3.2.1 - Driving Down Telecommunications Costs will Attract More IT (Information Technology) Firms

Irrespective of how cleverly conceived Belize's marketing strategy is, attempts at expanding the country's IT industry will fail miserably if Belize does not grapple with the high cost of telecommunications technology and the fact that BTL's exclusive license precludes the country from developing new aspects of the IT industry. The developer at the EPZ in Ladyville has indicated that the singularly most important challenge facing his development efforts is telecommunications costs. Normal telecommunications costs in Belize are at least 45% above those of Costa Rica, one of our primary competitors in the IT sector.

Related to the high cost problem is the concern that BTL's determination to jealously guard its exclusive license over telecommunications in Belize presents a formidable hurdle to the development of the IT industry. While Barbados has three Internet providers, Belize has only one. Website design, development and hosting as a package can be easily done in Belize for clients all over the world. But again, BTL, as the sole provider as to date, considers all this a treat.

Website design, development and hosting is really only the tip of the iceberg for the IT industry. Companies interested in setting up in Costa Rica are offered Dedicated Internet Access, Digital Point to Point Link, Transportation Network with fiber and wireless digital technology, Leased Channels using satellite facilities, VSAT networks and X.25 networks. Over the years Costa Rica has built its telecommunications infrastructure to service all types of companies with high volumes of international telecommunications. Some of the applications include high and medium speed data transmission (LAN and information systems interconnection), audio and video teleconferencing, Corporate email, Data processing, Electronic funds transfers, Remote Processing, 800 remote services, remote telemarketing, simultaneous applications for voice, data, fax, video and corporate communications systems and interconnection with corporate intranets.

The problem by and large in Belize is not the total absence of the telecommunications infrastructure, but rather the local provider's unwillingness to provide much needed technology for the IT industry at reasonable rates.

3.2.2 - IT Courses at the Associates Level are an Imperative

At the data processing level we can argue that Belize is able to meet the human resource requirements of IT companies. But, data processing is really only the entry point for the IT industry. There are other areas such as software development (coding and abstraction, for example) and systems installation and administration.

If the IT industry will be pursued aggressively, there is a need to ensure that the country is training people to meet the demand. Even in the absence of the growth of the IT industry, local demand for people with some of the above-mentioned skills is increasing daily.

3.2.3 - Copyright Legislation Will Help to Protect the Operations of High-End IT Companies

The need for local copyright legislation is becoming an increasingly pressing matter. While companies that are engaged in data processing might be less concerned about whether or not such legislation exist, the same is not true for companies involved with software development. Risk of piracy is an obvious concern to companies involved with software development. These companies will want the assurance that their interests are protected locally.

Belize's Copyright Bill is schedule to go to the House of Representatives next year. New life must now be brought to this exercise to ensure that the law is passed, after careful input from the various stakeholders.

3.2.4 - Belize' Regional Language Center (RLC) Will Expand Once the Marketing Strategy is Corrected

A $2.3 Million Bz. building is now in the construction phase in Belmopan to house Belize's Regional Language Center (RLC). This center is being financed by the Republic of China (ROC) as part of a regional project with all the Central American countries. The concept paper that laid the foundation for the RLC contemplated that public servants and others from the various Central American countries would come to Belize to learn English. Caribbean countries would also be encouraged to send their people to Belize to learn Spanish. The Government of Belize needs to make a demarche to the Government of the ROC to remind them of the purpose of the RLC and to encourage them to prevail upon the other Central American and Caribbean countries to send their people to Belize to study both Spanish and English.

There is an important link between language training and the tourism industry. Guatemala and Costa Rica are examples of countries that have not only recognized that connection, but have been able to harness that relationship. In Antigua, Guatemala, there are supposedly well over 200 language schools. The approach used in the teaching of the Spanish language is that of immersion; students are therefore expected to live with families while attending classes and touring the village's rich historical sites. The students/tourists population in this community has over the years become so large that language schools are now providing a livelihood for the entire village. The city of Antigua is really a hodge-podge of tourists/students, language schools, host families and pharmacies.

For Belize to do what Guatemala and Costa Rica have been able to accomplish, the language-training programme would have to be tailor made for and marketed to the tourists/students. Classes cannot last for eight months. Some classes would have to be much shorter, say a month, and designed for the tourists/students.

3.2.5 - Handicraft Quality Will be Enhanced and Export Markets Accessed

Experts from both the Caribbean and Mexico have confirmed that the quality of Belize's woodcarvings is second to none in the region. Any handicraft export strategy then should use woodcarvings as its lead product.

For many years the missing link in the woodcarving industry was the absence of drying technology to prevent the carvings from cracking. The National Handicraft Center now has a kiln to dry lumber, so that the infrastructure now exists to cross what years ago seemed an insurmountable hurdle.

