Eastpoint is the largest undeveloped, unspoiled and privately owned area in Curaçao. It covers 10% of the surface of the island (4,400 hectares). In 2010, a zoning plan for the development of Eastpoint was commissioned by the current owner of Eastpoint. The preferred development plan offers space for 19,000 residential units and 2,400 hotel rooms.
The development of Eastpoint is the task of the developer (including the cost of the investments in infrastructure), but the investments required to connect Eastpoint to the main infrastructure of Curaçao are for the account of the government. Consequently, the Executive Council of the Island Territory of Curaçao decided to investigate the potential consequences of the anticipated development plan. For this purpose, KPMG and Decisio have been appointed to undertake an Economic Impact Study (‘EIS’).
Economic Impact Analysis
Economic impact means the impact on earnings of industries, employment, Gross Domestic Product (GDP), foreign exchange reserves and Government income and expenditures during the construction/development phase and operational phase. The EIS focused on the following elements:
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- Impact on the tourism sector on Curaçao (direct and indirect).
- Impact from the residential development (direct and indirect).
- Impact from the construction/development phase and the operational phase.
- Required public facilities and (economic) benefits for Curaçao.
- Required infrastructure investments to make Eastpoint accessible.
- Macro-economic impact (GDP growth, growth of tax income, etc.)
Main results
In 20 years an estimated ANG 6.4 billion will be invested into Eastpoint, leading to an average annual investment boost of ANG 322 million in the construction sector during this period. This results in a temporary direct economic impact of ANG 125 million added value (2.3% of GDP) and 2,225 jobs. The economic impact of the construction is temporary. The new residents and tourism attracted by Eastpoint will have a permanent economic impact. The permanent impact amounts to almost 4,000 direct jobs and ANG 227 million of direct added value, which equals 4.4% of current GDP. When the indirect and induced effect are included (re-expenditures by respectively industries and employees), the number of jobs more than doubles and added val-ue almost triples.
More information
The Economic Impact Analysis was commissioned by The Executive Council of the Island Territory of Curaçao – KPMG (as main contractor). For more information please contact Kees van Ommeren (c.vanommeren[at]decisio.nl) or Menno de Pater (m.depater[at]decisio.nl). Or, contact them by telephone: 0031 – 20 – 670 0562.
