Janet Silvera, Senior Tourism Writer
Oranjestad, Aruba:

Emerging from a six per cent decline in tourist arrivals last year, the influx of Spanish investors into Aruba may help boost the Dutch Caribbean island's tourism industry this year. From total U.S. arrivals of 495,109 in 2005, the market dipped to 450,622 in 2006 recording 8.99 per cent in negative growth for the U.S. share, year-to-date.

However, the island is looking to receive success, similar to the Spanish investment in Jamaica, which may well be having spillover effects. Already, international chains RIU, Sol Melia and Occidental have begun to inject major capital into the tourism sector which has been struggling, partly due to the backlash from the now famous Natalee Holloway disappearance, stiff competition worldwide and other factors such as rising oil prices, terrorism and natural disasters, says Aruban officials.

The Spanish groups already operating in Aruba include Occidental, while RIU - with three hotels in Jamaica - will complete construction of a 400-room hotel there by the second half of 2007. Sol Melia will soon commence renovations of the old Bushiri hotel and will eventually raise its flag in this multilingual nation.

country is optimistic

The country is optimistic that the three investors, which will add close to 1,200 rooms to its current stock and a combined investment of US$260 million, will help them and achieve tourism arrivals of more than 1.1 million similar to that of 2005.

"Having the Spanish investors is in line with the government's plans to diversify the market, and Europe is important - the Euro is strong," Aruba's Commissioner of Tourism, Edison Briessen, told journalists at a press conference during the Caribbean Hotel Association's Caribbean Marketplace last Monday.

He said the new global players would help attract new business to the island, which currently has an overdependence on the American market.

Since the disappearance of American student Natalee Holloway in May 2005, there has been aggressive lobbying in the U.S. media to the boycott the Dutch territory. Although its cruise ship passenger figures have increased considerably, its land-based business has declined.

In addition to the 10 per cent increase in room inventory announced by the officials, a US$3.7 million marketing campaign, new flights out of the United Kingdom and Holland, extra capacity on Delta Air Lines and the introduction of low-cost carrier JetBlue are expected to contribute to a healthier 2007.