investor perception survey of cariforum - caribbean · pdf file3.3 fdi determinants ... only...

Investor Perception Survey of CARIFORUM

Report for the Caribbean Export Development Agency

29 July 2013

Final Report

Dr Henry Loewendahl and Mr Fernando M. Gutierrez

fDi Intelligence – Financial Times Limited

[email protected] / +44 207 775 6318

[email protected] / +44 203 239 3224

Table of Contents

1 Executive summary ...................................................................................................3

2 Introduction to the survey ..........................................................................................5

2.1 Background ........................................................................................................5

2.2 Design ................................................................................................................5

2.3 Implementation ..................................................................................................5

3 Survey results ...........................................................................................................6

3.1 Respondent profile .............................................................................................6

3.2 Location of investment .......................................................................................8

3.3 FDI determinants .............................................................................................. 10

3.4 Expansion plans ............................................................................................... 11

3.5 Sector opportunities ......................................................................................... 13

3.6 Overall attractiveness ....................................................................................... 14

3.7 The business environment ............................................................................... 14

3.8 Labour availability, skills, and costs .................................................................. 17

3.9 Incentives ......................................................................................................... 19

3.10 R&D capability ................................................................................................. 20

3.11 Infrastructure .................................................................................................... 21

3.12 Quality of life and security ................................................................................ 22

3.13 Product development ....................................................................................... 22

3.14 Key selling messages ...................................................................................... 23

3.15 Institutional support .......................................................................................... 24

4 Rankings ................................................................................................................. 26

4.1 Overall rankings ............................................................................................... 26

4.2 Country rankings .............................................................................................. 27

5 Country results ........................................................................................................ 28

5.1 Antigua and Barbados ...................................................................................... 28

5.2 The Bahamas ................................................................................................... 29

5.3 Barbados.......................................................................................................... 30

5.4 Belize ............................................................................................................... 32

5.5 Dominica .......................................................................................................... 33

5.6 Dominican Republic ......................................................................................... 34

5.7 Grenada ........................................................................................................... 35

5.8 Guyana ............................................................................................................ 36

5.9 Haiti .................................................................................................................. 37

5.10 Jamaica ........................................................................................................... 38

5.11 Saint Lucia ....................................................................................................... 40

5.12 St Vincent & the Grenadines ............................................................................ 41

5.13 St. Kitts & Nevis ............................................................................................... 42

5.14 Suriname.......................................................................................................... 43

5.15 Trinidad & Tobago ............................................................................................ 44

6 Conclusions and implications .................................................................................. 45

6.1 Investment promotion strategy ......................................................................... 45

6.2 Importance of investment promotion ................................................................ 46

6.3 Competitiveness assessment ........................................................................... 47

6.4 Country implications ......................................................................................... 47

6.5 Recommendations ........................................................................................... 51

Appendix A Survey Letter ......................................................................................... 53

Appendix B Survey questionnaire ............................................................................. 54

1 Executive summary Over 100 investors surveyed A survey of 101 companies was conducted between November 2012 and February 2013 to understand investor perceptions of the CARIFORUM region and member states as a key input into FDI strategy and investment policies. The survey captured a broad cross-section of foreign and national companies across sectors and countries, with the majority of respondents medium or large-sized companies. The breakdown of respondents by country of operation largely reflects the size of each economy, as would be expected.

The CARIFORUM market is the key driver for investment The surveyed companies are investing in CARIFORUM primarily to access the regional market, national markets, and because of political & economic stability, labour availability & skills, and low operating costs. The primary motive is market-seeking and validates the importance of CARIFORUM and the market access it provides. In fact, over 80% of companies said market access was good or better in 11 of the 15 CARIFORUM countries. The other key motives for investment in the region are related to the low operating risks and competitiveness for efficiency-seeking operations, which are generally export-oriented.

CARIFORUM rated an attractive place for investment Almost half of respondents (48%) rate CARIFORUM countries as attractive or very attractive for investment. Only 10% of respondents rated CARIFORUM countries as unattractive for investment.

More investment planned, especially in finance and agribusiness Half of the companies are considering further investment in the region, indicating the strong potential for FDI. The financial services and agribusiness sectors had the most expansion plans (these were also the two largest sectors of the survey respondents), followed by BPO, energy, and tourism. Jamaica and Trinidad & Tobago were the most favoured locations for expansion, followed by Dominican Republic. Overall, Trinidad & Tobago was rated the most attractive country for investment, by over 80% of companies.

Tourism seen as the strongest sector for FDI in the region

Tourism was clearly seen as the sector offering the best overall investment opportunities for the region, followed by agribusiness, financial services, renewable energy, and ICT.

Stability is a key strength in the business environment Political stability is seen as the top strength of the region. In every country, except Haiti, over half of companies saw the region as having good political stability. For CARIFORUM countries as a whole, 86% of respondents saw political stability as good or better. Barbados was overall rated as having the best regulatory environment, although no country excelled in this category. In fact, 35% of all respondents rated the red tape/regulations in CARIFORUM countries as weak or very weak. Only R&D capability received a lower rating.

Labour market and cost advantages key strengths for many countries Across all CARIFORUM countries, 85% of respondents rated the labour availability as good, very good, or excellent. This proportion was over 90% for Jamaica, Dominican Republic, and Trinidad & Tobago. All companies rated education and skills in Trinidad & Tobago as good and 96% did so for Barbados. Only in Haiti and Antigua & Barbuda did half or more companies’ rate education and skills as weak or very weak. In terms of cost advantages, nearly all companies rated Dominican Republic, Trinidad & Tobago, Guyana, and Suriname as having good cost advantages. Dominican Republic was seen as most cost advantageous. For Barbados, The Bahamas, Antigua & Barbuda and Grenada half or more companies rated cost advantages as weak or very weak.

Tax incentives very important for companies Over half of companies stated that income tax exemptions influenced their decision to invest. Repatriation of capital, profits, and dividends, preferential trade agreement and market access, and customs exemptions were also seen as important. Incentives and taxation was seen as the most important improvement the region could make to attract more investment, followed by economic growth, more free trade agreements and market access, and better good governance.

R&D capability seen as weak in the region The R&D capability of countries was perceived to be the weakest location determinant. Not a single company cited the R&D capability in any country as excellent. Across all CARIFORUM countries, 40% of respondents rated the R&D capability as weak or very weak. Overall, Trinidad & Tobago was rated as having the strongest R&D capability.

Infrastructure good, but not excellent All countries, with the exception of Haiti, were seen as having good transport and ICT infrastructure. However, there is clearly room for improvement with very few companies seeing the transport infrastructure as excellent.

Quality of life very high, but the security situation varies considerably The overall quality of life is seen as very high. Over 70% of companies cited it as good or better in every country, except Haiti, despite security concerns in several countries.

Political stability and strategic location the key selling messages Investors were asked what the key selling messages are for FDI in the region. Political stability and a strategic location, with access to USA and Latin America, were most frequently cited. Natural beauty/climate/tourism was the next most important selling message followed by labour availability and skills, and the regional market.

Investors looking for more engagement from IPAs Over 60% of companies would like support from IPAs – almost double the proportion of companies who have actually had contact with IPAs (less than 10% of companies have heard of CAIPA). Companies are primarily looking for support with market research,

financing & incentives, business partnering, and operational set-up. Very few companies mentioned the need for support with post-establishment and site visits.

2 Introduction to the survey

2.1 Background

Caribbean Export is the regional trade and investment promotion agency of the 15 member states of CARIFORUM. To inform the regional investment promotion strategy for CARIFORUM, the fDi Intelligence division of the Financial Times Ltd was contracted by Caribbean Export to conduct an investor perception survey. The investor perception survey is intended to increase understanding of the factors that have and will influence the investment decisions of foreign and local investors in the region, and to provide an analysis of current and future trends and prospects given the perception of the regional investment climate. This report presents the key findings of the investor perception survey.

2.2 Design

The survey design was the result of extensive consultation between Caribbean Export and the FDI experts in fDi Intelligence. The survey design drew extensively on the experience of the fDi Intelligence team in conducting similar surveys for UNCTAD, AT Kearney’s “FDI Confidence Index” and the Japanese Ministry of Economy, Trade and Industry (METI). The survey questionnaire is shown in the Appendix. Companies surveyed included existing foreign investors, major domestic companies, and potential foreign investors. They were identified using the fDi Markets database of fDi Intelligence, Dun & Bradstreet, Stock Market listings in each country, and information provided by the investment promotion agencies in the CARIFORUM region. A cross-section of companies were selected in key target sectors as defined by the Regional Investment Promotion Steering Committee (Software/ICT, Agribusiness & Tourism, Energy, Mining & Financial services) and were selected from all of the 15 member states of CARIFORUM (Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St. Kitts and Nevis, Saint Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago). In total, 1,127 companies were identified to be included in the survey. Of these companies 39% were locally-headquartered companies, 49% were foreign investors, and 12% were foreign companies identified in fDi Markets as having FDI plans for the Caribbean region.

2.3 Implementation

fDi Intelligence developed and hosted a web-based survey tool, so that companies could complete the questionnaire online. The survey team followed-up with emails and by telephone. Only questionnaires completed by a decision-maker familiar with the company’s investment strategy for the Caribbean region or its operations in the region were included in the survey results shown below.

