With arrivals forecast to grow 20 percent over 2019 numbers this spring and nearly 50% in summer, the Caribbean Hotel and Tourism Association says it has a “very, very positive outlook” for the year.
To date, overall numbers from January to March are almost on par with pre-pandemic figures for the same period, CHTA president Nicola Madden-Greig told reporters via Zoom last week, adding that premium class travel continues to lead demand across the region.
And while the recovery has not been uniform, some destinations – such as Curacao – are showing especially strong results.
Nevertheless, Madden-Greig cautioned that the region’s economic recovery faces formidable challenges, including rising operating costs, labour shortages, increasing airfares, global competition, economic uncertainty, and pressures from some governments to increase taxes.
Citing results of its recent members survey released March 29, the CHTA president said, “While we’ve turned the pandemic corner, we’re not out of the woods yet. Many businesses are still climbing out of massive debts and facing global competitive pressures on price increases.”
She added, “addressing our looming labour shortages, climate change and strengthening linkages between tourism and other areas of our economies are critically important.”
The February 2023 survey included just under 100 businesses, with 77% representing the accommodations sector and the remaining 23% from other tourism-related sectors such as attractions, tour operators and restaurants.
The respondents identified the top issues affecting their businesses, including airlift cost and availability, taxes and duties, labour shortages, crime and safety, and poor infrastructure, among others. The industry is also facing challenges from environmental degradation, such as climate change, sargassum, and waste management, which were among the most frequently cited issues.
The survey revealed that companies are forgoing higher profits and plowing returns into covering debt incurred during the pandemic and investing in product improvements as capital expenditures soar.
Meanwhile, pressures are growing to limit rate increases as global competition intensifies and labour and operating costs rise.
“Another key concern of tourism stakeholders is insufficient destination marketing,” said Madden-Greig, noting that concerns still remain about the lack of a more strategic regional marketing approach, something which she said CHTA would take under advisement with its public sector ally, the Caribbean Tourism Organization.
However, despite the challenges, Madden-Greig says “the industry remains bullish about the future of tourism in the Caribbean.”