John Esper, a former Canadian real estate agent, now running an operation he calls Caicos Ferry in a land he speaks of as paradise, was referring to a real estate market that has seen prices double and even triple in the past year on the small out-island of North Caicos, where he and his family make their home. But Esper qualifies his statement. Supply and demand for land are the real wild cards in this market.

Driven by tourism and offshore financial services, the Turks & Caicos Islands (TCI) economy has been exploding and prices are often, literally, whatever the market will bear. A year ago on North Caicos, an acre of prime recreational land sold for $50,000. Now it’s about $110,000.
That rapid appreciation may seem unorthodox to a professional realtor from Canada, where comparison pricing is the logical way to evaluate a property. Here just less than a year, he’s looking at the situation with a still-fresh perspective.

In this subtropical string of islands and cays known as Turks & Caicos, price is often no object. North Americans and Europeans succumb to the combination of sunshine, turquoise seas, quiet beaches and relatively undeveloped tourist trade.

You find your dream here . . . and then pay whatever it takes.

The country, a British overseas territory, saw economic growth rise by an estimated 10% during 2000 and predictions of 8 to 10% are on the books for 2001. That compares to the U.S., Canada and Europe, where 5% growth in gross domestic product is considered phenomenal.
“It is considered the fastest growing country in the Caribbean area,” says Colin Heartwell, chief executive officer of TCInvest, an investment development agency dedicated to promoting “judiciously” the growth of TCI.

Growth, as measured by gross domestic product in the past decade, has ranged from 5 to 17% annually, leaving the government and many others, scrambling to keep pace.

The rapidly escalating influx of money into the Islands has left even veteran real estate professional Phillip Misick, managing director of Prestigious Properties Ltd., the country’s largest real estate firm, slightly taken aback, though not complaining. His agents might have sold two properties per month 13 years ago when he began his career. Today, an agent can move three to five sales a week. He comments, “Especially in the past three years, there has been a tremendous amount of growth. With the boom in the U.S., people are feeling their wealth. They felt their market investments were safe and wanted another investment.”

Condos on Grace Bay Beach on the fastest growing island in the chain, Providenciales, range from US$150,000 to $1 million or more.
Interestingly, most buyers pay cash for their real estate, Misick says. If not, there are several banks and private mortgage lenders on the island happy to assist with financing. “People want to come here to escape the cold winter storms,” he says.

And they’ll pay for that pleasure, even as the price of admission keeps going up. Beachfront property on the once-bucolic Providenciales that would have sold for $50,000 an acre 10 years ago is now worth about $1.4 million–if you can find a seller.

Nonetheless, Misick worries that prices of homes may be outstripping the island’s infrastructure–the ability to service roads, manage waste and extend power, water and other services that keep those properties habitable and life comfortable.

Some fear the Turks & Caicos will follow in the path of other Caribbean islands such as Grand Cayman and the Bahamas, which some say grew too fast, too quickly, on tourism money and speculation . . . only to be transformed from palm trees and beachfront serenity into concrete jungles and traffic nightmares.

The Caribbean Development Bank (CDB) in its most recent report on the economy of the area noted that both Grand Cayman and the Bahamas have hit a peak–the bubble burst–and demand for residential and commercial properties by outsiders has begun to decline. In Barbados, the CDB added, the government had deliberately delayed public sector projects, in turn cooling the real estate market before it spiraled out of control.

Offsetting major inflation, the CDB in its 1999 report notes that the banking industry on TCI has been conservative in its lending policies, thus preventing huge, highly leveraged real estate deals blowing prices sky-high.

TCI tourism operates mainly on the bustling island of Providenciales and generates about 45% of the country’s gross domestic product, the CDB reports. It’s by far the biggest industry sector on the island, and nothing less than a full-blown recession in North America appears set to slow it down. Tourism rose 9.1% to 121,000 visitors in 1999 and by a whopping 25% to 151,370 by 2000.

That sector is followed by the construction industry (8 to 12% growth annually) and financial services. There is virtually no manufacturing here.

Heartwell admits that growth has been spectacular, often leaving the government bewildered as to where it has to catch up next. But the tourism cachet of TCI is as a high-value, low-volume destination which keeps numbers of visitors reasonable, yet still brings in plenty of cash per tourist. “People like to come here because it’s not overdeveloped and they want to take advantage of a quiet island, rather than some place like Daytona Beach,” Heartwell says. “They want it to feel like the Caribbean of 10 years ago.”

The government, looking at the potential for more tourism revenue to offset its no-income-tax policy, is aware of the dangers of overdevelopment, Heartwell feels. It has watched as the local population on Providenciales grew from less than 1,000 people 10 years ago to an estimated 15,000++ today. Throw in another 7,500 tourists per week during the vacation season and the demand for services is going to add up pretty rapidly.

Yet for tourists, expatriates and others with the cash, life can be easy in the Islands. Canadian resident Ellen Mitchell lived in a luxury oceanfront condominium on Providenciales for several years before returning to Canada. “It was secluded and quiet and I used to love the drive alongside the ocean down to the golf club,” she recalls.

Prices, in U.S. dollars, slashed the value of Mitchell’s Canadian-earned dollars by about 1/3 after currency exchange, hiking the price of everyday items like groceries substantially higher than she was used to at home. But the sunshine, family get-togethers and climate made it all worthwhile–until she began to miss her children.

Living in a dream condo in paradise may have been affordable, but a couple of children at a time down for holidays, coupled with frequent visits home to Canada became increasingly uneconomical. She eventually sold and moved home again, but treasures her memories of TCI. “I really loved the place,” she states.

Now that this one among the few remaining gems (not overrun with tourists) in the West Indies has been “discovered,” there isn’t much the government can do to immediately regulate, restrict or contain growth, suggests Joseph Connolly, managing director of PricewaterhouseCoopers on TCI. “The concept that an economy is growing too fast seems to imply the government can take their foot off the accelerator or touch the brakes to line the economy up to the right speed.”

“The truth is that when government tries to influence the economy, it is like turning the wheel on a massive oceanliner. It takes two miles to turn, and by the time the turn is made, the obstacle it was seeking to avoid has long gone and the ship is sometimes facing the wrong way . . .”

Connolly suggests the country can identify what its long-term economic point of equilibrium should be . . . but it is the world economy that will determine how long and what route it takes to reach that target.
Bearing in mind the current stock market slump, Connolly and PricewaterhouseCoopers are looking for a slower rate of growth in development in 2002. Connolly is suggesting a very slight cooling off in the overall economy to 15% this year (from 16% the previous year), based on National Insurance collections. That’s higher than GDP growth, but reflects the rising rate of wages.

Labour which has been “imported” into the country to build the resorts and services has put upward pressure on rental and purchase accommodation on Providenciales, Connolly adds. “It may also put pressure on the social services such as health and education, which may eventually require additional funding paid for out of increased government revenue . . . which would raise the cost of living in the future.”

But while housing costs may be escalating faster than in conventional markets, other indicators of inflation–or the cost of living–are generally holding steady, he notes.

Ironically, the influx of cash into the country has had the effect of encouraging competition in several areas, leading to some price cuts. That provides choice for consumers and also more reasonable pricing for commodities such as food and household items, as businesses try to woo customers with lower prices than their competitor across the street.

It’s not unusual for Islanders, or “Belongers” as they’re known, to work two or even three jobs to make ends meet. Tourism, as the major employer, doesn’t always pay top wages and multiple, if part-time, jobs are often necessary to pay the rent, buy groceries and support a family.
Inflation, much like the overall economic growth of TCI, pretty closely matches the U.S. lead. Since about 95% of all goods are imported, higher prices for cabbage in Delaware translate into the same price increase down here.

The Islands themselves manufactures little in the way of hard goods, but do boast the world’s only conch farm on Providenciales and a fishing fleet in South Caicos. Both conch and lobster harvests, however, are affected by their abundance and also global quotas, which may affect exports.

Projects on the horizon include a large port for tourist cruise ships on East Caicos, bound to escalate the number of visitors to the Islands if it materializes. Also possible is a causeway linking Middle and North Caicos. After Providenciales, North Caicos is expected to be the next island to feel the influx of tourism and development dollars, and the transportation of that to sparsely inhabited Middle Caicos is the logical next step.

As well, the causeway would provide better access to schools, medical facilities and other social supports for residents on both islands, government officials say. Imbalances among the string of islands in providing services for all have long been a concern, and Providenciales’ increasing domination of the tourist and economic sector has raised those concerns again.

Delton Jones, chief economist in the Ministry of Finance, has documented TCI’s past decade, as fishing declined as an economic factor and tourism kicked into high gear. He would like to see a fishing industry revived and the government has endorsed mariculture–fish farming–as a highly desirable investment area.

