new investment to createsomething like Fisherman’s Wharf in SanFrancisco to enhance the area and attractother businesses to the island. We want tostress safety. We are a good product as atourist destination because of our relationswith the United States, the Latin Americanand Caribbean region and the Dutch Kingdom.All these create a perfect combination on asmall island with happy people. Investors andtourists need to know this.

How important is quality?We are focusing primarily on higher qualityinvestments and diversification. Hotel roomswill increase in terms of quality rather thanquantity. We want to attract and satisfypeople who will pay $400 a night for a room,not $50. We are working to attract incomeearners of more than $75,000. Service mustbe assured if such high-standing guests areto come here and become repeated visitorsto the island. Developing conference tourismis also part of our plan.

● STATUS part of the Kingdom of theNetherlands, but with full autonomy in itsinternal affairs since it left the NetherlandsAntilles group in 1986. Queen Beatrix ofthe Netherlands is the Head of State

● POPULATION more than 90,000 ofwhom over 20,000 live in the capital,Oranjestad. Religion: 82 percent areRoman Catholic

● GEOGRAPHY Aruba is the smallest andmost westerly of the Leeward group ofthe Dutch Caribbean islands. Its terrain ismostly flat. The highest point is MountJamanota

● ECONOMY Years of constant growthhave made Aruba the second wealthiestcountry in the Caribbean after the CaymanIslands. The economy is expected to growby one percent this year, with threepercent growth expected next year.

● POLICY The government’s objective issustainable economic developmentthrough diversification of the economy.Activities it seeks to boost include smalland medium-sized businesses, logisticsand transportation, and the knowledgeeconomy sector.

ARUBA IN BRIEF

Asmall island of approximately 69square miles, located in the south-west corner of the Caribbean, with

a population of more than 90,000 inhabitants and a per capita income of approximately US$22,000, Aruba is vigorously strengthening its reputation asa financial center in the region.

Being an autonomous part of the Kingdom of the Netherlands, Aruba is

associated with the European Union andhas the beneficial status of an OverseasCountry and Territory. Having links withthe European Community, and being located between North and South Amer-ica, it is expected that its financial services industry will soon rank as a major pillar of the national economy, alongside tourism, oil refining and inter-national trade. With the arrival of more thanone million visitors on an annual basis, Aruba is considered to be a leader and atop tourism destination in the region.

The Aruban administration is firmly pro-free enterprise. Private,rather than public investment,has been the main engine ofgrowth, while promotion of for-eign investment is an integralpart of government’s econom-ic policy. As additional assets,entrepreneurs enjoy the guar-antees of political, financial andjuridical stability, as Aruba hasa democratic parliamentary sys-tem, while the Highest Court of Appeal is located in the Netherlands.

The current administration hasa social democratic signatureand has been exactly one yearin office. Its mandate is tostrengthen the economy afterthe events of September 11,2001 and to promote sustain-able growth by means of diver-sifying Aruba’s tourism-relatedeconomy. The fiscal deficit for 2003 is projected to be lessthan three percent of GDP andthe public debt ratio is approxi-mately 35 percent of GDP.

The success of the financial sector—asAruba is projected to become an increas-ingly popular choice for trusts and invest-ment funds—will highlight the island’s progress in moving away from adependency mainly on tourism. It has already become home to some 4,000 active offshore companies and 600 low tax entities.

The Aruban administration and the monetary authorities are working closelywith global financial regulatory agencies,passing new anti-money laundering legis-lation, to improve investment conditionsand to enhance the island’s reputation. Asa result, last year, Aruba was ready to signan agreement with the OECD, with the

purpose of complying with internationalregulations on harmful tax competition. Ithas also received praise from the IMF for“very substantial progress” in addressingregulatory shortcomings.

The Minister of Finance and EconomicAffairs, Nilo Swaen, says there is a firm commitment towards transparency, whichwill enable Aruba to build a platform forlong-term growth. “We want to promoteAruba as a place of financial integrity anda place where supervision is in accordancewith international rules. We only aim attrustworthy entrepreneurs to invest here,”

he says.Mr. Swaen adds that the gov-

ernment is aggressively work-ing on a new fiscal regime, withthe objective of stimulating in-vestment in Aruba, especially inthe financial sector. “Togetherwith a solid regulatory environ-ment, it will secure the long-term prosperity of the industryand eventually the island econ-omy.” Captive insurance, wherea subsidiary of a company isformed to insure and/or to re-insure the risks of its parent,has a high priority. At the moment, there are at least twocaptives awaiting the introduc-tion of the new legislation perJanuary 1, 2003.