A national node should be established to deal with issues of personal finances and quality control for the artists. This institution should be mandated to raise the quality of a targeted number of handicraft products.

A renewed focus must be placed on accessing exports markets. A node should be established and commissioned to access new markets for Belize's handicraft. There are many companies all over the United States and the United Kingdom that sell handicraft products from all over the world. We must now access those markets.

3.2.6 - Belize City Will Establish a Tourism Village

The concept of establishing a tourism village in Belize City is not a new one. Over the last seven years the Ministry of Tourism has looked at this project several times. Much has changed in the landscape over the last few years, and the tourism village concept would appear to be more prepared now than ever before for a successful launching. First, the cruise ship industry in Belize is about to get a major boost with several new ships docking in Belize. And second, property disputes in the proposed location of the village have apparently been amicably resolved. These developments have created an environment ripe for the successful implementation of the tourism village project.

The tourism village will offer an array of services to tourists, including duty free shopping, passenger terminal, call centers, restaurants and local entertainment. The tourism village plan is a critical component in the strategy to make Belize City an attractive tourist destination per se.

3.2.7 - Belize Will be Marketed as an International Financial Center With the "Belize Advantage"

An International Financial Services Commission (IFSC) has recently been established with the mandate to promote, protect and enhance Belize as an international financial center. The Commission is chaired by the Central Bank of Belize; the other Board members come primarily from the Belize Offshore Practitioners Association (BOPA). The IFSC will require all trust corporations to pay a licensing fee of $5,000 per year which will then be used for the regulation and promotion of Belize's international financial services.

A comprehensive marketing strategy must now be developed for the promotion of Belize as the financial services center of choice. This strategy must focus on inviting the international business community to find out more about the "Belize Advantage" and to explore the expanding opportunities that Belize has to offer for the development and provision of high-quality financial services in the following areas: Offshore Banks, Trusts and Estates, Insurance, Ship Registration, Mutual funds, Corporate Domicile, Limited Partnerships, International Business Companies, Trademarks and Patents and Copy Right (2000).

The current proposal on the table is for the IFSC to provide both regulatory and promotional functions. This proposal is potentially problematic. We have seen from our own experience in Belize that regulators are not good promoters. Belize's EPZ programme was in the past regulated and promoted by what was then called the Ministry of Trade and Industry. When investors met with the public officers, more time was spent informing the investors of what the law had to say instead of where the opportunities existed in the legislation. Herein lies the fundamental conflict.

Promoters of Belize's financial services center must focus on the competitive advantage that Belize's center offers. The "Belize Advantage" marketing strategy will highlight issues such as confidentiality, user-friendliness of the legislation, vigilance in regulation and supervision, stability of the country's democratic institution, access to modern telecommunications and support services, strategic location, magnificent environment and lifestyle, dedicated and skilled management and workforce and responsiveness to the needs and interests of the global financial network.

3.2.8 - Additional Financial Vehicles Will Increase the Local Business Community's Access to Capital

At least two additional pieces of infrastructure must be put in place to encourage expansions in the number of Small and Medium Sized Enterprises (SMEs): an Industrial Credit Fund and a Credit Guarantee Scheme. To enhance the industrial development of Belize, an Industrial Credit Fund (ICF) must be established to provide medium and long term credit to companies involved in production. The Government of Belize will establish both funds in collaboration with the Central Bank of Belize.

The ICF will contribute to the industrial development of Belize by stimulating growth output, employment and foreign exchange earnings of the economy through the provision of medium and long term credit to productive enterprises operating primarily in the private sector. ICF resources will be channeled through qualified financial intermediaries such as the commercial banks and approved non-bank financial institutions. Potential beneficiaries must first approach a financial institution with a viable project proposal that in turn will submit the proposal to the ICF. ICF resources can be used to finance fixed assets, working capital and technical assistance in the following areas of activity: agro-industry, manufacturing, and fishing and tourism.

A Credit Guarantee Scheme (CGS) is required to assist small enterprises in obtaining security for their loans from commercial banks and other approved financial institutions. CGSs will increase the pool of funds that are available for the expansion of the small business sector. In the normal course of business, commercial banks prefer to not participate in small sector because of potential exposures to default. By partially insolating the commercial banks from losses, the CGS creates an environment that leads to an increase in the amount of funds available to the small sector for development.

3.2.9 - A School of Art Will Enhance Belize's Offerings in the Tourism Industry

There is an obvious connection between the arts and tourism. Many tourists visit countries to learn about new cultures and other ways of living. As the eyes are the windows to the soul so is art the key to understanding cultures and peoples. Whether in paintings, graphic designs, sculptures, ceramics, drawings or print making, art can tell Belize's visitors so much about the country. Belize therefore has a vested interest in ensuring that local works of art reflect who we are as a people. The school of art will assist artists and artisans in upgrading skills their skills and creating new products. The school will also serve as a venue for exchanges between artists of different parts of the country and the world.

