Caribbean Enjoying Tourism

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Outgoing Caribbean Tourism Organisation Chairman, Richard Sealy

The Caribbean is riding on top of a tourism bubble like never seen before, but while the upsurge in tourist arrivals is a reason for celebration, industry players are warily watching emerging competition.

Outgoing Caribbean Tourism Organisation Chairman, Richard Sealy, told the organization’s State of the Industry meeting in Barbados this week that the region expects to have some 30 million visitors this year, outstretching the 28.7 million of 2015.

The projected increase could be the beginning of a trend because last year’s arrivals figure represents a seven per cent increase over 2014, surpassing world tourism growth that stood at four per cent.

But as Sealy explains, competition makes continuation of that trend questionable, “as encouraged as we are by the results and how far we’ve come, we need to accept the realities that must be grasped going forward... competition is becoming more intense”.

He pointed to other regions such as the Pacific, Asia, the Middle East, and North and Sub-Saharan Africa that are gaining in the tourism market.

Additionally the Minister noted that another form of competition has arrived - this time within the region - with the social and economic opening of Cuba, the one island with the potential to divert tourists from their other traditional Caribbean destinations.

It is believed that American tourists, especially, will be attracted to Cuba because of their curiosity about this destination which was shut off from them for some 57 years, and opened with US President Barack Obama touching down there only in March this year.

“Today we now have tourists who are more curious, who want to have a local experience,” Sealy said.

But besides being the bread and butter industry for many of the Caribbean island nations, tourism is a multibillion dollar earner for the entire region, so officials cannot afford to sit and wait on the onslaught of competition.

According to the latest World Travel and Tourism Council on the Caribbean, “the total contribution of travel and tourism to GDP was US$51.9bn in 2014, or 14.6 per cent of GDP”.

The council has estimated that figure is expected to grow by 2.9 percent to US$53.4bn, or 14.8 per cent of GDP in 2015.

The long term forecast is a rise by 3.3 percent annually to US$73.6bn by 2025, or 15.4 per cent of GDP.

Regional leaders and tourism administrators are, however, now finding themselves being called upon to walk the fine line between the desire for stepped up tourist attractions and the way of life of Caribbean people.

Even as he observed that the new tourism focus is on “the experience that is being seen not only by the budget traveller, but all travellers”, Sealy advised that Caribbean administrators must devise a meeting point between the expectations of citizens and those visiting in order to have a tourism product that is changing to meet new demands.

“That intersection point is where we have to locate our attention,” he said, and went on to explain that despite the importance of the tourism industry, it cannot be developed at the sacrifice of those who live in the region.

“Let’s face it, if the population is not with you, you can’t make the money, and your hotels and various institutions will have to a grinding halt, so we need each other.

“Meeting our visitor’s expectations along with meeting the expectations of our own respective citizenry is an imperative.

ANGUA & BARBUDA: A&B Tourism Goes Down While Caribbean Increases

Amidst record growth in Caribbean tourism arrivals during 2015, Antigua & Barbuda had the greatest reduction in tourist arrivals among its neighbouring OECS states.

This was indicated by the State of the Tourism Industry Report presented yesterday by the Barbados-based Caribbean Tourism Organisation (CTO).

In the Eastern Caribbean, apart from Dominica, which had a decline of 0.3 per cent arrivals to other OECS states increased by an average of 4 per cent, while arrivals to Antigua & Barbuda declined by 0.5 per cent.

Arrivals to Caribbean region rose overall by 7 per cent in 2015, exceeding the CTO’s previous projection of 4 per cent, and totaling 28.7 million visits.

This makes 2015 the sixth consecutive year of growth for the industry.

Approximately US $30 billion was spent throughout the region by visitors in 2014.

Hugh Riley, secretary general of the CTO, said, “For the first time ever, the pace of growth of Caribbean tourism out performed every major tourism region in the world.”

The critical drivers behind the increases in arrivals are stated by the report to be increased airline capacity, economic recovery in the United States (US) and other main markets, and a rapid decline in global oil prices.

From the US market, there was a 6.3 per cent increase in arrivals, which accounted for around half of total regional visitors. Arrivals from the European market rose by 4.2 per cent, and from the South American market came the highest rate of growth of 18.3 per cent. Caribbean intra-regional travel also spiked in 2015, rising by 11.4 per cent to 1.7 million visitors.