U.S. investors will play a keyrole, Mr. Swaen predicts. “Clos-er links with Latin America arealso part of Aruba’s strategy toattract investors. We are settingthe framework for good busi-ness and a profitable future forthe country in the years to

come,” he says.“An important aspect of the new fiscal

regime is the attempt to differentiate Aruba from its competitors, as the islandfaces stiff competition from neighboring is-lands promoting financial services as well.”

According to Peter Palmen, High Commissioner of the Financial Center,tourism and financial services can blendcomfortably together. “Although the con-ception is not there yet,” he says, “this willgrow automatically.”

Besides financial services and interna-tional trade, there are strong ambitions todevelop Aruba as a center for multimedia,recording business and film production,plus aircraft leasing and shipping. The main

NELSON ODUBER Prime Minister of Aruba

NILO SWAEN Minister of Finance& Economic Affairs

RAMON LEE Minister of Labor,Culture & Sport

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purpose of developing these new areas is to diversify the economy and to enhance the localeducational level. The only university that the island counts is therefore dynamically expandingits curriculum to respond to the new socio-economic needs. The knowledge economy isvery high graded by the administration.

Essential services, such as telecommunica-tions and the postal service—due to be privatizedin the coming year—will be upgraded to complywith the latest state of the art technology.

Minister Swaen stresses, that in spite of thestrategy of this administration to broaden theeconomic base of the island, tourism will continueto be the main economic activity in the near future. Nevertheless is he very much aware ofthe fact that a stable environment for investmentwill open the doors to new opportunities.

He pledges that he will attain his objectives ofgreater job security and a better future for all Arubans, within the four-year-term of the administration.

BROADENING THE ECONOMIC BASEThe financial services industry will soon rank as a major pillar of Aruba’s economy, alongside tourism, oil refining and international trade


Aruba/4 SPECIAL ADVERTISING SECTION

DREAM DESTINATIONSafe and welcoming, Aruba is an ideal vacation location

Visitors to Aruba are invariably struck bythe warm and friendly atmosphere.Arubans are hospitable people who greet

strangers with the words “Bon bini”, meaning“welcome” in Papiamento, the native language.

Thanks to their Dutch heritage and geo-graphical position—”Where the AmericasMeet”—most Arubans speak three other lan-guages: Dutch, English and Spanish, which fa-cilitates communication with visitors.

The weather—constant all-year round ataround 82 degrees Fahrenheit —is pleasant-ly moderated by trade winds from the AtlanticOcean. And, unlike some Caribbean locations,Aruba is safely outside the hurricane belt.

Getting to the island is no problem, which isone reason why Aruba’s largest market fortourists is the United States. Six U.S. airlinesfly there, with direct, non-stop flights from New York—not to mention Boston, Atlanta,Miami, Chicago and Philadelphia. Getting backis easy too. Aruba’s Queen Beatrix Interna-tional Airport is one of only five to offer U.S.

customs clear-ance. So, on

return, American visitors can pass throughcustoms and immigration before board-ing and traveling home on a ‘domestic’flight—much easier than standing in along line on landing back home.

Once on Aruba, there is no danger ofbeing bored. For those seeking sun andsand, it would be hard to imagine a moreperfect location. Palm Beach, where mostof the luxury resorts are to be found, extends for seven palm-fringed miles. Indeed, one of Aruba’s beaches—EagleBeach, with its famed sugar white sandand marine turtles—has been called “thebest beach in the world.”

But there is much to see beyond thebeaches. To the north, there is a fascinatingand beautiful desert landscape, filled with cactus plants and the island’s ubiquitous divi-divi trees. Further down on the east-ern side of the island, there’s Arikok Na-tional Park and amazing landmarks like theNatural Bridge and the Natural Pool, carvedout of the coral by the pounding surf onthe east coast.

A huge variety of activities are on offer. On land, there’s everything fromgolf, horseback riding and hiking alongnature trails to sightseeing and shoppingin Oranjestad, Aruba’s pretty Dutch capital city. The island is ideal for all kinds of water sports, ranging from wind-surfing, snorkeling and scuba diving, tokayaking, water-skiing, sailing and deep-water fishing.

