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While Tobago concentrates mainly on tourism, Trinidad is rolling out the welcome mat for business travellers and investors, with expanding conference facilities, high-speed Internet access, and hotels with all the amenities for a busy executive.

Thanks to an extended period of economic growth driven mainly by the energy sector and an aggressive investment drive, Trinidad is solidifying its reputation as the business hub of the region. Its natural resources, location, communication links, financial system, and strong democratic tradition have made it the Caribbean’s most secure investment location. Dozens of the world’s leading corporations are active here. The economy has been liberalised and virtually all barriers to trade and investment have been eliminated. 

Oil & Gas Economy

With double-digit growth for much of the past five years, Trinidad and Tobago has the Caribbean’s wealthiest economy, built on Trinidad’s huge oil and gas reserves. These hydrocarbons contributed 62% of government revenue in 2006, and 91% of foreign exchange earnings, while liquefied natural gas (LNG) is now the largest contributor to the US$20+ million GDP. The United States receives two-thirds of its LNG imports from Trinidad and in 2007 two-way trade totalled US$10.4 billion.

The burgeoning energy sector has encouraged growth in downstream areas. At Point Lisas (the island’s massive industrial complex and port), there has been investment in methanol and petrochemical production, manufacturing, food and beverage, steel and electrical goods projects. Other industrial estates are also taking shape further south on the same coast.

This is familiar territory for the island, which benefited from the 1970/80s oil boom – and suffered the subsequent recession. The government promises that through economic diversification and the introduction of the Heritage and Stabilisation Fund (into which some of the current oil and gas profits are being channelled), the nation’s future prosperity is assured after hydrocarbon reserves are depleted.

Diversification

The government has identified seven sectors for special development: the film industry, music and entertainment, seafood, food and beverages, leisure and merchant marine activity, and printing and packaging.

To this end, the Evolving TecKnologies and Enterprise Development Company (eTecK) is developing eight new industrial parks (five in central Trinidad, three in south), primarily for organisations engaged in light manufacturing. Meanwhile, the government’s Business Development Company (BDC) aims at fostering economic growth through assisting start-up enterprises and entrepreneurs. The Trinidad & Tobago Film Company is working to make Trinidad an attractive location for international filmmakers. The Tourism Development Company oversees the development of tourism.
 

In addition to a vast increase over the last few years in high-quality room stock, there has been a corresponding increase in conference facilities. Most of the major hotels offer sophisticated meetings space backed up by the facilities which business travellers expect, from high-speed wi-fi to fitness centres. Most business hotels are situated near shopping and leisure facilities such as golf courses and restaurants, in and around Port of Spain, San Fernando and the airport (which is now a wi-fi area, as are some restaurants, ice cream and coffee shops).

Sustainable Development

Massive growth has not come without the flipside of spiralling costs, and high inflation will remain a key policy concern in the coming years. Inflation had passed 15% by late 2008, the highest rate since 1994.

These inflationary pressures have impacted most dramatically on the construction and food and agricultural sectors. Between 1998 and 2008, food imports have increased by approximately 69% while exports increased by just 3%; food import costs are more than double revenue from exports. A number of initiatives, especially aimed at encouraging young people into agriculture, are now coming on stream in an effort to curb this trend.

Nonetheless, Trinidad remains a regional business hub, with a profusion of new business conference facilities, particularly at major hotels, and a government thrust to make Trinidad and international financial centre. The country continues to forge partnerships with international investors on favourable terms, and that should continue long into the future.

Contacts

• American Chamber of Commerce: 622-0340
• Central Bank of Trinidad & Tobago: 625-4835
• Invest Trinidad & Tobago, Evolving TecKnologies and Enterprise Development Company Limited (eTecK): 638-0038
• Trinidad & Tobago Chamber of Industry and Commerce: 637-6966
• Trinidad & Tobago Entertainment Company: 624-0514
• Trinidad & Tobago Film Company: 625-FILM (3456)
• Trinidad & Tobago Manufacturers’ Association: 675-TTMA
• Trinidad & Tobago Stock Exchange