While the region enjoys what appears to be continuous growth, the report cautioned that new developments such as the threat posed by the Zika virus, economic decline in China, Brazil and Venezuela, will pose obstacles to growth in the future.

Nevertheless the CTO indicated that it is confident the region will soon meet the mark of 30 million visitors, a target the organisation set several years ago and forecasts a minimum of a 4.5 per cent increase in tourist arrivals in 2016.

Caribbean Tourism Should Get Ready for Chinese Tourists

IN recent years Chinese tourists have been touted as the new opportunity for growth of the industry in the Caribbean. But how realistic is this prospect for countries in the Caribbean, many of which are now reliant on tourism for employment and foreign exchange income?

Until there is huge investment in marketing, airlift, tourism plant, and language training, the prospect of an appreciable and steady flow of Chinese tourists will remain remote. If Caribbean countries genuinely want a share of Chinese tourism, rigorous work has to be undertaken now to make fundamental preparations for what is a long-term project. The more countries delay in making such preparations, the more distant will be the likelihood of attracting Chinese tourists.

The urgency of investing money in organising for a future Chinese tourist market coincides with a bad time for Caribbean countries, many of which are experiencing economic difficulties. Several governments are simultaneously facing declining revenues and increasing costs to deliver goods and services to their populations. The amount of money that is needed to invest in a future Chinese tourism market is simply not available to any individual government. Nonetheless, it would be imprudent of Caribbean governments not to act together to start developing the Chinese market.

In this context, Caribbean governments should consider mandating a regional organisation such as the Caribbean Tourism Organisation (CTO) to undertake the preparatory work now on their collective behalf. It might require the establishment of a special unit within CTO devoted to this work which would be considerable.

The work would include a comprehensive study of what Chinese tourists would want from tours to Caribbean countries; the capacity of airports, including immigration and customs for dealing with Chinese visitors; facilities for moving large numbers of people on land tours; the ability of hotels to cater in the Chinese language for guests; signage in Chinese; the capability of police forces to protect Chinese tourists who tend to travel with cash and an array of electronic devices; the provision of Chinese cuisine; the elimination of visa entry requirements for Chinese tourists; and more importantly affordable airlift from Chinese cities to Caribbean countries.
The latter point concerning airlift is crucial. The journey between China and the Caribbean is long and there are no direct airline services. The need to break the journey either in North America or Europe increases the length of the journey and its cost, putting it out of the reach of the majority of Chinese tourists.

A recent report by the World Tourism Cities Federation (WTCF) provides instructive information on Chinese tourists. The most significant statistic - and the one that causes such allure for Chinese tourism - is the amount of money spent by Chinese tourists. In 2013, 98.19 million Chinese travelled abroad, spending US$128.7 billion - an increase of 26.8% from 2012. Of that huge sum of money, 57.6% was spent on shopping; 17.82% on accommodation; 10.88% on transport; 5.84% on food; and 7.4% on entertainment. The number of Chinese touring abroad also increased by 18% in 2013 over the previous year.

However, there are many challenges to the task of pursuing a share of the large Chinese tourist spend. For example, the majority of Chinese tourists - 56.21% of them - earn about US$1,600 per month and 22.26% earn US$2,400 or more. These figures suggest that given only the cost of travel, Chinese tourism to the Caribbean will be limited to a smaller, high-end market. This conclusion is re-enforced by figures which show that the four most popular destinations for Chinese tourists are cities in nearby South Korea and Japan to which the cost of travel is considerably less than long-haul flights.

Of course, smaller numbers of Chinese are also travelling to Europe and North America, but surveys indicate that they want - and expect - better services, including persons proficient in the Chinese language at hotels, shopping centres and tourist sites; security from crime; and sensitivity to their cultural differences. To attract a portion of the Chinese tourists who can afford to travel beyond their neighbouring countries, the Caribbean will have to learn from the experience of European and North American countries in catering for them, including showing them respect.

Additionally, the Caribbean will have to compete against other destinations that are closer to China, such as Indonesia, Maldives, Thailand and the Philippines that, like the Caribbean, offer sun, sea and sand, and many more historic heritage sites. These destinations already have a jump on the Caribbean through programmes designed especially for Chinese visitors.

The US and Canada are also competitors - although there is potential for complementarity between Caribbean countries and some North American regions - for double-destination tourism. This possibility has many challenges but it could be pursued for the benefit of countries that take advantage of it. Links between airlines serving China and the Caribbean from North America would be especially important.

