Annual Economic and Financial Review -December 2018

2018 Annual Economic and Financial Review

ANGUILLA

Value added in the construction sector, which contributed approximately 12.6 per cent of GDP, is estimated to have increased by 60.0 per cent in 2018, in contrast to a decline of 5.5 per cent in 2017. The growth in construction activity was led by the private sector as all the major hotels and villas on the island, including Four Seasons Resort and Residencies, Belmond Cap Juluca, Cuisinart and Zemi Beach House, completed renovations and expansions in time for the peak tourism season, which runs from December to March. Additional support was provided by the public sector, as work on critical infrastructure such as the Princess Alexandra Hospital and the Clayton J Lloyd International Airport continued apace. The wholesale and retail trade sector also exhibited robust growth in 2018, expanding by 45.0 per cent in contrast to a 16.0 per cent contraction recorded in 2017. The sector, which contributed approximately 11.8 per cent of GDP, grew in tandem with activity in the construction sector as private businesses and homes underwent significant refurbishment in the wake of Hurricane Irma in September 2017. By contrast, value added in the hotels and restaurants sector, a proxy for activity in

the tourism industry, is estimated to have contracted by 25.0 per cent in 2018, following a decline of 16.1 per cent in 2017. The depressed level of activity in the sector was primarily driven by a decline of 22.3 per cent in the number of stay-over visitors to 53,056, following a contraction of 13.9 per cent in the previous year. Activity was further depressed by a decrease of 60.2 per cent in the number of excursionists to 32,029. Stay-over arrivals fell across most source markets, with the largest, the USA, contracting by 33.0 per cent (14,284).

In addition, arrivals from the Canadian and UK markets declined by 25.8 per cent and 20.1 per cent, respectively. A contraction of 23.0 per cent in arrivals from other countries was also recorded. The decline in the number of arrivals was mainly attributable to the lack of access to the island, coupled with reduced

______________________________________________________________________________ 22 Eastern Caribbean Central Bank