Jones, looking at the next decade, suggests several areas must be studied if this pattern of growth is to continue without stumbling: “The even spread of growth on islands other than Providenciales, fine-tuned labour and immigration policies, more entrepreneurial opportunities for native Belongers and, a big one, sustainable government income to finance development programs.”

To date, Jones says, the government has initiated consultations with the private sector and participation in the provision of services and infrastructure, promotion of small enterprise development projects and review of the education system in TCI. It’s a big task for a country which boasts a population smaller than most small cities (25,000 estimated).

Meanwhile, as Esper bounces across the waves carrying suntanned tourists to different destinations, he can only wonder at how a country whose airport was just recently expanded to accommodate major airlines is already bursting at the seams. “Suddenly 17 planes a week became 42 planes a week or something,” he muses.

IGA: Setting The Standard For Retail

Story & Photos by Anthony Taylor

Perhaps the most well known and most visited building on Providenciales is that of the IGA Supermarket on Leeward Highway. The 26,000 sq. ft. store has been rescued from receivership and transformed over the last 2 1/2 years from an almost-bare shelved building into a thriving supermarket operation.

“We’ve grown substantially these last couple of years,” says General Manager Michael Phillips. “We now carry around 27,000 different products and have also increased our inventory to around the $1 million mark.”

They’ve had to, because with thousands of customers each week the demand for everything from the mundane to the exotic has grown dramatically. “A supermarket is not something that can be changed overnight,” says Phillips, “it’s got to be a gradual process of finding out what customers want and is, to some extent, a case of trial and error. As well as the right products, customers want to shop in a clean and attractive environment with good customer service, and the value combination of price and quality. We’ve spent a lot of time improving our service and customer facilities,” he says.

The number of staff the IGA employs has also grown considerably, from around 20 when they took over in October 1998 to just over 60 today, over 90% of which are native Turks & Caicos Islanders.

As any business owner/manager will tell, having the right staff is critical to the success of the business and Phillips is delighted with the team at the IGA. “Considering most of them were rookies when it came to the grocery business, to see how well they gelled together and what a good job they do is very impressive,” he says. In all, Belongers hold eight managerial jobs in the IGA with several others in key positions, such as Mauvette Williams in accounts and Trish Capron in costings.

Because of the size of the store it is broken down into different departments. Each department has its own manager who is in charge of its efficient operation–everything from product ordering to layout. The list of Belonger managers is long, but one that Phillips is keen to promote: Uroy Williams, produce manager; Denise Hinson, bakery manager; Sharon Swaby, deli manager; Delroy Foster, meat department manager; Merlin Cox, dairy manager; Frank Forbes, assistant store manager; Arlene Hall, front end and senior store manager and Edith Cox, the new financial director of the entire store. The managers are able to call on the experience of Jesus Antolinez, a supermarket professional who joined the team a year ago and Leigh Proctor, who has been with IGA almost since day one.

The growing influence of the IGA is also being felt in many local restaurants as Matt Neff, deputy store director, and his team in the wholesale department have expanded this side of the operation significantly over the last few months. “They have done a great job and are now supplying the majority of restaurants with the same high quality products that can be found in the store,” adds Phillips.

With such rapid growth, it’s fair to assume that the IGA’s influence on the Islands is set to getting stronger.

Power For Progress

Story & Photos by Kathy Borsuk

As economic growth in the Turks & Caicos Islands–particularly the most-developed island of Providenciales–spirals upwards in double-digit figures, so too does the demand for the electricity that powers everything from air conditioners to VCRs. As I learned in a recent interview with Ron Kidd, General Manager of Provo Power Company (PPC Limited), not only has the utility ensured that power supply stays well ahead of demand, but they have actually decreased rates, while maintaining an outstanding level of custoemr service and corporate responsibility.

OUT-PACING DEMAND
Kidd shakes his head as he describes the remarkable rate of growth in electrical consumption on Providenciales, “In a little more than three years, the demand for electricity has doubled, so that our average daily peak load is currently around 11,000 kilowatts. We fully expect it to double again in the next three years. For the utilities, it’s a balancing act to purchase and install the necessary equipment at the right time, before the demand appears, but not too early, to avoid putting pressure on rates.”

That’s because the installed cost of one 6,000 horsepower diesel generator runs a hefty $4 million or so. There are currently seven operating at the Providenciales Generating Station (eight by the end of the year), along with one mobile unit. They provide electrical energy to Providenciales as well as Pine Cay and North and Middle Caicos via submarine cable. (Each island also has a standby generating station.) Sister company Atlantic Equipment and Power (Turks and Caicos) Limited (AEP) serves South Caicos from its own generating station there.

To keep up with demand, Kidd says, PPC must acquire and place a new generator just about every two years and is expected to spend at least $29 million over the next five years on infrastructure. “A prudent utility plans on being able to meet the peak load with the two largest generators out of service, since diesel generators routinely need maintenance and it’s possible that a large machine will break down while another is being serviced. By keeping this buffer capacity, our customers don’t experience frequent and prolonged outages.” Future machines are expected to be 10,000 horsepower or greater.

Kidd explains that the new generators will be installed in individual enclosures specially designed to reduce sound. The first new unit, expected to be operational by late 2002, should make a noticeable difference in nighttime sound from the power station. As more such units are brought into service, noise from the plant will steadily diminish. Meanwhile, an interim sound-reduction experiment, involving enclosing the sides of the existing power house and forcing air up through the roof, will soon be tested.

Fueling the massive engines that create the mechanical power that is translated by generators to electrical energy is diesel fuel–presently about 13,000 to 14,000 gallons daily! PPC’s fuel supply originates in Curacao and travels by sea to Nassau, where it is loaded into shallow draft vessels which journey on to Providenciales’ South Dock for off-loading to tanker trucks. The new fuel farm northeast of the generating station will provide 120,000 gallons of storage and cut filling time by about 40 minutes per truck. And, Kidd assures, “During hurricane season, great attention is paid to keeping the supply topped up.”

As the power load grows, it also becomes necessary to increase the number and/or size of the distribution circuits. Future plans include both. Kidd explains, “PPC is taking advantage of the reconstruction of Leeward Highway to install underground ducts for future electric circuits. This will allow the overhead lines to be de-energized one at a time so that existing wire can be replaced with wire of a much bigger diameter. The larger wire will carry more power and increasing operating flexibility. We will also add a distribution circuit in the Grace Bay area.”

Another method of coping with the increased load is to introduce higher voltage circuits (34.5 kV vs. the existing 12.47 kV). A higher voltage means that more power can be delivered along the same system to locations where it is most needed. Then, at local substations, an assembly of transformers and circuit breakers reduce the voltage and distribute power in the immediate vicinity.

DROPPING RATES
In light of this rapid expansion, it seems amazing that PPC has been able to cut rates dramatically. In October, 2000, rates for residential and commercial customers dropped from 35 cents per kWh to 28 and 29 cents per kWh, respectively. Unfortunately, Kidd bemoans, this decrease was masked by an increased fuel surcharge, driven by steadily rising international oil prices. “The end result was that the average bill stayed about the same. That’s why our customers haven’t seen the drastic price increases that have plagued North Americans.”

Kidd attributes the rate drop to economies of scale. “When PPC started in 1982, there was little concentration of population. As a result, many miles of lines had to be provided to serve relatively few customers. This made it very costly to operate the system and rates were correspondingly high. Over the last four years, the lines began seeing more use, the system became more efficient and economies of scale began to appear.”

Although both PPC and AEP are privately held companies, they are regulated by the TCI government. At the end of each year, the companies file extensive financial reports. Government scrutinizes these reports, often with the assistance of offshore consultants, and decisions are made on rate changes. Any income greater than that allowed to the companies is returned to the consumer in the form of a rate reduction.
North, South and Middle Caicos have not seen the development experienced by Providenciales and PPC/AEP shareholders have yet to see a return on their investment in those islands. Until the end of 2000, the TCI Government subsidized the operations on North and Middle Caicos and continues to subsidize South Caicos.

KEEPING THE LIGHTS ON
As an eight-year resident of the Islands, I complimented Kidd on the consistently reliable service I’ve personally experienced. In spite of high winds, lightning storms, car/pole collisions, parrots nests and the corrosive effects of salty air, I cannot ever remember lacking power for more than two hours. Kidd confirmed that PPC’s service stands above similar island nations and that providing excellent service is a source of pride for all 65+ employees, with everyone–from linemen to office staff–playing an important role.