The survey was implemented over the period November 2012 to February 2013. Out of the 1,127 companies that were sent the survey questionnaire, full responses were received from 101 companies, which is a 9% response rate. This is a high response rate for investor surveys as the typical response rate is around 3-5%. The high response rate can be attributed to the strong interest shown by local companies, who accounted for 75% of responses.1 The response rate for the foreign investors surveyed was 4%, which is the typical response rate to be expected. The response rate was 2.3% for potential investors. The low response rate for this category of investor is most likely due to the companies being in the planning stage of new investment projects, which made them sensitive to completing surveys about investment plans. It should be noted, however, that 50 local and foreign respondents are planning or considering further investment in the region, so the overall survey does capture a high proportion of potential investors.

3 Survey results

3.1 Respondent profile

Over half of respondents who completed the survey were in the top executive positions, as can be seen in Chart 1 below. Including Directors and Vice Presidents, almost three-quarters (73%) of respondents were senior executives and 95% were Manager level or above. The results of the survey are therefore likely to be very accurate regarding the investor perceptions. Chart 1: Respondent position

Chart 2 below shows the main sectors survey respondents are operating in.

The most prevalent sector was financial services, with 31% of companies operating in this sector. This reflects the strength of the Caribbean as a financial services location. Agribusiness and consumer goods were the next most important sectors, followed by energy and the software/ICT sector.

1It should be noted that “local” companies are defined by the location of the ultimate parent headquarters, which includes

the Caribbean-based holding companies of essentially foreign-owned companies. Furthermore, many “local” companies are also investing in other countries in CARIFORUM so also can be regarded as foreign investors.

52%

21%

22%

5%

CEO/CFO/CIO/Chairman/President/MD/GM

Director/VP

Manager

Other

Survey responses: 101

Chart 2: Sector analysis

Chart 3 below shows the principal activities of the companies surveyed, which is important because the activity of an investment project often has a key influence on the location of investment. Chart 3: Activity analysis

We can see that nearly one-quarter of companies are manufacturing, which was the main activity. The manufacturing companies are primarily involved in agribusiness, consumer goods, industrial goods, and other industrial sectors. Sales & marketing was the next main activity after manufacturing and a high proportion of companies are also in

31%

12% 12%

7% 7% 6% 4% 4% 3% 2% 2%

6% 4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

24% 21%

14%

11% 8% 8% 8%

4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%



customer support, indicating the attractiveness of the Caribbean for this business activity. Many of sales & marketing and customer support companies were in the financial services sector. More than one in nine companies are in strategic business functions – headquarters and R&D. Chart 4 below shows the turnover band of companies. We can see that over 20% of companies had more than $100m turnover and over two-thirds of companies had a turnover more than $10m. The survey captures medium and large-sized companies.

Chart 4: Turnover band of companies

3.2 Location of investment

Almost all of the companies surveyed had at least one operation in CARIFORUM, as can be seen in Chart 5 below. Chart 5: Countries companies have operations in (% of respondents)

Trinidad & Tobago had the highest percentage of companies with an operation there, followed by Barbados and Jamaica. On average each company had an operation in 1.84

31.2%

31.2%

17.2%

7.5%

6.5%

6.5%

<$10m

$10-50m

$50-100m

$101-200m

$201-500m

>$501m

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%



countries, which suggests that the surveyed companies should have good knowledge of the CARIFORUM investment environment. Companies were asked about the size of employment in each location. The highest employment was in Trinidad & Tobago, followed by Dominican Republic, Jamaica, and Barbados. The same countries were all in the top four countries ranked by number of operations. Likewise, the four locations with the lowest employment (St Vincent & the Grenadines, Haiti, Dominica, and Suriname) had the lowest number of operations. Chart 6: Employment by location

In total, the companies employ 54,876 people in CARIFORUM in 166 operations. The average sized operation employs 331 people. This is almost the same as the average size of all the FDI projects in CARIFORUM from 2003-2013, which is 319 jobs (Source: fDi Markets). This suggests that the survey sample accurately reflects the size of FDI projects in the region. To test whether the survey results by country are accurate, we correlated the size of employment in each country, as stated by the survey respondents, with the GDP of each country, based on the assumption that market size is the key determinant of FDI.2 We found a very high correlation, as can be seen in Chart 7, which shows that the level of employment in each country reflects what would be expected by the size of each country’s market.3 This suggests that the survey provides a reliable cross-section of companies in CARIFORUM countries.

2 Market size was stated as the key location determinant by investors in this study (see Chart 9) and the evidence

overwhelmingly shows that FDI regionally and globally is primarily market-seeking. For example see: UNCTAD (1993) Explaining and Forecasting Regional Flows of FDI; Deutsche Bundesbank (2005) Tax incentives and the location of FDI: evidence from a panel of German multinationals; and Financial Times (April 2012) The fDi Report. 3 Dominican Republic and Haiti were excluded from this analysis, as employment in the survey companies was too low

relative to size of their economies. While the second highest employment among survey companies was in fact in Dominican Republic, the survey results do still under represent the volume of investors in the country. In the case of Haiti, the low employment noted in the responses is more reflective of the weaker performance of Haiti in attracting FDI.

19,194

9,320 8,006

4,593 4,238 2,643 2,284 1,622 1,080 769 401 265 233 122 105

5,000

10,000

15,000

20,000

25,000


Chart 7: Correlation between employment (in survey companies) and market size (GDP)

Chart 8 below shows the average size of employment per company in each country. Trinidad & Tobago has the largest investments, followed by Dominican Republic and Jamaica. Chart 8: Average employment per company in each country

3.3 FDI determinants

Companies were asked to state the three principal drivers in their decision to locate in CARIFORUM/Caribbean or to consider future investment. The most frequently cited factors, as can be seen in Chart 9 below, were access to the regional CARIFORUM market and access to national country markets i.e. market seeking motives. The next most important factor was political and economic stability, demonstrating the importance of the stability for investors, a factor which has become heightened in importance following the world recession, debt crisis in Europe, and instability in many parts of the world, all of which have made many companies more risk averse.

R² = 0.8648

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

0 5 10 15 20 25 30

Emp

loym

en

t in

co

mp

anie

s

GDP PPP $ billion

1,066

548 445

326 283 270 242

176 83 70 66 58 41 33 26

0

200

400

600

800

1000

1200


The next most commonly cited factors were labour availability/skills and low operating costs, factors of particular importance for business services companies, followed by the regulatory environment and incentives. While only four companies mentioned family or local ties as a key driver, 28% of companies said they were a member of the CARIFORUM/Caribbean diaspora. Chart 9: Key drivers to invest in CARIFORUM

3.4 Expansion plans

Companies were asked to state whether they have expansion plans for CARIFORUM or the Caribbean over the next 12-24 months. As Chart 10 below shows, over one-fifth of companies have expansions plans and exactly half of companies either have plans or possibly will expand. This shows that there is high interest from existing investors in expanding their operations in the region.

Chart 10: Expansion plans in CARIFORUM/Caribbean in next 12-24 months

19%

13%

11% 10% 10%

7%

6%

4% 4% 3% 3% 3% 3% 2%

1% 1% 0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Acce

ss t

o t

he

CA

RIF

OR

UM

ma

rke

t

Acce

ss t

o t

he

co

un

try m

ark

et

Po

litic

al/e

co

no

mic

sta

bili

ty

La

bo

ur

ava

ilab

ility

/skill

s

Lo

w o

pe

ratin

g c

osts

Re

gu

lato

ry e

nvir

on

me

nt

Ince

ntive

s

Infr

astr

uctu

re &

acce

ssib

ility

ICT

in

fra

str

uctu

re

Su

pp

liers

rela

ted

in

du

str

ies

Se

cu

rity

Tra

ck r

eco

rd

Na

tura

l re

so

urc

es/c

lima

te

Site

s/p

rop

ert

y o

ffe

r

Fa

mily

/lo

ca

l tie

s

Tim

e z

on

e/p

roxim

ity t

o h

ea

d o

ffic

e

R&

D e

nvir

on

me

nt

Yes 21%

No 50%

Possibly 29%



The two biggest sectors for companies with expansion plans are agribusiness and financial services, as can be seen in Chart 11 below. Almost two-thirds of companies with expansion plans were in these sectors. BPO was the next major activity, accounting for nearly one-quarter of companies planning expansion. The BPO companies cut across different sectors, and include financial services firms. The energy and tourism sectors have the next highest number of companies planning expansion. In terms of companies’ possible expansion, financial services is the major sector followed by the energy and tourism sectors, each with the same number of companies planning expansion.

Chart 11: Expansion plans in CARIFORUM/Caribbean in the next 12-24 months

Overall, the financial services sector offers the best potential for further investment from the surveyed companies followed by agribusiness, energy and BPO, and tourism. In terms of the countries companies are considering for investment, Chart 12 shows that the largest proportion of companies are considering expansion in Jamaica and Trinidad & Tobago, followed by Dominican Republic. These countries are also the top three countries ranked by current employment, as seen in Chart 6 above. Chart 12: Expansion plans in CARIFORUM by country (% respondents)

33% 33%

24%

14%

10%

21%

7%

3%

14% 14%

0%

5%

10%

15%

20%

25%

30%

35%

Financial services Agribusiness BPO Energy Tourism

Yes

Possibly


Interestingly, over three-quarters (76%) of companies are considering expansion in a country different from their current location, which indicates the regional expansion of both foreign and indigenous companies. In fact, 45% of companies said they have a regional strategy for investing in CARIFORUM countries.

