Overview of the Caribbean Tourism Sector Managing Tourism

Overview of the Caribbean Tourism Sector: Managing Tourism Resources Mercedes Silva Sustainable Tourism Specialist Adaptation to Climate Change in the Caribbean Tourism Sector Workshop Grenada, May 27 th, 2002

CTO Membership Caribbean Map

CTO Caribbean Sub-Regions OECS Countries Anguilla Antigua & Barbuda* British Virgin Islands Dominica* Grenada * Montserrat* St Kitts and Nevis* St. Lucia * St Vincent and the Grenadines* Martinique Dutch West Indies Aruba Bonaire Curacao Saba St Eustatius St Marteen Other CARICOM The Bahamas Barbados Belize Guyana Jamaica Trinidad and Tobago Haiti Suriname Hispanic Caribbean Cuba Dominican Republic Mexico: Cancun / Cozumel Venezuela Other Commonwealth Bermuda Cayman Islands Turks and Caicos Islands French West Indies Guadeloupe US Caribbean Puerto Rico US Virgin Islands * CARICOM

Benefits of Tourism Foreign Exchange Government Revenue Investment • Job Creation • Linkages to Other Sectors • Socio-Cultural Development

Visitor Expenditure in the Caribbean (US$ billion)

Employment in Tourism Industry CTO conservatively estimates that more than 900 thousand persons are directly or indirectly employed in the tourism industry (300 thousand in the accommodation sector)

Importance of Tourism to Caribbean Economies Visitor Expenditure as a Percentage of GDP Anguilla 75% Cayman Islands 60% St. Lucia 55% Antigua & Barbuda 49% Aruba 41% Barbados 36% St. Kitts & Nevis 31% Grenada 28% St. Vincent & G’dines 28% Jamaica 25%

International & Caribbean Visitor Arrivals

International & Caribbean Tourist Arrivals Growth Performance 1987 -2000 CARIBBEAN WORLD

International & Caribbean Cruise Bed Days Growth Performance 1991 -2000 MEDITERRANEAN WORLD CARIBBEAN

Growth in Tourist Arrivals to the Caribbean and Selected Sub-regions since 1991

Tourist Arrivals to the Caribbean by Sub Regions 2000

Tourist Arrivals to the Caribbean by Major Markets 2000 p

US Travel to Overseas Destinations Comparative Performance 1990 - 2000 Competition Gulf War Source USTIA

Arrivals from Canada to the Caribbean by Sub-region 2000 p

Average Annual Growth in Arrivals to the Caribbean from Europe and by Sub Region 1993 -2000 P

Room Capacity in the Caribbean

Occupancy Rates in the Caribbean (percent)

Challenges to Caribbean Tourism Diminished economic growth in many of our source market Reduced profitability of airlines More countries seriously adopting tourism as a viable development option Increased leisure travel options within our major markets Changing Consumer Patterns Changing distribution systems

Challenges to Caribbean Tourism Climate Change Issues Sea Level Rise: most tourism facilities are located in coastal areas Global Temperature: warmer winters in northern markets / changes in tourism seasons. warmer summers in the region / less attractive for tourists. Precipitation Patterns Hurricanes lost of infrastructure affect region image as a safe destination

Today’s Changing Consumer New Standards of Expectation less likely to be satisfied with sun, sea & sand alone more knowledgeable & independent more environmentally conscious more security-concerned more likely to travel in family/groups

Challenges After September 11 th Safety and security the primary concern of travelers both in terms of Air travel and safety at the destination Shorter booking window, reduced from three months to as much as four weeks Economic downturn. . increased unemployment

Growing Competition - Product higher levels of service outside Caribbean freer cross-border travel (notably Europe) huge growth in cruise ship inventory and cruising destination better scheduled airlift to other regions Lack of investment and innovation in product development in the region

Towards the Future The Caribbean is perceived as a safe destination in comparison to its major competitors in the middle east and Asia. Declines in September estimated at 19% are leveling off and showing positive signals of recovery. Preliminary estimates suggest that arrivals to the region in 2001, declined by 2% compared to 2000 Greater effort in marketing & research

Towards the Future Sustainable Tourism Approach Efforts being made towards Sustainable tourism initiatives inclusive of improved product & human resource development Natural Resource Protection Carrying Capacity Assessments Environmental and Financial Feasibility Disaster Mitigation Research and Education

Projected Growth in World & Caribbean Tourism 1995 2000 2010 ave. annual % ch. 14. 7 20. 3 28. 4 4. 6 World 567. 0 698. 8 937. 0 3. 6 % share 2. 6% millions Caribbean 2. 9% 3. 0%

Mercedes Silva Sustainable Tourism Specialist msilva@caribtourism. com www. onecaribbean. org www. doitcaribbean. com Adaptation to Climate Change in the Caribbean Tourism Sector Workshop Grenada, May 27 th, 2002