In the evening, there are plenty of restau-rants to choose from and some of the bestnightlife and casinos in the Caribbean.The colorful annual carnival—held in February—is so popular, it may be stagedtwice a year in future!

Since the passing of a new law at the

5 / ArubaSPECIAL ADVERTISING SECTION

The best advertising Aruba has is wordof mouth, and the high standard of ser-vice provided at the island’s luxury re-sorts makes a major contribution to itsreputation for quality.

It is a standard that the private sec-tor’s Aruba Hotel and Tourism Associa-tion (AHATA) is determined to maintainand even improve on.

“This is one of the most unique opportunities for a vacation experiencethat you will ever find in the Caribbean,”says Horace Hord, the association’sCEO and Chairman. “Those who comehere go and tell their friends.”

AHATA has put quality control inplace by funding spot checks on mem-ber hotels carried out by independent assessors. “We also have in place programs that are very specific to food preparation and storage,” says Mr. Hord.

“The hotels should invest and continueto improve. There are still opportunities

for improvement, even though there areno hotels on Aruba where you wouldn’twish to stay.”

David Shahriari, General Manager ofthe Aruba Marriott Resort and StellarisCasino, agrees. “Even though we are at82 percent occupancy rates all yearround, you can always do better.” hesays. His dream is to see the hotel 100percent occupied for an entire month.

“However, growth is not just a mat-ter of high occupancy rates,” he adds.“You can improve the business by pro-viding better services and amenities forthe guests.

“One of the things that attracts cus-tomers to Marriott hotels worldwide is the consistency of the quality and service we provide. On top of that youcan always see new and excitingchanges taking place. We are alwaysupdating ourselves.”

The Marriott accommodates the highest percentage of visitors and is

the island’s biggest employer. It is currently constructing its second time-share unit—where sales prior tocompletion have exceeded all expectations.

Mr. Shahriari has stepped up stafftraining and undertaken a number ofprojects to enhance the resort. He seesit as his job to position the business forlong-term growth. “What I do today willaffect the hotel five years from now,”he says. “That is why we are constantlyimproving.”

He believes that competition be-tween the island’s resorts is beneficial.“I firmly believe that while healthy competition exists, everyone will besuccessful,” he says.

Occidental Grand Aruba is part of theOccidental-Allegro Hotels & Resortsgroup, the world’s largest all-inclusiveresort company and the largest hotelchain in the Caribbean.

A great place tosoak up the sun,

but there areplenty of activities

on offer too

beginning of the year, visitors can even getmarried in Aruba—a move that has broughtan influx of additional tourism to the islandwith hundreds of couples book-ing beachside weddings.

Best of all, however, Aruba isa safe vacation destination—safe to travel to and from, andsafe to enjoy when you get there. “People come here to feel freeand de-stress,” says EdisonBriesen, Minister of Tourism andTransportation. “Our airport isstate-of-the-art, up to interna-tional standards and beyond,and we focus very strongly on the safety aspect for our passengers.

“You can wander around the island andmingle with everyone without looking overyour shoulder. People can feel they are in theirsecond home.”

Add a completely individual culture—a

mix of Caribbean, American and European—and value for money, and Aruba can prideitself on offering its visitors something quite

unique. “We are proud of wel-coming our visitors and givinggood service,” says MyrnaJanssen-Feliciano, Acting Gen-eral Manager of the ArubaTourism Authority.

“A lot of people who come herewant to come back. We are oneof the safest islands in theCaribbean and our culture isunique. With our Dutch heritageand American influences, we arealtogether different from otherislands.”

Tourism accounts for 70 per-cent of Aruba’s gross domestic product and—either directly or indirectly—employs 80 percent of the labor force. The government isfocusing on sustainable development of the in-dustry in cooperation with the private sector.

MYRNA JANSSEN-FELICIANO Acting GM of ArubaTourism Authority

“We have to maintain our uniqueness inthe region because tourism will carry Aruba into the future,” adds Mr. Briesen.”We have a lot of international hotel chainsand we are aiming to attract a lot more lux-ury facilities to the island.”

QUALITY IS THE KEY

EDISON BRIESEN Minister of Tourism& Transportation

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Aeropuerto Internacional Reina BeatrixAruba - Dutch Caribbean

Tel: 297 - 824800 Fax: 297 834229

Every now and then you deserve the best that life has to offer, and we know you’ll find it here in Aruba. And once you’ve tried the

best, we know you will return.