Staff training, ensuring that proper tools and equipment are provided and diligent use of safety measures all contribute to PPC reliability, Kidd explains. “Just recently, a number of our linemen earned certificates from the Electric Utilities Safety Association (EUSA) of Ontario confirming their status as fully qualified Journeymen. This year, we’ll also initiate a new linesman apprenticeship program, as well as introductory training for the meter mechanic and substation electrician careers. Our apprenticeship programs are typically four to five years long and are a mixture of academics and hands-on training.”

The result is that staff can respond quickly and effectively to all power restoration and repair situations. Kidd says, “We have linemen on-call 24 hours a day and quick and accurate assessment of a situation is second nature to them. We even sent three of our ‘Power Pros’ to the Bahamas in the wake of Hurricane Floyd back in 1999 to help stabilize and restore their power and repair equipment. We’re also very proud that late last year our mechanical staff conducted major overhauls on two of our main generator sets.”

PPC offers popular “electrical awareness” training programs to schools, construction groups and community groups. For new building construction, they provide an inspection service prior to site energization.

Customers appreciate the new, more convenient payment office on the first floor of Town Centre Mall. This was done in conjunction with a complete reorganization of PPC’s business system to improve efficiency, flexibility and customer service.

CORPORATE RESPONSIBILITY
“As the Islands’ major utilities,” Kidd declares, “PPC/AEP feel a strong corporate responsibility to assist in the TCI’s ongoing development.” With this in mind, the company has in place a number of programs to protect and improve the quality of life for its current and future consumers.

Both the new fuel farm and generating station expansion were constructed to high engineering and environmental standards, thanks to the team of J. Kaehne and Associates, a consulting engineering firm specializing in generating station design, and John Redmond Associates, a local, highly respected architectural firm. In fact, the new facility promises to be a model for other Caribbean nations. For instance, a large trench collects refuse and waste oil from around the plant. When it rains, the refuse drains into an oil/water separator (rather than Leeward Highway). The waste oil is then burned in a state-of-the-art incinerator that meets all North American air quality considerations.

Another step into the future is the use of an electronic digitizing board which allows PPC’s paper “blueprints” of the country’s extensive power grid to be computerized. As a result, it will be possible to readily update system changes and provide fresh copies of the information to people in the field at a moment’s notice. The data is complemented by a program allowing the location of every pole (over 4,000!) and transformer to be identified using satellite global positioning, essentially pinpointing its location for easy access.

At the same time, PPC supports a variety of charitable causes throughout the Islands, particularly those relating to children, education and the environment. Kidd says, “As a public utility, we recognize the absolute importance of all of us working together towards positive progress in the Turks & Caicos Islands.”

Grand Turk Synergy

Story & Photos by Kathy Borsuk

SYNERGY: The interaction of two or more forces so that their combined effect is greater than the sum of their individual effects.

“I’m a firm believer in the power of synergy,” states Paul Day, managing director of Grand Turk-based Columbus Foods Ltd., “especially as it relates to the balances of trade.” Paul, and his brother, Seamus, are laying the groundwork–or more appropriately, “seawork”–to put principle into practice with a series of cooperative ventures that could both vitalize the nation’s capital, Grand Turk, and benefit the entire Turks & Caicos Islands.

As reported in the Spring, 2000 issue of Times of the Islands, Columbus Foods’ $3+ million rice mill on Grand Turk was just the type of development government was seeking to help diversify the economy and spread investment beyond Providenciales. At its peak in 1996, 10,000 metric tons of rice were processed through the plant and exported to European Union (EU) countries, adding an estimated $1+ million to Grand Turk’s economy. Unfortunately, soon afterwards import quotas were established and the amount of rice that could be exported by TCI was so low that processing became unprofitable. As a result, the mill temporarily closed.

Undaunted, in mid-1999 Day petitioned for a derogation which would allow TCI to bypass the quota system. At the same time, Columbus Foods worked to develop the regional Caribbean market for its high-quality products and Day looked for other opportunities that would utilize existing assets.

Persistence paid off for the burly Brit. Thanks to constant lobbying and assistance from TCI’s Chief Minister Derek Taylor and Governor Mervyn Jones, the European Commission recently granted the “least developed Overseas Countries and Territories (OCTs)” of EU member-states license to export 10,000 tons (and potentially more) of processed rice into EU countries annually, commencing in January, 2002 and continuing for at least six years. This move, combined with ongoing large shipments of rice to Haiti and other regional countries and animal feed product to the UK, provide a solid basis for long-term development and, as Day proclaims, “By next year, we’re going to be very, very busy.”

Once again, Grand Turk will become the country’s largest importer (of raw “cargo” rice) and largest exporter (of processed rice). In fact, Grand Turk’s deep water port will be thoroughly occupied, with more containers turning around in one week than in the entire previous year! Day expects to gradually increase the number of staff back to the levels they were when the plant was operating at its zenith: 64 people, running 24 hours, 7 days a week.

At the same time, Grand Turk native Herbert Adams, operations manager, will assume full responsibility for day-to-day plant management. Administration & Marketing Manager Alice Simons will continue to handle sales and accounts, while she also works to expand their Caribbean market. Both have been with Columbus Foods since the mill’s inception and are undaunted by the challenges ahead.

Meanwhile, Day will be spending much of his time in Indonesia. Via a 1999 invitation to serve as a consultant there, Day netted Columbus Foods the rights to modernize the vast Indonesian rice industry, including designing, building and managing six, $26 million, 1/2 million ton capacity rice processing complexes. How will this benefit TCI? The synergy here is that Day plans to use the Grand Turk mill as a training school for Indonesian mill workers.

But Day’s idea of synergy stretches far beyond rice. Using the shipping routes and volume demanded by the rice mill (boats coming in from Guyana and Surinam and traveling out to western Europe), he sees Grand Turk as a hub through which goods can move and value can be added. For instance, he hopes to expand the importation of tropical produce, hardwood and other products produced in Guyana, Trinidad and Jamaica for wholesale in the TCI. Already, durable Guyanese hardwood lines Grand Turk floors and roofs and Day envisions a small furniture factory here that could produce pieces for export. Once on-line, Seamus says, “We’d also like to set up an annex for vocational training at the high school.”

Fish are a natural export and the Day brothers recently acquired the assets of Deep Water Seafoods, a fish processing business on Grand Turk that was built but never operational. Seamus explains, “We now have the equipment, including boats, to catch and process fish to supply both the local and Miami wholesale markets. We’re in discussions with TCI fisheries officials to develop scale fish quotas for the country’s territorial waters. We have also reached an agreement to purchase the unprocessed catch of companies fishing in the mid-Atlantic. We expect this will create a number of local jobs and we anticipate using part of the facility as a fisheries training school.”

Synergies exist here as well, says Paul. “We’ll be able to increase the number of cargo planes coming to Grand Turk, yielding a steady supply of fresh dairy products, meats and produce, and reduce their cost by sending the planes back with seafood bound for Miami. The plant’s refrigerators and freezers can be used to keep incoming products for wholesale and its large yard will make an ideal storage facility for boats.”

As a final link in the chain, Seamus is keen on a new seawater greenhouse concept developed by A.C. Paton, of London, UK, represented in the Caribbean by Modern Water Technologies, Inc. ( www.waterplusfood.com ) He says, “Seawater is pumped into a specially equipped greenhouse, where it cools and humidifies air passing into the planting area, creating an ideal growing environment. This cool air flows towards a condenser assembly. Before reaching the condenser, the air is further humidified to the saturation point by various means. The saturated air flows past the cold surface of the condenser, leaving behind fresh water droplets which are collected into a storage tank which provides irrigation water for the plants growing in the greenhouse. A one hectare greenhouse can produce as much as 550,000 liters per day of fresh water, enough to irrigate 15 hectares under shade.”

Does this all sound like a heat-induced fantasy? Don’t be too quick to nay-say. The enthusiastic Day brothers believe that such synergistic projects–which do NOT rely on the voluble tourism industry and which can be funded by a blend of development aid grants and private funding–are the way forward to self-sufficiency for the Turks & Caicos Islands. They say, “We’d like to succeed in lots of small projects that are doable in scope . . . the key is stitching them all together.”

Continuing The Pioneering Spirit

By Anthony Taylor

The name of Bob Cooper probably doesn’t mean much to most people in the TCI these days, but his influence is felt in almost every home, hotel, resort, restaurant and bar in the country. Back in the early 1980s, Cooper was running a small business on Providenciales testing and writing about the latest in satellite and radio communications in his own magazine, Coop’s Satellite Digest, and as such was the only person on the island with his own satellite dish, and thus TV.