3.5 Sector opportunities

Companies were asked which three sectors have the best opportunities for investment in the CARIFORUM region in the next 5 years (in general, not just for their company). Over two-thirds (69%) of companies thought tourism has the best investment opportunities, as can be seen in Chart 13 below. Chart 13: Sectors with the best investment opportunities (% respondents citing sector)

26%

24%

16%

11%

8%

5% 5% 5% 5%

3% 3% 3%

0%

5%

10%

15%

20%

25%

30%

69%

45% 41%

37% 34%

19%

13% 13% 11% 10% 9% 8% 8% 6% 4% 4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

To

uri

sm

Ag

rib

usin

ess

Fin

an

cia

l se

rvic

es

Re

ne

wa

ble

en

erg

y

Te

leco

m &

co

mm

un

ica

tio

ns

He

alth

& W

elln

ess

Co

al, O

il &

Na

tura

l G

as

Lo

gis

tics &

dis

trib

utio

n

BP

O

Min

ing

IT &

So

ftw

are

Co

nsu

me

r g

oo

ds

Pro

fessio

na

l se

rvic

es

Oth

er

Ind

ustr

ial g

oo

ds

R&

D a

ctivitie

s



After the tourism sector, over two-fifths of companies thought agribusiness and financial services had the best investment opportunities followed by over one-third of companies citing renewable energy and ICT. Industrial goods and R&D were cited by the fewest number of companies as sectors with the best investment opportunities.

3.6 Overall attractiveness

Companies were asked to rate the overall attractiveness of each CARIFORUM country. From 95 responses, Trinidad & Tobago was clearly seen as the most attractive country as an investment location, with 80% of companies rating Trinidad & Tobago attractive or very attractive. Barbados, The Bahamas, Dominican Republic, Jamaica, and Guyana were all seen as attractive or very attractive by over half of companies. Suriname and Haiti were seen as least attractive. Chart 14: Attractiveness of CARIFORUM countries as an investment location?

3.7 The business environment

Companies evaluated the business environment of each CARIFORUM country in terms of economic stability, political stability, regulatory environment, and market access. Over two-thirds of companies rated economic stability as good, very good, or excellent in 10 of the 15 CARIFORUM countries, as can be seen in Chart 15 below.

Chart 15: Economic stability in CARIFORUM countries

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

An

tigu

a &

Bar

bu

da

Bah

amas

Bar

bad

os

Be

lize

Do

min

ica

Do

min

ican

Rep

ub

lic

Gre

nad

a

Gu

yan

a

Hai

ti

Jam

aica

St. K

itts

& N

evi

s

Sain

t Lu

cia

St V

ince

nt

& G

ren

adin

es

Suri

nam

e

Trin

idad

& T

ob

ago

Unsure

Unattractive

Limited Appeal

Attractive

Very attractive


Overall, the region is seen as economically stable. Only in Haiti (100% of companies), Grenada (73% of companies), and Dominica (71% of companies), did over half of companies rate economic stability as weak or very weak. Political stability is one the key strengths of CARIFORUM with every country, except Haiti, seen as politically stable by over half of companies. As Chart 16 below shows, in The Bahamas, Antigua & Barbuda, St. Kitts & Nevis, and St Vincent & the Grenadines 100% of companies saw these countries as politically stable.

Chart 16: Political stability in CARIFORUM countries

Chart 17 below shows the assessment of the regulatory environment, which covers political stability, red tape, and regulations.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Very Weak

Weak

Good

Very Good

Excellent

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Very Weak

Weak

Good

Very Good

Excellent



Chart 17: Regulatory environment in CARIFORUM countries

Over half of companies found every country to have a good, very good or excellent regulatory environment with the exception of Haiti and Guyana. Barbados was seen as having the best overall regulatory environment. However, only five countries had investors rating the regulatory environment as excellent and even in these cases the proportion was very low. No country had more than half of investors rating the regulatory environment as very good or excellent, indicating that there is room for improvement.

Market access is seen as one of the key strengths of the CARIFORUM countries, as Chart 18 below shows. In 11 countries, market access was rated as good or better by over 80% of companies and only in Haiti did more than half of companies see market access as weak or very weak. Chart 18: Market access in CARIFORUM countries

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Very Weak

Weak

Good

Very Good

Excellent

0%10%20%30%40%50%60%70%80%90%

100%

An

tigu

a &

Bar

bu

da

Bah

amas

Bar

bad

os

Be

lize

Do

min

ica

Do

min

ican

Rep

ub

lic

Gre

nad

a

Gu

yan

a

Hai

ti

Jam

aica

St. K

itts

& N

evi

s

Sain

t Lu

cia

St V

ince

nt

& G

ren

adin

es

Suri

nam

e

Trin

idad

& T

ob

ago

Very Weak

Weak

Good

Very Good

Excellent



However, Saint Lucia and St. Kitts & Nevis were the only locations where 100% of companies saw market access as good or better. In many other countries a significant proportion of companies did see market access as weak or very weak, such as in St Vincent & the Grenadines (33% of companies), Grenada (27% of companies), Antigua & Barbuda (25% of companies), and Guyana (20% of companies), indicating that market access could be improved further in many countries.

3.8 Labour availability, skills, and costs

There is a mixed picture from the region in terms of labour availability, reflecting the difference between countries with large populations and small-island economies. As can be seen in Chart 19, Jamaica, Dominican Republic, Trinidad & Tobago, and Barbados were rated as having the best labour availability, with over 90% of companies stating labour availability to be good or better. For Jamaica, 100% of companies rated labour availability as good or better. Haiti and Grenada were the lowest rated and were the only countries, together with Antigua & Barbuda, where some investors rated the country as very weak in labour availability.

Chart 19: Labour availability in CARIFORUM countries

As Chart 20 below shows, in terms of labour skills and education, Trinidad & Tobago and Barbados are rated the most attractive countries, with 100% of companies rating the skills & education in Trinidad & Tobago as good or better and 96% for Barbados.

Chart 20: Labour skills and education in CARIFORUM countries

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Very Weak

Weak

Good

Very Good

Excellent


Haiti (80%) and Antigua & Barbuda (50%) had the highest proportion of companies rating skills & education as weak or very weak.

In terms of cost advantages, Dominican Republic, Trinidad & Tobago, Guyana, and Suriname were rated as the most cost advantageous locations with 90-100% of companies’ citing cost advantages as good or better. Dominican Republic was the clear leader, with 25% of companies rating cost advantages as excellent. Haiti also came out strongly, with the joint highest proportion of companies (38%) rating cost advantages as very good. Barbados, The Bahamas, Antigua & Barbuda, and Grenada were rated as highest cost, as can be seen in Chart 21 below.

Chart 21: Cost advantages of CARIFORUM countries

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Very Weak

Weak

Good

Very Good

Excellent

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Very Weak

Weak

Good

Very Good

Excellent



3.9 Incentives

Recognizing the importance that incentives can play in site selection decisions, and the on-going research by Caribbean Export to evaluate the incentives regimes in CARIFORUM, companies were asked which are the key incentives (if any) in their decision to invest in the CARIFORUM/Caribbean region, or to consider future investments. Chart 22 below shows the results. Well over half of companies (58%) stated that income tax exemptions were among the most important incentives influencing the decision to invest and nearly half of companies cited repatriation of capital profits & dividends. These responses support recent research by fDi Intelligence, which found a very close relationship between corporate tax rates and the FDI performance of countries worldwide.4 Chart 22: Three most important incentives influencing decision to invest in CARIFORUM

Preferential trade agreements were cited by over two-fifths of companies (42%) as among the three most important incentives influencing the decision to invest. With 45% of companies making country investments as part of a CARIFORUM regional strategy, this finding provides further evidence that the existence of CARIFORUM is very important in influencing FDI in the region. In terms of the comparison across countries, Chart 23 below shows that St. Kitts & Nevis, St Lucia, Antigua & Barbuda, and Belize were seen as having the best incentives (rated excellent or very good) followed by Dominican Republic and Trinidad & Tobago. Haiti was seen as having the weakest incentives, with 71% of companies citing incentives in Haiti as either weak or very weak.

4See The fDi Report 2013, published by fDi Intelligence, Financial Times Ltd in April 2013

58%

48%

42% 39%

33%

22% 22% 21% 19%

10% 7%

0%

10%

20%

30%

40%

50%

60%

70%

Inco

me

Ta

x E

xe

mp

tio

n

Re

pa

tria

tio

n c

ap

ita

l p

rofits

&d

ivid

en

ds

Pre

fere

ntia

l T

rad

e A

gre

em

en

ts

Cu

sto

ms o

n E

qu

ipm

en

tE

xe

mp

tio

n

Cu

sto

ms o

n R

aw

Ma

teri

als

Exe

mp

tio

n

Ta

x C

red

its

Exp

ort

Du

tie

s E

xe

mp

tio

n

Cu

sto

ms o

n B

uild

ing

Ma

teri

als

Exe

mp

tio

n

La

nd

co

nce

ssio

ns

Pro

pe

rty T

axe

s E

xe

mp

tio

n

Acce

lera

ted

De

pre

cia

tio

n


Chart 23: Incentives in CARIFORUM countries

3.10 R&D capability

The R&D capability of CARIFORUM countries is seen as one of the weakest components of the location offer of countries. Although the majority of investors cited the R&D capability as good or better in all of the countries except four (Haiti, Guyana, Suriname, and Dominican Republic), not a single country was rated as having an excellent R&D capability, and only in Trinidad & Tobago did a reasonable proportion of companies (33%) rate R&D as very good. As Chart 24 shows, over one-third of companies rated the R&D capability as weak or very weak in every country, with the exception of Trinidad & Tobago, St Vincent & the Grenadines, and Barbados.

