supplying the hotels because they were empty. So by changing their business model and going direct to consumer, those companies didn’t make as much money but they were able to survive.” BVC: How is the supply chain moving now after so much disruption? Henriquez: “There was a big impact but we’re lucky that Aruba has a steady stream of products coming in. Our importers did a great job in the management of the supply chain of their own inventory systems. Aruba is not as dependent as the U.S. or other places with just in time delivery. We have companies with larger inventories which helped the island. “ATIA actually went out in public and on the news and said, “There is no shortage of food. Maybe the brand you like is not there but there is always an alternative.” So, we never had an issue with a food shortage on the island. However, the freight charges increased our prices a lot because of the supply chain disruption and the issue at the Suez Canal. An example: containers from China that used to be $4,000 per container were going for about $20,000 to get here. That raises the prices a lot for products on the island.” BVC: What issues are you lobbying the government for currently? Henriquez: “As a lobbying organization, we brought forward to government that the only way they can lower prices a bit is by changing the calculation methods of the import for the time being. As long as freight is high and the economy is recuperating, don’t charge import duties on the freight charges. We kept on fighting for that and we’re seeing the fruits, but they’re bringing whole new legislation in for those areas, so we’re doing the best we can. “Because the economy was closed for a long time, Aruba got financial support from The Netherlands. During those times they subsidized the companies here on the island to help us. For this subsidy, they requested the island to make a reform package, together with The Netherlands, where reforms on basically all areas and sectors of the island should have to be implemented. What ATIA has to look at from a business standpoint are the areas of tax reform, labor reform, and the elimination of red tape. There is also social reform where they’re looking into an unemployment package. Education, the hospital, government spending are also being looked at over the next two years. “It will make our economy more robust, even more resilient, and also more modern. We have a lot of outdated laws and change is not fun but we have to do it to become more competitive in the region. 41 BUSINESS VIEW CARIBBEAN VOLUME 11, ISSUE 08 ARUBA TRADE & INDUSTRY ASSOCIATION
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