At the behest of Lewis Astwood, Minister of Public Works at the time, Cooper was asked if he would share his equipment and technology with the Islands to provide television service in return for being allowed to bring in any additional equipment duty-free. When he agreed, West Indies Video, or as we now know it, WIV Cable TV Ltd., was born.
“We started with only one channel back then, WTBS,” recalls Peter Stubbs, General Manager of WIV Cable TV and one of the founding employees of the company. “Also, the only electricity was in Turtle Cove which had an AC/DC supply. I remember when the whole island congregated at the old Island Princess hotel to watch an Ali fight. It was a fun night!”

Working with Cooper at the time was Valentine Pratt. The two men developed the system into a three channel UHF system using a converter box. “Not long after that I was at home sick one day when Valentine called and offered me two weeks of work with them. I had a steady job, but gave that up as I was really interested in what they were doing,” says Stubbs, “and I never looked back.”

Neither did the company. By 1985 they had further developed WIV to be able to use cable as their delivery system and employing the by-now installed PPC poles as their network, were able to sign up their first subscriber, Willard Williams. More subscribers followed, although service was still only available in four areas of the island–Turtle Cove, Blue Hills, Five Cays and the Bight–as these were the main residential areas back then.

“By 1986 we’d grown out of our site down in the Bight and we needed to move to a new location,” says Stubbs. “Our current site was chosen which just left us with the monumental task of moving the huge satellite dishes to their new home. We had to carefully load them onto trucks and then very slowly move them down the road at about 5 MPH. It was quite a undertaking, but we managed it.”

With the new location came the ability to add more channels by switching to the FM frequency, which offered more bandwidth, which WIV did, taking them from 24 to 30. Then, in 1992 and quite unexpectedly, Bob Cooper left Providenciales. “It was a difficult time,” admits Stubbs. “When Bob left he took a lot of expert knowledge. I’d been working as chief linesman and designer so I knew a lot but it was a question of the rest of us pulling together and making it work.”

For the next two years, Peter Stubbs, Mike Scism, Patti Burke (Cooper’s wife) and the rest of the employees carried on running WIV with much success until, in 1994, Burke decided to sell her majority shareholding in the company to Blanchard TCI Ltd., which also owned Turks & Caicos Television and Turks & Caicos Utilities in Grand Turk. Although ownership of the company was now in their hands, Blanchard TCI Ltd. were keen to keep the existing staff on with Peter Stubbs as general manager. Since then the company has focused on expanding the network and making it available to an ever-increasing audience.

Now, thanks to an investment of over $4 million, WIV is about to continue the pioneering spirit that is part of its heritage and install a state-of-the-art 750 mHz, two-way fibre optic cable network across the Islands. According to Bob Blanchard Jr., president of Blanchard TCI Ltd., the company is finalizing the design of the new system and anticipates installation to begin in early May. “Our current schedule is to have the new system operational within eight months of starting,” says Blanchard. “In addition, we will be building a 9,000 sq. ft. office and studio center.”

Both men concede that the existing system is stretched to its limit and that the new system is just in time. “Apart from the increased programming capability that comes with the new system, the number of outages will also be reduced dramatically, as for the first time we will have a separate back-up power supply throughout the system,” adds Stubbs. “If the power goes down in a limited area, viewers in other areas won’t be affected.”

The increased programming will lead to tiered packages offered, with specific movie, sports and foreign channels being available just as with satellite operations like Direct TV, although Blanchard is quick to point out that WIV will be seeking to have little or none of its channels. The good news for customers doesn’t stop there–if you are a frequent Internet user, high-speed access will also be available, so no more slow downloads!

Stubbs is also proud of the fact that with the arrival of their new studios will be a greater focus on local programs through Channel 4. “We want to do much more in the way of local reporting to really encourage the people of the Turks & Caicos to get involved with what’s going on in their country,” he says.

The technology may have changed but the spirit at WIV remains.

“I’m warning you now, this could become addictive”

Turks & Caicos spas

That’s what Megan Bates of Serenity Spa said just before she gave me my first-ever beauty treatment. Truthfully, I had been rather apprehensive at the thought of a stranger performing ablutions on my body. But I think I started to relax as soon as I stretched out on the padded table and inhaled the fresh, clean aroma of herb-scented air. Soothing mood music played quietly in the background and it was too easy to let thoughts of deadlines, bills and laundry slip away.

Megan gently dabbed and rubbed a variety of skin care products onto my face and neck whose various purposes were to cleanse, exfoliate, balance, rehydrate and soothe. I could smell the fragrances of rose petals, mint, lavender and apricot as each was applied. As the potions worked their magic, I was treated to a series of blissful massages on my feet, neck and shoulders, arms and hands, even my face!

My hour was up too quickly, and it was time to sit up and face the world again. I felt totally relaxed, almost dazed. My face felt refreshed and soft and I swear that some of the “concentration lines” on my forehead had disappeared! As I floated out of the spa, I vowed to treat myself to this kind of pampering again and I was eager to try a full massage next time.

“Next time” came sooner than I imagined. Several days later, I was treated to my first massage by Terri Tapper at Spa Tropique. Her calm, mature manner helped me feel comfortable as she used her strong, warm(!) hands to gently rub and stretch my tired body using lightly scented herbal oils, taking special care with my taut neck, shoulder, back and calf muscles. (I especially enjoyed the foot massage, as she gently rolled her knuckles across the balls of my feet.)

Once again, I drifted into sensory heaven, and when the massage ended all too soon I felt loose and enervated. (I believe the description “wet noodle” would apply.) Terri suggested that I drink lots of water during the day to flush the toxins that had been released during the massage.
Everyone was right . . . beauty treatments are addicting. But what a healthy, positive way to escape from reality!

Finding time to pamper yourself in the throes of today’s typically frenzied lifestyle is rare. That’s why a vacation away from home is an ideal time for a massage or beauty treatment. Not only can you fully relax and enjoy the services, but their effects can be savored when you don’t have to return to work or chores. The spectacular natural beauty of the Turks & Caicos, combined with the sunny climate and intoxicating ocean breeze, further help enhance the healthful effects.

Ironically, not everyone you find in a spa is here on holiday. Turks & Caicos residents make up a large proportion of the business. Although hard for visitors to imagine, living and working here, especially on bustling Providenciales, is certainly NOT stress-free. A trip to the spa is a good excuse to steal time away from family demands and a soothing answer to the aches and pains of tennis and golf-playing “weekend warriors.” Spa services also make wonderful gifts.

The Turks & Caicos benefit from the services of massage therapists, beauty therapists and aestheticians who take pride in their extensive training and professional expertise. They agree that it takes much more than a short course to fully understand the workings of the human body and the effects of massage techniques, herbal products, and exercise and nutrition recommendations. With this in mind, you can relax knowing that you are in safe hands.

Take Time for Serenity

Serenity Spa (www.serenityspa.net) is located upstairs above the lobby of the luxurious Grace Bay Club, although it is open to all visitors and residents. Entering the waiting area is like stepping into a cool sanctuary: pale green walls, the sound of a trickling fountain and herb-accented fragrance combine to produce this effect.

Open since Christmas, 1999, Serenity Spa is staffed by Dee Dempsey, Megan Bates and Kim Goodwin, all certified massage and beauty therapists with over 20 years of combined experience, including specialized training in sports massage. From their Grace Bay aerie, they offer a full roster of massage and beauty treatments using Elemis products, a line synonymous with the finest quality of organic herbs, medicinal plants and revitalizing seaweed extracts.

Dee and Megan say that massages are their most popular services, especially for first-timers, who later try facials and other beauty treatments. Massage offerings range from therapeutic massages, which can be targeted to your specific needs, to deep tissue/sports massages, used to treat chronic muscular problems. Serenity Spa’s “ultimate massage” uses a signature blend of aromatherapy oils and incorporates scalp, face and feet . . . ah! Dee says that couples massages are especially popular with vacationers, and are often done side-by-side on the spa’s private outdoor terrace overlooking Grace Bay. (How’s that for a sensuous sunset?)

Besides facials–tailored to your skin type to either rejuvenate, revive, desensitize, rebalance or improve skin problems–Serenity Spa offers Aromaspa Body Wraps. Upon my questioning about what seemed a strange ritual, Megan explained the process. “We use special sea plants, which are very detoxifying, and blend them with essential oils to create a warm paste which we apply to the shoulders, lower torso and legs. Then, you’re wrapped in a foil ’space blanket’ for warmth–it’s very snuggly and comforting. While the treatment works, we massage your scalp and feet. It’s like a facial for your entire body!” Body wraps can also be personalized to firm, tone and reduce stretch marks, ease joint stiffness, or minimize the appearance of cellulite.