Chart 24: R&D capability in CARIFORUM countries

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Very Weak

Weak

Good

Very Good

Excellent

0%10%20%30%40%50%60%70%80%90%

100%

An

tigu

a &

Bar

bu

da

Bah

amas

Bar

bad

os

Be

lize

Do

min

ica

Do

min

ican

Rep

ub

lic

Gre

nad

a

Gu

yan

a

Hai

ti

Jam

aica

St. K

itts

& N

evi

s

Sain

t Lu

cia

St V

ince

nt

& G

ren

adin

es

Suri

nam

e

Trin

idad

& T

ob

ago

Very Weak

Weak

Good

Very Good

Excellent



3.11 Infrastructure

Investor perception of the transport infrastructure in CARIFORUM varies considerably across countries, as Chart 25 shows. Chart 25: Transport infrastructure in CARIFORUM countries

While very few investors saw the transport infrastructure as excellent, the majority of companies cited the transport infrastructure as good or better in every country except Haiti. The ICT infrastructure is generally seen as being pretty good across the region. Over two-thirds of companies rated the ICT infrastructure as good or better in 12 of the 15 countries, with the exception of Haiti, Guyana, and Grenada, although even in these last two countries over 60% of companies rated it as good or better. As Chart 26 shows, in The Bahamas and Barbados 100% of companies rate it good or better.

Chart 26: ICT infrastructure in CARIFORUM countries

0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Very Weak

Weak

Good

Very Good

Excellent



3.12 Quality of life and security

Quality of life is one of the key differentiating strengths of the region, with over 70% of companies rating it good or better in every country except Haiti, as Chart 27 shows. Chart 27: Quality of life in CARIFORUM countries

Investor perception on security in the region varies quite dramatically across countries. In Antigua & Barbuda, The Bahamas, Barbados, Dominica, Grenada, St. Kitts & Nevis, Saint Lucia, and St Vincent & the Grenadines a minimal number of companies see the security situation as weak or very weak. In contrast, in Haiti, Jamaica, Guyana, and Trinidad & Tobago well over half of companies see security as weak or very weak. The other countries fall somewhere in the middle, as can be seen in Chart 28.

Chart 28: Security in CARIFORUM countries

3.13 Product development

0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Very Weak

Weak

Good

Very Good

Excellent



Companies were asked to comment under what circumstances they would consider further or new investment in CARIFORUM countries. The comments were analysed with the results shown in Chart 29 below.

Chart 29: Factors which would make CARIFORUM more attractive for investment

We can see that incentives/tax is the most frequently cited factor that would encourage companies to invest (cited by 26% of companies), followed by more economic growth in the region. The next two most important factors were, equally, more free trade agreements/market access and better good governance, which covers issues of bureaucracy and red tape, transparency, and the legal system.

3.14 Key selling messages

Companies were asked to comment qualitatively on what they think are the principal selling messages for investment in the CARIFORUM/ Caribbean region as a whole. Chart 30 below compiles the results, showing that the joint two key selling messages were seen (by 28% of companies) as the political stability of the region and its strategic location. The strategic location was cited in relation to proximity to the USA and to the fast growing markets of Latin America. The natural beauty, climate, and tourism attraction of the region was the next most cited key selling message, mentioned by nearly one-quarter of companies, followed by labour skills and/or availability. Regional market access and free trade agreements are also seen as a key selling message, mentioned by 15% of companies. Chart 30: Key selling messages for investing in the region

26%

17%

11% 11% 9% 9%

6% 6% 6% 3% 3% 3% 3%

0%

5%

10%

15%

20%

25%

30%


3.15 Institutional support

Companies were asked if they have heard of the Caribbean Association of Investment Promotion Agencies (CAIPA). As Chart 31 shows, over 90% of companies had not heard of CAIPA, indicating very weak awareness of the organization. Chart 31: Have you heard of (CAIPA)?

Companies were also asked to indicate which investment promotion organizations they had heard of in CARIFORUM countries. JAMPRO was the agency with the greatest

28% 28%

23%

19%

15%

12% 12% 10% 10% 10%

9% 9%

6% 5%

4% 4% 4% 3%

0%

5%

10%

15%

20%

25%

30%

Yes, 9.2%

No, 90.8%



awareness, with 8 companies mentioning JAMPRO. Following JAMPRO, was Invest TT (4 companies), and then the IPAs from Barbados and Belize (3 companies each).

Companies were also asked the more general question of whether or not they have had contact with an IPA from the Caribbean. Nearly one-third of companies said they had, as can be seen in Chart 33 below.

Chart 33: Have you had contact with an IPA in the Caribbean?

Companies were asked if they expect pre-investment support or after care services to be provided by an investment promotion organisation? Chart 34 below shows that over 60% of companies said yes, while only 15% said no. This shows a clear disconnect between awareness and contact with IPAs in the region and the support companies would like to receive from IPAs.

Chart 34: Do you expect pre-investment support/after-care services provided by an IPA?

Companies were asked more specifically what kind of business support services they would find most valuable, with each company able to give up to 3 responses. As can be seen in Chart 35 below, the two most frequently cited support services were market research (62% of companies) and financing and incentives (58% of companies). Other frequently cited business support services were business partnering (41% of companies) followed by support with setup, registration & licenses, location research, and support with visas and immigration. Interestingly, less than 10% of companies cited support with

Yes 31%

No 69%

Yes 61%

No 15%

Not Sure 25%



post-establishment and site visits, which are typically two of the most important functions of most IPAs.

Chart 35: Business support services most valuable (% of companies citing factor)

Companies showed a strong interest in receiving information about investment opportunities in the region from Caribbean Export Development Agency, as can be seen in Chart 36 below, with over three-quarters of companies requesting information.

Chart 36: Would you like to receive communications from CEDA?

4 Rankings

4.1 Overall rankings

Chart 37 below ranks locations by the percentage of respondents stating the country as attractive or very attractive for investment. The chart also includes CARIFORUM, which is the average rating from all respondents. We can see that just under half of respondents (48%) rated CARIFORUM countries as attractive or very attractive and only 10% of respondents rated CARIFORUM countries as unattractive. The countries with above and below average attractiveness can be clearly seen.

62% 58%

41%

29% 28%

20% 17%

10% 9% 9% 3% 2%

0%

10%

20%

30%

40%

50%

60%

70%M

ark

et

rese

arc

h

Fin

an

cin

g a

nd

ince

ntive

s

Bu

sin

ess p

art

ne

rin

g

Se

t-u

p,

reg

istr

atio

n &

lice

nce

s

Lo

ca

tio

n r

ese

arc

h

Vis

as a

nd

im

mig

ratio

n

Re

cru

itm

en

t/H

R

Off

ice

sp

ace

an

d s

ite

s

Po

st-

esta

blis

hm

en

tsu

pp

ort

Site

vis

its

Oth

er

No

ne

Yes 77%

No 24%



Chart 37: Ranking by % of respondents stating location as attractive or very attractive

Chart 38 below shows the assessment of CARIFORUM countries across different location factors, with the factors ranked based on the percentage of respondent stating the countries as good, very good, or excellent. The graph shows the overall ranking for all CARIFORUM countries.

Chart 38: Location factors ranked by % respondents stating factor as good or better

We can see that political stability, quality of life, labour availability, market access, and ICT infrastructure are all rated well, with 85-86% of investors rating these factors as good or better. R&D and red tape/regulations are seen as the weakest factors, with 35-40% of investors rating these factors as weak or very weak across all CARIFORUM countries.

4.2 Country rankings

0%10%20%30%40%50%60%70%80%90%

100%

Unsure

Unattractive

Limited Appeal

Attractive

Very attractive

0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent



Table 1 below shows the ranking of each country across all location factors. Countries are ranked based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. The table shows the strengths and weaknesses of each country relative to other CARIFORUM countries. Countries may have the same ranking when they have the same proportion of investors rating their country as good or better. Table 1: County rankings by factor

Country

An

tig

ua

&

Barb

ud

a

Th

e B

ah

am

as

Barb

ad

os

Beli

ze

Do

min

ica

Do

min

ican

Rep

ub

lic

Gre

na

da

Gu

yan

a

Hait

i

Jam

aic

a

Sain

t L

uc

ia

St

Vin

cen

t &

the

G

ren

ad

ine

s

St.

Kit

ts &

N

evis

Su

rin

am

e

Tri

nid

ad

&

To

ba

go

Economic stability 8 5 6 8 13 4 14 1 15 10 7 10 12 1 3

Political stability 1 1 5 12 11 8 14 13 15 6 7 1 1 9 10

Red tape/regulations 3 6 1 8 11 7 3 14 15 12 3 13 2 9 10

Market access 12 5 4 9 9 8 13 11 15 3 1 14 1 6 6

Labour availability 12 8 4 5 6 2 14 7 15 1 9 13 9 9 3

Education & skills 14 5 2 4 10 7 12 3 15 6 12 10 7 7 1

Cost 12 14 15 8 11 4 12 3 5 7 5 10 9 1 1

Incentives 10 14 8 13 10 6 4 10 15 8 1 4 2 7 3

R&D 9 5 3 8 10 12 10 14 15 7 5 2 4 13 1

Transport infrastructure

8 3 1 12 10 2 12 14 15 7 4 10 4 9 6

ICT infrastructure 6 1 1 8 8 5 13 14 15 4 7 12 8 8 3

Quality of life 3 1 1 12 9 14 13 11 15 6 4 9 6 6 5

Security 6 7 5 9 1 9 1 13 15 14 1 1 8 9 12

5 Country results

5.1 Antigua and Barbuda

Overall, Antigua & Barbuda is ranked as the 8th most attractive country in CARIFORUM for investment, as can be seen in Chart 37 above. Fewer than 40% of respondents rated Antigua & Barbuda as attractive or very attractive for investment, which is below the average for CARIFORUM countries. Chart 39 below shows the specific strengths and weaknesses of Antigua & Barbuda. Political stability, quality of life and security are rated as good or better by more than 90% of investors. ICT infrastructure, transport infrastructure, market access, and red tape/regulations are also strong location factors in Antigua & Barbuda, rated as good or better by over 70% of investors. The weakest location factors in Antigua & Barbuda are perceived to be education & skills, cost levels, and R&D capability.