Cruise Tourism Authority of ArubaRoyal Plaza Mall - Suite 227, L.G. Smith Blvd 94

P.O. Box 5254 - Oranjestad - Aruba Dutch Caribbean Tel: 297 - 833648 Fax: 297 - 835088 email: [email protected] website: http://www.arubabycruise.com

Havenstraat 26, Oranjestad Aruba - Dutch Caribbean

Info Details:Tel: 011-297-880545 Fax: 011-297- 880543E-mail: [email protected]

Imagine a vacation that delights you with

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where every breath becomes breathtaking,

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with your eyes wide open. At the

Aruba Marriott Resort & Stellaris Casino

guests are welcomed to an unspoiled vacation destination

that blends a refreshing combination of

Aruba’s finest offerings. Here you’ll discover

spacious and gracious rooms, each with

private balconies overlooking the turquoise sea,

a wide variety of exotic Caribbean cuisine,

distinctive duty-free shopping,

and a host of tropical activities that are

as invigorating and unique as

you’d always dreamed they would be.

For reservations or information, please call

your travel professional, or (800) 223-6388.

Or, visit us at www.marriott.com/auaar

t h ink ing of you

©2002 Marriott International, Inc.

We know you ’re a co lo r fu l person ,

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7 / ArubaSPECIAL ADVERTISING SECTIONAruba/6 SPECIAL ADVERTISING SECTION

Formerly known as Allegro ResortAruba, the hotel is to undergo im-provements next year. “This is a starhotel for our company in terms of in-come,” says Abdel Zouari, the

group’s Vice President of Operations(Islands Division). “We have a plan for10-12 million dollars of renovations.”

An all-inclusive resort, located onthe exclusive Palm Beach, OccidentalGrand Aruba offers a variety of all-inclusive activities for its guests, including daily activities by the pooland on the beach, water sports andnightly entertainment.

“We don’t just provide a room, weoffer a unique experience,” says Mr.Zouari. “We are on the best part of thebeach. At night, we have the casino,shows and a disco. People get verygood value for their money—that’swhy they come back to us.

“In the winter we have repeat visitors—40-50 percent and more. Then at Christmas, in February and atEaster we have families. From May-June until October, we have honey-

mooners. With an all-inclusive service,it’s easier to do things very well.”

In addition to high-quality service,Aruba’s hotels and restaurants arerenowned for the quality of their cuisine.Mr. Hord at the AHATA says, “The num-ber one motivating factor that bringspeople to Aruba is its safety, the secondis the beaches and the third is the food.”

Easy access is another major attraction. “There is an extraordinarynetwork of flights from the U.S., whichis very unique for a country as small asAruba,” says Mr. Hord. “Each of themajor carriers that fly here has in-creased their service or is consideringincreasing it.”

With so much top-class accommo-dation, it is not surprising that the is-land is also marketing itself as an ideal location for corporate meetings or conventions. Staff at the Aruba Convention Bureau (ABC) provide information and promotional resourcesand work closely with professional organizations, government depart-ments and the local hospitality andbusiness community.

Other important cruise compa-nies whose mega-cruisers visit theisland include Cunard, Royal CruiseLine and Princess Cruises. Evenduring the off-season—from Mayto September—this year Aruba hasbeen welcoming up to nine largecruise liners every month.

Kathleen Rojer, Marketing and PR Director of the Cruise TourismAuthority, explains why Aruba isproving such a popular destinationfor cruise ships. “Quality serviceand the safety factor play a key rolein this increase. Cruise passengerscome here for a day visit and theexperience they get is marvellous,”she says.

Arrivals are greeted with courtesyand the Aruban smile. Along thewharf, merchants sell fresh fish andproduce right off the boats every

morning. The proximity of the port to thetown center is an important selling point.

“It’s a great advantage that the terminalis literally a few steps away from the cen-ter,” she adds. In the city itself, there arethe tall multicolored houses of Wilheminas-traat, which combine carved wooden doorsand traditional Dutch tiles, with slopingAruban-style roofs.There is shopping,there are museums,and an array of otherattractions.

The shortstopovers can evenbe enough to enticesome visitors backfor longer stays, abenefit to the localhotels sector, accord-ing to Ms. Rojer.“They can comeback and spend moretime on the island,”she says. “Happy cruise passengers meanmore business for Aruba because they keep the ships coming.We have done surveys and many people saythey took the cruise because Aruba was onthe itinerary.”