Speaking of that dreaded word, Megan explained that she is uniquely qualified to administer the new “Ionithermie Super Detox” anti-cellulite treatment, currently in vogue with female members of the “gym crowd.” A European technique not currently available in the United States, Megan completed the training program to use the combination of a clay and algae mask and electrical stimuli which promises to reduce cellulite, improve skin texture and firm and tone muscles.

Other services offered by Serenity Spa include body hair depilation and nail services, including a spa manicure and pedicure complete with a rich paraffin heat mask to help soften and condition the skin.

To fully relax, unwind and indulge, there are 1/2 and full day spa packages featuring a combination of treatments; the full day includes a break for lunch on the patio. Dee and Megan encourage making reservations in advance, via phone or e-mail, to ensure you get the time and day desired: afternoons and evenings are especially popular after a day on the beach.

Tropical Tension Tamer

Colette Pepperell, owner of Spa Tropique (www.spatropique.com), firmly believes that “restorative relaxation brings an invigorating sense of well-being.” Spa Tropique operates from treatment rooms at Ocean Club (East and West) and Allegro resorts. They also utilize a fully equipped mobile service to bring nurturing to your door, be it at another resort, villa or your own home.

Colette is a sports therapist and personal trainer with over 16 years of experience and an alphabet soup of internationally recognized professional certifications to her name, including aquatic exercise, water rehabilitation, personal training, and lifestyle and weight management counseling. After working in California and traveling to a number of islands, Colette and her husband Phillip settled down in Providenciales over three years ago, when she opened Spa Tropique as a one-woman enterprise. Today, her staff has grown to include three other certified therapists.

Here, too, massage is the most requested service and along with well-known massage techniques, Spa Tropique’s staff incorporates a variety of modalities such as trigger point, reflexology, Trager, myofascial, reiki, energy balancing, polarity and Lomi Lomi.

Unique to the island and becoming very popular, Colette says, is the River Rock massage. For this treatment, smooth stones collected from Canada by therapist Joanne Richards are warmed and then used to soothe individual aches and pains. The stones offer an excellent way to reach deep into muscle tissue without pain, and can be applied at specific “chakra points” to promote deep relaxation.

Spa Tropique therapist Missy Craig is specially certified in pregnancy massage and, Colette explains, loves the opportunity to nurture two at the same time. The staff also does regular therapeutic work on residents who have been referred by the local chiropractor.

Facials, manicures and pedicures are the next most popular spa services, and these days, even men partake in this pampering. “I think that overall,” Colette comments, “there is an increase in the use of spa services for the average person, including men, who not only need to destress, but are paying more attention to their bodies. In fact, corporate gift certificates are becoming a more-common employee perk.”

Spa Tropique uses Pevonia products to conduct a variety of facials ranging from deep European cleansing to more specialized treatments such as collagen, elastin, seaweed, oxygenating and skin-soothing sunburn applications.

One unique service is the paraffin body wrap, designed to ease aching joints and rehydrate dry skin. It involves the use of a body brush to paint warm paraffin wax over your body. You’re then wrapped in plastic and towels to allow your skin to exude moisture. As I saw for myself with a mini-demonstration on my hand, the wax peels off like a glove, leaving behind smooth, moist skin.

Fit and upbeat herself, Colette spends much of her time working with clients on exercise programs, personal fitness training and lifestyle and weight management counseling. Utilizing gym facilities at the resorts, along with the latest in specialized equipment such as exercise balls, thera-bands and aquajoggers, she guides clients through exercise techniques on land and water. She says, “Some people need help creating a program tailored to their specific fitness goals. I have others who are superfit and want to be coached and shouted at to encourage them to push harder. I work with a lot of older people, too, who may have health concerns.” She adds, “Here on the island, it’s easy to get into eating and drinking problems–so I help some clients make slow, long-term lifestyle changes towards positive goals.”

Ultra Pampering

Nestled in a quiet corner of Beaches (www.beaches.com) all-inclusive resort on Grace Bay, the signature Ultra Spa is inviting and elegant, with a distinctive Eastern atmosphere. Lush foliage lines the paths between buildings, serene statues add a formal touch and hot and cold outdoor plunge pools beckon you to take a dip.

The main spa building envelops a spacious steam room and dry sauna, as well as shower and locker rooms with robes and towels that are complimentary for use by all adult Beaches guests. (Other spa services are available for an additional charge.)

Inside, walls are lined in marble tiles, their earthy ochre tones complemented by dark wood accents. Soothing music and the pleasant aroma of eucalyptus calm your senses and the immediate effect is that of hushed tranquility.

Paulette Clarke has been the Spa Manager in Turks & Caicos for two years, coming from a background of salon and banking management. She oversees an international staff of 8 to 10 certified therapists, who, Paulette notes, have been re-trained to the award-winning standards that are consistent across all nine of Sandals/Beaches ultra-spa properties.

Paulette concurs that many guests have never tried spa services before. “People are more relaxed on vacation and have the time to pamper themselves. They feel safe and comfortable here and let go of their inhibitions. And once they’ve tried a massage or facial, it usually becomes a habit! Because of our upscale market, we also cater to veteran spa-goers who have their own therapists at home; ours, of course, always compare favorably.”

From eight private treatment rooms–all spotlessly clean sanctuaries of subdued candle lighting and herbal fragrance–Beaches Ultra Spa offers an extensive array of treatments. All utilize Pevonia skin care products, formulated in Switzerland from pure and potent natural botanical ingredients.

Along with basic Swedish massage, aromatherapy, reflexology and deep tissue massage, special pampering options include side-by-side massages for two in the spa or in your room (ideal for lovers and honeymooners) or the indulgence of having two massage therapists work on you at the same time!

There are no fewer than 10 varieties of facial treatments to select from–all include cleansing steam, facial massage and mask. One unique option is the Moor Mud Masque, an anti-stress treatment using natural moor mud, rich in vitamins and minerals that restore and rejuvenate the skin. The Sun Lover’s Facial utilizes a cooling lift-off mask to soothe and revitalize sun damaged skin. Some partake in a peel using the acid of the white Hibiscus flower, a gentle exfoliating treatment which benefits skin with age spots, clogged pores and wrinkles. And, Paulette admits, each month, they perform 15 to 20 Gentlemen’s Facials, a relaxing and deep pore cleansing facial which includes the use of botanical liposomes to help prevent and relieve razor burn.

Karen Sprung has been director of all spas in the Sandals/Beaches chain for over eight years. She comments, “More and more guests are opting for our exotic offerings . . . like our hydrotherapy bath which combines the benefits of underwater massage with the addition of mineral salts and essential oils.”

Micronized algae powder is the secret ingredient in the Seaweed Bath. The algae is processed for maximum absorption into the system and is known for detoxifying the body and revitalizing metabolism. Prior to suntanning, Karen recommends a Body Polish using a scrub rich in natural grains and plant extracts to remove dead skin cells. Post-tanning, you should consider a hydrating essential oil or seaweed body wrap.

Beaches’ fitness facilities are complete with state-of-art Cybex cardio equipment and free weights, fit balls and a variety of challenging classes including power walks, aquacise, aerobics and stretch classes. Personal trainers are on hand to assist and, of course, there is the 12 mile stretch of Grace Bay Beach beckoning runners, walkers and swimmers.

A full service salon completes the beauty package, offering manicures and pedicures, hair coloring, cutting, styling, braiding and extensions, body waxing and make-up amenities.

Even if you are not staying at the Beaches resort, you are welcome to purchase spa services. Paulette asks that you phone ahead of time for reservations. Fees are the same as those for guests.

AND PAY NO TAXES . . .
AND I’M AMERICAN!

It had been a glorious weekend, dinner with friends on Friday night, game of golf on Saturday, and Sunday spent idling on beautiful Grace Bay beach. The warm glow of the sun seemed a distant memory as another week started, and Bob Geldorf’s “I don’t like Mondays” reverberated in my mind as I welcomed Harry into my office.

Harry had been introduced to me by some clients who described him as a highly successful orthopedic surgeon, living in Atlanta with his wife and two children (who were at college). They said that he made a large amount of money, paid his taxes, went to church every Sunday, and was essentially a nice guy. Like many successful Americans, however, Bob had a couple of problems that he was more than aware of.

Firstly, his occupation was very high-risk. Patients recognized that he was worth a lot of money, but, in tandem with their contingency-fee lawyers, failed to appreciate that not all operations are 100% successful. The result was a steady spate of rogue
litigation, and the constant dread that one day he might lose everything that he had built up for himself and his family.

Secondly, whilst Bob considered himself a loyal American, paid his taxes, and abided by the law, he still believed that it was his duty to minimize his tax liabilities to enable himself to choose where his money went, rather than the government deciding for him.

