THE TOURISM INDUSTRY is changing, and Caribbean countries must adapt in order to make the most of the emerging economic development opportunities.
That’s the conclusion of a new Caribbean Development Bank study, Tourism Industry Reform, Strategies For Enhanced Economic Impact, which was released at its recent annual meeting in Turks and Caicos.
The five broad recommendations presented for consideration by regional stakeholders were: leveraging tourism as a tool for economic development, diversification and stimulating growth and linkages in other sectors such as agriculture and creative industries; organising the tourism industry through coordination among stakeholders; conversion of more cruise ship visitors to long stay visitors; exploring further opportunities for regional collaboration; and preparing for the tourism industry of the future by staying aware of new trends and adapting accordingly, such as the shared economy and greater use of technology through the entire visitor experience and tourism value chain.
CDB president Dr Warren Smith: “Tourism is the engine of growth and a major foreign exchange earner in many Caribbean countries. During the last two decades, we have witnessed a distinct shift in the profile of visitors to the Caribbean and as a result, in the industry’s structure.”
“These changes in the industry have signalled a need for policy-makers and key industry players to rethink their strategies for improving the competitiveness and safeguarding the medium to long-term development prospects of the industry in this region.”
The bank’s director of economics Dr Justin Ram, said the study was significant, as it provided much-needed empirical analysis focused on the economic impact of the industry.
“This research provides the opportunity for broader, critical, evidence-based policymaking in the tourism industry where business strategies have clearly evolved over the decades. These strategies are continuing to evolve, forcing the need for more frequent and timely analysis on which to base changes in policy and strategy so as to maximise economic impacts,” he said.
The study characterises the causal relationship between tourism activity and gross domestic product growth in the region, drawing on data from each of the CDB borrowing member countries between 1989 and 2014. (PR/SC)
