Caribbean Review: Recent Campaigns Expose Larger Historical Conflicts for Sint Eustatius’ Development

Julia Volk

Renovations have started for the Orange Bay Hotel and Restaurant, which is the first new hotel development on Sint Eustatius in years. The venture, run by European and local entrepreneurs, is meant to help improve tourism capacity. Development has been an issue in Sint Eustatius in recent years due to political friction with the Netherlands, economic stagnation, and other financial challenges, but recent initiatives are trying to change that.

Sint Eustatius’ Development Campaigns

The local government of Sint Eustatius has confirmed a settlement with Eco Statia N.V. and Statia Housing & Services N.V. that will assist future public developments. Oranje Bay Hotel, alongside other tourism areas and residential housing, will be subject to this public tender, providing the materials needed to ensure their sustainability and economic value. The proposal will be looked over by the Sustainable Investment Framework. This framework puts emphasis on financial sustainability, social well-being, environmental responsibility, and good governance. 

“We now have the chance to transform a long-standing challenge into opportunities for housing, entrepreneurship, and sustainable growth,” said Commissioner Rechelline Leerdam. “This future tender process will ensure that community values and development priorities are at the heart of the decision.”

Another location, the Statia Harborview Apartments on Kerkweg, will be repurposed to provide housing for temporary incoming personnel supporting health care, education, and infrastructure.

Another campaign is Statia 2026, a regional multi-year partnership launched in January of this year between the governments of Sint Eustatius and the Netherlands, aiming to transform Sint Eustatius through cultural preservation and sustainable development. The program consists of 12 projects, six of which are financed through the deal. Plans include the construction of a new healthcare center, education enhancements, environmental initiatives, and other public services. The projects will be backed by €10 million in funding and also supports eco-tourism. 

Struggles In Development

Sint Eustatius and the Netherlands have had a rocky relationship since the dissolution of the Dutch Antilles in 2010,  as many residents believed they should have been granted autonomy to the same extent as St. Maarten and Curaçao. On February 6, 2018, the Dutch government dissolved the local government of Sint Eustatius. This decision, which was allegedly made to stop corruption, brought about further strain between Sint Eustatius and the Netherlands. The dissolution came after a report from the Dutch national state secretary accusing Sint Eustatius’ government of lawlessness, financial mismanagement, discrimination, and intimidation. A government commission was then deployed to replace the island’s council without consulting the local population. 

“They want to apply their own laws because they believe they have the right to govern the island themselves,” said Jan Fransen, one of the report’s authors.

This colonial takeover, as viewed by many residents, brought about protests and a call for more autonomy from the Dutch government. The main push for autonomy would provide residents with the ability to vote and choose laws, while the Dutch provide financial and military aid and protection. Sint Eustatius had its full local government restored by September 1, 2024, but the dissolution conducted by the Dutch government has soured relations for many residents. 

Another conflict for Sint Eustatius’ development has been economic stagnation. The GDP has been declining significantly since 2017, largely due to the contraction of foreign companies in the oil industry. Foreign companies were also contracted in public administration, education, and healthcare. Sint Eustatius’ reliance on the oil industry and fluctuating global stocks puts it in a vulnerable position economically, and with a reduced demand for oil since 2019, the effects have been felt in Sint Eustatius.

The number of students and public administration jobs has experienced a decline, Hurricane Irma in 2018 caused major damage, the cost of living has risen significantly, and the possible oil revenue that Sint Eustatius might be able to add to its GDP goes unclaimed due to the companies being foreign-owned. Tourism has experienced steady increases, but the losses in other sectors are too heavy on the island’s ability to develop at a fast rate. There have been pushes, however, by local leaders to boost sustainable tourism and improve infrastructure.  

Sint Eustatius’ history with development have led the island on a slow start to help improve quality of life for citizens, but new campaigns show potential to help fix this issue and invest resources into helping to improve life for many Statians without access to good education, good healthcare, and infrastructure.