The document discusses Aruba's economic composition and the need for diversification. It notes that tourism currently makes up 70% of the economy but is low-skilled and labor intensive. It outlines possibilities for diversification including high-impact, high-skilled industries like health, education, and finance. Professional women are seen as contributing to higher-margin industries and increasing GDP per capita. The presentation asks how best to diversify the economy and enhance quality of life going forward.

1. Economic Structure and impact of
business models of Aruba
By
Marielsa Arends-Croes, MSc, Executive Manager EFS
AIB BANK N.V.
Aruba May 25, 2012

2. The presentation outline:
• Aruba’s Economic Composition
• Economic interrelations
• Economic triggers
• Economic Diversification possibilities
• High impact business models
• Professional women contribution to the economy

3. Aruba’s Economy Composition
Aruba's GDP composition
17.3% 7.1%
3.4%
6.2%
13.2% 13.7%
12.5% 11.1%
7.0% 8.5%
Agriculture & Manufacturing, Including Oil Refinery Utilities
Construction Trade
Hotels & Restaurant Transport
Financial Intermediation Housing
Public Administration & Education Other Business & Non-business services

4. Aruba’s economic activities in
random order

5. Aruba’s economic activities
interrelated

6. Current economy triggers
• Main industry triggering 70% of all
economic activity (directly & indirectly) –
Tourism
– Low income, labour intensive industry
– Many fringe economic activities with significant
economic impact
– But also high social impact due to labour
intensive nature

7. Economic Diversification motivation
• Aruba is a small scale one-sided economy
• Years of attempt to diversify to add other high
impacting industries without success
• Diversification within tourism has attention, but is
not enough
• Chance of losing 10-13% of economic chunk
induced by Valero – need to replace
• Infrastructure pressured by increasing population

8. High impact business models
– High value high skill versus low skilled
industries (health industry, education, financial
services, innovation, etc…)
– Business cost reducing option (business cost in
Aruba is high….innovate to lower costs..)
– Export inducing
– Import reducing (agriculture, manufacturing,
etc…)

9. Professional women contribution to the
economy
Food for thought….
•All the women in this room contribute to the high
margin impact industries as professionals
•We need to stimulate this further for coming
generations
•Education and professional jobs increase quality of
life directly – increased GDP per capita as well

10. My question to you:
How do we best contribute to diversify and enhance
our economic development but mainly our quality of
life further?
Choose your choices based on calculated projections
of impact…..
For any specific detailed economic information, please feel free to contact us:
Tel: 297- 582-7327 ext. 326
Email: mac@aib-bank.com