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INVESTMENT OPPORTUNITIES IN NICHE TOURISM INVESTMENT OPPORTUNITIES IN NICHE TOURISM

The historic andcontemporary

nature of Saint Lucia

makes it the true investment

paradise.

CONTENTS

SAINT LUCIA AT A GLANCE

VALUE PROPOSIT ION

TOURISM SECTOR OVERVIEW

INVESTMENT OPPORTUNIT IES IN NICHE TOURISM

INVESTMENT READY PROJECTS

INVESTMENT ENVIRONMENT

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INVESTMENT OPPORTUNITIES IN NICHE TOURISM INVESTMENT OPPORTUNITIES IN NICHE TOURISM

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SAINT LUCIATHE CARIBBEAN’S MOST BEAUTIFUL DESTINATION…

Saint Lucia is a fascinating tourism

destination, considered by many to be the most beautiful island in the

Caribbean. Famed for its natural beauty, hospitality and warmth of its people,

Saint Lucia presents a unique value proposition to secure a solid return

on investment.

SAINT LUCIA AT A GLANCEGovernment

Official LanguageLocation

Climate

AreaTopographyPopulation

AirportsMain sea ports

Electrical StandardTelecommunications

Time ZoneTravel Time

CurrencyExchange Rate

Inflation RateUnemployment Rate

Adult Literacy RateLabour Force

GDP

Independent, Parliamentary Democracy.English (French Creole widely used as a second language)21 miles south of Martinique; 26 miles to the north of St. Vincent; 110 miles north east of BarbadosTropical tempered by the northeast trade winds, mean temperature 28*C (82*F); 616 sq km (238 sq miles) Habitable: 207.9 sq. milesMountainous, intersected by numerous short rivers. 172,811 (2013)Hewanorra International and G.F.L. CharlesPort Castries and Port Vieux FortVoltage - 220/240 V Frequency - 50Hz Plug - G3G, 4G, high speed broadband (optical fibre)EST+1; GMT-4UK and other Europe - 8 hours; North America - 4 hours averageEastern Caribbean Dollar (ECD)1 USD = 2.70 ECD 1.5%23.3% (2013)72.8% (2010 census) 55.9%

US $1.32 billion

INVESTMENT OPPORTUNITIES IN NICHE TOURISM INVESTMENT OPPORTUNITIES IN NICHE TOURISM

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VALUE PROPOSIT IONVALUE HERITAGE Saint Lucia’s rich history and cultural heritage present a unique and authentic cultural experience that cannot be replicated anywhere else. The island’s French heritage remains very present in the creole language which is widely spoken, the mouthwatering cuisine, music, dance, expression and architecture. The island’s first European colonizers, the French named her “Sainte Lucie’ (Saint Lucia) and she is distinguished for having changed hands between the English and French 4 times, earning her the name “Helen of the West Indies”.

GEOGRAPHYThe many natural and manmade sites and attractions – lush hillside vegetation, tropical rainforest, waterfalls, the magnificent Pitons, the Sulphur Springs, fishing and coastal villages, banana plantations, beaches and spectacular sunsets all add to the charm of Saint Lucia.

PRODUCT DIVERSITYSaint Lucia’s tourism product is indeed diverse, encompassing small and intimate inns situated in scenic, remote and private locations to major hotels perched on tranquil beachfronts. The northernmost part of the island is famously known as the entertainment hot spot, with exquisite internationally acclaimed restaurants that cater to a wide range of tastes, offering a variety of international cuisine. On the other hand, the south and surrounding coastal villages cater to the spontaneous excursionist and adventure seeker with an array of soft adventure activities including hiking, biking, mountain climbing, waterfalls, eco-tours and ultra-chic boutique hotels.

Tourism is the leading economic sector in Saint Lucia, contributing an estimated 10% of GDP and direct employment for approximately 20,000 employees.

The Saint Lucia Government’s policy has been to encourage investment in unique, sustainable and responsible world class projects that complement the existing tourism product and infrastructure. The policy encourages investments that contribute to the preservation of historic and cultural traditions in Saint Lucia and diversify the product offerings.

