Something's Gotta Give in St. Maarten - JB Daily News SPECIAL REPORT..

In St. Maarten, the majority of ALL jewelry retailers are owned and operated by those of Indian decent. This reporter has come to the conclusion (unconfirmed as to number of members)  that the majority of Indian owned and operated jewelry retail stores are members of the Indian Merchant Association and many are partners and/or even related in many cases.

Walk from one jewelry store into another and no one is fighting for your business, as if store number one does not close the sale, store number, two, three, four, five, six (and so on) are waiting just a few steps away, ready and waiting to lure consumers into their establishments with a "so-called" great deal on loose diamonds and gemstones or finished jewelry.

What's truly sad about the situation in St. Maarten is that the locals (natives) are struggling to earn a living however, those from India live in palatial homes and send their children to private schools through monopolizing the retail jewelry business on St. Maarten (specifically Front Street).

Front Street is the main thoroughfare, where the majority of tourists disembarking from cruise ships are deposited. While Diamonds International has a firm presence on the island, it is the members of the Indian Merchant Association who are reaping the benefits of ZERO import duty on goods and taking advantage of the open border between the French and Dutch side of the islands and three month stays.

While three year "stay" limits may or may not (yet) apply, anyone can visit St. Maarten for three months, leave, come back and complete process over and over again...

Interviews with locals reveal that many are aware of the Indian Merchant's Association however, do not understand how those who come to live, work and set up retail jewelry businesses are bypassing normal channels to do so. No doubt, a few of these businesses were founded before St Maarten was established as a "must see" port of call for the cruise ship industry. The fact that the Indian Merchant's Association even exists should send up a few red flags among those in government.

St. Maarten's (Dutch side) requires residency be established and the strict adherence to government guidelines in obtaining licensing for establishing and operating businesses. However, one visit to the government offices would make both local and import (start ups) think twice (as it pertains to the process of obtaining legal residency and required licenses to establish any type of business on St. Maarten today).

It is estimated that there are over 20,000 people living and working illegally in St. Maarten. Due to open border crossings between the French and Dutch side, one would find it easy to enter St. Maarten, as easily as one would drive between New York and New Jersey. The government allows one to stay in St. Maarten for up to three months. Upon reaching the three month stay limit, one can fly to a neighboring island and return within 24 hours to continue their stay.

The lack of immigration control, affords the established jewelry retail businesses on St. Maarten to easily shuffle relatives and (trained) employees through an endless loop of entry and re-entry without fear of prosecution thus, keeping down employee costs by rotating experienced employees and family members within their own community.

Poverty on St. Maarten..
Rent a car and go beyond the few blocks of Front Street and you see a people struggling to get by. There is no housing boom for the lower or middle class in St. Maarten, as the people do not earn enough money to build even a modest home.

Yes, there is poverty, as in many parts of the world but, when hundreds of thousands of tourists are deposited in Philipsburg each and every year, one wonders where is the money going and who is reaping the benefits of St. Maarten's tourism boom.

St. Maarten does not impose a real estate tax and it's a bit difficult for legitimate residents to earn a living when one of the main sources of income (jewelry retail sales) are controlled by those who have unlimited funds to establish a business and rotate employees/relatives between island jewelry store chains.

The Indian community is thriving! The average monthly rent on front street can be upwards to $10,000.00 per month and more..

Interviews with locals (natives of St. Maarten) reveals a sadder side to island life. Many do not why the government does not strictly enforce immigration laws. As one local put it "yes, they come around every once and awhile and round people up and cast them off the island but, they come back a few days later."

A mother of four stated, "I don't even earn enough money for food let alone, even dream of the day that I can send my children to private school". Yet another local stated, "If you go visit and see who lives in these mansions on this island, it's those who own the jewelry stores. There can be dozens living in luxury behind those gated homes at one time. They come into town when the ships come in and close their stores when the ships leave."

The Indian community does give back by donating to local charities however, the amount and number of those contributions is unknown..

Who's Benefiting?