Table 2 below shows the ranking of Antigua & Barbuda across each location factor.

Table 2: Antigua & Barbuda ranking by factor

Location Factor Ranking

Political stability 1

Red tape/regulations 3

Quality of life 3

ICT infrastructure 6

Security 6

Economic stability 8

Transport infrastructure 8

R&D 9

Incentives 10

Market access 12

Labour availability 12

Cost 12

Education & skills 14

The ranking is based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. Antigua & Barbuda is highest ranked for political stability (joint first in CARIFORUM), red tape/regulations, and quality of life. It is ranked weakest for education & skills, costs, labour availability, market access, and incentives.

5.2 The Bahamas

Overall, The Bahamas is ranked as the 3rd most attractive country in CARIFORUM for investment, as can be seen in Chart 37 above. Almost two-thirds of respondents rated The Bahamas as attractive or very attractive for investment. Chart 40 below shows the specific strengths and weaknesses of The Bahamas. Political stability, quality of life and ICT infrastructure are rated as good or better by 100% of respondents. Political stability is the strongest factor, with over 70% of respondents rating it as excellent or very good. Around 90% of respondents also rated security, market access, transport infrastructure, and economic stability as good or better in The Bahamas.

0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent

Survey responses: 14-17

The weakest location factors in The Bahamas are perceived to be cost levels, incentives, and R&D capability.


Table 3 below shows the ranking of The Bahamas across each location factor. The ranking is based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. The Bahamas is joint first place in CARIFORUM for political stability, quality of life, and ICT infrastructure and ranked third for transport infrastructure. It is ranked weakest for costs, labour availability and incentives – in both cases ranked 14th in CARIFORUM. Table 3: The Bahamas ranking by factor



Quality of life 1




R&D 5

Market access 5



Security 7


Incentives 14

Cost 14

5.3 Barbados

Overall, Barbados is ranked as the 2nd most attractive country in CARIFORUM for investment, as can be seen in Chart 37 above. 69% of respondents rated Barbados as attractive or very attractive for investment.

0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent


Chart 41 below shows the specific strengths and weaknesses of Barbados. Quality of life and ICT infrastructure are rated as good or better by 100% of investors. Political stability, education & skills, security, red tape/regulations, labour availability and transport infrastructure are also key strengths, with over 90% of investors rating these factors as good or better. Overall, political stability and quality of life are the strongest factors, rated excellent or very good by over 60% of investors.

The weakest location factors in Barbados are perceived to be cost levels, incentives, and R&D capability. The majority of investors find cost advantages to be weak in Barbados. However, it should be noted that Barbados was not viewed as very weak for any factor.


Table 4 below shows the ranking of Barbados across each location factor. The ranking is based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. Barbados is ranked first place for more factors than any other country, including first place for red tape/regulations and transport infrastructure and joint first place for quality of life and ICT infrastructure. Barbados is also ranked second place for education & skills and third for R&D capability. Barbados only ranks below average for incentives and costs – where it is the lowest ranked country. Table 4: Barbados ranking by factor


Quality of life 1





R&D 3

Market access 4



Security 5


Incentives 8

Cost 15

0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent


5.4 Belize

Overall, Belize is ranked as the joint 8th most attractive country in CARIFORUM for investment, as can be seen in Chart 37 above. Fewer than 40% of respondents rate Belize as attractive or very attractive for investment, which is below the average for CARIFORUM countries. Chart 42 below shows the specific strengths and weaknesses of Belize. Political stability, labour availability, market access, quality of life, and education & skills are rated as good or better by at least 80% of investors. The strongest factor is certainly seen to be political stability, which is rated as excellent or very good by over half of investors.

The weakest location factors in Belize are perceived to be R&D capability, incentives, transport infrastructure, and red tape/regulations.


Table 5 below shows the ranking of Belize across each location factor. The ranking is based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. Belize is highest ranked education & skills and labour availability – both factors for which it ranked above the average for CARIFORUM. It is ranked weakest for incentives, transport infrastructure, quality of life, and political stability. Therefore, while quality of life and political stability were among the strongest factors in Belize, compared to other countries these are not relative strengths. Table 5: Belize ranking by factor




Cost 8



R&D 8


Market access 9

0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent


Security 9


Quality of life 12


Incentives 13

5.5 Dominica

Overall, Dominica is ranked as the least attractive country in CARIFORUM for investment, as can be seen in Chart 37 above. Only 16% of respondents rated Dominica as attractive for investment, the lowest proportion among CARIFORUM countries. Chart 43 below shows the specific strengths and weaknesses of Dominica. Security is seen as the key strength, with 100% of investors stating security to be good. Political stability, labour availability, market access, and quality of life are rated as good or better by more than 80% of investors


The weakest location factors in Dominica are perceived to be economic stability, R&D capability, costs, and red tape/regulations. Economic stability was seen as weak by over 70% of investors, which is very likely the reason for Dominica coming out bottom in overall attractiveness. Table 6 below shows the ranking of Dominica across each location factor. The ranking is based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. Dominica is highest ranked and joint first place for security and ranked 6th place for labour availability. It is ranked weakest for economic stability, political stability, red/tape regulations, and costs. Table 6: Dominica ranking by factor


Security 1



Market access 9

Quality of life 9

0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent



R&D 10


Incentives 10

Cost 11




5.6 Dominican Republic

Overall, Dominican Republic is ranked as the 4th most attractive country in CARIFORUM for investment, as can be seen in Chart 37 above. 64% of respondents rated Dominican Republic as attractive or very attractive for investment. Chart 44 below shows the specific strengths and weaknesses of Dominican Republic.


Labour availability, ICT infrastructure, political and economic stability, transport infrastructure and cost advantages are rated as good or better by at least 90% of investors, which shows the broad ranging strengths of Dominican Republic as an FDI location. Cost advantages and labour availability were two outstanding strengths, with many investors rating these factors as excellent or very good. The weakest location factors in Dominican Republic are perceived to be R&D capability, red tape/regulations, and security. Table 7 below shows the ranking of Dominican Republic across each location factor. The ranking is based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. Dominican Republic is highest ranked for labour availability and transport infrastructure (both ranked second) followed by cost advantages and economic stability. Dominican Republic is ranked weakest for quality of life (rank 14), R&D capability and security. Table 7: Dominican Republic ranking by factor


0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent




Cost 4



Incentives 6



Market access 8


Security 9

R&D 12

Quality of life 14

5.7 Grenada

Overall, Grenada was ranked as the joint 12th most attractive country in CARIFORUM for investment, as can be seen in Chart 37 above. Less than one-third of respondents rated Grenada as attractive or very attractive for investment, which is below the average for CARIFORUM countries. Chart 45 below shows the specific strengths and weaknesses of Grenada. Security is the main strength ranked as very good or good by 100% of investors. Incentives, red tape/regulations, market access, and quality of life are the next main strengths, cited as good or better by over 70% of investors.

The weakest location factors in Grenada are perceived to be economic stability, R&D capability, costs, and political stability. Over 70% of investors stated economic stability to be weak or very weak.


0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent


Table 8 below shows the ranking of Grenada across each location factor. The ranking is based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. Grenada is highest ranked for security (joint first in CARIFORUM), followed by red tape/regulations and incentives. For all other factors, Grenada is ranked below the average in CARIFORUM and is ranked 14th place for political stability, economic stability, and labour availability. Table 8: Grenada ranking by factor


Security 1


Incentives 4

R&D 10


Cost 12



Market access 13

Quality of life 13




5.8 Guyana

Overall, Guyana is ranked as the 6th most attractive country in CARIFORUM for investment, as can be seen in Chart 37 above. Just over half of respondents rated Guyana as attractive or very attractive for investment, which is above the average for CARIFORUM countries. Chart 46 below shows the specific strengths and weaknesses of Guyana. Political stability is the main strength, which is rated as good or better by 100% of investors. Cost advantages is also a key strength, rated as good or better by over 90% of investors and rated as very good by nearly 40%. Labour availability, market access, quality of life and education & skills are rated as good or better by over 80% of investors.

The weakest location factors in Guyana are perceived to be red tape/regulation, security, and R&D, each rated as weak or very weak by over half of investors.


Table 9 below shows the ranking of Guyana across each location factor. The ranking is based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. Guyana is highest ranked for economic stability (joint first in CARIFORUM), followed by cost and education & skills. It is ranked weakest for ICT infrastructure, transport infrastructure, R&D, and red tape/regulations, and also very low for political stability and security. Table 9: Guyana ranking by factor



Cost 3



Incentives 10

Market access 11

Quality of life 11

Security 13



R&D 14



5.9 Haiti

Overall, Haiti was ranked as the 14th most attractive country in CARIFORUM for investment, as can be seen in Chart 37 above. 24% of respondents rated Haiti as attractive or very attractive for investment, which is significantly below the average for CARIFORUM countries. Chart 47 below shows the specific strengths and weaknesses of Haiti. Costs are seen as the key strength, rated good or better by more over 70% of investors. Market access is rated as good by 40% of investors and labour availability as good or excellent by one-third of investors.

