That tourism factor

The US$1 billion increase in visitor spending in the Caribbean last year — US$21 billion as opposed to US$20 billion in 2003 — demonstrates that tourism continues to be a crucial factor in the region’s economic growh. And when it is noted that several islands in the Region were hit by up to four hurricanes in 2004, the five percent increase in earnings from tourism by the 32 member countries of the Caribbean Tourism Organisation (CTO) is all the more remarkable.  Last year saw a seven percent jump in visitor arrivals to 22 million, while the cruise ship calls accounted for 20 million tourists in 2004, a 13 percent jump over 2003.

While it has been argued that the decline of the US dollar in relation to major currencies, for example the Euro, may have encouraged an increase in American travellers, who represented the burden of stop-over visitor arrivals and cruise ship in transits, the net result has been an improved contribution to the economies of the Region. This has been all the more important because several Caribbean countries, particularly Grenada which was hardest hit, saw their economies put to the sword by hurricane Ivan and others. 

Admittedly, the increases were registered prior to the hurricane season, but Grenada’s recorded 9.2 percent growth in visitors and a 75 percent increase in cruise ship passengers — the largest increase overall in the Caribbean — signalled considerable visitor interest in the Isle of Spice. What is critical with respect to Grenada’s recovery and that of other hurricane affected countries is that it will lead to greater inter-island trade, facilitated by the establishment of the Caribbean Single Market and Economy. In turn, a facilitator with respect to recovery will be the holding of the 2007 World Cup series in several Caricom countries, an event which will see, for that year at least, a considerable increase both in transit and stopover visitor traffic. 

But even as we emphasise 2007 and the World Cup cricket series we recognise that the World Cup, if properly marketed, can lead to a surge in tourist and investor interest in the Region. All of this, even as it infers a strengthening of Caribbean economies, with specific reference to Caricom, in addition will mean an expansion of Trinidad and Tobago’s industrial and agricultural exports not only to Caricom, this country’s second largest export market, but to other regional markets —  the Dominican Republic and Cuba.