No doubt, those who control the jewelry retail industry (on the island) benefit directly through monopolizing the industry. No import duty imposed on jewelry, the rotation of (trained) employees to and from the island (and surrounding islands) - has its financial benefits. One can set up an off-shore company easily and there are no land taxes nor capital gains.

As one resident stated, "I like the Indian community and I take their money when I can get it. When the Indians build a new home they do not like to pay for insurance so they call me up to install their hurricane shutters. I can make up to $60,000.00 in a good week, as they want their new homes completely shuttered up with no exposure to the elements. They figure for what the insurance costs, they can recoup all the money they spent on hurricane proofing their homes within just a few months."


The Problem Solvers..

There are NO problem solvers for this situation in St. Maarten - just contributors. One can look at the Indian Merchant's Association and the government however, one of the main contributor's would be the cruise lines and their "recommended shops" program.

The on board ship's port shopping guides "recommend" specific stores where passengers should shop. No doubt, the majority of the recommendations are for jewelry retail stores in which, the cruise lines reap a commission through the cunning use of a "guarantee purchase program".

If you arrive in St. Maarten on a cruise ship, chances are you have attended a port shopping talk the night before arrival. In addition, you have been bombarded by in-cabin television ads, fliers and coupons prior to arrival. Once you are deposited on St. Maarten, you will then be directed to "recommended" retail jewelry stores via placards proudly stating that a specific jewelry store is "recommended" by your cruise ship. As one local put it, "even if I could open my own store and sell jewelry, clothes or anything else, I do not have the money to compete with the Association. Who's going to recommend my store?"

If you conduct a purchase in a "recommended" jewelry store, you will be presented with a form at the end of your cruise in which you list the items you purchased, where you purchased those items (the name of the store) and the amount you paid. The form is presented as a "guarantee" (read the fine print) for your purchase.

You submit the form on the last night of your cruise and the cruise line has now compiled a list of which "recommended" jewelry stores must pay a commission (a percentage of your total purchase) to the cruise line in exchange for their on-board promotion. This inventory control "pay to play" program is used by the majority of ALL cruise lines and in ALL ports of call including the number one "port of call" seller of retail jewelry - St. Thomas.

This is NOT a fool proof program, as many vacationers arrive home, visit their local jeweler, have the item appraised and find they paid MORE for the item then they would have through their local jeweler.

It's interesting that consumers "trust" their local jeweler to appraise another retailer's goods however, do not trust that very same retailer to sell them the item.

Yes, those on vacation wish to take home a "memory" of their visit to a beautiful tropical island however, jewelry purchased through cruise ships (and ports of call) may become a nightmare for those consumers who have do not shop around for the "best deal".

If you truly wish to purchase a "memory" in the form of jewelry when visiting a "port of call" do NOT pass up the local mom and pop retailers who do NOT advertise and/or participate in "pay to play" cruise ship promotions programs.

These shops are family owned and operated and refuse to PAY a commission to the cruise lines..

Remember, if the cruise line is earning a commission on your jewelry purchase through any type of "guarantee" purchase program scheme, you are more than likely paying more than you have to for the item.

Jewelry Blogger has posted various complaints concerning those who have purchased jewelry through cruise ship "recommended" shop programs. Please review these complaints before you travel, as the experience of others may just save you a bundle of cash on your next cruise vacation.

Follow Up: JB has no additional information on the Indian Merchants Association, as no one would speak with us concerning the structure of the Association. We do not know the names of the jewelry stores who are members. 8-11-07

Other Stories of Interest, which focus on Jewelry Retailers and Cruise Ships are as follows:

St. Maarten - Ideas, Thoughts and Suggestions - John LaRouche

Diamonds International - Cruise Ship Jewelry Purchases, Be Forewarned....

Jewelry Blogger Commentary - Retake on St. Maarten - Cruise Ship Jewelry Sales

The TRUE Pirates of the Caribbean...

