Caribbean Review: Is Oranjestad becoming the crowning jewel of the Caribbean?
Elizabeth Beard
As economic development continues to expand in the Caribbean to bolster the critical tourism industries that function as the heart of the Caribbean economy, one island in particular is welcoming the revitalization of their main seaport and downtown area.
Oranjestad’s Revitalization
The island of Aruba, known for its multicultural influences in its food, architecture and culture, is pushing for the revitalization of its historic Oranjestad seaport. As part of a three-phase plan that includes the renovation and amelioration of city infrastructure, it is aimed to transform the neighborhood into a vibrant and enticing downtown area. The plans feature a beer garden, an artisanal rum-tasting lounge, hotels, increased walkability, culinary destinations, spots for shopping and even some housing. The government has even contributed funds to the revitalization effort to expand parking availability, increase area security and improve lighting in the area, a bet that the government hopes will improve the aesthetics and functionality of Oranjestad, Aruba’s capital city, by attracting increased tourism and shopping to the area.
Some of Oranjestad’s greatest landmarks have stood since the 17th century, when Dutch colonists first gained control of the island from the Spanish. Two of these landmarks which stand as icons amidst the salty and chilling breeze of the seaside town, Fort Zoutman and Willem III Tower. Fort Zoutman remains the oldest standing building in Aruba built in 1796 by slaves from Curaçao and indigenous populations of Aruba to guard the Dutch territory from attacks by pirates and also threats from rival British and French Naval vessels. Right beside the fort stands the Willem III Tower named after King Willem III of the Netherlands. The Tower has served the Kingdom as a lighthouse with a large kerosene lamp mounted at its top but currently functions as Oranjestad’s clock tower. Aruba, along with private developers, envisions this project as a way to harmonize history with modernity, creating a distinctive Aruban fusion that enhances its appeal as a top tourist destination.
In addition to governmental initiatives and private investment in Oranjestad’s infrastructure and economic revitalization, a new visionary project is set to become the crowning jewel of the newly reimagined downtown area, complementing Columbusstraat and Wilhelminastraat. The City Place project is a modern-style apartment complex with indoor parking, four luxury residential floors and a rooftop sky deck. Mirroring the concepts of development within the downtown, the complex will mix commercial, residential and culinary services to cater to tourists’ needs. Positioning Oranjestad as a prime tourist destination has driven economic development, yet this shift has faced some resistance just as public-private partnerships were gaining significant momentum.
Business Climate and Investor Incentives
Aruba's business climate is bolstered by a government that fosters a pro-business environment, strong collaboration with government partners and stakeholders, and a business community committed to economic growth and resilience. It is a grand stature that has been named the #1 investment climate in the Caribbean by the Economic Bureau of Amsterdam in 2023. This includes a partnership between the Ministry of Economic Affairs, Communication and Sustainable Development, Department of Economic Affairs and Industry of Aruba (DEACI), Aruba Investment Agency (ARINA), Chamber of Commerce and VNO-Aruba that vindicated investors’ bets to choose Aruba for their investment.
While some claim that because the City Place development has support from Aruban government-backed subsidies it follows a path for sustainable development, it still falls short of addressing the needs of Arubans who regularly protest the new development. While tourism may be the overwhelmingly dominant industry and more hotels, culinary destinations and shopping would increase capacity and revenue, protestors believe they ignore Aruba’s real issues. For indigenous people and everyday Arubans, the overdevelopment of hotels threatens Aruba’s natural beauty and reinforces an idea of colonization.
Aruba, formally a part of the Kingdom of the Netherlands, does offer certain benefits to its investors which include investment protection agreements in nearly 100 countries, Exported goods from Aruba can be free of import duties in the EU and Aruba-based investors gain special access to American markets under the Caribbean Basin Trade Partnership Act. According to the Caribbean Association of Investment Promotion Agencies (AIPA), the 180 square kilometer island plays host to a collection of important incentives including available long-lease land as delineated in Aruba’s Spatial Development Plan (ROP) 2019 and its regulations (ROPV) for 2020-2024. Yet, some protesters firmly believe in their “No More Hotels” cause and the government’s allocation of land for development instead of conservation symbolizes a predicament at odds with the rights of nature in Aruba’s Constitution.
“NO MORE HOTELS”
For the protestors, the Aruban government, along with the Kingdom of the Netherlands are disconnected from the people’s needs to address climate change and boost the island’s economic resiliency. Nigel Maduro, the movement’s de facto leader, achieved a notable victory when a protest he organized successfully disrupted the Prime Minister’s speech in Oranjestad on King’s Day, March 18, 2024, leading to several arrests. Yet, the next day, the government announced their support for the “No More Hotels” movement and the Minister of Tourism announced that new hotels would not get approval from the government.
While the protesters have only been met by some arrests for their disruptive protests on King’s Day among other instances, the government has been mostly cordial with their demands. However, the protestors’ final goal is to gain representation for Aruba and the Dutch Caribbean islands (ABC-SSS Islands) at international-level conferences such as the COP or the UNEP. As of now because Aruba and countries alike are part of the Kingdom of the Netherlands, their representation depends on that of the government of the Netherlands. A process for the protestors that reinforces colonial structures and perpetuates inequities felt by Arubans and the protestors.
Aruba’s economic image depends on a multitude of factors including the investment climate, business resiliency and the strength of small businesses that employ 52% of the population in Aruba. Efforts like the Oranjestad Revitalization Project and the City Place Project add fine dining, hotels, shopping and amenities that incorporate a tourists' dream. But protestors and Arubans feel like they have been left behind and that climate change and sustainability should be the government’s rational priority in order to promote economic resiliency. If Aruba is to expand economically and still prioritize sustainability, they must reconcile the new development, although promising with initiatives that promote quality of life in Aruba.
