3. Impetus: –5.9% growth in hotels and restaurants –7.8% wholesale/retail trade –4% government services –4.7% banking and insurance

4. Tourism Total visitor arrivals grew –4.5% in 2003 –15.5% in 2004 Cruise arrivals –grew 22.4% –60% of all arrivals –Number of “calls” increased from 262 to 328 “Stayover” segment –increased 7%

6. Growth in European visitors due to –Relative value of US dollar –Perception of Caribbean as safe destination “Tourism receipts account for 71% of total export of goods and services”

8. Agriculture Agricultural sector grew for first time since 2000 Bananas accounted for 47% of sector –Expanded by 17.7% Non-traditional crops accounted for 25% of sector –Declined 2.4% Other sectors –Fisheries (+.3%) –Livestock (-14.2%)

9. Bananas Total exports from Windward Islands increased 15.9% St. Lucia’s share grew by 3% to 54% of total Contributing factors –Absence of marked dry season –Above average rainfall –Recovery from tropical storm Lily –Increase in value of pound sterling

12. Factors leading to decrease in purchases include: –Movement of farmers out of the industry –Weather –Consolidation of two major supermarkets –“Despite growth in stay-over arrivals, hotel purchases declined by 2.3%. There continues to be a need to strengthen the linkages between the agricultural and the hotel sectors. However, there are issues of availability, consistency and quality of crops supplied. Moreover, farmers who currently have working capital constraints have had some difficulties adjusting to the payment systems under which hotels operate.”

14. Manufacturing 6% growth in 2004 Spurred by government incentives and increased domestic demand Constraints –Diseconomies of scale –Cost of energy –Cost of shipping to external markets 7% of total employment Beverages constitute 50% of all manufacturing exports 11.4% increase in exports of beer

15. Communications/ Telecommunications Increased 4.6% 14.2% of GDP “characterized by lower prices and increased activity in all segments except the number of fixed line subscribers” 7% increase in number of cellular phone subscribers 30% increase in number of minutes sold “The mobile phone segment was the most dynamic and saw aggressive competition among its three service providers’

16. Electricity

17. 1.2% increase in electricity generated All categories except industrial recorded increases in consumption 2.7% increase in domestic consumption –Vs. 3% increase in domestic consumers Number of hotel consumers remained constant but demand increased 4.4% Consumption for street-lighting increased 38% due to electrification along highways Average price paid by LUCELEC to suppliers increased 30% to $3.82/gallon –Fuel surcharge increased 23% to 22.6 cents/unit –Highest in eight years

18. Alternative sources of energy Solar –Working with the United Nations Industrial Development Organization to develop a solar financing project; aimed a promoting benefits of solar water heating and procuring solar energy amongst low-income households Wind –Continuing to encourage development of wind energy –Received technical assistance under the Caribbean Renewable Energy Development Project (CREDP)

19. Landfill gas –Undertaken assessment of potential for capture of landfill gas; feasibility studies have produced promising results Hydroelectricity –Study conducted on potential of John Compton Dam –Potential for construction of small plant with installed capacity of 200kW

20. Misc. statistics of interest Population: 162,311 Birth rate: 15.3/1000 population –US rate: 13.9 (2002) –Kenya: 40.13 Infant mortality rate: 14.7/births –US: 6.8 –Kenya: 62.62

24. Economic outlook Anticipate continued growth “spearheaded by buoyancy in tourism, construction and the distributive trades” “Preparations for World Cup 2007 are expected to intensify with increased activity in construction and renovations of private residences, accommodation establishments and government infrastructure.”

25. Properties expected to open in 2005: –Four new hotels 590 new rooms/apartments/villas Construction costs: $85 million Properties under construction 2005 ($130million) –30-home timeshare resort (Soufriere) –20-condo complex (Rodney Bay) –50-villa, 144-condo and marina facility (Rodney Bay) –300-room Beaches Resort (Rodney Bay)

26. Continued investment in road infrastructure –Castries/Gros Islet highway upgrade –East Coast Road Planned $34.2 million government expenditure to upgrade Beausejour Cricket Ground WASCO expenditure of $5-7 million on Northern Water Supply project –Increase supply by 25%