BASSETERRE, St. Kitts (AFX) - A new emphasis on tourism has allowed the economy of St. Kitts and Nevis to flourish despite the shutdown of its sugar industry in 2005, Prime Minister Denzil Douglas said Monday.
The economy, which grew 4.1 percent in 2005 -- the year the debt-ridden sugar industry closed, is expected to post growth of 4.6 percent for 2006, Douglas said in a New Year's address to the two-island nation.
Douglas attributed the growth to a government strategy to develop alternative sources of employment. He said schools are emphasizing vocational training to prepare young people in the eastern Caribbean nation of 42,000 for a new, service-oriented economy.
St. Kitts shut down its 300-year-old sugar industry after the European Union announced it would slash its subsidies for the product coming from Africa, the Caribbean and the Pacific, at the beginning of 2006.
'We must also empower the former sugar workers and give them the confidence to march out from the canefields and the sugar factory into the new and emerging sectors of our economy to earn a living for themselves,' he said.
Last year, non-sugar agricultural output grew by 87 percent and 160 manufacturing jobs were created, Douglas said.
But tourism has picked up most of the slack. Hotel projects are expected to continue driving foreign direct investment, which grew by 83 percent or US$103.5 million (euro79 million) in 2005, and tourism spending is expected to exceed US$300 million (euro228 million) for the first time in 2006, Douglas said.
As the country prepares to welcome thousands of visitors when it hosts cricket World Cup matches in March, Douglas urged islanders to take advantage of the opportunity to demonstrate the country's appeal.
'Be sure to be kind and helpful to all our visitors and ensure that the international exposure of St. Kitts and Nevis will resound to the growth and development of our nation,' he said.
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