Since the September 11 attacks, Aruba’s reputation as a safe location hasmade it a popular choice among cruise liner executives and American tourists.Three-quarters of Aruba’s cruise ship visi-tors originate from the United States.

Aruba’s hotels andrestaurants are famedfor their fresh anddelicious food

continued from page 5Oranjestad, the pretty and historic capital, is an ideal placefor cruise passengers to shop. Day visitors enjoy quality service,according to the Cruise TourismAuthority

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NEW RECORDFOR CRUISEVISITORSAruba is a regular port of call for giant ships, bringing increasingnumbers of passengers to the island

The growth of cruise tourism has beena remarkable success story in Aruba,where passenger numbers have vir-

tually doubled in recent years. This year,the island is on course to break all previ-ous records by receiving around 570,000passengers, the first time the number hasexceeded half a million and up from487,000 last year. The number of cruiseships to dock in Oranjestad, will this yearreach 343, again the highest ever figure.

There are several reasons for this extraordinary growth. The fact that cruiseships have gotten bigger and are carryingmore and more passengers is a key factor.Royal Caribbean International’s ‘Adventureof the Seas’, for example, one of thelargest cruise ships in the world, carriessome 3,800 passengers and has becomea familiar sight in Aruba port, dockingthere every two weeks.

KATHLEEN ROJER Marketing & PRDirector of theCruise TourismAuthority

Aruba Ports Authority LG Smith Blvd 23 OranjestadTel: 297 826633 Fax: 297 832896

email: [email protected]

ARUBA FINANCIAL CENTERThe Aruba Financial Center is the regulatory authority of the non-bank

financial sector. The center is a government office that incorporates limited liability companies and issues permits for these companies,

including companies that act as a legal representative and or director of companies with foreign ownership.

For more information please contact: Peter E. Palmen, High CommissionerAruba Financial Center Schotlandstraat 49 - Oranjestad

E-mail: [email protected], Tel: (297) 834611, Fax: (297) 834 665

Servicio di Telecomunicacion di Aruba Administration BuildingSeroe Blanco Z/N Oranjestad - Aruba P.O. Box 13Tel: 297 833666 / 297 251400 Fax: 297 833593

Web: www.setar.aw

SETAR’s focus on reliability, efficiency and a complete range of delivery systems providehighly qualified services to meet your corporate needs. SETAR’s instant accessworldwide combined with Aruba’s long tradition of a multilingual work force andmulticultural understanding are unique and significant for the Caribbean.

PSTN services:ISDN

Caller IDVoice Mail

Call Completion to Busy SubscriberPBX-Systems:

Cost Call AccountingVoice Mail

Conference CallDID Direct Inward Dialing

ADSL servicesCellular services:

Postpaid: GSM, TDMAPrepaid: GSM, TDMA

International Roaming onGSM and TDMA

SMSInternet

Data CommunicationsTrunkingPaging

Aruba’s economy Utilities Aruba N.V.Arulex Center

Punta Bravo Z/N - ArubaTel: 297 - 826912 - 297 824742

Fax: 297 825502

Web Aruba N.V.Balashi 76 - P.O. Box 575

Oranjestad - ArubaTel: 297- 854600Fax: 297 - 857681

El Mar N.V. - Wilhelminastraat 110Oranjestad - ArubaTel: 297 - 823700Fax: 297 - 828991

E-mail:[email protected]


SPECIAL ADVERTISING SECTIONAruba/8 SPECIAL ADVERTISING SECTION

UPGRADED PORT CREATES THE RIGHT IMPRESSIONReady to receive the increasing numbers of visitors and help them to enjoy the island

The first sight to greet passengers vis-iting Aruba on the huge cruise shipsis the island’s main port of

Oranjestad, which has been improved considerably over the last decade. Beauti-fication and renovation work has been un-dertaken by the Aruba Ports Authority (APA)to make visits to the port as comfortable aspossible and create a positive impression.

The private sector has been working inconjunction with the authority and the Aru-ba Tourism Authority to cater for the rapid-ly rising numbers of visitors, and local com-panies compete with each other for thetourist dollar.