0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent


The weakest location factors in Haiti are perceived to be red tape/regulations, political stability, security, economic stability, ICT infrastructure, and R&D capability. All were rated as very weak or weak by 100% of investors.


Table 10 below shows the ranking of Haiti across each location factor. The ranking is based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. Haiti is ranked lowest for every factor except for cost, where it is ranked 5th place.

Table 10: Haiti ranking by factor


Cost 5




Incentives 15

Market access 15

Quality of life 15

Security 15



R&D 15



5.10 Jamaica

Overall, Jamaica is ranked the 5th most attractive country in CARIFORUM for investment, as can be seen in Chart 37 above. 56% of respondents rated Jamaica as attractive or very attractive for investment, which is above the average for CARIFORUM countries.

0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent


Chart 48 below shows the specific strengths and weaknesses of Jamaica. Labour availability is rated as good or better by 100% of investors, and is a key strength. Political stability, market access, and ICT infrastructure are rated as good or better by over 90% of investors. Nearly half of investors’ rate market access as excellent or very good. Around 40% of investors also rate political stability, ICT infrastructure and education & skills as excellent or very good.

The weakest location factor in Jamaica is perceived to be security, with nearly 70% of investors rating security as weak or very weak. Red tape/regulations, R&D, and economic stability are the next weakest factors.


Table 11 below shows the ranking of Jamaica across each location factor. The ranking is based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. Jamaica is highest ranked for labour availability (first in CARIFORUM), followed by market access and ICT infrastructure. It is ranked weakest for security, red tape/regulations, and economic stability. Table 11: Jamaica ranking by factor



Market access 3



Quality of life 6


Cost 7

R&D 7


Incentives 8



Security 14

0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent


5.11 Saint Lucia

Overall, Saint Lucia was ranked as the 7th most attractive country in CARIFORUM for investment, as can be seen in Chart 37 above. 49% of respondents rated Saint Lucia as attractive or very attractive for investment, which is just above the average for CARIFORUM countries. Chart 49 below shows the specific strengths and weaknesses of Saint Lucia. Market access and security are rated as good or better by 100% of investors. Political stability, quality of life, incentives, and transport infrastructure are rated as good or better by 85-95% of investors.

The weakest location factors in Saint Lucia are perceived to be education & skills, R&D capability, labour availability, and red tape/regulations.


Table 12 below shows the ranking of Saint Lucia across each location factors. The ranking is based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. Saint Lucia is highest ranked for incentives (first in CARIFORUM) and market access and security (ranked joint first in CARIFORUM). Red tape/regulations, quality of life, and transport infrastructure are also ranked highly. Saint Lucia is ranked weakest for education & skills and labour availability. Table 12: Saint Lucia ranking by factor


Market access 1

Incentives 1

Security 1


Quality of life 4


Cost 5

R&D 5



0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent





5.12 St Vincent & the Grenadines

Overall, St Vincent & the Grenadines is ranked as the joint 12th most attractive country in CARIFORUM for investment, as can be seen in Chart 37 above. 32% of respondents rated St Vincent & the Grenadines as attractive or very attractive for investment, which is significantly below the average for CARIFORUM countries. Chart 50 below shows the specific strengths and weaknesses of St Vincent & the Grenadines. Political stability is the strongest factor, rated as very good or good by 100% of investors, followed by security which is rated as good by 100% of investors. Quality of life, incentives, and R&D capability are also strong location factors in St Vincent & the Grenadines, rated as good by over 80% of investors.

The weakest location factors in St Vincent & the Grenadines are perceived to be red tape/regulations and costs.


Table 13 below shows the ranking of St Vincent & the Grenadines across each location factor. The ranking is based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. St Vincent & the Grenadines is highest ranked for security and political stability (joint first in CARIFORUM), followed by R&D capability and incentives. It is ranked weakest for market access, labour availability, and red tape/regulations.

Table 13: St Vincent & the Grenadines ranking by factor


Security 1


R&D 2

Incentives 4

0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent


Quality of life 9


Cost 10






Market access 14

5.13 St. Kitts & Nevis

Overall, St. Kitts & Nevis is ranked as the 10th most attractive country in CARIFORUM for investment, as can be seen in Chart 37 above. 38% of respondents rated St. Kitts & Nevis as attractive or very attractive for investment, which is below the average for CARIFORUM countries. Chart 51 below shows the specific strengths and weaknesses of St. Kitts & Nevis. Political stability and market access are key strengths, rated as very good or good by 100% of investors. Red tape/regulations, quality of life, security, transport infrastructure, and incentives are also strong location factors in St. Kitts & Nevis, rated as good or better by over 80% of investors.

The weakest location factors in St. Kitts & Nevis are perceived to be costs, R&D capability, and economic stability.


Table 14 below shows the ranking of St. Kitts & Nevis across each location factor. The ranking is based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. St. Kitts & Nevis is highest ranked for political stability and market access (joint first in CARIFORUM), followed by incentives, red tape/regulations, R&D, and transport infrastructure. It is ranked weakest for economic stability.

0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent


Table 14: St. Kitts & Nevis ranking by factor



Market access 1

Incentives 2


R&D 4


Quality of life 6


Security 8


Cost 9



5.14 Suriname

Overall, Suriname was ranked as the 11th most attractive country in CARIFORUM for investment, as can be seen in Chart 37 above. 34% of respondents rated Suriname as attractive or very attractive for investment, which is significantly below the average for CARIFORUM countries. Chart 52 below shows the specific strengths and weaknesses of Suriname.


Costs and economic stability are the key strengths, rated as very good or good by 100% of investors. Political stability, market access, and quality of life are also strong location factors in Suriname, rated as good or better by over 80% of investors. The weakest location factor in Suriname is perceived to be R&D capability, with nearly 60% of investors rating it as weak, followed by red tape/regulations.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Very Weak

Weak

Good

Very Good

Excellent


Table 15 below shows the ranking of Suriname across each location factor. The ranking is based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. Suriname is ranked best for cost and economic stability (joint first in CARIFORUM). It is ranked weakest for R&D capability (rank 13th). For other factors, Suriname is around the average of the region. Table 15: Suriname ranking by factor


Cost 1


Market access 6

Quality of life 6

Incentives 7






Security 9


R&D 13

5.15 Trinidad & Tobago

Overall, Trinidad & Tobago was ranked as the most attractive country in CARIFORUM for investment, as can be seen in Chart 37 above. 80% of respondents rated Trinidad & Tobago as attractive or very attractive for investment, much higher than for any other CARIFORUM country. Chart 53 below shows the specific strengths and weaknesses of Trinidad & Tobago.


Costs and education & skills are the strongest factors, rated as good or better by 100% of investors. Economic stability, ICT infrastructure, labour availability, quality of life, and R&D are also very strong location factors in Trinidad & Tobago, rated as good or better by at least 90% of investors.

0%10%20%30%40%50%60%70%80%90%

100%

Very Weak

Weak

Good

Very Good

Excellent


The weakest location factor in Trinidad & Tobago is security, with nearly 60% of investors rating this as weak or very weak, followed by red tape/regulations.

Table 16 below shows the ranking of Trinidad & Tobago across each location factor. The ranking is based on the percentage of the respondents rating the country as good, very good, or excellent for the factor. Trinidad & Tobago is ranked number one in CARIFORUM for education & skills and R&D capability and joint first for cost advantages. Trinidad & Tobago is also highly ranked for economic stability, incentives, ICT infrastructure, and labour availability. It is ranked weakest for security, red tape/regulations, and political stability. Table 16: Trinidad & Tobago ranking by factor


Cost 1


R&D 1


Incentives 3



Quality of life 5

Market access 6




Security 12

6 Conclusions and implications

6.1 Investment promotion strategy

This is the first major investor perception study specifically covering the CARIFORUM region and all its member states. The 101 companies responding to the survey employ almost 55,000 people in 166 operations in CARIFORUM. One of the most important findings of the study is the importance investors place on access to markets in influencing their investment decision. The CARIFORUM regional market and national markets were the most important investment motives. Furthermore, nearly half of companies (45%) have a regional strategy for investing in CARIFORUM countries. This suggests that:

“Policies to further integrate and expand CARIFORUM will increase FDI to the region” Political and economic stability was the next most important investment motive, followed by labour availability and skills and lower costs, which are most important for export-oriented manufacturing and services investment. “Political and economic stability and the competitiveness of CARIFORUM for efficiency-

seeking investment are key motivations for FDI” Half of investors polled are planning or considering further investment in CARIFORUM and over three-quarters of companies are planning expansion in a country in the region

different from where their current operation is. The countries most favoured for expansion are Jamaica, Trinidad & Tobago, and Dominican Republic, which reflects the importance of market-seeking motives as these are the largest markets in CARIFORUM.

