WILLEMSTAD - In its latest report, the Central Bank of Curaçao and St. Maarten indicated that in Curaçao, the net export of goods and services dropped by NAf.21.6 million as the drop in exports (NAf.379.7 million) exceeded the decline in imports (NAf.358.2 million). The poor export performance during the third quarter of 2020 reflected mainly a significant drop in foreign exchange revenues generated from tourism activities. Following the re-opening of the borders on July 1, 2020, only 10,000 stayover tourists from low-risk destinations were allowed into Curaçao per month, while the cruise industry had been shut down amid the pandemic. As a result, foreign exchange earnings from stayover tourism and cruise tourism dropped by 71% and 100%, respectively, in the third quarter of 2020. Furthermore, foreign exchange revenues from bunkering activities dropped significantly, consistent with the decline in international oil prices. In addition, lower volumes of jet fuel were sold to foreign airlines in line with the sharp decline in commercial landings recorded in the third quarter of 2020. As the refinery closed in December 2019, no foreign exchange revenues were generated from refining activities (i.e., the refining fee). In addition, foreign exchange receipts from ship-repair activities, international financial & business services, and the re-export of merchandise by the free-zone companies went down.
The lower import bill in the third quarter of 2020 was caused by, among other things, a drop in merchandise imports by the wholesale & retail trade sector, in line with the deep contraction in domestic and tourism demand. The oil import bill dropped considerably due to a sharp decline in international oil prices combined with lower volumes purchased. Merchandise imports by the manufacturing, hotels & restaurants, and utilities sectors declined as economic activity contracted because of the corona crisis. Foreign exchange expenditures by Curaçao residents on air and sea transportation services and travel abroad also dropped due to, among other things, travel restrictions, limited airlift, and the shutdown of the cruise industry. In addition, the import of construction services shrank as the construction of the new hospital was finalized in 2019, and maintenance work on the refinery basically came to a standstill following the expiration of the lease contract with Venezuelan oil company, PDVSA. The import of legal & management consulting services, advertising & marketing services, and insurance & pension services also dropped in the third quarter of 2020 compared to the third quarter of 2019.