BRIDGETOWN, Barbados, CMC – For many years, Caribbean tourism has been synonymous with solar, sea, and sand. These pure property stay a supply of magnificence, pleasure, and financial promise.
Throughout my 4 years within the area, I’ve had the chance to expertise this firsthand, each in my skilled capability, visiting practically each nation throughout the Caribbean, and in my private life, touring with household and associates to discover its wealthy tradition, landscapes, and communities.
Whereas the attract of the Caribbean is simple, the mannequin of tourism that has developed round it’s below pressure. The COVID-19 pandemic laid naked the vulnerabilities of tourism-dependent economies. It additionally created a second of reflection, an opportunity to rethink what sort of tourism serves the area finest, not simply right this moment however in the long run.
Tourism contributes over 22 per cent of the gross home product (GDP) throughout the Caribbean and helps 2.75 million jobs, a lot of them held by girls and younger individuals. But, regardless of its scale, the present mannequin has struggled to ship actual financial worth.
Cruise tourism stays a dominant pressure, now accounting for greater than half of all vacationer arrivals within the Caribbean. Customer spending, nevertheless, is disproportionately low. Cruise passengers spend between US$37 and US$140 per on-shore go to, however many don’t even go away the ship, preferring the actions on board.
In contrast, in a single day guests spend round US$1,600 per journey, and journey vacationers much more, near US$2,300, excluding lodging, flights, and visas. This hole isn’t just a matter of income; it displays how several types of tourism contribute—or fail to contribute—to native jobs, providers, and provide chains.
On the identical time, the sector’s financial footprint stays slender. The proliferation of all-inclusive resorts, typically foreign-owned, results in excessive leakage, the place earnings are repatriated and provides imported, forsaking few alternatives for native producers or service suppliers. These resorts additionally drive intense competitors between Caribbean nations, leading to a “race to the underside” within the type of beneficiant tax holidays and concessions. Between 2010 and 2013 alone, such incentives value Caribbean governments as much as seven per cent of GDP in forgone income.
Past the financial inefficiencies, the environmental value is mounting. Each cruise ships and huge resorts generate excessive volumes of waste, devour huge quantities of water and vitality, and place extreme strain on already fragile coastal ecosystems. Overdevelopment has degraded mangroves, coral reefs, and seashores, the very pure property that appeal to vacationers within the first place.
To stay aggressive, Caribbean nations should pivot. Vacationers are demanding extra sustainable, immersive, and genuine experiences. And locations that provide these—alongside accountable governance—stand to achieve.
There’s rising recognition that the area’s tourism mannequin should evolve, and there’s a clear path ahead. Strengthening governance is a important start line. When funding frameworks are clear and constant, they’ll appeal to extra accountable, high-quality tourism traders.
This consists of setting environmental and passenger charges at ranges that replicate the true value of sustaining infrastructure and defending fragile ecosystems, and making certain these revenues are reinvested the place they’re wanted most: in communities and conservation.
Equally necessary is rethinking who tourism advantages. Extra inclusive development means creating stronger hyperlinks between tourism and the broader financial system, particularly for native farmers, artisans, and entrepreneurs. That requires coordination, higher entry to finance, and funding in expertise.
There are promising indicators of progress. In St. Lucia, for instance, the Tourism Enhancement Fund is already serving to channel voluntary customer contributions into native sustainability initiatives. Fashions like this may be replicated and scaled all through the area.
On the identical time, the area should look past its conventional tourism choices. Journey tourism—already accounting for over 30 per cent of world leisure journey and contributing greater than US$680 billion—continues to be underdeveloped within the Caribbean. But it holds a number of the most important potential for high-value, low-impact development.
Vacationers are more and more looking for significant, genuine experiences, and locations like Dominica are displaying what’s potential. Its Waitukubuli Nationwide Path is a step towards positioning the Caribbean as a severe vacation spot for nature-based tourism, however higher funding and coordination will probably be key.
All of this gained’t be simple to realize with out stronger regional collaboration. Competing for funding in isolation typically results in a weakening of requirements and missed alternatives. By working collectively on tax coverage, funding incentives, environmental safeguards, and vacation spot advertising and marketing, Caribbean nations can strengthen their bargaining energy and construct a extra resilient, inclusive, and sustainable tourism future.
The elements are already right here: world-class pure property, vibrant cultures, and a rising physique of native innovation. What’s wanted now’s the dedication to make the daring coverage selections that can guarantee tourism works not only for guests, however for the individuals and locations that make the Caribbean really extraordinary.
*Lilia Burunciuc is the World Financial institution Director for the Caribbean