Thanks for Reading Jewelry Blogger - John LaRouche

Posted by Posted by Jewelry News at Saturday, August 11, 2007 6:50 AM
Categories: St. Maarten, Cruise Ships, Caribbean Shopping, Caribbean Cruises, St. Thomas, Cruise Lines, Cruise Vacations, Indian Merchant Association, Jewelry, Cozumel, Jewelry Stores
 

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  • Saturday, August 11, 2007 10:19 AM Gerry M. - St. Maarten wrote:
    While I do believe that there are a few reaping the benefits from front street. it is our government which makes promises to clean up the immigration problem by imposing 3 year work limits however, I have not seen any significant changes to date. Maybe you should take a closer look at who's running our government and see how they're living. Yes, we have poverty however, no less, no more than other islands. I don't disagree that the few are benefitting from the many who have made St. Maarten their legal home and who follow the laws.
    Reply to this
  • Saturday, August 11, 2007 10:33 AM Edna H. - St. Maarten wrote:
    I was one of those you interviewed and I never really believed anyone would ever tell it the way it is. Thanks for keeping your word and posting this story. if I had the money, I would move out of St. Maarten with my family. I can't get a decent job and the stores on front street only hire their own. There is discrimantion against those of color darker than those from India - west indies. Our papers have even written articles concerning discrimination. I have nothing against anyone. We just want to be able to make living.
    Reply to this
    1. Saturday, August 11, 2007 4:17 PM Jewelry Blogger wrote:
      Edna,
      We are fair and balanced. The St. Maarten Trade & Hospitality Association has been emailed this article for review. We have yet to receive any comments from them or the Indian Merchant's Association.
      JB
      Reply to this
      1. Saturday, August 11, 2007 4:31 PM Jewelry Blogger wrote:
        Follow-up:
        Little is known about the Indian Merchants Association. We do not know how many members are in their roster. We do not know which store owners participate. We do not know how they are structured, when they were founded or how they operate. We do know that D. Alwani is the President of the Association. In writing this article, no one in the community (jewelry retailers) was forthcoming in speaking with us or answering any questions concerning this association.
        JB
        Reply to this
        1. Sunday, March 30, 2008 8:23 PM Nick wrote:
          well iam an indian living and working in stmaarten for so many years and honestly speaking this Indian Merchants Association is a bunch of richie rich Merchants who have established themselves from past 15 to 20 years and they allow only their rich friends to be the part of that group not any indian employee who has worked for number of years and been successful in opening their own business,its not as if they are interested of being part of this elite,hypocrite group.This so called group just love to set up their own rules and suggestions and want the government to twist and turn to their wimps and fancies since they are here for long time so they think they can get away with anything,ofcourse long time before they have got away with it by bribing the faithful so called son of soil politicians of stmaarten and they are still doing it,but they are not good to their own community either,i have not seen them helping or reaching out to their own country people in need,rather they love to exploit,insult,abuse and discriminate their own people,you can ask the local people of the various incidents about the indian community,so how does one expects them to help somebody else from the other comunity.
          Their association is formed only to help their rich friends in trouble otherwise they are just plain useless,good for nothing but ofcourse good for themselves,atleast they dont exist for the majority i will say atleast 75% of the indian population,yes i do agree to the fact and indeed its very sad to see the local people struggling to make their ends meet with the rocketing cost of living in stmaarten but i will blame the government and local politicians of stmaarten also for not takng the right steps at a right time for setting up the Immigration and work permit policies but as of now the bitter truth is that things truly have got out of hand with the increase in crime and very low police force i dont know how will the independent stmaarten be like with so much corruption and unemployment and crme,I see the big trouble looming in future only the almighty help stmaarten.
          Reply to this
  • Saturday, August 11, 2007 4:13 PM Mark Browne wrote:
    Much of this news is disturbing to say the least. I have cruised many times to St. Thomas and St. Martin and have purchased jewelry for both my wife and I. I have never had it appraised as I received certificates from the jewelry store however, after reading this blog I'm heading to my jeweler on Monday morning. quite frankly, I don't care who i'm buying jewelry from just as long as i'm not being screwed over financially. good article.
    Reply to this
  • Saturday, August 11, 2007 5:17 PM Rashi B. wrote:
    I live in St. Thomas and I can assure your readers that in St. Thomas we are not members of any association.
    Rashi B. - St. Thomas
    Reply to this
  • Sunday, August 12, 2007 8:52 AM Ken Kleppe wrote:
    i cruise but do not shop for jewelry on these little islands. as for the cruiselines, they get you coming and going no matter what. the only safe thing to buy is liquor and cigarettes as you know what you pay in the states for a bottle of absolut.