“When you are receiving 2,000-3,000people you’ve got to offer an organized society and services,” says the APA’s General Manager, Milton Henriquez. “Whenpeople get off the ship, the first thing theywant to do is see what the island is about.Some want to go scuba-diving or take jeeptours. More restaurants have opened up.There were not enough taxis, so De PalmTours bought new buses. ”

Mr. Henriquez took the helm at a time

when the port needed upgrading, but therewas precious little money available to car-ry it out. The APA, which is under stateownership but operates alongprivate sector lines, took a slowbut sure approach and has suc-ceeded in transforming both it-self and the port, improving ef-ficiency and raising its finan-cial profile.

Safety is also one of Aruba’smost prized features and Mr.Henriquez makes the point thatOranjestad is regarded as oneof the safest ports of call in thewhole of the Caribbean. “Aru-ba and the Bahamas are the only two locations where cruiseships will stay after 10pm,” he says. “Theystay on until 1am because of the nightlife.”

Despite the improvements, Mr. Hen-riquez says that the port remains a func-tional facility. “Tourists don’t come to seeterminals, they come to see the island,”he says. “Our policy is not to keep the visitor in the port, we want them to see

Aruba. Of course, we arrange all the services for tourists to enjoy the island.

“We have the advantage that we are soclose to the town of Oranjestadthat we are completely inte-grated with it. Visitors get offthe boat, walk through the cleanterminal and are in front of themain shopping area. We areminimalist and it works.”

The APA is also looking to develop the island’s cargo business—the port handlesroughly 17,700 containers ayear—and there are plans toshift cargo operations to a newfacility in the next few years. Aswell as the cruise liner and con-

tainer port in Oranjestad, there is also Bar-cadera industrial port plus the oil port of SanNicolas, both on the east side of the island.

But Mr. Henriquez insists that tourismwill continue to be the main force drivingthe development of Aruba’s maritime infrastructure. “Aruba has and will contin-ue to develop through tourism,” he says.

Apart from those on the cruise liners,most visitors to Aruba arrive through theimpressively re-designed Queen BeatrixInternational Airport, the main gateway tothe island, which was completed in 2000.

First-time visitors are often pleasantlysurprised to find a huge, state-of-the-artinternational airport, rather than a moretypical Caribbean-style facility. The newlook is set to raise the profile of Aruba asa hub serving the whole of the region.

Capable of handling the world’s largestaircraft, including Boeing 747s, the air-port has a capacity of 2.6 million passen-gers a year. It is well connected to locations throughout the United States,Latin America, Europe and the rest of theCaribbean region.

In addition to the electronic display sys-tems, retail stores and restaurants, youwould expect to find at a modern interna-tional airport, its dedicated U.S.-bound pas-senger terminal with full customs and im-migration pre-clearance facilities is a wel-come convenience for American travelers.

Much of the credit for the completion of the airport rests with Simon Arends,Managing Director of the Aruba Airport

Authority (AAA), which manages thecomplex. A former banker, Mr. Arendswas brought in at a time when the moneyfor the airport upgrade was running short.

“They were in phase two of expandingthe airport with the bond issue of 1997,but the money was finished and the workwas only 60-70 percent completed,” hesays. “Even though the construction was

finalized, the airport was not operational.” Within a few months of his taking

charge, the authority raised a further $33 million in additional funding, enoughto rescue the initiative. Since then, Mr.Arends has overseen a major overhaul ofboth the airport and the AAA itself, withextensive restructuring, managementchanges, and improvements to opera-

tions, security and other essential areas.“I only came here for the finance part

but, once I was here, circumstances alsoput me into the operational part,” hesays. Under his management, there hasbeen significant progress on securitymatters. In a recent visit, FBI aviation authorities found no areas of concern.“We have made a lot of changes and wecan still make a lot of improvements but it will take a couple more years,” Mr.Arends adds.

The AAA is now looking at ways inwhich it can take its expertise elsewhere,encouraging collaboration between neighboring island states. It is examiningways to promote cargo traffic, in conjunction with the free zone, and developaircraft maintenance operations, as well assimply attracting more passenger traffic.Exploiting the stopover market—from LatinAmerica to the United States—is one pos-sibility that is being explored.

NEW LOOK PUTS AIRPORT IN TOP FLIGHT

MILTONHENRIQUEZMD of Aruba PortsAuthority

State-of-the-art facilities atQueen Beatrix Internationalhave lifted the island’s profile

Some of the most impressive utility ser-vices in the region are to be found inAruba, an essential requirement for

attracting foreign investment. There are nopower blackouts, and everyone has accessto good, clean water. In fact, Aruban drink-ing water has been dubbed ‘the champagneof the Caribbean’, and is even bottled andshipped to nearby Curaçao.