“Local and foreign investors are increasingly adopting a pan-regional investment strategy. There is very strong potential for re-investment. Working closely with existing

investors in CARIFORUM can help secure new investment projects”

Investors ranked the tourism, agribusiness, financial services, renewable energy, and ICT sectors as the most attractive sectors for FDI, which suggests that:

“While respondents were most represented in the financial and agribusiness sectors they also see significant opportunities in tourism, renewable energy, and ICT, which should be

considered key target sectors for attracting new FDI” To attract FDI, investors think the key selling messages for CARIFORUM are its political stability and strategic location, followed by the climate/tourism product, labour skills and availability, and access to regional and international markets (through FTAs). Over 80% of investors believe that CARIFORUM countries have good political stability, quality of life, labour availability, market access, and ICT infrastructure. “Promotional arguments for investing in CARIFORUM should emphasize political stability and the strategic location of the region. Messaging should also focus on market size and

access, labour availability & skills, and the outstanding quality of life of the region”

6.2 Importance of investment promotion

While the investors responding to the survey have 166 operations in CARIFORUM, they have very limited awareness of investment promotion agencies. Less than 10% of companies had heard of CAIPA and over three-quarters of companies have had no contact with an IPA from the region, while at the same time over 60% of companies want to receive investment support and over three-quarters requested contact from Caribbean Export. This clearly shows that:

“There is a critical need for awareness creation among both foreign companies and major “national” companies who are also expanding in different countries within

CARIFORUM, and are therefore potential foreign investors as well” In terms of pre-investment support, only 15% of companies said they were not interested in support. Market research was the most frequently cited support required followed by finance and incentives, business partnering, operations set-up, location research, visa & immigration, and recruitment. To provide these services, the major challenge is to ensure that existing and potential investors are aware of the services available and the IPAs providing them. While investor targeting is essential to ensure that IPAs from the region are on the map of strategic companies, this can only reach a small fraction of the investment community. Marketing activities including focused advertising and events and utilizing the latest technologies, in particular optimized websites and mobile apps, to promote the region should also be considered to raise awareness and disseminate the information investors are looking for.

“To increase awareness of the IPAs and services available, proactive targeting of strategic investors combined with focused advertising, events, and electronic marketing

techniques should be considered”

6.3 Competitiveness assessment

Investors were asked to identify the factors that would make CARIFORUM more competitive for FDI. Providing more incentives and tax benefits stood out as the most frequently cited factor, mentioned by over one-quarter of companies. The importance of incentives reflects the desire of every company to pay less tax and receive more grants! However, it also suggests that incentives could be improved as while 70% of companies rated incentives as good or better, only 17% of companies thought that incentives were excellent or very good and it was ranked one of the weakest competitiveness factors in CARIFORUM overall. “CARIFORUM and its member states should consider how to make their incentives and

tax regimes more attractive for FDI, while not diminishing public finances, non-discrimination in the allocation of incentives, or the sustainability of investment”

The second most frequently cited factor to attract more FDI was economic growth, which reflects market-seeking motives for FDI. This emphasises the importance of policies and structural reforms in CARIFORUM that improve long-term economic growth potential. Market access was the third most frequently cited factor, in terms of access to both regional and international markets, such as through FTAs. “Policies to raise economic growth potential and to provide access to regional and global markets, such as through FTAs, are considered amongst the most important factors that

would increase FDI in CARIFORUM” Investors also frequently cited “good governance” factors as important to attract more investment. This includes streamlining bureaucracy, reducing red tape, increasing transparency, and improving the legal framework for business. Red tape/regulations are seen as the weakest competitiveness factor in CARIFORUM countries, after R&D capability. Over one-third of investors rated red tape/regulations as weak or very weak.

“Good governance in investment facilitation and promotion can increase the volume of FDI in CARIFORUM”

The R&D capability of the region stood out as its main competitive weakness. Nearly 40% of investors saw the R&D capability of CARIFORUM countries as weak or very weak. This clearly impacts on the volume of R&D investment the region can attract.

“The R&D capability of CARIFORUM is the major competitive weakness of the region. Understanding the current capability and measures to raise R&D capability are essential

to attract higher volumes of R&D investment”

6.4 Country implications

Table 17 below summarizes the main country-specific findings of the study, highlighting the key relative strengths and weaknesses of each country. Key strengths were identified based on the country being ranked first to fourth in CARIFORUM for that factor in terms of the percentage of investors rating the country good or better. Weaknesses were identified based on the country being ranked 12th to 15th. The table, therefore, only shows the main strengths and weaknesses of each country relative to CARIFORUM as a whole.

Table 17: Key relative strengths and weaknesses by country*

Country

An

tig

ua

&

Barb

ud

a

Th

e B

ah

am

as

Barb

ad

os

Beli

ze

Do

min

ica

Do

min

ican

R

ep

ub

lic

Gre

na

da

Gu

yan

a

Hait

i

Jam

aic

a

Sain

t L

uc

ia

St

Vin

cen

t &

the

Gre

na

din

es

St.

Kit

ts &

Nevis

Su

rin

am

e

Tri

nid

ad

&

To

ba

go

Economic stability X X X X

Political stability X X X X

Red tape/ regulations

X X X X

Market access X X X X

Labour availability X X X X

Education & skills X X X X

Cost X X X X

Incentives X X X

R&D X X X X

Transport infrastructure

X X X X

ICT infrastructure X X X X

Quality of life X X X X

Security X X X X

* A tick is when the country is ranked 1-4 for the factor and a cross when ranked 12-15

Looking across countries, and based solely on investor perceptions, we can conclude that:

Antigua and Barbuda has key relative strengths in its political stability, red tape/regulations, and quality of life, which are unique selling points of the country relative to other countries. Its key relative weaknesses are in market access, labour availability, education & skills, and costs, which are the factors to improve in order to compete more effectively for FDI;

The Bahamas has key relative strengths in its political stability, transport and ICT infrastructure, and quality of life, which are unique selling points of the country relative to other countries. Its key relative weaknesses are in incentives and costs, which are the factors to improve in order to compete more effectively for FDI. For other factors, The Bahamas is middle-ranked and can also improve;

Barbados has key relative strengths in its red tape/regulations, market access, labour availability, education & skills, R&D capability, transport & ICT infrastructure, and quality of life, which are unique selling points of the country relative to other countries. Its key relative weaknesses are in costs. For other factors, Barbados is middle-ranked and can also improve;

Belize has a key relative strength in education & skills, which is the unique selling point of the country relative to other countries. Its key relative weaknesses are in political stability, incentives, transport infrastructure, and quality of life, which are the factors to improve in order to compete more effectively for FDI;

Dominica has a key relative strength in economic stability, which is the unique selling point of the country relative to other countries. Its key relative weakness is

in economic stability, which is the main factor to improve in order to compete more effectively for FDI. For other factors, Dominica is middle-ranked and can also improve;

Dominican Republic has key relative strengths in its economic stability, labour availability, costs, and transport infrastructure, which are unique selling points of the country relative to other countries. Its key relative weaknesses are in R&D capability and quality of life, which are the factors to improve in order to compete more effectively for FDI. For other factors, Dominican Republic is middle-ranked and can also improve;

Grenada has key relative strengths in its red tape/regulations, incentives, and security, which are unique selling points of the country relative to other countries. Its key relative weaknesses are in economic and political stability, market access, labour availability, education & skills, costs, transport and ICT infrastructure, and quality of life which are all factors to improve in order to compete more effectively for FDI;

Guyana has key relative strengths in its economic stability, education & skills, and costs, which are unique selling points of the country relative to other countries. Its key relative weaknesses are in political stability, red tape/regulations, R&D capability, transport and ICT infrastructure, and quality of life, which are the factors to improve in order to compete more effectively for FDI;

Haiti is relatively weak in all factors other than costs. Improvement is required across all factors in order to compete more effectively for FDI;

Jamaica has key relative strengths in market access, labour availability, and ICT infrastructure, which are unique selling points of the country relative to other countries. Its key relative weaknesses are in red tape/regulations and security, which are the main factors to improve in order to compete more effectively for FDI. For other factors, Jamaica is middle-ranked and can also improve;

Saint Lucia has key relative strengths in red tape/regulations, market access, incentives, transport infrastructure, quality of life, and security, which are unique selling points of the country relative to other countries. Its key relative weakness is in education & skills, which is the main factor to improve in order to compete more effectively for FDI. For other factors, Saint Lucia is middle-ranked and can also improve;

St Vincent & the Grenadines has key relative strengths in its political stability, incentives, R&D capability, and security, which are unique selling points of the country relative to other countries. Its key relative weaknesses are in red tape/regulations, market access, labour availability, and ICT infrastructure, which are the factors to improve in order to compete more effectively for FDI;

St. Kitts & Nevis has key relative strengths in its political stability, red tape/regulations, market access, incentives, R&D capability, and transport infrastructure, which are unique selling points of the country relative to other countries. Its key relative weakness is in economic stability, which is the main factor to improve in order to compete more effectively for FDI;

Suriname has key relative strengths in its economic stability and costs, which are unique selling points of the country relative to other countries. Its key relative

weakness is in R&D capability, which is the main factor to improve in order to compete more effectively for FDI. For other factors, Suriname is middle-ranked and can also improve; and

Trinidad & Tobago has key relative strengths in its economic stability, labour availability, education & skills, costs, incentives, R&D capability, and ICT infrastructure, which are unique selling points of the country relative to other countries. Its key relative weakness is in security, which is the main factor to improve in order to compete more effectively for FDI. For other factors, Trinidad & Tobago is middle-ranked and can also improve.

