Economy of Aruba
214186
220186993
2008-06-18T18:01:18Z
Satori Son
1370416
/* Tourism */ add photo
The '''[[economy]]''' of '''[[Aruba]]''' is an [[open economy|open]] system, with [[tourism]] currently providing the largest percentage of the country's income. Because of tourism's rapid growth in the last 80 years, related industries like [[construction]] have also flourished. Other primary industries include [[oil refining]] and storage, as well as [[offshore bank]]ing. Although the island's poor soil and low rainfall limit its agricultural prospects, [[aloe]] cultivation, [[livestock]], and [[fishing]] contribute to Aruba's economy. In addition, the country also exports art and collectibles, machinery, electrical equipment, and transport equipment. Aruba's small labor force and low unemployment rate have led to a large number of unfilled job vacancies, despite sharp rises in wage rates in recent years.
With such a large part of its economy dependent on tourism, the Aruban government is striving {{Fact|date=October 2007}} to increase business in other sectors to protect against possible industry slumps. Their current focus is on expanding [[technology]], [[finance]], and [[telecommunication|communications]].
==History==
Unlike many [[Caribbean]] islands, a [[plantation economy]] never developed on Aruba due to its arid climate. Early [[Spain|Spanish]] explorers considered the island of little value, partly because the poor soil made growing crops difficult and partly because their attempts to find gold turned up empty-handed. However, long after the [[Netherlands|Dutch]] obtained control of Aruba, they found the gold the Spanish had been seeking.
===Gold===
With the discovery of gold on Aruba in 1800, mining became the island's foremost industry. Aruba's economy boomed. However, by 1916 the gold supply had mostly been tapped out, making it impossible for companies to turn a profit. As the gold mining industry waned, so did the economy.
===Aloe===
First planted on Aruba in 1850, aloe thrived in its [[desert]] conditions. With a healthy demand for aloe products, it became an important part of Aruba's economy. In fact, for many years, the country was aloe's top exporter. But over the years, many aloe fields were replaced by buildings, diminishing its production. Exports declined.
The oldest company on the island, Aruba Aloe, has recently instituted changes in the hopes of becoming Aruba's leading product manufacturer. They built a new, modern facility, an aloe museum, and designed new packaging. Although most of their product line sells in the national market, a 2005 exporting deal with a U.S. company and sales through their website have increased their international market.
===Oil===
Despite setbacks caused by the troubled gold and aloe industries, Aruba's economy didn't suffer long. Because of its location near [[Venezuela]], the island became an attractive spot for oil refineries. The Lago Oil and Transport Company, owned by [[Exxon]], opened in 1929. At the time, Lago's oil refinery and storage facility was the largest in the world. Following in their footsteps, the Eagle Oil Refinery opened soon after. Over the next few decades, the oil industry took over as Aruba's primary economic force.
The Eagle Oil Refinery shut down and was dismantled in the late 1950s. But the Lago refinery kept going until 1985, when the demand for oil fell and Exxon closed it. In 1991, the Coastal Oil Company bought it, scaled down operations, and reopened it. Although its reopening didn't raise Aruba's oil industry to its previous heights, it did revive that sector and continues to be a key contributor to the country's economy.
===Tourism===
[[Image:Mecury in Aruba.JPG|thumb|right|200px|The [[MV Celebrity Mercury|Celebrity Mercury]] cruise ship docked in Oranjestad.]]
In 1947, Aruba's government founded a tourist board to explore the possibility of developing a tourism industry. Several years later, [[cruise ship]]s began to dock in [[Oranjestad, Aruba|Oranjestad]], Aruba's capital city. The island's first luxury hotel was built in 1959, giving the fledgling industry a good start. Over the years, tourism grew and helped create a prosperous economy.
As the oil industry waned, tourism increased in importance. The government offered fiscal incentives to spur growth of hotels and other tourist-oriented businesses. Their efforts resulted in a steady and rapid rise in tourism. When a surplus of these jobs couldn't be filled, they placed a one-year moratorium on new hotel construction and new tourist corporations.