Utilities Aruba NV is the state-ownedentity that oversees water and electricityservices on the island through two oper-ating subsidiaries. Water en Energiebedri-jf Aruba (WEB) is the generating and pro-duction arm, while Electriciteit-Maatschap-pij Aruba (Elmar) is the distribution arm.

Julio Curiel, Utilities Aruba’s ManagingDirector, says that the island is now pro-ducing 50 percent more water and elec-tricity than a decade ago, with the samenumber of employees, while simultane-ously keeping prices stable. Total powergenerating capacity stands at around 149 megawatts from steam turbines, anda further 20 megawatts from standby dieselturbines.

“We have invested about $230 millionin the past 10 years and have only increasedthe price of water by six percent in 1999,”he says. Half of the investment comes frominternally-generated sources, the rest fromexternal financing structures.

There is continual expansion and inno-vation, such as a recently launched auto-mated billing system. A new power gen-erator is due to come onstream in 2004.

Mr. Curiel thinks that one of the guid-ing principles in the transformation of theutilities sector is keeping politics out of thebusiness side, despite state ownership.“We pay on time, we manage effectivelyand our people are the best,” he says. Disciplined financial management has also allowed the organization to tap into more affordable private financing fromoverseas.

Joss Lacle, Managing Director of WEB,says that his organization has been labeledan example of how companies should berun. “We are not in the business to makemoney,” he says. “We must provide ex-cellent water and electricity to our people,as mandated by the government.”

There is a desire to stay ahead. Aruba—which has a 70-year history in water de-salination—is currently looking into alter-native energy sources like wind and solarpower. Mr. Lacle says that WEB plays animportant role in supplying businesses withthe best water and a reliable source ofpower. It is also a plus for the tourism sec-tor. “The backbone of tourism in Aruba isthe people, but the infrastructure has to begood,” he adds.

‘CHAMPAGNE’ FROM A TAPOranjestad is a regular port of call for giantcruise ships. Aruba Ports Authority is also

looking to develop the island’s cargo business

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9 / Aruba


Aruba/10 SPECIAL ADVERTISING SECTION

Established by the government in1986, when Aruba acquired itsindependent status within the

Dutch Kingdom, the telecommunica-tions company, Setar (Servicio di Telecomunicacion di Aruba), is begin-

ning a new era as a private company.Its Director, Ludwig Jansen, is fully

aware of the need for a fresh approach fol-lowing privatization, and is looking forwardto the challenge with excitement and con-fidence. “You need a different mentality towork as a private company, and we are

NEW ERA FOR TELECOMS FIRM SETAR

Currently under construction in theheart of Oranjestad is the Aqua Marina Bay project, the latest ad-

dition to the proliferating commercial de-velopment in the island’s colorful capital.

The $17 million investment, beingbuilt in two phases is the biggest development on the Oranjestad ocean-front in years and is seen as markingthe beginning of the condominium eraon the island. The project, which is be-ing carried out by the Mar Azul Develop-ment Company, will include 64 luxury condominiums, high-class shops,restaurants and office space, aswimming pool and a marina.More than 75 percent of theground floor retail space, has already been booked for rent.

The first stone was ceremoniously laid in July by the Prime Minis-ter of Aruba, Mr. NelsonOduber, the investorand Director of MarAzul, Paul Bhatia, andco-investor GordanTewani.

Mr. Bhatia, who originallyenvisioned the project, says, “Isaw the opportunity and Ijumped at it. It is plannedas an exciting place tolive. You cannot gowrong in Oranjestadwhere you will be onlyfeet away from the night life, a marina, thecruise terminal, theocean front and theshopping area, but at

the same time we guarantee exclusivity.”The project is being built with luxury in

mind. It will feature tropical architecturethat harmonizes with other buildings in thearea and adds beauty to the area.“Wewant to surpass all expectations of whatcan be done,” Mr. Bhatia adds.

“We would love New Yorkers to comeand own a condominium in this project.However we are not only looking at

potential home owners. We have re-ceived many calls from people who seeit as a solid investment opportunity.”

