Suriname - Economy - Other Sectors
Suriname's economy has been dominated by the exports of alumina, oil, and gold. Other export products include bananas, shrimp and fish, rice, and lumber. In 2007, gold, alumina, and oil accounted for 31.7%, 41.9%, and 7%, respectively, of Suriname's exports. Both the oil and gold sector continued their strong performances in 2008, while the world economic downturn instigated a restructuring of the bauxite sector. The International Monetary Fund (IMF) expected Suriname’s economy to grow in 2009 by 3%, while the Economist Intelligence Unit Country Report (April 2009) predicted the country’s GDP would contract by 2%. Even though some economic diversification has taken place, the country's economy remains dependent on its mineral resources.
Animal husbandry
Both the young and old coastal plain are suitable for animal husbandry, and large cattle farms have been established near the sea and up to the transitional zone between the old coastal plain and the interior region. Chicken and hog farms are scattered throughout the coastal area. The chicken industry is growing but had its ups and downs during the past two decades, particularly from competition of cheaper chicken imported from the United States. During the 1990s the herd of cattle has increased. A significant investment was recently made in a modern meat processing plant in order to comply with the more stringent export requirements, but the plant was unable to start production and went into receivership.
Fisheries and aqua-culture
Shrimp production and export from coastal fishing was an important export commodity, but during the 1980s and 1990s catches have declined significantly, probably from over-fishing and destruction of the fragile breeding areas. Alternatives are being developed. Along the coastal area several shrimp and fish farms have been established and it is estimated that in five to ten years the export value of shrimp produced on farms may actually bypass that of fish caught in the sea. Suriname is making an effort to control its maritime resources on an ongoing basis, but the vast area to be policed and limited resources hamper this effort.
Forestry
Suriname has attracted the attention of international companies interested in extensive development of a tropical hardwoods industry and possible diamond mining. However, proposals for exploitation of the country's tropical forests and undeveloped regions of the interior traditionally inhabited by indigenous and Maroon communities have raised the concerns of environmentalists and human rights activists in Suriname and abroad.
The country has one of the highest percentages of tropical rainforest cover in the world. About three quarters of the surface area, between 14 and 15 million hectares, is covered with rainforest, making the country an attractive source of tropical hardwoods. The 1990s saw several foreign investors secure major timber concessions in the interior, but most of these companies have not fared well or have gone out of business. Several conflicts emerged when timber companies secured concessions in area farmed by Maroon or Indigenous peoples, and significant environmental resistance has been voiced against the more vigorous harvesting methods of the foreign companies. The Chamber of Commerce is now active in developing joint operating schemes among local timber companies. Programs include training in harvesting methods as well as in the production and drying of timber.
The extraction of timber does not always take place according to prescribed regulations, both leaving devastated forests behind and also reducing the opportunity of the damaged forest to regenerate. Lumber extraction on land used by indigenous and Maroon peoples is reducing the game population and depriving these communities of the resources they need to survive. Environmental pollution such as siltation, mercury pollution, and deforestation can have a negative impact on tourism. Rumors of mercury pollution are enough to scare tourists to not eat fish or to avoid certain areas. Deforestation disfigures landscapes that would otherwise serve as a tourist attraction.
Tourism
Suriname’s tourism sector has seen growth. In the past seven years the number of hotels has grown by 200%, while the number of tour operators has grown by 170%. In 2007 approximately 163,000 tourists visited Suriname, with the majority coming from the Netherlands. Nearly 190,000 tourists arrived in Suriname in 2008, with the majority from the Netherlands but a growing number of “weekend tourists” from French Guiana. Suriname, French Guiana, and the three Brazilian states Amapa, Para, and Amazones entered into an Amazon Tourism Agreement that focuses on joint promotion of the Amazon as a tourism destination.
Through the Tourism Foundation, the government is making significant efforts to structure this sector. Two major hotel chains, Marriot and Wyndham, are opening franchises in Suriname (Marriot: 2009; Wyndham: 2010). Major regional airlines, Caribbean Airlines and Insel Air, have increased their flights to Suriname, while the national carrier, Surinam Airways, is expanding its fleet and developing new destinations.
Though development in this sector lags behind other countries in the Caribbean, the number of actual tourists - as opposed to family visitors - is increasing every year. The number of nationals visiting recreation sites in the savanna belt area is also increasing substantially. Several companies have now ten or more years of experience in operating resorts both in the savanna region and the interior.
Protecting the environment around potential and actual tourism sites is a growing issue in Suriname, as the extraction industry is moving south in search of new deposits that can mature into economically viable mines. The Suriname Aluminium Company (Suralco) is now drilling for bauxite in the middle of the Brownsberg mountain range, the most important tourism attraction in Suriname.
The Brownsberg Nature Park has had about 20,000 visitors last year, and this number is likely to increase in the years to come. To be sure, the bauxite industry is the backbone of the Suriname economy. The mining industry, however, extracts non-renewable resources, whereas tourism should ideally develop economically sustainable products. Therefore, though it may make sense in the short term to mine the Brownsberg Mountains for bauxite or gold, the long term benefits of tourism will most certainly outweigh the short-term benefits of mining. The government needs to develop a clear zoning policy for tourism and the extraction industry in the near future, so that investors will not be discouraged from developing new resorts or from maintaining existing ones.
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