The Anguilla Government has taken the decision to place a halt on all new and major foreign investment tourism-related projects as from November 1st, 2005. The announcement was made on October 31 in a release from the Chief Minister’s Office.

Chief Minister, Osbourne Fleming

The release explained that the decision was in keeping with Government’s commitment to carefully manage the development of the island’s economy to achieve long term sustainability and in view of the current labour and social challenges facing the Anguillian community.

The policy decision covers four main points as follows: An embargo will be placed on the announcement of any approved major new foreign tourism project for a period of 20 months after November 1st, 2005; no presales of real estate products by major new foreign investment projects will be approved to be undertaken for 20 months after November 1st, 2005; no site preparation nor construction of infrastructure will be approved to commence until 24 months after November 1st,2005; and no construction work on the accommodations/real estate products and amenities will be approved to commence until 30 months after November 1st, 2005.
The release stated that the policy decision will be generally applicable to approved major new foreign investment-related projects. It quoted Chief Minister Osbourne Fleming as saying in a radio broadcast early in October that “success has its own problems and challenges. Over the past three years, Anguilla has enjoyed quite significant success in stimulating foreign as well as domestic investment especially in luxury tourism. This has returned our country to robust economic growth, full employment and increasing disposable income. The Government’s financial situation is the best it has ever been. The prospects are good for the growth we are now experiencing to be sustained well into the future. This is critical for us, as a people, in achieving economic self-reliance, self-determination and ultimately economic independence.”
The rest of the release continued: “The Honourable Osbourne Fleming said ‘the economic success achieved in the past three years now threatens to overwhelm us. The enthusiasm of foreign investors is extremely high. Many are scrambling to grasp the investment opportunities they perceive to be available in Anguilla. The light at the end of the tunnel, of which I spoke repeatedly during the dark economic days of 2000 to 2002, has now become so bright, that it threatens to blind us. It threatens to throw us off-course from the path of controlled, modest and steady economic growth.
‘Indeed, as your Government, we are in serious danger of being distracted from our commitment to place the highest priority on social development over the next five years. We find ourselves today facing the very real prospect of over-developing. We are in danger of creating unprecedented shortages in the labour force, of having to rely heavily on imported labour. We are experiencing the early symptoms associated with a rapidly deteriorating social environment. We are under tremendous pressure to deviate from the low volume high value investment strategy which has sustained us over the years.’
“The Chief Minister in the same speech further stated: ‘In our 2000 Manifesto, a commitment re-pledged in the 2005 Manifesto, the Anguilla United Front Government, as part of our programme priorities, pledged to review the tourism plant and supply and develop a phased investment strategy consistent with projected demand, carrying capacities, labour market supply as well as accessibility to the island. This, from a tourism prospective, is consistent with the island’s positioning as an upscale tourism destination, offering an unrivalled and unique experience to its visitors.
‘In the recent past, when commenting on the surge in investor interest in Anguilla that has taken place since 2002, I have said that whilst we are pleased with the interest in Anguilla, we must be careful that the increased demand for a bit of the peace and tranquility of Anguilla, does not lead to over-development, a huge mass of visitors, congestion, overcrowding, collapse of our social and physical infrastructure and eventual economic decline.’

“The Chief Minister went on to further declare that ‘Anguilla is a beautiful jewel, which none of us wishes to see despoiled or destroyed. The self-reliant, self-determined, orderly and sustained development of Anguilla is the underlying motivation of your Government. The struggle for the sustained economic and social development and security of all of us is not won or lost on a single turn of events. The progress we have made in two short years is too fragile to suffer any major shocks at this time.”

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