Caribbean and Intra-Caribbean Caribbean and Intra-Caribbean TourismTourism

Current Situation and PerspectivesCurrent Situation and Perspectives

Mercedes SilvaMercedes SilvaSustainable Tourism SpecialistSustainable Tourism Specialist

Caribbean Tourism OrganizationCaribbean Tourism Organization

88thth Meeting of the Special Committee on Sustainable Tourism of the Meeting of the Special Committee on Sustainable Tourism of the Association of Caribbean StatesAssociation of Caribbean States

Port of Spain, April 4Port of Spain, April 4thth, 2002, 2002

CTO Membership

Caribbean Map

OECS Countries Dutch West IndiesAnguilla ArubaAntigua & Barbuda* BonaireBritish Virgin Islands CuracaoDominica* SabaGrenada * St EustatiusMontserrat* St MarteenSt Kitts and Nevis*St. Lucia * French West IndiesSt Vincent and the Grenadines* Guadeloupe

Martinique

Other CARICOM Hispanic Caribbean

The Bahamas CubaBarbados Dominican RepublicBelize Cancun / CozumelGuyana VenezuelaJamaicaTrinidad and Tobago US Caribbean

Haiti Puerto Rico Suriname US Virgin Islands

Other Commonwealth Bermuda Cayman IslandsTurks and Caicos Islands * CARICOM

Caribbean Sub-regions

1415

1718

1920

0

2

4

6

8

10

12

14

16

18

20

1995 1996 1997 1998 1999 2000

US$ billion

P

Visitor Expenditure in the Caribbean

(US$ billion)

Economic Benefits of TourismCaribbean received US$ 19.6 p billion in 2000 from Tourism

Anguilla 56.6Antigua & Barbuda 290.1Aruba 638.0Bahamas 1,814.0Barbados 718.5Belize 121.1Bermuda 431.0Bonaire 55.8BVI 315.1Cancun 1,996.0Cayman Is. 439.4*

Cozumel 349.8Cuba 1,857.0Curacao 226.5Dominica 47.2Dominican Rep. 2,860.2Grenada 70.2Guadeloupe e400.2*Guyana 59.0*Haiti 54.0Jamaica 1,333.0Martinique 404.0*

Montserrat 9.0Netherlands Antilles 482.4St. Kitts/Nevis 58.2St Lucia 276.7St. Vincent 75.3Suriname 44.0T & T 212.8Turks & Caicos 238.0*USVI 1,156.8Puerto Rico 2,387.9Venezuela 1,197.2

Tourism Receipts US$ million

* 1999

Employment in Tourism Industry

CTO conservatively estimates that more than 900 thousand persons are directly or indirectly employed in the tourism industry.

Importance of Tourism to Caribbean Economies

Visitor Expenditure as a Percentage of GDPAnguilla - 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

Tourists (StayOver) (million arrivals)

Cruise Passengers (million bed days)

Region

1989

2000

1989

2000

World 426.0 698.8 24.7 53.1

Caribbean 12.38 20.3 14.7 25.7

Share of C’bean in World (%)

2.9 2.9 59.0 48.4

0

20

40

60

80

100

120

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

YEAR

% GROWTH SINCE 1987

International & Caribbean Tourist ArrivalsGrowth Performance 1987-2000

CARIBBEAN

WORLD

0

50

100

150

200

250

300

350

1991 1993 1995 1996 1997 1998 1999 2000 2001

YEAR

% GROWTH SINCE 1989

International & Caribbean Cruise Bed DaysGrowth Performance 1991-2000

Caribbean

World

Mediterranean

-20

0

20

40

60

80

100

120

140

Year

% G

row

th

All Caribbean

Hisp. Caribbean

Fr. Caribbean

CARICOM

US Caribbean

Dutch Caribbean

Source : Caribbean Tourism Organization

Fr. Caribbean

Hisp. Caribbean

All Caribbean

US. Caribbean

Dutch Caribbean

CARICOM

1990 2000199919981997199619951994199319921991

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

Tourist Arrivals to the Caribbean by Sub Regions 2000

Other Carribean36%

US Territories20%

Other C'wealth5%

French W.I.6%

OECS7%

Dutch W.I.7%

Other11%

Europe26%

Canada6%

United States50%

Caribbean7%

Tourist Arrivals to the Caribbean by Major Markets 2000p

83.8

198.6 209.6 219.4232.6

244.1 251.3

0

50

100

150

200

250

300

Rooms (000)

1980 1995 1996 1997 1998 1999 2000

P

Room Capacity in the Caribbean OECS

1%Other

C'wealth27%

Other52%

US Terr.7%

Dutch6%

French7%

60

61

62

63

64

65

66

67

Rate in %

1993 1994 1995 1996 1997 1998 1999

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 After September 11th

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 un-employment

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

The intra-regional travel marketThe intra-regional travel market

Maximizing the PotentialMaximizing the Potential

Overview of Intra-regional Travel

21.1 million Stay-Over Arrivals in 2000

10.2 million visitors from the U.S.

5.0 million visitors from Europe

1.5 million visitors from the Caribbean

1.2 million visitors from Canada

Top five destinations 2000

Travel Patterns

Cuba – 161.7 thousand

Trinidad and Tobago – 114.2 thousand

Barbados – 87.4 thousand

Dominican Republic – 129.9 thousand

Puerto Rico – 153.3 thousand

Circuits of Travel

Historical ties

Regional groupings

Language

Air lift

Purpose of intra-regional Purpose of intra-regional traveltravel

Leisure

Shopping

Sports

Social/cultural

Personal business

Visiting Friends and Relatives

Purpose of travel cont’dPurpose of travel cont’d

Medical

Education

Business

Competitive issues affecting the Caribbean

Extra-regionaltravel

Relative difficultyof air access

Competitive issues cont’d

High cost of transport and accommodation

Lack ofknowledge/awareness

Ideas for pro-active marketing

Airlines

Stakeholder roles

National tourism organisations

Travel agents

Accommodation sector

Marketing strategies

Media relations

Fairs and exhibitions

Collateral material

Direct marketing

Special interest/niche markets

Sales missions

Advertising

In-flight

Travel trade

The way forward

Product development

Information

Demand

Market research

Resources

Commitment Marketing

CTO’S Intra-regional travel project

Awareness

Marketing

Product development

Measurement

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

Efforts being made towards Sustainable tourism initiatives inclusive of improved product & human resource development

Greater effort in marketing & research

Projected Growth inWorld & Caribbean Tourism

ave. annual 1995 2000 2010 % ch.

Caribbean 14.7 20.3 28.4 4.6

World 567.0 698.8 937.0 3.6

% share 2.6% 2.9% 3.0%

millions

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