Executive Director of the Social Security Scheme, David Matthias, is throwing his full support behind the government’s move to transfer ownership of the Jolly Beach Hotel to the Scheme.
Speaking in an interview with ABS Television, Matthias said the moves was ‘both a necessary and an informed’ decision.
“The Social Security Schemes of Barbados and Jamaica are currently making investments in their respective tourism sectors. Why then shouldn’t we here in Antigua and Barbuda do the same; that is to invest in the sector that contributes most to the nation’s GDP and growth?” he queried.
The Executive Director further explained that in Antigua and Barbuda the tourism and hospitality sector continues to thrive and the nation’s development is intricately tied to the performance of the sector.
“If 65 percent of the economy is tourism related, then it means that growth in the tourism sector, even in the purest example, is taking place. One of the robust things that we have observed is the fact that hotels are remaining filled throughout the year. If this is the leading sector in the Antigua and Barbuda economy, why not that sector?” he observed.
Matthias explained that the challenge for the Scheme to diversity its revenue stream is not a problem that Antigua and Barbuda alone faces, but across the Caribbean these Schemes are facing similar challenges.
“Any Social Security Scheme operating in any part of the world, will one day face the fact that contribution income is insufficient to pay out benefits and to fund its operations. It therefore means that the Social Security Scheme has the responsibility to invest excess funds in periods of surplus in a way that would grow the reserve to meet the growing demands,” he declared.
According to Matthias, the time to make those investments is now.