     


    Reply to this
  • Sunday, August 12, 2007 9:23 AM DiamondHunter wrote:
    Amazing, people will buy crap from the islands and then bring it to their local jewelry store for appraisal??? I never offer appraisals for out of country purchases. If you paid too much then you got what you deserve. Time to support your local jewelry stores and their families!!!
    Reply to this
  • Monday, August 13, 2007 10:39 AM Bob wrote:
    I'm very familiar with st. martin and st. thomas jewelry store practices. the ral culprits are diamonds international and tanzanite international. If anyone has a monopoly in the caribbean it's diamond and tazantie international. they rip people off, make value claims which no in the real world agrees with.
    Reply to this
  • Tuesday, September 25, 2007 9:50 AM linda Strunge wrote:
    Thank you for the excellent blog and wake-up call. I am a frequent land visitor to St. Martin and I see just what you have described. I have shoped at one store and gone to another, described something that I had seen in another store only to have the salesperson call on the telephone to have the previous store bring the item over to their store. I have seen many stores with no island employees and I have seen the other stores that have island employees use them only as fronts. These employees are not allowed to give prices or for the most part complete a sale. This is an atrocity--much like the Koreans, East Indians in the US controlling the African American hair products, food, and other businesses with no American employees. Come the think of it much of the US businesses such as Call Centers and Computer software development are already controlled by East India. Soon Americans will have to go there and beg for jobs. Most of the US goods are made in China.
    Reply to this
    1. Sunday, October 07, 2007 1:15 PM John wrote:
      Hey Linda, do u know these same call center employees wear Levis Jeans, wear Nike shoes, drink Coke, smoke Marlboros and travel to USA on vacation and spend money there. Be educated enough to understand economy and you will understand everythihg. If all toys in USA are chinese it shows the preferance of people like you to bargain hunt. You get what you pay for. Pay top dollor and you will get products for the same. This is a trend created by usa and it is the first time you have been victim of this rather than creating victims....good luck and welcome aboard. This treand is here to stay.
      Reply to this
  • Tuesday, September 25, 2007 2:57 PM SxmNer wrote:
    I don't know who you are but you are definatly telling it as it is.

    I dare anyone to count the localy owned localy operated businesses on front street and back street.

    Take a walk down front street indians hire indians, lebanese hire lebanses, chinese hire chinese. In Marigot Europeans hire Europeans.

    Who's hiring the locals when only a minute number of business are localy owned?

    Other islands are chastized for doing this but we need to impliment programs and laws where locals get first precidence on land ownership, first preference when a new type of business is opened.

    Our economy is held hostage and we don't even know it. East-asians own this island. The rest of us are just little guppies allowed to swim in their pond.
    Reply to this
  • Tuesday, September 25, 2007 4:36 PM Hans Meevis wrote:
    Liked your post about St. Maarten
    Next time you around, pop into my shop. I can tell you much..
    Hans
    Reply to this
    1. Sunday, September 30, 2007 11:53 AM Jarry wrote:
      I often visit SXM from the UK and I like to take some jewelry home with me. If you are looking for a personal service with quality jewelry, Hans Meevis's shop is the place to go. Hans and his wife always provide us with knowledgeable advice and exceptionally good jewelry. The front street jewelers are only concerned with the sale.


