Business View Caribbean | February 2020

4 BUSINESS VIEW CARIBBEAN FEBRUARY 2020 and value case models to reach the “ideal” tourist and maximize ROI • Provide Advisors services to manage targeted campaigns and results • Use Economic Dashboard(s) to monitor and measure results Over the last ten years, tourism growth has been steady and significant, with micro and small enterprises throughout the area playing a critical role in the economic ecosystem. However, only a tiny portion of companies in the region accept electronic payments. Today, out of the total of 1.4M merchants in the region, only 10% of those are accepting electronic payments. Independent research shows that foreign tourists are more likely to spend money where making payments is convenient and secure. To leverage the full potential of tourism for inclusive growth, international visitors need to be stimulated to venture beyond the few centers where they congregate, traveling far and wide across the country. Opening card acceptance among MSEs expands tourist dollar reach beyond the traditional tourist centers, democratizing the industry, fostering financial inclusion, and spreading wealth. • MSEs contribute nearly 50% of the Caribbean’s GDP • There are more than 1.4M MSEs in the region • MSEs provide the vast majority of jobs available in the region While driving tourism to the region is vital, the Caribbean remains vulnerable to natural disasters, with 63% of all disasters that have hit small states since 1950 occurring in the region. These natural disasters severely cripple economies, often hitting the ever-important tourism industry and MSEs the hardest due to an inability to quickly recover. Lack of data and identification are key factors prohibiting fast recovery after impact. • High informality (lack of data & identification) adds to a more significant challenge in providing emergency support during and after impact. • Challenges around reliable electricity and connectivity • Poor access to relevant data insights contributes to a slower and more expensive recovery process, with no data to better feed the government the right directions to (re)act Digital ecosystems facilitate seamless, fast, and transparent disbursements of funds in times of crisis. Providing the elements necessary to facilitate more rapid recovery in a humanitarian crisis is essential to preserve investments and business sustainability. The Smart Islands program can help governments implement Smart IDs with payment functionality to streamline government disbursements and help to facilitate immediate aid assistance when necessary, even in the most adverse conditions. Smart IDs with payment functionality included (Driver License, Fiscal ID, National ID) can also be used as an instrument to financially include the unbanked population. Marcelo Tangioni, Mastercard’s Caribbean Division President emphasizes the technology company’s commitment to transformational advancement, stating: “Mastercard is steadfast in its goal of expanding its footprint throughout the Caribbean. Advances in technology like the Smart Islands program can help to strengthen economies, foster stronger relationships with MSEs, and increase financial inclusion. The Caribbean has strong digital momentum, and that momentum is the key to future digital evolution.” The Caribbean has strong digital momentum, and that momentum is the key to future digital evolution