Saint Lucia is characterized as a high-end, luxury, boutique destination. The tourism product is varied and continues to develop rapidly, offering investors a full range of accommodation, amenities and ancillary services.

Saint Lucia is a leading tourism destination and decorated recipient of international awards and accolades for her natural beauty, luxuryand romance.

Total visitor arrivals for 2013 was mixed; stay over and cruise visitors both increased by 3.9% to 318, 626 and 594,118 respectively. Whereas there was a decline in yachting visitors from 2012 to 2013, this segment has grown over the last six (6) years by 82.4% from a low of 22,422 arrivals in 2008.

TOURISM SECTOR OVERVIEW

INVESTMENT OPPORTUNITIES IN NICHE TOURISM INVESTMENT OPPORTUNITIES IN NICHE TOURISM

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Cruise liners such as Celebrity, Carnival, Norwegian, Royal Caribbean International, Oceana Cruises and AIDA Cruises visit Saint Lucia. Cruise arrivals have also remained strong, a testament to the draw of the location and the strong demand for the variety oftours and amenities available on the island.The number of cruise visitors and ship calls are slowly recovering but have not yet neared the highs experienced in 2009 and 2010.

The USA remained the top source market for stay over visitor arrivals with growth of 11.5% over 2012. This was followed by arrivals from the Caribbean, Germany and the Rest of the World growing at rates of 7.9%, 4.8 % and 16.2% respectively.

The total number of stay over arrivals has generally increased since the onset of the financial crisis, signifying the steady recovery of the sector. Arrivals from Europe are also expected to increase due to the removal of bands C and D of the UK’s Air Passenger Duty (APD) effective April 1st, 2015. This is expected to reduce the cost of travel out of the UK to Saint Lucia. Efforts to increase the number of major carriers to the island are ongoing in traditional and new markets and it is therefore expected that arrivals will continue to increase in the foreseeable future.

Tourist Arrivals 2008-2013. Saint Lucia Tourist Board and Saint Lucia Economic and Social Review 2012

Year 2009 2010 2011 2012 2013Stay Over 278,491 305,937 312,370 306,801 318,626Cruise 699,306 670,043 630,304 571,894 594,118Yachts 31,997 32,052 41,708 42,173 39,646Total 1,009,794 1,008,032 984,382 920,868 952,390

Source Market 2013 Arrivals Market ShareUSA 128,331 40%UK 70,868 22%Caribbean 60,521 19%Canada 35,985 11%Rest of Europe 8,844 3%Germany 3,316 1%France 5,464 2%Rest of World 5,297 2%Total 318,626 100%

Year to Date, Stay-over Arrivals Report (December 2013), Saint Lucia Tourist Board

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Source: Saint Lucia Tourist Board

Year to Date, Stay-over Arrivals Report (December 2013), Saint Lucia Tourist Board

Six Senses is presently under construction.

Source Market 2013 Arrivals Market ShareUSA 128,331 40%UK 70,868 22%Caribbean 60,521 19%Canada 35,985 11%Rest of Europe 8,844 3%Germany 3,316 1%France 5,464 2%Rest of World 5,297 2%Total 318,626 100%

Expenditure by Market (2013)

Source Market Average daily expenditure

Average length of stay

Total arrivals Estimated total expenditure

Percent share

USA $ 306.14 7.7 128,331 $302,514,313 48%

UK $ 170.34 11.1 70,868 $133,995,372 21%

Caribbean $ 157.92 6.8 60,521 $64,512,965 10%

Canada $ 238.66 9.4 35,985 $80,512,502 13%

Other Europe $ 174.91 11.0 17,624 $33,831,203 5%

Other World $ 242.05 11.7 5,297 $15,032,923 2%

Total $ 226.57 8.7 318,626 $630,399,278 100%

Source: St. Lucia Tourist Board, Annual Stats Report 2013 (all currencies in US dollars)

Saint Lucia enjoys direct connectivity to most major US gateways and the United Kingdom. There are two airports; most visitors flying into Saint Lucia from international destinations go through the Hewanorra International Airportin the south. LIAT, Air Caraibes and Caribbean Airways service regional travel from the George F L Charles Airport in the capital, Castries.

