MP Kotai Proposes Redirecting Cg 4.75 Million to Tourism Upgrades and Business Climate Improvements

GREAT BAY-- Member of Parliament Viren Kotai has submitted two budget-neutral amendments to the 2026 national budget that would redirect a combined Cg 4.75 million within the Ministry of Tourism, Economic Affairs, Transport and Telecommunication, TEATT, from allocations he says cannot be executed this year toward tourism development and economic initiatives that can be implemented immediately.

Kotai’s first amendment proposes removing the Cg 4 million allocated in the 2026 capital budget for the proposed flagpole project and transferring the full amount to the existing budget item for the development and improvement of tourism products.

According to Kotai, information provided during the budget debate confirmed that no agreement has been reached with the private landowners at the proposed location of the flagpole project. He said the required development rights, access rights and other formal arrangements necessary for government to execute capital works on private property are therefore not in place.

Kotai argued that because government cannot legally or operationally proceed with the project under the current circumstances, the Cg 4 million cannot realistically be spent on the flagpole project during the 2026 fiscal year.

He stressed that the amendment would not permanently cancel the flagpole project. Rather, it would remove the 2026 allocation so that the funds do not remain tied up while the necessary land agreements are still absent.

The full Cg 4 million would instead be transferred to the existing capital allocation for development and improvement of tourism products, allowing government to undertake projects aimed at strengthening St. Maarten’s tourism infrastructure and visitor experience.

Kotai identified potential uses including improvements to tourism zones such as Philipsburg and Simpson Bay, as well as tourism hubs at the neighborhood level. These could include signage, beautification, public toilet facilities, seating and shade, improved tourism infrastructure, cultural and heritage sites, support for small-scale community-based tourism projects, and measures to improve accessibility and safety in major tourism areas.

He said the proposed reallocation would also allow government to pursue investments consistent with existing tourism recovery priorities and strategic policy objectives already identified in the 2026 budget.

Kotai noted that the tourism product development budget item already exists and has previously been used as a framework for investments aimed at improving St. Maarten’s tourism offering.

The MP emphasized that the amendment is entirely budget neutral. The Cg 4 million reduction from the flagpole project would be matched by a Cg 4 million increase in tourism product development, leaving the total capital expenditure ceiling unchanged.

Kotai’s second amendment proposes reallocating Cg 750,000 currently budgeted as startup capital for the formal establishment and operationalization of the St. Maarten Tourism Authority, STA.

He said responses provided during the first round of the budget debate indicated that the legislative framework required to formally establish the STA as an autonomous administrative body is not expected to be completed until 2027.

According to Kotai, because the STA will not yet formally exist as the required legal entity during the 2026 fiscal year, the Cg 750,000 budgeted for its startup cannot legally or practically be transferred for its intended purpose this year.

Kotai argued that leaving the allocation untouched would result in funds remaining unused during 2026 when they could instead be deployed through existing government structures.

Under his amendment, Cg 500,000 would be transferred to the St. Maarten Tourist Bureau for short-term, high-impact projects, destination marketing and improvements to the tourism product.

Kotai said the allocation could provide direct support to both the stayover and cruise tourism sectors while allowing the Tourist Bureau to implement initiatives within the current fiscal year.

The remaining Cg 250,000 would be directed to the Department of Economy, Transport and Telecommunication for targeted projects and activities aimed at improving St. Maarten’s business climate.

He said the funding could support economic studies, regulatory improvements and initiatives aimed at streamlining business processes, reducing administrative bottlenecks and making it easier for local entrepreneurs to operate.

Kotai again stressed that the second amendment would not increase government spending. The Cg 750,000 removed from the STA startup allocation would be fully offset by the Cg 500,000 increase for tourism projects and the Cg 250,000 increase for economic and business-climate initiatives.

Combined, Kotai’s two amendments would redirect Cg 4.75 million within the existing TEATT budget without increasing the overall 2026 national budget.

The MP said the principle behind both amendments is to prevent public funds from remaining tied to allocations that cannot be legally or practically executed during 2026 and instead place those resources where they can be used immediately to improve St. Maarten’s tourism product, public spaces and business environment.

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