Sitting down at the boardroom table it was fairly easy for me to identify these characteristics, and I was fully prepared to meet the intensive questioning and attention to detail that I would expect from a successful medical professional and businessman.

Having gone through the preliminaries and having told Harry a bit about myself, it was now my turn to ask the question:
“So, Harry, what are you trying to achieve?”

Harry looked directly back at me, and with a grin growing on his face laid his cards on the table: “I want to protect my assets from would-be creditors, pay no taxes, and I’m American!!”

By the time he had finished his sentence the grin had turned to a broad smile. I could read his mind–despite the introduction through friends I got the feeling he was a bit skeptical that I could do anything, and here was his challenge for me to prove him wrong.

In America I would have kept a poker face, but being a Brit, it was more about keeping that upper lip stiff, as I responded, “Yes, I think we can achieve that.”

The smile subsided, “But not legally!” he queried.

Harry then explained to me what he had learnt from reading a couple of books and talking to some lawyers in the United States who were friends of his. The net result of his research was that asset protection in the U.S. required the use of an Alaskan trust. U.S. courts had a dismal view of any offshore structure, and certainly that the only way not to pay tax was to lie on your tax return, which is not something he was prepared to do.

Harry seemed fairly typical of the inquisitive prospective clients that I had been coming across in the last few years. There was a clear desire to do something, but confusion over misleading information was leading to lack of action, and in many situations inappropriate action. It was time to put him out of his misery.

“Well, Harry. Let me explain how it can be done. What you are looking for are two things. Firstly, a legal asset protection vehicle, and secondly, a legal tax avoidance vehicle. Am I right?”

“That’s right,”–the smile was replaced with an enquiring frown.

“Okay, so let us first look at asset protection. The reality of litigation is that if it does happen, you will be hauled up in front of a court, you will have to declare all your assets on pain of perjury, and when the court decides to relieve you of these assets, they will transfer them to your creditors. The problem that you have with assets held in the United States is that despite domestic structuring, if the court rules against you it has the power to ignore these structures and take away the underlying assets. Have you ever heard of a limited liability company limiting liability?”

“Guess not,” he replied.

I continued, “The problem you have is that you cannot move all your assets and yourself out of the jurisdiction of a U.S. court. After all you are American, you live and earn your living in the United States, your family is there, and you have no desire to leave. So what you need to do are two things. Firstly, look at your fixed assets in the U.S., such as property, your business and other immovables, and speak to your lawyer about setting up a domestic structure, such as a limited life company or other domestic asset protection structure to hold these assets. Then look at your liquid assets, your bonds, stocks, cash holdings, these are the ones that we can help you with.”

He was all ears, so I continued.

“Firstly, you must give up control of these assets, so that a U.S. court cannot direct you as to how the assets are handled (and thus paid out to a creditor). Secondly, you need to get these assets out of the United States and have them managed in a foreign country where the U.S. courts have no jurisdiction.”

Harry must have done quite a lot of research, because he came back very knowledgeably. “So you are telling me to set up an offshore trust. That way I give up direct control of the assets, the foreign trustee holds the assets for future purposes (such as a retirement fund), and if a U.S. court gives me instructions on this, because I have given up control I cannot direct the trustees as to how to handle the assets, and therefore cannot tell them to repatriate the assets to my creditors.”

I sat back somewhat stunned–he had grasped things immediately. “Yes, that is it.”

“I’m afraid I have a couple of problems with that.” My heart sank, but I was prepared.

“What are they?” I asked, knowing pretty well what they would be.

“Well, first of all, the trustee has complete control of my assets, and I am not sure if I trust you Mark. And worst of all, if I set up an offshore trust, I have to complete several Internal Revenue Service Forms–you know, Form 3560 and the rest of them.”

Harry had clearly done some sound research, and yes, he would have to complete these forms, but the underlying investments I had in mind for him would mean that the forms would be very easy to complete. Nevertheless, I had to show him that there was a way to mitigate both of these concerns if they really were a big problem for him.

“You are absolutely right,” I retorted, “but we can get around those issues if you wish. If you set up the offshore trust as a foreign trust, with a foreign trustee, it becomes what is referred to as a Foreign Grantor Trust for U.S. tax purposes. What that means is that whilst you have given up control of the assets for asset protection purposes, your friendly agent from the IRS will still want to collect the tax on the income that is being generated. So it is just as if you still owned the assets for tax purposes, which is why you have to fill out Form 3560 and Form 3560A every year. Then, as you rightly point out, I as the trustee have control over your assets. So if I were a crook I could run off with your money. There is one solution which mitigates both these problems.” Harry looked very interested.

“What we do,” I continued, “is we maintain the trust as a U.S. trust for tax purposes. We appoint two trustees, one who is resident in the U.S., and one who is resident here (i.e., myself). The result of this is two-fold. Firstly, as the trust is no longer a foreign grantor trust, you do not need to fill out all those nasty IRS forms. Secondly, because you appoint a domestic trustee (who might be your lawyer), you have a second trusted party involved in the control of the funds.”

Harry picked this up immediately but thought he saw a potential flaw in the plan. “But if we do that, then a U.S. court can direct the domestic trustee, so we might as well not bother.”

“On the contrary,” I replied. “The trust must be set up and the assets settled to the trust prior to you having creditor problems. You must show that there was no intent to defraud anyone. What would then happen in practice is that, say three years down the line someone sued you, there would be a clause in the trust deed that subject to certain conditions (such as a major judgment against you or a domestic attempt to attack the trust), the U.S. trustee would be by default removed from their position as trustee. The trust would then be controlled solely by the foreign trustee. It would become a Foreign Grantor Trust and you would have to fill out those forms, but your creditor would have to go overseas to seek a judgment from a court in the foreign trustee’s home jurisdiction to force the trustee to release the assets.”

Harry sat back, he was nodding up and down. “Good sign,” he smiled. “Very good sign.” He understood.

“Okay, so it sounds as if you can resolve the asset protection issue after all, but if the trust is in the United States and is a grantor trust, how can I save any taxes if all the income and capital gains liabilities pass through to me?”

“Insurance!” I said, awaiting the traditional response that normally comes across when introducing insurance products as a tax planning solution.

“Oh no, not insurance, you are just trying to sell me an insurance policy. I know the commissions involved, they are ridiculous!”

It was clearly important for me to tackle the cost element, as this was the only objection that Harry was raising, although I suspected that he did not understand what vehicle to use, and how it would work for him.

“Let me explain,” I remarked, trying not to appear condescending. Having been involved in wealth management using insurance for over 12 years, I had learned that most people have a void in understanding the role of life insurance in tax planning.

“When you settle the money into your trust, the trustees will then purchase a variable life insurance policy from a major offshore insurance company, which ensures that the policy conforms to Section 7702 of the Internal Revenue Code. The policy can be structured as either a modified or non-modified endowment contract. The death benefit will be free of income and capital gains taxes, you might be able to take tax-free loans, and if you have a smart lawyer in the U.S., we can also look at the possibility of structuring the trust as an irrevocable life insurance trust, or just a credit shelter trust or even a generation skipping transfer trust.”

Blank! That is the only way to describe the expression on Harry’s face, but I had achieved my aim. It was important for me to make Harry feel confident that I knew my subject, even if he did not understand it fully himself.

“Go on,” he said nervously.

“Okay, what happens is this. The trustees will invest the capital of the trust in a foreign variable life policy, which meets U.S. rules. The policy will be based on your life, as the Settlor of the trust. You can achieve this in one of two ways: firstly, you could simply put one large tranche of cash into the policy–this will create a modified endowment contract (MEC)–or alternatively, you could make regular payments over a number of years–this would create a non-modified endowment contract (non-MEC).”

“So which one should I do?” Harry enquired.

“Well, if you do an MEC, the death benefit will be free of income and capital gains taxes, but if you want to gain access during your lifetime, you would be better off with a non-MEC, as this will allow you to take tax-free loans from the policy before you die, and the death benefit will be as per the MEC. You will therefore create a portfolio of investments under the umbrella of the contract which can be managed with no tax liabilities, and which you can draw down on in the future on a tax-free basis.”

Harry’s jaw was starting to quiver. “Is that legal?” he asked incredulously.

“Absolutely,” I replied. “The contract is structured to be in conformance with U.S. law, it is based on the variable life policies that are issued in the United States, it is issued by a major U.S. insurer through its foreign subsidiary, and all the necessary legal opinions have been obtained.”

“But why use a foreign insurer?” he asked.

“Well, for a number of reasons. Firstly, you have the contract outside the jurisdiction of the U.S., which helps with the asset protection issue. Secondly, you have much greater investment flexibility than that offered by domestic contracts, so for example, you can invest in a broad number of sophisticated funds, such as hedge funds or fund of fund hedge funds which provide ideal diversification in these volatile markets. And thirdly–in answer to your initial objection on charges–I can guarantee it will be cheaper to purchase than a typical domestic U.S. contract.”