As a resident of Aruba for more than 10 years, his confidence in the develop-ment is founded in his love for the island. “I believe that 99.5 percent ofthe people who come to Aruba for the first time fall in love with it,” he says.“It is so diverse and has so many different attributes. The quality of lifehere is perfect.”

ready for it,” he says. “We intend to re-structure the company and be more proac-tive in promotion and advertising, as well asexpanding services.”

Although Setar no longer holds a mo-nopoly, such is its dominance of theisland’s telecommunications sector, he be-lieves that any rival company would be“wasting their time and money” trying tocompete. He has focused on making Setara competitive enterprise ever since he wasappointed to his present position in 1996.

“We listened to the needs of our cus-

Premier Nelson Oduber (center) lays the first stone, with development company director Paul Bhatia

tomers and dropped our prices,” he says.“We undertook five or six tariff reductions,making Setar’s prices among the cheapestin the area, whereas we used to be the mostexpensive.”

The results were highly positive—overthe next three to four years Setar’s profitsquadrupled. The company provides a vari-ety of advanced telecommunications ser-vices. “At the moment we are one of themost modern companies in the Caribbean,delivering every kind of service,” says Mr.Jansen. “Whatever you can imagine exist-ing in the communications world, existshere in Aruba.”

Setar has an advanced network of 5ESSdigital exchanges interconnected by meansof fiber optic and digital microwave networks.The penetration rate of services on Aruba is40 percent on regular phones and 60 percent on cellular, one of the highest in theregion. International direct and operator-assisted calls are possible with all countriesin the world, while internet service has beenavailable since 1995, under the name Setar-net, and has a growing number of subscribers.

The company aims to be the first in theregion offering GPRS (General Packet RadioService), which enables networks to offer‘always-on’, higher capacity, internet-basedcontent and packet-based data services.The launch is planned for next year.

“We will be the first in South America, Cen-tral America, the Caribbean and most of the United States to have GPRS,” saysMr. Jansen. “We always try to be ahead ofthe game as a company and we are proudof that.”

The company is interested in joint ventureswith content providers to ensure the com-plete range of services that are available toEuropean GPRS users. “There is a huge mar-ket to explore, for us and for them,” he says.

Setar has also been working with the is-land’s hotels to introduce wireless internetand high speed ADSL. Mr. Jansen has alsobeen negotiating roaming agreements withleading providers to enable visitors to Aruba from Europe and the United States touse their cell phones.

For further information please contact:Summit Communications

1040 First Avenue, Suite 395New York, NY 10022-2902.

Tel (212) 286-0034. Fax (212) 286-8376.E-mail: [email protected] online version is available at:www.summitreports.com/aruba

LUXURY CONDOMINIUM PROJECT LAUNCHED

Already highly competitive, Setar has ambitious plans for its future as a private company

This supplement has been produced and sponsored by Summit Communications.It did not involve the reporting or editing staff of The New York Times.


There’s a friendly island in the Dutch Caribbean where the people are as pleasant as the weather.You’ll find the only solace you can take in leaving Aruba is knowing that you’ll be back soon.

aruba.com 1•800•TO•ARUBAContact your travel agent.

Where happiness lives.™


Aruba may be best known for the quality of its beaches, but this earthly paradise also harbors a well-developed financial sector,

and an economy which has experienced strong growth over the last decade. Now, building on its successes, the government

of Aruba is further strengthening its financial services industries by introducing new tax legislation that offers

after benefits for both domestic and foreign investors.

Just as Aruba´s geographical location, combined with strong links to both the US and the European

Union has been a factor in building a tourism industry, so these assets will guarantee a serious, transparent,

well-regulated, but flexible financial services sector.

Aruba has implemented a wide range of laws since the mid-1990s which have created an investment-friendly environment, while

establishing a transparent, internationally approved framework and which is subject to strict supervision. Talk to us about the

opportunities for inward investment, and about establishing a business on the island. Aruba has a lot more to offer

than cool, blue water, as you can see.

Ministry of Finance and Economic AffairsL.G. Smith Boulevard 76 - Oranjestad - Aruba

Tel: 297 880269 - Fax: 297 880347E-mail: [email protected]

Department of Economic Affairs, Trade and IndustrySun Plaza Mall - L.G. Smith Boulevard 160 - OranjestadAruba Tel: 297 821181 - Fax: 297 834494E-mail: [email protected]

Department of FinanceWayaca 31 - C - Oranjestad - ArubaTel: 297 823100 - Fax: 297 824580

E-mail: [email protected]


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