3.2.10 - A Belize Biennial Art Festival Will Acknowledge the Achievements of Local Artists and Serve as an Additional Attraction for Belize's Tourism Industry

Belize must initiate a regional art festival involving painting, photography, video, sculpture, ceramic and printmaking. There is an opportunity that exists in the arts that Belize has not capitalized on. The Cezanne Exhibition at the Philadelphia Museum of Art in 1996 attracted over 548,741 visitors. This exhibition alone brought over $86.5 Million USD into the city's economy. Art festivals are about big business.

3.2.11 - The Entertainment Industry Will Provide Gainful Employment to Many

An opportunity that glares Belize right in the face is being overlooked.Belize Carnival 1999 should have taught the country at least two important lessons: firstly, Carnival is potentially a major tourist attraction and, by extension, a substantial foreign-exchange earner, and secondly, a concerted effort must be made to ensure that the carnival is localized. Who wants to come to Belize to look at a Trinidad and Tobago Carnival? Most of the songs used by the various carnival bands were from Trinidad and Tobago and Jamaica.

Cultural exchange agreements between Belize and possibly Trinidad and Tobago should be consummated and a focus should be placed in that exchange on the development in such areas as comedy, song writing and drama. Current cultural exchange agreements that Belize has with countries like Cuba and Mexico must be better perfected to ensure that the local entertainment industry is given an additional shot in the arm.

A tax incentive programme will be offered to hoteliers who hire Belizean artists to entertain at their place of business. This incentive programme will be managed by BTB who will also offer the tax incentive.

3.2.12 - Highly trained Belizeans Living Abroad Will Return to Belize and Attract Research and Development Funds to the Country

There are quite a few well-trained Belizeans working abroad that would like to return home to assist the country with its development efforts. Some of these people are highly trained in areas of Organic Chemistry, Physics and Math. They have engaged in research in the United States of America and other parts of the world. The concept would be to attract them to Belize as lecturers at the University of Belize while a strategy is jointly developed between the individuals and the University of Belize to access research grants from around the world.

Any research and development effort that attracts funds to Belize will also accelerate the country's development effort. At the University level, students will have the incredible privilege of studying under established Belizean researchers who have studied and researched at well-known regional Universities.

3.3 - Anticipated Results

• IT firms in the free zones allowed unfettered access to telecommunications technology at the lowest possible cost
  Targeted job creation: 5,000 over four years primarily from such areas as Customer Service Support, Data Processing and Programming
  
• IT courses introduced at the Associates Degree level
  
• Copyrights legislation passed
  
• Regional Language Centers (RLC) enrollment increased
  Targeted job creation: 200 over the next four years
  
• Quality control improved and Export market accessed for Belize's handicraft industry
  Targeted job creation: 1000 over the next four years
  
• Tourism village constructed in Belize City
  
• The "Belize Advantage" marketing strategy for the international financial services sector launched
  Targeted job creation: 400 over the next four years
• Number of SMEs increased as a result of additional financial vehicles
  Projected job creation: 1000 over the next four years
  
• School of Art constructed
  
• Cultural Exchange Programme signed with Trinidad and Tobago
  
• First Biennial Arts Festival initiated
  
• Tax Credit offered to hoteliers that use local artists as entertainers
  Projected job creation: 400 over the next four years
  
• Trained Belizeans returned home to assist with research and development

3.4 - Activities
3.4.1 - Broad interpretation of EPZ and CFZ Laws Regarding Telecommunications Technology

There is no need for new legislation to accomplish this goal. All that is required is a true interpretation of certain provisions of the EPZ and /or the CFZ act. Both of these acts cover the movement of goods and services, and both of them contemplate that the users of the zones would have access to telecommunications technology from other sources if they found those provided by BTL to be inadequate and/or costly. BTL continues to argue that their exclusive license over the provision of telecommunications in Belize also extends to the free zones.

The GOB must take a definitive stand on this matter in support of IT firms that are interested in making Belize their home. Once this problem has been addressed the environment conducive to attracting additional IT firms will be created.

3.4.2 - IT Courses Developed at the Associates Degree Level

The University of Belize must rise to this challenge. The IT courses would be designed to ensure that the student receives additional exposure to computers and that they are prepared for the new roles that the expansion in the IT industry will bring.

Even in the absence of an expansion in the IT industry, local companies are seeing a growing need to attract students who have had exposure to computers beyond the high school level.

3.4.3 - Copyright Legislation Completed Locally

There has been serious talk about the introduction of copyright legislation in Belize over the last year. There are some convincing arguments now for the expeditious implementation of this piece of legislation. Companies involved in the high end IT industry will want an assurance that they are protected by the law.

The Solicitor General's office will be tasked with the responsibility of ensuring that the draft legislation that emerges for the copyrights reflects where Belize wants to go.