“Cheaper?”

“Yes, the policies we use are issued by private placement to sophisticated investors. The result of this is that you do not pay the very high expenses associated with the typical retail market in the United States.”

Harry looked at me and paused. “So what you are saying is that you can protect my assets from future creditors, invest my money tax-free legally, provide me with a tax-free ‘income’ in the form of loans from the policy, and when I die the balance of the capital is paid out free of income and capital gains tax to my wife or children?”

“That’s it,” I replied, “but that is not all. In addition to the tax-free accumulation of investments, you will also obtain substantial insurance at very competitive rates, which will provide a large sum to your wife and/or children if you were to die prematurely. For example, you are a 50 year old male, in good health who does not smoke. If you put in $250,000 per year for five years to qualify as a Non-MEC, then if you died in the first year your beneficiaries would get nearly $4.5 million.”

Harry looked at me, and I could see he was impressed. “I would like you to join my wife and me for dinner tonight. I think it is important that she understands what I am considering doing. Oh, and by the way, could you leave out the $4.5 million bit? That might be too tempting!” Harry grinned.

Mark Smallwood is Managing Director of Smallwood Trust Company Ltd. and Smallwood Insurance Company Ltd., based in Providenciales since 1994. He can be reached at smallwd@tciway.tc.

Story and Photos by Richard Ground

Herons occur throughout the Turks & Caicos Islands in every conceivable habitat. Reddish Egrets dance in the urban salinas of Grand Turk. Cattle Egrets can be found in dry pasture. Great Blues stalk the tidal flats; and Night-Herons haunt suburban gardens, where they keep down the population of destructive land crabs.

Although twelve species have been recorded in the Turks & Caicos, nine of them can be seen regularly and easily. This is a lot, and it is easy to forget that there are few places in the world that can boast such a variety and abundance of these large and stately birds. Indeed, to the visitor from Northern Europe, used to one or two species at most, it must seem quite startling.

The Reddish Egret is perhaps the loveliest and most distinctive of all the local herons. It is a large, solitary bird, which can often be seen dancing across the middle of a pond with its wings outstretched. This behaviour is purposive–the bird is doing it to herd together shoals of small fish so that they make an easier target–but it often has a decidedly drunken look to it. At other times this handsome bird stands motionless, poised ready to strike, exercising the infinite patience of its kind. The Reddish Egret is immediately distinguishable by its mane of shaggy auburn feathers, and the pink base to its bill. However, rather confusingly, it also has a strikingly beautiful all-white phase, but it can still be told apart from the other white herons by its shaggy crest and pink bill.

White herons can be a problem to tell apart. There are those which are always white–the Great Egret, the Snowy Egret and the Cattle Egret. Then there are those which are white some of the time–like the Reddish Egret and the juvenile Little Blue Heron. At first glance they all seem the same, but each has its own distinguishing characteristics which, with a little practice, will allow you to tell one from another.

The easiest is the Great Egret. It has black legs and a yellow bill, but its size alone identifies it. A big, white, Crane-like bird it is solitary and wary, flying off with a harsh, guttural croak when disturbed. They are winter visitors to the TCI, although a few stay year round. They do not breed here, so their wonderful nuptial plumage is rarely seen. It consists of elongated, decorative feathers for which the species was nearly hunted to extinction at the beginning of the last century–they were in great demand for ladies’ hats. Only a change in fashion saved the bird.

Once similarly threatened, Snowy Egrets are classic birds of the wetlands. They are invariably found wading in search of small fish and invertebrates. Smaller than their large cousins, they have long black beaks and legs, but their feet are a golden yellow, so that they seem to be wearing house-gloves.

The other really large heron is the Great Blue. It too can be identified by size alone. In Florida it has a white form, but that does not occur in the Turks & Caicos, which saves having to distinguish it from the Great Egret. The Little Blue Heron, on the other hand, does occur here in a white form–for the first year of life it is pure white, later turning through a mottled calico phase until it achieves the purplish blue of the adults. The juvenile can be told from the other white herons by its blue bill and greenish legs.

Of all the white herons, Cattle Egrets are the most familiar. They occur inland, in pastures, and unlike most of their relatives, eat insects and small vertebrates rather than fish. Usually seen following cattle and horses around, snapping up what they dislodge, they sometimes form large flocks, which make a spectacular sight as they wheel through the sunlight of late afternoon. Cattle Egrets can be distinguished from the other white herons by their yellow bills, and in the breeding season they have a tan wash on crest and breast. The surest way to identify them, however, is by habitat and life-style–if it is sitting on the back of a cow it is not a Snowy Egret!

Perhaps the commonest heron, however, is the Tricolored or Louisiana Heron–blue and white, with a long, snake-like neck, it stalks small minnow round the edges of ponds and salinas. Those which inhabit the Town Salina on Grand Turk have become astonishingly accustomed to humans, and they fish right besides the road or walk along the footpaths as if they owned the place, which in a sense they do.

Much warier is the Green Heron–the smallest of the West Indian herons. It is a secretive bird, skulking in the undergrowth and often only betraying its presence by its scolding cry when disturbed. It may then be seen flying up into the trees, its neck outstretched and its dark crest erect in indignation.

Then finally there are the Night-Herons. The Yellow-crowned Night-Heron is a year round breeding resident in the TCI. A stocky gray heron with a handsome black and white head, like a badger, it makes a living catching crabs. It especially likes land crabs, and will even dig into their burrows to catch them. Although primarily nocturnal it does sometimes hunt in the day, and can be found quietly stalking through the dry bush looking for a meal.

It is worth getting to know the herons of the Turks & Caicos Islands. Each is special in its own way, and they bring great variety and interest to the avian landscape. They also possess a stately beauty, and because of their life-styles and habitats, tend to be easier to see and admire than many other, flightier birds.

The nautical definition of the word “leeward,” meaning the side to which the wind is blowing, captures only a fraction of the essence of Providenciales’ own Leeward Community.

This gated, upscale, marina-based community on the far northeast tip of the bustling island has seen tremendous growth over the past few years. Future plans are destined to make the development even more attractive with additional amenities.

Leeward is a boating and beach lover’s dream, yet is also close to the Provo Golf and Country Club and many fine restaurants and shops. In addition, located within the community is the highly respected Ashcroft School, making Leeward an ideal environment for families raising children.

Along the protected waters of Leeward Going Through–passageway between Providenciales’ north and south shores–lies Leeward Marina. From this gateway, local and visiting mariners have the most direct access to neighboring islands and cays and a convenient launch for plying the beautiful turquoise waters that encircle the island.

Leeward Marina’s location makes it the obvious departure point for anyone wanting to visit North and Middle Caicos, Parrot Cay, Pine Cay and the miles of deserted beaches associated with the area. There is a well-stocked marine store providing boaters and fisherman with a wide variety of supplies and a number of watersports-based businesses are headquartered at the marina.

Plans are underway to dredge an entirely new marina lagoon in the soon-to-be developed Leeward Gardens. It will be surrounded by a marina village encompassing restaurants and bars, quaint retail shops, additional fishing and watersports operations and several condominium developments. Amenities will be improved with a wider variety of services and provisions for more and larger boats.

Prestigious Properties Ltd., the country’s largest real estate agency, have been exclusive agents for Leeward Limited since 1997. At that time, the inventory of vacant land in the upscale Columbus Haven (canal waterfront) and Pelican Beach (inland lots) subdivisions was a combined 120 lots. Of these, 118 lots have sold and more than 20 new homes have been constructed, with plans for numerous others to be built within the next few years. A brief tour shows that the community has some of the most elegant homes and luxurious surroundings that Provo has to offer.

The strong sales activity in the Columbus Haven and Pelican Beach districts has brought forward the release of lots for pre-construction sales in the eastern canal development of Leeward Gardens. And once again, sales activity is astonishing. In only six weeks, 14 of the available 56 canal lots in Leeward Gardens have been reserved, pending completion of the construction. These are the last canalfront lots that will be available within Leeward.

An aggressive sales and marketing strategy on the part of Leeward Limited and Prestigious Properties, combined with strong buyer interest in owning within an exclusive and desirable community, explains Leeward’s tremendous success.

Also within Leeward’s protective gates are two specialized developments: Leeward Landing luxury townhomes and The Residences of Leeward single-family homes.