Following the terrorist attacks of [[Sept. 11, 2001]], tourism temporarily declined because of grounded flights and travel fears. Aruba stepped up its visible security force in tourist areas to heighten safety and reassure visitors.
After a short time, tourism rebounded strongly.
Another potential threat to the industry occurred in 2005, when the May 30 disappearance of vacationing Alabama teen [[Natalee Holloway]] made international news. Claiming that Aruban authorities weren't taking the case seriously enough, her mother and the Governor of Alabama called for a nationwide boycott of Aruba. However, the U.S. federal government didn't back the proposed boycott. Aruba's reputation as one of the safest islands in the Caribbean may have helped it overcome any negative stigma caused by the case. The amount of tourism in June, 2005, actually rose by 9% from the previous year.
==At a Glance==
'''GDP:'''
[[purchasing power parity]] - $2.400 billion (2007 est.)
'''GDP - real growth rate:'''
1.0% (2007 est.)
'''GDP - per capita:'''
purchasing power parity - $21,500 (2007 est.
'''GDP - composition by sector:'''
''agriculture:''
0.4%
''industry:''
33.3%
''services:''
66.3% (2002 est.)
'''[[Inflation]] rate (consumer prices):'''
8.7% (2007)
'''Labor force:'''
41,500 (2004 est.)
'''Unemployment rate:'''
6.9% (2005 est.)
'''Budget:'''
''revenues:''
$507.9 million
''expenditures:''
$577.9 million (2005 est.)
'''Industries:'''
tourism, transshipment facilities, oil refining
'''Agriculture - products:'''
aloes; [[livestock]]; [[fish]]
'''Electricity - production:'''
770 million kWh (2005)
'''Electricity - consumption:'''
716.1 million kWh (2005)
'''Electricity - exports:'''
0 kWh (2005)
'''Electricity - imports:'''
0 kWh (2005)
'''Oil - production:'''
2,356 bbl/day (2005)
'''Oil - consumption:'''
7,000 bbl/day (2005 est.)
'''Oil - exports:'''
230,600 bbl/day (2004)
'''Oil - imports:'''
235,000 bbl/day (2004)
'''Oil - proved reserves:'''
0 bbl (1 January 2006 est.)
'''Natural gas - production:'''
0 cu m (2005 est.)
'''Natural gas - consumption:'''
0 cu m (2005 est.)
'''Natural gas - exports:'''
0 cu m (2005 est.)
'''Natural gas - imports:'''
0 cu m (2005)
'''Natural gas - proved reserves:'''
0 cu m (1 January 2006)
'''Exports:'''
$124 million f.o.b.; note - includes oil reexports (2006)
'''Exports - commodities:'''
live animals and animal products, [[art]] and collectibles, [[machinery]] and electrical equipment, [[transport]] equipment
'''Exports - partners:'''
Netherlands 27.7%, Panama 25.5%, Colombia 12.8%, Venezuela 11.1%, US 9.4%, Netherlands Antilles 7.1% (2006)
'''Imports:'''
$1.054 billion f.o.b. (2006)
'''Imports - commodities:'''
[[machinery]] and electrical equipment, crude [[oil]] for refining and reexport, [[chemical]]s; foodstuffs
'''Imports - partners:'''
US 53.6%, Netherlands 12.9%, UK 3.6% (2006)
'''Debt - external:'''
$478.6 million (2005 est.)
'''Economic aid - recipient:'''
$11.3 million (2004)
'''[[Currency]]:'''
Aruban guilder/florin
'''Exchange rates:'''
Aruban guilders/florins per US dollar - NA (2007), 1.79 (2006), 1.79 (2005), 1.79 (2004), 1.79 (2003)
'''[[Fiscal year]]:'''
calendar year
==References==
*[http://www.aruba.com/index.php Aruba.com - Official Government Website]
*[http://www.arubaplaza.com/index.php Arubaplaza.com - Detailed information on Aruba]
*[https://www.cia.gov/library/publications/the-world-factbook/geos/aa.html CIA World Factbook - Aruba]
{{South America in topic|Economy of}}
{{Caribbean in topic|Economy of}}
[[Category:Economy of Aruba| ]]
[[pap:Economia di Aruba]]