Saint Lucia’s accommodation sector has performed relatively strong, recording an increase in bed-nights of 5.7% for 2013 over 2012. Demand for accommodation continues to outweigh supply. The island’s tourism plant encompasses a mix of self-contained villas, luxury condominiums and over 4,000 rooms available in more than 92 properties.

Both local and foreign investors are active in the accommodation sector in Saint Lucia with market leaders such as Sandals owning 3 properties and boasting a total of 801 rooms. Other iconic, boutique resorts and luxury brands include Bay Gardens Resorts, Sugar Beach a Viceroy Resort, Six Senses, Landings, Cap Maison, Capella at Marigot Bay, Hotel Chocolat and Ladera.

Visitors from the US market account for 48% of all expenditure with an average stay of 7.7 days at the highest rate of daily expenditure of $306.14. Visitors from the Rest of the World stayed in Saint Lucia the longest at an average of 11.7 days and had the second highest daily expenditure of $ 242.05. The UK had the second largest share of expenditure for the year 2013 at 21%.

City Flight Time CarrierMiami 3.5 American AirlinesNew York 4.5 JetBlueBoston 4.5 JetBlueToronto 5 Air Canada, West Jet, SunwingNew Jersey 5 United AirlinesNew York 5 DeltaAtlanta 5 DeltaFrance 7 CondorManchester 7 Thomas CookCharlotte 6 US AirwaysPhiladelphia 5 US AirwaysLondon 8 British Airways, Virgin Atlantic

The tourism sector has recorded positive growth over the first eight months of 2014 which can be attributed to the airlift and marketing programmes. Stay-over arrivals for that period totaled 236,763; a 7% increase from the previous year. Saint Lucia main source market (USA) recorded an increase of 14% from the previous year totaling 102,243 for the period (January-August). The UK, Canada, Germany and rest of Europe also recorded growth of 7%, 10%, 20% and 18% respectively. Stay-over arrivals for 2014 are expected to grow by 5%.

Market 2014USA 102,243 UK 50,410 Caribbean 38,510 Canada 28,525 Rest of Europe 7,019 Germany 2,463 France 4,411 Rest of World 3,182 Total 236,763

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Saint Lucia is uniquely positioned as a high end destination with award winning, boutique hotels, world-class accommodations, stunning vistas and clusters of ancillary facilities. The prospects for growth and development of the tourism sector in Saint Lucia are strong and healthy, offering investors a plethora of opportunities for involvement in the following:

TYPES OF INVOLVEMENT:•Equitypartnershiportotalinvestment•Jointventures•Strategicalliancesand/or

partnershipswithinternationallyrecognizedoperators

Saint Lucia has been recognized as the “Best Island in the Caribbean” in 2013 by Global Traveler and has been awarded the world’s leading honeymoon destination nine times by the World Travel Awards.

THE SAINT LUCIA TOURISMINDUSTRY IS OPEN FORINVESTMENT…With large acreages of available land ideally suited for tourism, Saint Lucia offers discerning investors a secure and stable environment to invest in strategic tourism ventures. Investment opportunities exist in the following:

HIGH-END BRANDED HOTELS AND RESORTSSaint Lucia provides investors with potentially lucrative opportunities for greenfield development in high-end branded hotels and resorts. Investment opportunities exist for operators and international brands.

CHIC BOUTIQUE PROPERTIESSaint Lucia presents an ideal location for boutique hotel investments. The island has a proven track record in this segment with award winning properties - Cap Maison, Anse Chastanet and Jade Mountain, Ladera, Hotel Chocolat, Bay Gardens Resorts, etc.

INVESTMENT OPPORTUNIT IES IN NICHE TOURISM

HEALTH & WELLNESS FACIL IT IESSaint Lucia’s natural beauty, traditional remedies and healing springs complements the tourism product. Opportunities exist for the establishment of spas, wellness, recuperative care, diagnostic facilities, and specialized facilities.