      Reply to this
    2. Monday, October 01, 2007 9:40 PM Pat wrote:
      What is the name of your shop and where is it?
      Reply to this
  • Wednesday, September 26, 2007 2:11 PM Mike wrote:
    You might want to see a message board of interest:
    http://www.traveltalkonline.com/forums/showflat.php?Cat=0&Number=733439&page=0&fpart=all&vc=1
    Reply to this
  • Wednesday, September 26, 2007 2:16 PM Kriang wrote:
    I posted a comment on one of the other articles on st. maarten and I think you should link the two together as I thought my post was not approved. I've been watching this thread as I live in sxm and i'm fed up with the hospitality assoc., the ima, deepti and those who think we should just cast a blind eye to what's been going on for a long time. we're not stupid people, we see who has the wealth and who does not. it sure ain't me.
    Reply to this
  • Sunday, September 30, 2007 7:56 PM Larry wrote:
    I am coming to St. Maarteen in June,if you will tell me where a locally owned jewelry shop is I will go there and shop. I would rather buy from a local than anyone else since it is their home I am visiting.

    By: Jewelry Blogger: Hans Meevis has been mentioned many times as the place to visit.
    Reply to this
  • Monday, October 01, 2007 9:02 AM Mark - sxm wrote:
    People can deny what they read in this article but, it's true to the core. our little island is ripe with such injustice and our government simply looks away.
    Reply to this
  • Monday, October 01, 2007 9:43 AM Mary wrote:
    Hans Meevis is the only jewelry store owner on sxm who had the guts to post a comment on this blog. Hats off to Hans!!!!!
    Reply to this
  • Monday, October 01, 2007 10:12 AM Treasa Putthoff wrote:
    What is the store name,Hans Meevis, owns? Where on Front Street is it located. Going to SXM again in Nov. Thanks
    Reply to this
  • Monday, October 01, 2007 10:57 AM claire bigos wrote:
    Where is Hans Meevis jewelry store located?

    Reply to this
  • Tuesday, October 02, 2007 6:23 PM PATTI wrote:
    WE (6 COUPLES) COME TO SXM EVERY JANUARY AND BUY MANY $$$$ OF JEWELRY. I WOULD BE INTERESTED IN THIS LOCALLY OWNED JEWELRY STORE AND I KNOW MY GIRLFRIENDS WOULD GIVE THEM A LOOK ALSO. IF ONLY WE KNEW WHERE YOU ARE HANS MEEVIS!! PLEASE TELL BEFORE WE LEAVE IN JANUARY!

    JB Response: Meevis.com is not working and we do not know his address. If anyone knows Hans Meevis store address please post it or send us an email so we can post it for our readers. Thank You
    Reply to this
    1. Friday, October 05, 2007 11:03 AM Yank wrote:
      Hans Meevis is located accross from Mary's Boon, next to Philly Joe's Pizza on Airport Blvd. If you click on his name at the top of his post here, it will take you to his website, where you will find a map and all contact info. His website is working fine for me...
      Reply to this
  • Friday, October 05, 2007 2:12 PM Ymir wrote:
    I know this blog is all about jewelry, but the message the 'Something's gotta give' contribution sends out about the situation on St.Maarten may be confirmed by the fact that the Indian merchants are doing exactly the same in the retail sector: establishing a monopoly by agressively forcing competitors out of business. As the same (Indian) retailers are also the main wholesalers on the island, they give their retail customers so much credit until they cannot repay (because the Indians suddenly raise their prices) and then they can buy over their supermarkets and stores. Because they also control one of the major banks on the island, they are also able to influence the business of competitors in this way. Until everyone on the island becomes dependent on the Indian owned supermarkets for all their food etc. And then they have all the power and can ask any prices they want
    Reply to this
  • Tuesday, October 30, 2007 11:49 AM Rosalee wrote:
    I shop at Trident Jewlers for 17 years.
    Yes, they are one Indian family and are very well respected and honest people.
    I have the most beautiful ring that I receive many compliments on. I have brought from they for years, and my appraisals have all been well beyond the price I paid for the rings.
    Reply to this

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