Leeward Landing LUXURY TOWNHOMES
Situated on six acres in a private setting within the Leeward Community and surrounded by colorful tropical landscaping, Leeward Landing boasts the ultimate in island living. Each of ten Caribbean-inspired buildings will house four stylish townhomes. The 1,400 sq. ft., two-story units feature 2 bedrooms, 2 1/2 baths and spacious, open concept living/dining areas opening out to a screened porch–perfect for entertaining. The second floor master bedroom, with his-and-hers closets and ensuite, also has a private screened balcony where you can relax in the evening breeze. Central air conditioning, a pool and lighted tennis court, and many more amenities add up to a lifestyle of luxury and comfort with the convenience of townhome living.
This spectacular property is within walking distance to Leeward’s intimate white sand beaches and is close to all the water activities available at Leeward Marina.

Pre-construction pricing for the first four units ranges from $269,990 to $274,990. A 10% deposit, combined with a 10% fixed rate mortgage for a two year term provided by Belize Bank (subject to standard bank approvals), make this a very attractive investment. Cash offers will receive a substantial discount when purchasing in the early stages of this development.

In a joint venture between Sundance Homes Ltd. and Johnston International Ltd., building and civil engineering contractors, construction for Leeward Landing commenced in February, 2001. Johnston has been the contractor for some of the largest and most successful projects in the Islands and throughout the Caribbean.
With the Leeward Landing luxury townhomes destined to become one of the most sought-after addresses on Provo for on-island professionals and offshore investors alike, it is anticipated that this new product offering will significantly expand the market within Leeward.

For more information on floor plans and development guidelines, e-mail townhomes@tciway.tc or contact a member of the Leeward Landing Sales Team: Ron Burton (649) 231-6433; Peter Crawford-Smith (649) 231-2979; Richard Sankar (649) 231-6211 or Prestigious Properties Ltd. (649) 946-4379.

The Residences of Leeward
Showhome in Residences of Leeward

If you are looking forward to “living the Leeward lifestyle” and wish to invest in an affordably priced single family home, Sundance Homes Ltd. can make your dreams a reality. Tucked just inside the Leeward gates is The Residences of Leeward, an 80-lot subdivision with a relaxed island charm all its own.

With homes priced as low as $239,990, whether you wish to reside in this welcoming community or make an investment for rental income, there are choices to meet everyone’s budget. Each home is built of solid concrete and comes complete with all appliances, air conditioning, landscaping and furniture packages, if desired. You can choose your lot and your model home and Sundance will build it for you, or you can select one of the existing homes ready for you to move in.

Exciting news at The Residences is that Phase II lots have just been released. These nine, large lots will showcase several of the brand-new model homes offered by Sundance. These two and three bedroom homes feature stylish exteriors and superb, updated floor plans.

One feature that makes owning a home in The Residences of Leeward so desirable is that there is much green space around each lot, enhancing a feeling of casual-yet-private island living. In addition, all residents will soon be able to enjoy the luxury of having a pool and patio area, as well as a lighted tennis court.

For more information, visit www.sundancehomesltd.com.

It’s been some nine years since Florida-based writer Bill Belleville first addressed the issue of eco-tourism in Times of the Islands (Spring 1992). Then he called it “environmental and economic sense” and went on to state, “as this island chain (Turks & Caicos) edges up to a crossroads in its development destiny, it now has a very real option to choose eco-tourism as a direction . . . and one, that if properly played out, could boost the economy, preserve the environment, and provide meaningful, culturally-connected jobs for native Belongers.”

Almost a decade later, there is little in the way of true eco-tourism in the Turks & Caicos Islands. In the last five years, traditional tourism-related development has been both vast and fast, with all-inclusive resorts, hotels and condominium projects appearing at every turn and the numbers of tourists arriving each season also growing dramatically (from 120,898 in 1999 to 151,372 in 2000). The trend is set to continue and with the Islands opening up to European vacationers in the near future–via service from the U.K. by British Airways–the “high” season is only going to increase in length, not shorten and visitor impact escalate, not lessen.

However, the price of success can be high and already the impact of tourism on the ecology of the Islands can be seen, as highlighted by Marsha Pardee Woodring’s recent article, “Reef Relief” (Times of the Islands, Winter 2000/01). Thankfully the Turks & Caicos government has recognised the danger and through the efforts of several of its agencies and individuals–such as the National Parks Advisory Council, the Ministry of Natural Resources and the Department of Environmental and Coastal Resources–is taking steps to address the problem.
But what of true eco-tourism as described in Belleville’s insightful article? Thankfully, there is one locally owned and run company on Providenciales that has embraced eco-tourism and is leading the way, so-to-speak.

On the surface, Big Blue Unlimited looks like most other dive operations. Based out of Leeward Marina, this small-but-growing company caters to small groups of divers, but there the comparison ends. It’s not only their state-of-the-art catamaran dive boats or their unusual logo that hint at something more, but also the numerous sea kayaks hanging patiently beside the dock and the office walls covered in maps, pictures and descriptions of some of the island’s land-based treasures.

Big Blue Unlimited was founded in the season of 1997/98 by Belongers Bobby Lavard and Phillip Shearer and at the time included Mark Parrish. (Coincidentally, this also happened to be the International Year of the Reef, which seems especially appropriate to Big Blue’s outlook.) In the last 12 months they have grown and added three more staff members, as well as a second boat to the operation. However, it’s Mark and new recruit Morgan Luker, in particular, who have been developing their eco-tourism operation, largely via their increasingly popular eco-adventure trips. Mark’s philosophy for these trips mirrors the principles of eco-tourism, in that he sees it as “a balance of using natural resources and the natural environment to promote trips that put back into the local community as well as realising a commercial profit.”

Some of the eco-adventure trips are actually kayak tours of varying lengths around some of the TCI’s most ecologically sensitive, important and beautiful coastline. Mark presently runs four “short-tours” per week departing from the dockside at Leeward to cover the short stretch to Mangrove Cay directly opposite. “One of the reasons these are becoming so popular is that you need absolutely no kayaking experience,” says Mark. “That and you get to see first-hand wildlife that most visitors don’t even realise is there, let alone ever get to see,” he adds.

Having experienced one of Mark’s trips for myself, I can attest to how easy, educational and, at the same time, fun, it was. In our gentle three-hour journey we saw juvenile sharks and turtles, upside-down jellyfish, a multitude of birds including whimbrels, herons and egrets, and a variety of other life too numerous to mention.

For someone who is as passionate about preserving the natural ecology of areas like the mangroves, you might be forgiven for thinking that the tour might turn out to be more like a lecture, but that’s never the case. Mark has a natural ability to tailor his input to the wishes of each trip’s participants. “Some people want to learn about everything they see, while others are content to just enjoy the scenery and serenity of it all, while only wishing to know superficial detail about what they are seeing,” he says.

Education is only one facet of eco-tourism, and as important as the protection of and education about a particular location’s ecology is the economic aspect. As world travel expands and countries such as the Turks & Caicos become more accessible, they find themselves at the centre of a tourism boom, which can change their economy forever. Local residents in traditional industries particular to each location, such as fishing and farming, can’t hope to compete with the money to be made by working in the new pre-packaged and sanitised, tourism-driven economy and so they leave to work in resorts, hotels, restaurants and bars–in many cases leaving important aspects of their culture behind.

What a tourism boom can provide, if managed and catered for properly, is the utilisation of natural resources to create sustainable income for locally owned businesses and individuals. In fact, studies have shown that the nature tourist actually leaves more money behind in a country than traditional recreational tourists, especially those staying at expensive all-inclusives.

Big Blue is addressing this issue by working with local people on the islands of North and Middle Caicos. As well as his short eco-adventure tour to Mangrove Cay, Mark is slowly building up trips to these two nearby islands. “Both North and Middle Caicos are ideal for half and full day eco-tours,” says Mark. “We take a boat over to North and, once there, take advantage of the smooth roads and lack of traffic to explore by bike areas like the town of Kew, the Wade’s Green plantation ruins and Cottage Pond before returning in the afternoon.”

“For our Middle Caicos hiking trips, we fly over in the morning with Global Airways and then hire Walter Hall or Ashton Harvey as guides for the day, while Hormel Harvey and Cardinal Arthur also double as taxi drivers and cave guides. It’s by utilising local knowledge and services to create economic alliances like these that we can not only build our business, but provide sustainable income for the resident population,” says Mark.

As well as building business relationships with local residents on other islands, Big Blue is building them with the government agencies whose job it is to help protect the history and ecology of the Islands. In particular, they are providing free space in their marina-side office for a National Trust information centre, out of which will operate the Trust’s Little Water Cay warden.

It’s this kind of proactive eco-tourism that will play an increasingly important role in protecting not only the ecology of the Islands, but the future economic prosperity of many families and individuals.

For more information, visit www.bigblue.tc or call (649) 946-5034.