3.4.4 - Regional Language Center (RLC) Marketing Strategy Refined

The growth of Belize's RLC potentially hinges on two strategies: 1) Government of Belize reminding the ROC of the rationale that gave rise to the financing of the center and 2) the Belize Tourism Board (BTB) assisting the University of Belize with the marketing of the school.

First, the University of Belize and the Government of Belize, through the Ministry of Foreign Affairs, must jointly agree on the approach to the ROC. The Ministry of Foreign Affairs would have to make the demarche.

Second, BTB can play an important role in the marketing of Belize's RLC. In their tourist magazine called "Destination Honduras", the Government of Honduras dedicated a small section of the publication to promoting the country's language schools. A similar approach can be used in Belize. Furthermore, BTB can allow the marketing of the RLC on its Website on the Internet.

3.4.5 - Quality Control Focussed on in the Handicraft Industry and Export Market Opportunities Identified for Belize's Handicraft Industry

Meaningful presence in external markets requires a commitment to quality that the industry has heretofore been unused to. The National Handicraft Center (NHC) at this stage, and the School of Art at a later period, must be given a mandate to play leading roles in upgrading the quality of handicraft products. The NHC, for example, can be appointed the national node with responsibility for coordinating workshops and other such programmes at the NHC building in Belize City for those involved in various aspects of the handicraft industry.

Mexico has a highly developed handicraft industry and can be used as a partner in an exchange programme with the specific purpose of enhancing the quality of Belize's handicraft products.

TIPS will focus Belize's market promotion efforts, leading to greater market access for all of Belize's handicraft products. Market access issues fall within the purview of this organization's institutional charter and capacity, quality control does not. All quality control issues would be directed to the National Handicraft Center.

3.4.6 - Tourism Village Constructed in Belize City

The long talked about tourism village for Belize City will be constructed. The effort will most likely be a joint Government of Belize/Private sector effort. The onus to orchestrate this project will fall on the Ministry of Tourism. The old Fort George area in Belize City will be the focus of this development.

3.4.7 - The "Belize Advantage" Marketing Strategy is Refined

The absence of promotional funds is only one of the several problems that have haunted the development of Belize as a major international financial services center. Through the BOPA, the IFSC will channel some of its financial resources raised from licensing fees to promote Belize as the jurisdiction of choice for an array of international financial services.

BOPA will assume responsibility for the marketing strategy used under the "Belize Advantage" marketing plan.

3.4.8 - New Financial Vehicles Developed for SMEs

The Central Bank of Belize will assume responsibility for overseeing the introduction of an Industrial Credit Fund for medium sized companies involved in the productive sector, and a Credit Guarantee Scheme for primarily small enterprises.

3.4.9 - School of Art Concept Endorsed by Various Stakeholders

The School of Art will be a joint project between the GOB and St. John's College in which the latter will essentially receive the GOB's blessing on efforts that are well advanced to see the building for the School of Art constructed. This project is therefore a joint initiative.

3.4.10 - Cultural Exchange Programme Negotiated with Trinidad and Tobago

Clearly, Trinidad and Tobago is not the only country that Belize can benefit from in a cultural exchange. Belize currently has similar such agreements with Cuba and Mexico, for example, which are just as important. The purpose of the exchange agreement with Trinidad is to focus on enhancing Belize's entertainment repertoire in song writing, comedy and music.

The cultural exchange efforts with Trinidad, Cuba and Mexico, as far as such efforts relate to the enhancement of song writing, comedy and music skills, will be coordinated by the Belize Arts Council and the Belize Tourism Board.

3.4.11 - Belize's First Biennial Arts Festival Planned and implemented

St. John's College, the BTB and the Belize Arts Council will assume full responsibility for this project. The organizers will draw from the experiences of the Belize Tourism Industry's Association's (BTIA) yearly trade show and that of the Belize Chamber of Commerce and Industry's EXPO Belize to determine how best to market the festival.

The show will be held in the year 2000.

3.4.12 - Local Entertainment Industry Encouraged Through a Tax Credit Scheme for Hoteliers

This programme will essentially seek to acknowledge Hoteliers in the tourism industry who utilize local entertainers at their place of business to entertain tourists. Those involved with the coordination of this effort will include the BTB and the National Arts Council.

3.4.13 - Trained Belizeans Living Abroad return to Belize to Engage in Research and Development

The Trade and Investment Service (TIPS) and the University of Belize will be responsible for the implementation of this programme. TIPS is currently exploring a Business Professorship Programme to bring Belizean PhD's, who are living abroad, back home to teach a few courses at the University of Belize.

Over time, the primary focus of this programme will be to attract research and development grants to Belize. Beyond attracting research and development grants, the programme will allow Belize to attract some of its well-trained Belizeans who are currently contributing to other countries' development.32