One Decisive Step: USM, Economic Diversification and the Creative Industries

Dr. Antonio Carmona Báez
March 3, 2026
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There is consensus that Sint Maarten must diversify its economy. Members of Parliament say it. Ministers repeat it. Business leaders echo it. The public feels it. The need to move away from our single-pillar tourism economy is no longer debated; it is universally acknowledged.

And yet, no one takes the first decisive step.

Recent statements in Parliament warning about military tensions in the Middle East, invoking memories of 9/11, the devastation of hurricanes, and the paralysis of the COVID-19 pandemic, are stark reminders of our vulnerability. We have lived through the shockwaves of global crises before. When airplanes stopped flying after 9/11, our hotels emptied. When hurricanes Irma and Maria tore through the Caribbean, our infrastructure collapsed. When COVID-19 halted global travel, our economy nearly flatlined. Today, with geopolitical instability once again threatening global mobility and oil prices, we are reminded that a tourism-dependent economy is an exposed economy.

Last month’s conference, “ Addressing Sint Maarten’s Crossroads” convened by the Ministry of Tourism, Economic Affairs, Transport and Telecommunication (TEATT), reinforced this reality. Speaker after speaker called for innovation, sustainability, and economic diversification. Yet the conversation remains abstract. Diversification is discussed as a concept, not implemented as a coordinated strategy. The truth is simple: diversification will not happen organically. It requires leadership, institutional capacity, and a knowledge hub capable of guiding research, innovation, training, and implementation.

In every society that has successfully diversified its economy, there has been a central institution driving the process—a university, a research center, a think tank. For Sint Maarten, that institution already exists: the University of St. Martin (USM).

Small grants to individual entrepreneurs are commendable. Funding a start-up here, subsidizing a vendor there, supporting a handful of micro-enterprises—these are noble efforts. But they will not transform a structurally tourism-led economy. They create isolated activity, not systemic change. They do not generate the research ecosystems, talent pipelines, and innovation clusters required for genuine diversification.

If we are serious about economic transformation, we must think in terms of ecosystems, not projects.

That means collective action.

It means investing in knowledge production, in creative industries, in digital skills, in research and development. It means recognizing that a university is not merely a place for teaching classes; it is an economic engine.

I like to refer to what I call the “Cupecoy model.” In the district of Cupecoy, anchored by the presence of the American University of the Caribbean School of Medicine (AUC), we see how a knowledge institution transforms an area. Students and faculty are brought in from abroad. Apartments are rented. Restaurants flourish. Cafés and coffee shops open. Jazz nights and cultural events become viable. The district develops a cosmopolitan energy. Real estate benefits, service industries expand and micro-economy forms around the intellectual hub.

This did not happen because of cruise tourism. It happened because of a knowledge-based institution. Now imagine that model applied to Great Bay.

Imagine Philipsburg not merely as a cruise stop but as an arts and sciences hub for the Eastern Caribbean subregion. Imagine students from Anguilla, St. Kitts and Nevis, Saba, Statia, Grenada, Antigua and Barbuda, and beyond coming to study creative media, digital arts, climate science, entrepreneurship, hospitality innovation, Caribbean studies, and film production at USM. Imagine cafés filled with young creatives editing films, coding games, composing music. Imagine small galleries, jazz lounges, co-working spaces, research labs, and digital studios lining Front Street and Back Street.

This is not fantasy. It is strategy.

Recently, a proposal was submitted to the Ministry of TEATT and to the Ministry of Education, Culture, Youth and Sport (MECYS) to invest USD 750,000 in two years to establish a film academy at USM. This is not simply about teaching students how to hold a camera. It is about anchoring the Orange Economy—the creative and cultural industries—within Sint Maarten.

Film, performing and digital arts, animation, gaming, content production—these are billion-dollar global industries. They are mobile industries, meaning they do not require large tracts of land or heavy infrastructure. They require talent, technology, and training. Sint Maarten already possesses the cultural richness, multilingualism, and geographic advantage to become a regional hub. What we lack is the institutional investment to consolidate and scale that potential.

There are investors willing to collaborate. There are local creatives—such as members of the Creatives Guild—ready to contribute their expertise. There is regional interest. What is required now is coordination between ministries, between government and USM, between policymakers and creatives.

Instead of subsidizing one-off entrepreneurial ventures that struggle to survive in isolation, we should be building an ecosystem. An ecosystem where creatives can access training, studio space, mentorship, research support, business incubation, and international networks—all anchored at USM with the participation of partnering institutions.

Such an investment would have multiplier effects. Students from the region would pay tuition and rent apartments. Faculty would reside locally and spend locally. Creative productions would hire local technicians, caterers, designers, and musicians. Festivals and showcases would attract visitors for cultural tourism—more resilient and diversified than cruise dependency.

Within a few years, the revenues generated from such programs could help USM reduce its reliance on government subsidies and make studying more affordable for St. Martiners. The university could become partially self-sustaining through tuition from international students, research grants, production partnerships, and creative exports.

More importantly, Sint Maarten would begin to shift its economic narrative—from being solely a place that serves visitors, to a place that produces ideas, art, research, and digital content for the world.

Economic diversification requires courage. It requires moving beyond incrementalism. It requires ministries to collaborate rather than operate in silos. TEATT cannot do it alone. MECYS cannot do it alone. But together, they can.

The memory of 9/11 should remind us how quickly global travel can collapse. The hurricanes should remind us how fragile infrastructure-dependent tourism can be. COVID-19 should remind us how devastating border closures are to a tourism-led economy. Current military tensions should remind us that global stability is never guaranteed.

Diversification is not a luxury. It is a necessity for resilience.

The first step is to recognize that economic transformation must be knowledge-led. It must be anchored in research, training, and innovation. It must be institutionalized.

The University of St. Martin is not merely another stakeholder; it is the natural hub around which diversification can be organized. It already possesses the intellectual capital, the community legitimacy, and the regional positioning to lead. What it needs now is strategic investment.

USD 750,000 for a film academy is not an expense venture; it is seed capital for an industry. Supporting creative industries at USM is not charity; it is economic planning. Converting Great Bay into an arts and sciences hub is not utopian; it is pragmatic. We must move from talking about diversification to building it. From subsidizing individual projects to creating ecosystems.

Everyone agrees diversification is necessary. The time has come for someone to take the first decisive step. That step should be to empower USM as the knowledge centre that will guide Sint Maarten into a more resilient, creative, and prosperous future.

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