It is interesting to compare the results of investor perception survey with other rankings of countries in CARIFORUM. The World Economic Forum “Global Competitiveness Index (GCI)” includes seven CARIFORUM member countries in its 2012-13 ranking of 144 countries. Table 18 below compares their GCI ranking with their ranking in terms of attractiveness for investment (see Section 3.6, Chart 14 above). We can see that the ranking of CARIFORUM countries by their GCI is very similar to investors’ perception of their attractiveness. Barbados is ranked first in the region by its GCI and second by its attractiveness while Trinidad & Tobago is ranked first by its attractiveness and second by its GCI. The difference is very likely due to the larger market size and natural resources of Trinidad & Tobago, as Barbados would also have been ranked first in attractiveness when measured by the number of competitiveness indicators it is highly ranked in (see Table 17 above). The CARIFORUM ranking of Guyana, Suriname, and Haiti is the same in both the GCI ranking and attractiveness ranking. The close correlation between the GCI and the survey results suggest that the survey accurately compares and contrasts the countries in CARIFORUM in terms of competitiveness. Table 18: Comparison of GCI and investor perception attractiveness ranking Country (global GCI rank)

GCI rank in CARIFORUM (of 7 countries)

Attractiveness ranking from survey (of 7 countries)

Barbados (44) 1 2

Trinidad & Tobago (89) 2 1

Jamaica (97) 3 4

Dominican Republic (105) 4 3

Guyana (109) 5 5

Suriname (114) 6 6

Haiti (142) 7 7

Table 19 below provides a similar comparison between the World Bank “Doing Business Report 2013 (DB13)” and the attractiveness ranking. We can see that there is very little similarity between the two rankings, which is most likely because the “doing business in” climate is only one component of the FDI attractiveness of locations. The fact that China was ranked 91st in DB13 but 2nd in the world in terms of FDI inflows in 2012 shows how weak the link between the DB ranking and FDI attractiveness can be.

Table 19: Comparison of DB13 and investor perception attractiveness ranking

Country (DB13 rank) DB13 rank in CARIFORUM Attractiveness ranking from survey

Saint Lucia (58) 1 7

Antigua & Barbuda (63) 2 8

Dominica (68) 3 15

Trinidad & Tobago (69) 4 1

St Vincent & the Grenadines (75) 5 12

The Bahamas (77) 6 3

Barbados (88) 7 2

Jamaica (90) 8 5

St. Kitts & Nevis (96) 9 10

Grenada (100) 10 12

Belize (105) 11 9

Guyana (114) 12 6

Dominican Republic (116) 13 4

Suriname (164) 14 11

Haiti (174) 15 15

6.5 Recommendations

The key recommendations from the investor perception study are divided below into short-term and long-term recommendations. Short term recommendations The short-term recommendations focus on investment promotion and sector strategy.

Review promotional and marketing materials: It is important to ensure appropriate emphasis on the political stability and the strategic location of the region, market size and access, labour availability & skills, and the outstanding quality of life and tourism product, all of which were identified as key strengths of the region;

Conduct a study on R&D: R&D capability was identified as the major weakness of the CARIFORUM region and member states while, at the same time, it is very high value added and an essential component of economic development. A study to assess R&D market opportunities, regional and local R&D capability, and policies to attract R&D investment and raise competitiveness is recommended;

Sector targeting strategy: Review existing target sectors to ensure that tourism, agribusiness, financial services, renewable energy, and ICT are included as key target sectors, as they were clearly identified as sectors with strong investment potential in the perception study; and

Investor development strategy: Review existing approaches to investor development (“after-care”) to ensure there is a clear strategy for attracting re-investment from existing foreign investors as well as cross-border investment from national “CARIFORUM” companies, who are increasingly investing within the region. Investor development is typically implemented at the local level as it requires relationship-building with investors and often collaboration between different government departments (education, skills, infrastructure, utilities, immigration etc.). However, the identification and dissemination of best practices in investor development could be conducted at the regional level.

Long term recommendations The long-term recommendations focus on awareness creation activities that have value added in being conducted at the regional level, investor services provided by IPAs in the region, incentives and tax, and trade and economic policies.

Awareness creation: Greater awareness of the support IPAs can provide and the investment opportunities in the region and member states is needed. Activities which can create greater awareness include strategic company targeting (of both new and existing investors) and marketing activities. Awareness creation activities which have a clear value added for being conducted at the CARIFORUM region level should be identified, which are likely to include advertising, overseas events, and electronic marketing, all of which are likely to have significant economies of scale and advantages for the investor in being conducted at the regional level;

Investor services: The investor services provided by IPAs in the region should be reviewed to ensure they are aligned to the support services investors are looking for, in particular related to market research, information on tax and incentives, business partnering, operations set-up, location research, visa & immigration, and recruitment. Information available to investors should cover these areas and, ideally, be presented to investors in a similar format across the region;

Incentives and tax regime: Incentives and taxation remain a key area of importance for investors. Greater effectiveness, transparency, and coordination of incentives and tax policy across the region would be highly desirable, while at the same time ensuring as far as possible that incentives are not used either to “poach” investors from another member state or when they are not needed to “win” the investment as the investor would have come anyway;

Good governance: Improvements in good governance in investment promotion and facilitation are needed, especially in countries ranking low in the assessment of red tape/regulations and in the World Bank Doing Business rankings. Improving good governance is likely to be conducted more at the national rather than regional level, although some best practices could be shared across member states;

Regional integration: Further strengthen CARIFORUM and regional integration as this will have a positive impact on FDI inflows to the region, as one of the key drivers for investment in member states and as companies increasingly have a pan-regional investment strategy; and

Economic growth: As FDI is predominantly market-driven at the regional level, policies to encourage sustainable economic growth and regional and international market access will stimulate more FDI in the region.

Appendix A Survey Letter Financial Times Business has been commissioned by The Caribbean Export Development Agency to undertake an independent study, gathering opinion on the investment climate in the 15 countries of CARIFORUM. The Caribbean Forum (CARIFORUM) comprises the following Caribbean Community states: Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St. Kitts and Nevis, Saint Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad & Tobago. The project is funded by the European Union with the objective to foster closer economic integration between CARIFORUM countries and with the global economy. We would very much welcome your participation via our online survey. Your organisation has been selected specifically, and we highly value your opinion. The survey will take only ten minutes to complete. By completing this survey you will contribute to policies taken in the region to improve the business environment for investment. You will also be eligible to access the results and findings of the study. All information will remain strictly confidential. Your personal details and specific responses will not be published or made available. Kind Regards, Fernando Gutierrez Financial Times Business

Appendix B Survey questionnaire 1. Are you familiar with your company’s investment strategy for the Caribbean or its operations in the region? 2. Would you like to receive a copy of the results and findings of the study? 3. Would you like to receive a free subscription to www.fdiintelligence.com during 2013? The fDi Intelligence portal offers our expert editorial analysis on FDI and city rankings (including “Caribbean and Central American Cities of the Future”).

4. Company Contact Data / Profile 5. Which sector/s does your company service? 6. What are your company's principal activities?

7. Please indicate your company's turnover band for the last financial year (USD): 8. In which CARIFORUM countries does your organisation have physical operations? 9. Approximately, how many employees do you have in each country? 10. What are the principal drivers in your decision to locate in CARIFORUM/ Caribbean or to consider future investment (please tick the 3 most important criteria from multiple options provided)? 11. Are you a member of the CARIFORUM/ Caribbean Diaspora? 12. Have you any expansion plans within CARIFORUM/ Caribbean in the next 12-24 months? 13. What countries are under consideration and what type of projects are you planning? 14. When making or considering an investment in the countries of CARIFORUM, is this part of a regional strategy or a country-specific strategy? 15. Which are the key incentives (if any) in your decision to invest in the CARIFORUM/ Caribbean region, or to consider future investments (please tick the 3 most important criteria from multiple options)? 16. Based on your direct experience or perceptions of the CARIFORUM countries you have operations in or have considered for investment, how would you rate the country(s) as an investment location? 17. How would you score CARIFORUM countries you have operations in, or have considered investment in, based on the following criteria on the following scale (excellent, very good, good, weak, very weak).

Cost advantages Incentives Economic stability

Political stability Political stabilityRed

tape/regulations

http://www.surveymonkey.net/MySurvey_EditPage.aspx?sm=mT7aKCL3gH88T%2biRoXkr9Fkg17YaAzvgHlMQJR399mPc%2f%2f5WE5Bub1vgibZpK1hR&TB_iframe=true&height=450&width=650

18. Continuation...

ICT

infrastructure Labour

availability Labour skills &

education Market access

Quality of life Security

19. Which 3 sectors do you think have the best opportunities for investment in the CARIFORUM region in the next 5 years (in general, not just for your company): 20. Under what circumstances would you consider further/new investment in CARIFORUM countries? 21. In your view, what are the principal positive selling messages for investment in the CARIFORUM/ Caribbean region as a whole? 22. In your view are the principal positive selling messages for investment in individual countries in CARIFORUM? Please specify countries 23. Have you heard of the Caribbean Association of Investment Promotion Agencies? 24. Are you aware of any investment promotion organisations in CARIFORUM countries? If so, please state. 25. Have you had contact before with any investment promotion agency in the Caribbean? 26. Would you expect pre-investment support /after care services to be provided by an investment promotion organisation? 27. Which type of business support services would be most valuable for your company? 28. Data protection: Would you like for your personal information to be passed to The Caribbean Export Development Agency? 29. Would you like to receive communication from The Caribbean Export Development Agency on business opportunities in the region?

investor perception survey of cariforum - caribbean · pdf file3.3 fdi determinants ... only...

Documents