Why Sint Maarten/Saint Martin Now?

Introduction

With a total population of roughly 43 million, the Caribbean is heavily reliant on its tourism industry with over 25 million annual visitors.

The Caribbean Tourism Organization reports that visitors contributed a record US $37 billion to island economies, with some places seeing double-digit arrival increases in 2023.

Sint Maarten/Saint Martin, with its unique blend of European influence and Caribbean charm, is emerging today as a premier destination to capture is share of the luxury real estate and hospitality.

But why Sint Maarten/Saint Martin, and why now? This post explores the factors driving Sint Maarten/Saint Martin appeal as the next big investment destination.?

The Rise of Sint Maarten/Saint Martin in the 1960s

The island’s golden era began in the late 1960s. Its location and easy access made it the preferred destination for affluent travelers seeking a unique blend of European sophistication and Caribbean charm.

St. Maarten, part of the Kingdom of the Netherlands, and St. Martin, a French overseas collectivity, both share the same island. It is a 34 square miles on the southern part of the Caribbean. ?Sint Maarten’s strategic location in the northeastern Caribbean makes it easily accessible from major global cities. Its position as a hub in the Caribbean makes it a prime destination for both tourists and investors.

In 2014, St. Maarten reached its peak cruise visitor arrivals with over 2 million (2,001,996) people arriving via 692 cruise vessels. Arrivals to St Maarten come primarily from North America - 50% ( United States and Canada), Caribbean 22%, and European residents 21%.

• Proximity to Major Cities: Sint Maarten is just a 4-hour flight from New York and a 3-hour flight from Miami, making it one of the most accessible Caribbean islands to the U.S. The island also boasts direct flights from Paris and Amsterdam. ?
• Cruise Tourism: The island is a popular cruise destination, with over 1.7 million cruise passengers arriving annually, providing a steady influx of potential luxury clientele.
• Centralized Location: With its proximity to other popular islands like St. Barth’s and Anguilla, Sint Maarten offers a centralized location for exploring the Caribbean, increasing its appeal as a long-term investment destination.

In the 1970s, Sint Maarten/Saint Martin became the go-to destination for the elite, with luxury resorts and high-end real estate developments catering to an international crowd. During this era, Sint Maarten outshone its neighboring islands like St. Barth’s and Anguilla, establishing itself as the Caribbean’s luxury hub.

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The Time Share Era

From the 1980’s-2000 the island's luxury sector waned. Time share and resort club properties sprung up all throughout the island driven by lucrative tax incentives - the majority of the inventory consisting of small hotels and timeshares, typically less than 50 rooms with ADR’s from $275-$450 USD per night. These fractional properties brought a stable but less affluent client to the two nation island.

In 2017, a massive category five hurricanes struck Sint Maarten/Saint Martin...and just when it was about to claw its way back from the devastating impacts of Hurricanes Irma, the island's recovery was further challenged by the global COVID-19 pandemic. ?The pandemic saw international cruise travel and airlift come to a halt which significantly impacted the tourism-driven economy. According to a 2019 HVS report, The Netherland Antilles (which includes Bonaire, Curacao, and St. Maarten/Martin) had one of the lowest number of keys under construction in the region with 825.

2024 and Beyond

Today, we are witnessing a remarkable resilience. The International Monetary Fund (IMF) has reported a robust post-pandemic recovery for Sint Maarten, with GDP growth estimated at 3.5% in 2023, following a 13.9% rebound in 2022. https://www.imf.org/en/News/Articles/2024/06/25/mcs062524-kingdom-netherlands-sint-maarten-2024-art-iv-consult-mission

Tourists, by both air and sea are back. Sint Maarten's remarkable economic growth is propelled by a surge in stayover tourism, setting a record with over 2 million visitors in 2023, and significantly outperforming other Caribbean regions. Almost 1.2 million passengers by air and 2 million by sea are projected for 2025. ?

The Dutch Capital of Philipsburg is bustling with commercial activity with Front street is busier than it has been in a decade. ?Most notably, the long-awaited reconstruction of the Princess Juliana International Airport (SXM) is almost complete. ?The state-of-the-art airport promises faster, easier, and more flights. There is also speculation that the long-ago promised installation of a U.S. Customs pre-clearance facility (similar to Nassau in the Bahamas) is in the works. ??https://www.sxmairport.com

In the private sector, you can observe much construction throughout the island. Several large condominium such as fourteen have?been completed and several new residential projects have broken ground. The luxury real estate market in Sint Maarten has grown by 15% annually over the past three years, with average property values increasing by 8% year-over-year.

?In the hotel sector, the JW Marriot came on line this year as well as the Morgan hotel in 2023. The Secrets hotel on the French side is currently under renovation.

But why Sint Maarten/Saint Martin, and why now? ?

Four main factors are the principal drivers of Sint Maarten/Saint Martin new luxury trend:

1. ?Stable Tourist Location: Sint Maarten/Saint Martin has long been a stable and secure destination for tourists, offering a consistent influx of visitors year-round. This is particularly true as the island is the principal gateway to St. Barth’s, Anguilla, and Saba. ?
2. Eclectic Crowd: The island attracts a mix of international visitors and residents, creating a vibrant, cosmopolitan Dutch/French atmosphere.?
3. Experiential Luxury: Annual festivals, carnivals and sailing regattas bring together tourists and locals in a celebration of music, dance, sport, and Caribbean culture.
4. Pro-Business Government:? The government of?Sint Maarten has historically been pro-business, with policies that support real estate development and foreign investment. ?There are currently elections at the time of this writing, but if history is any indicator, the new government will continue with its pro-business policies.

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Reviving Luxury Hospitality: 2024 and Beyond

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Today, with a renewed sense of purpose, Sint Maarten/Saint Martin stands poised to reclaim the island’s status as one the Caribbean’s top luxury destinations. ?

Development groups like Altree are at the forefront of bringing luxury back to Sint Maarten/Saint Martin. ?Its new luxury hotel, “Vie L’Ven”, with 280 luxury five-star residences and hotel rooms is slated to be a game changer for the island. The project has broken ground and recently joined the distinguished group of Leading Hotels of the World (LHW), alongside renowned establishments such as Portugal’s Savoy Palace, Paris’ Fauchon L’Palace, and Sweden’s Grand Hotel Stockholm.https://vielven.com/altree-developments-vie-lven-resort-joins-the-leading-hotels-of-the-world-collection/

Conclusion

Sint Maarten’s has a rich history. Its central Caribbean location, robust airlift, diverse French/Dutch culture, duty free port, and connection to Sint Barths/Anguilla make it an ideal island for travels seeking “experiential rejuvenation.” ?Today, Sint Maarten/Saint Martin has turned a new economic page and its stable tourism market, pro-business government, and growing luxury real estate sector, present an unparalleled opportunity. As Sint Maarten continues to revive its luxury hospitality industry with innovative developments like Vie L’Ven, the island seems poised to reclaim its status as one of the Caribbean's top luxury destinations.

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About AG&T

AG&T is a real estate development and advisory firm based in Miami, Florida. Adam Greenfader is the CEO of AG&T. ?He has vast experience working on real estate developments in the Caribbean, Puerto Rico, and Central America. With over 52 real estate developments, 27 years of experience, and a $1.5 billion portfolio in new development projects, AG&T is a leader in the Caribbean hotel and luxury residential real estate market. www.agandt.com

Vie L'Ven Luxury Resort & Residences The Morgan Hotel Princess Juliana International Airport - SXM JW Marriott Altree Developments International Monetary Fund

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