ECO LODGES AND ENVIRONMENTAL LE ISURE PARKSA mix of natural and manmade sites and attractions - tropical rainforest, waterfalls, the Pitons, the Sulphur Springs, fishing villages, banana plantations, and spectacular sunsets all add to the charm of Saint Lucia. The island’s natural assets and growing awareness of the need to protect and conserve the environment have contributed to a thriving niche for soft adventure with investments in eco lodges and environmental leisure parks.

STATE OF THE ART ENTERTAINMENT ESTABLISHMENTSSaint Lucia plays host to music and food festivals as well as international sporting events that enhance the travelers’ experience. The staging of such events presents excellent opportunities for business interests in state of the art entertainment establishments.

SPECIALTY RESTAURANTS, ART GALLERIES , SHOPPING ESTABLISHMENTS, ANIMATION CENTRES AND EL ITE MERCHANDISING The need for investments in value added tourism services has been recognized as a key component of the overall tourism product. Investments in Specialty Restaurants, Art Galleries, Shopping Establishments, Animation Centres and Elite Merchandising will add new dimensions to Saint Lucia’s versatile and dynamic tourism sector. This will provide investors with a brand new set of investment opportunities.

CRUISE PORTS AND MARINASWith the planned expansion in the global cruise and yachting sectors, Saint Lucia is poised to benefit from increased visitors and port calls. Upgrades to the existing infrastructure with integrated leisure marina facilities that include amenities - retail, restaurants walk ways, chandlery services, provisioning, boat repair and maintenance and are all real opportunitiesfor investment.

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QUALIF IED INVESTMENT READY PROJECTS

LeParadis

JadeSea

PortCastriesRedevelopment

MorneLeBlanc

OceanGrandeResorts

For more information on investment ready projects, contact Invest Saint Lucia.

INVESTMENT READY PROJECTS INVESTMENT ENVIRONMENT1. INCORPORATING A COMPANY IN SAINT LUCIA

Incorporation of companies must be done through a lawyer registered in Saint Lucia. The three step process is simple: a. Application for name search and name reservation; b. Filing of articles of incorporation with the Registrar of Companies (Declaration of Compliance, Memorandum of Association, articles of Association); c. Payment of fees and issuance of Certificate of Incorporation within 3-5 business days

2. TRADE LICENSES All foreign companies who intend to conduct business in Saint Lucia must obtain a Trade License. Trade Licenses are issued by the Ministry of Commerce on a monthly basis.

3. REGISTERING FOR VALUE ADDED TAX (VAT) VAT is levied at a standard rate of 15%, the accommodation and other tourism related services is levied at 10%. Any business activity that exceeds the established threshold EC$180,000 is required to apply for registration for VAT.

4. WORK PERMITS Under the Foreign National and Commonwealth Citizens (Employment) Regulation, No. 3 of 1971, all persons who are not Saint Lucian or OECS nationals or citizens require a work permit to engage in any form of occupation on the island.

5. PLANNING & BUILDING APPROVALS If a company is desirous of constructing a building or developing land it must apply for permission from the Development Control Authority and other regulatory agencies for areas such as Environment, Health and Safety.

6. INCENTIVES The Government of Saint Lucia provides incentives to encourage the development of the Tourism Industry by providing relief from income tax and customs duties to approved tourism products. These include but are not limited to accommodation, restaurants, sites and attractions, and other ancillaries directly related to the sector.

Castries

Marigot Bay

Anse La Raye

Canaries

Choiseul

Micoud

Dennery

Soufriere

Caribbean Sea

Gros Islet

Vieux Fort

Hewanorra int'l Airport

GFL CharlesAirport

Rodney Bay

Petit Piton

Gros Piton

Mon Repos

Desruisseaux

Belle Vue

Laborie

DerniereRivière

GrandRivière

GrandeAnse

Marquis

Monchy

Babonneau

La Croix Maingot

Soucis

Mt Gimie

Atlantic Ocean

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TherearebasicprocedurestobefollowedwheninvestinginSaintLucia.Theseinclude:

INVESTMENT OPPORTUNITIES IN NICHE TOURISM

TO INVEST CONTACT US TODAY:(758) 457 3400

1st Floor Heraldine Rock Building Waterfront Castriesinfo@investstlucia.comwww.investstlucia.com

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