Could the Caribbean tourism market be losing market share to Dubai, the capital of the United Arab Emirates? According to reports in the Miami Herald, the more affluent tourists could be shifting their interest from the Caribbean to Dubai. Apparently, Dubai has been growing in popularity with European and Asian travelers, placing the Arabian resort in direct competition with the Caribbean for vital tourist dollars.

Dubai, over recent years, has been investing heavily in its tourism infrastructure. It has added 10,000 hotel rooms in the past five years and there are plans to double room inventory to 52,000 rooms by 2010. Expansion has also taken place at Dubai International Airport, where passengers are projected to increase from 25 million this year to 60 million b 2010. There is hardly any financial deterrent to the UAE improving its tourism infrastructure since that country is able to allocate its soaring oil revenues into making Dubai the global destination of choice.

Some travel consultants see in Dubai a new experience for travelers. For example, it boasts a large enclosed mall that features an indoor ski complex, with five runs, chair lifts and a 25-story mountain. Development plans include a Las Vegas style strip with 31 hotels modeled after Egyptian palaces.

The rising manufacturing costs on thousands of rubber products worldwide will soon be felt as raw Latex and other production costs continue to escalate swiftly.

Raw Latex is now at an all-time high as the rains continue to fall, making harvest a big problem in several rubber producing regions in Asia. At the same time worldwide demand continues to rise. Many manufacturers are now faced with very difficult decisions on whether to continue to sell finished products at a loss or discontinue production altogether.  Recently the philosophy has been to sell at cost or below if need be, with hopes of regaining profits when raw material costs come back down.  Unfortunately raw materials have continued to soar with no end in sight.

One product, latex examination gloves, has been particularly hard hit. Everyday something new affects the manufacturers rising costs. The raw Natural Latex comprises about 60 percent of the total cost of latex examination gloves. Combined with rising raw Latex costs, fuels used in manufacturing and the weakening of the U.S. dollar overseas has also impacted the foreign manufacturers.  Soon the contract in Malaysia for natural gas will expire and is expected to rise approximately 25 percent. Currently, natural gas alone comprises roughly $1.60 per 1,000 pcs of latex gloves. In addition to latex and natural gas, other factors include processing chemicals, huge investments in equipment, compensation to employees, etc.

According to the Department of Labor Statistics over 40 percent of all companies that experience a disaster never reopen. Over 25 percent of the remaining companies close within two years.

Whether you believe it will never happen or it will never happen to you, owning a business means you must use common sense and discernment at all times even when it might not fully make sense to you or others.  As a business owner, you need to prepare a “Pre-Storm Action Checklist”.  The checklist should incorporate monitoring storm progression, listen for a hurricane watch or evacuation order, determine if you are in an evacuation zone or building (i.e. high rise etc...), decide if you must evacuate or secure your business, preserve records, preserve equipments, provide employees with copies of “what to expect during a storm” (your HR Manager should be well-prepared for that), provide copy of “shelter checklist” (can be obtained trough your local county), draft a recovery plan, update your mitigation action plan.

It is hurricane season 2006.  There are 16 named storms forecasted by Meteorologists.  Experts are warning Small Businesses especially to prepare an emergency plan that can save lives, protect their assets and ensure continuity of their business post-hurricane season.  Small Businesses are usually complacent and yet, we have the jost to lose. 

Obtaining credit is becoming easier and more accessible to everyone, including minors. As a result, it is vital that families make this a topic of discussion for everyone in the family. For example, parents should get young children involved in money matters as soon as they are able to count and understand.

According to Paul Richard, RFC – Institute of Consumer Financial Education’s Executive Director

• As soon as children can count, introduce them to money….
• Communicate your values concerning money; teach them how to save, make it grow and how to spend it wisely.
• Help children to learn the difference between needs, wants and wishes, which will prepare them to make good spending decisions in the future.
• Set goals with children and teach them how to save towards those goals
• Teach children how to save and accumulate interest on their savings on a long-term basis, not just saving for a specific need.
• As they get older, teach children how to calculate interest so they can “see how fast money accumulates through the magic of compound interest.” Give your children incentives to save. For example, offer to match what they save from their allowance.

It seems there is a shift in Latin America’s politics from internal upheavals in countries like Bolivia, Ecuador to crises between governments.  How does all this affect the business of the region and Caribbean relations?  All these new developments beg our examination in order for us to discern where to go and what to do, lest we give foot to ignorance and make decisions based on myths.

The trade bloc uniting Andean nations is in shambles after Venezuela deserted it. There is a lot of bickering going on at the Organization of American States over texts on the rights of poor people to counter-terrorism collaboration.  Bolivia has nationalized their natural gas industry, which from Brazil’s President Lula’s standpoint hurts their state oil company.

OAS Chief Jose Miguel Insulza recently issued a statement urging Latin American leaders “to do everything necessary to preserve peace and democracy.”

There was a trade pact reported to be negotiated between Columbia, Mexico and Venezuela, it did not happen because President Chavez stipulated it to be a “neo-liberal framework”.