US airlines and US airports are working hard to gain more Chinese business. For instance, American Airlines launched new routes to Shanghai and Hong Kong from its hub at Dallas/Fort Worth International Airport in June. Not to be outdone, Delta Airlines launched a non-stop flight between Hong Kong and Seattle in the same month, and United Continental Holdings added a route from San Francisco to the central Chinese city of Chengdu. All the airlines cited "the consistent growth in the number of Chinese leisure travellers venturing abroad" as the basis for their investment.

Interestingly for the Caribbean countries that enjoy 'designated' tourism status by the Chinese government, this year, Air China also launched non-stop flights between Beijing and Washington, DC, while the smaller Hainan Airlines, which had already been flying routes to Seattle, Chicago and Toronto, launched a service between Beijing and Boston. It is with these airlines that Caribbean tourism agencies and airlines could usefully engage.

There is certainly a higher end Chinese tourism market that Caribbean countries can pursue, but there is much work to be done at a regional level to identify the challenges and opportunities, and at the national level to make themselves 'Chinese-ready'.

BARBADOS: 2016 Year Of Romance Declares Caribbean Tourism Organisation

The Caribbean Tourism Organisation (CTO) has declared 2016 as the Year of Romance in the Caribbean .

The organisation says with the launch of this new initiative, the CTO and its member countries and hotels will highlight the region as the leading choice for a romantic vacation for consumers and travel planners selling the region.

“With over 30 destinations to choose from, the Caribbean region provides the perfect backdrop for a romantic getaway highlighted by pristine beaches, secluded accommodations, an abundance of land and water activities, top-notch spa services and personalised attention that meets the needs of the most discerning traveller,” said Hugh Riley, secretary general of CTO.

“The Year of Romance in the Caribbean will spotlight the romantic features of our region beyond the traditional times of year such as Valentine’s Day. A romantic theme is easily embraced by all of our member destinations 365 days a year,” Riley noted.


Throughout the year, CTO in cooperation with its private sector partner the Caribbean Hotel & Tourism Association; will assist member countries with ideas which can be implemented around the theme of romance to appeal to consumers, travel agents and tour operators.

Some of the areas of focus will include first or second marriages and the renewal of vows, the most romantic locations to “pop the question” or say “I do” and inviting celebrity couples to get married in t he Caribbean.

“We anticipate that in addition to the ideas we provide our members, the countries and hotels will develop their own plan of action for promoting romance in their individual destinations,” said Riley adding: “The theme is inclusive of our partners, both public- and private-sector.

Caribbean hotels, travel agents and tour operators are urged to create their own romantic ideas or adopt ones being embraced by the destinations.

“We envision airline partners getting involved with their own ‘love is in the air’ offers and recognizing bridal parties onboard who are heading to a destination wedding in the Caribbean. We think video bloggers too will get involved in featuring the winners of the most romantic ideas,” said Riley.

The campaign will be promoted through social media and traditional media channels and will create opportunities for travellers and vacation planners to share their experiences and ideas of a romantic Caribbean vacation throughout 2016.

ANTIGUA & BARBUDA: Stakeholders Agree On Action Plan To Improve Intra-regional Travel

Tourism and civil aviation officials, airline representatives and regulators, as well as regional and international organisations, assembled in Antigua & Barbuda on April 22nd to discuss and validate the findings emerging from a Study commissioned by the OECS to empirically investigate the key factors that inhibit the growth of intra-regional travel.

The impressive representation of all of the key players in tourism and civil aviation in the region was regarded as testimony to the critical importance of the matters to be discussed and the urgency with which they need to be resolved.

• The Consultants for the study were advised to approach the project with the following key guiding principles:
-The Study must add critical value to work already undertaken on the air transportation sector in the region; and
-Should offer viable, practical resolutions to the challenges related to air transportation

At the Antigua workshop the officials engaged in intense deliberations on
1. The dynamics of the OECS Intra-Regional Travel Market
2. The Structure of Airfares
3. Airline Network Connectivity; and
4. The Legal and Regulatory Framework.

These discussions culminated in general consensus on practical solutions to address issues inhibiting the optimal expansion of intra-OECS travel, some of which include:
• Adjustments to OECS Destination Product & Promotion Strategies to attract increased visitation from neighboring islands
• Arriving at a feasible approach to the reduction of TFC’s (Taxes, Fees & Charges) on airline tickets for Intra-OECS travel, based on sound financial and economic analyses undertaken jointly by the OECS Commission, the ECCB and OECS Member States’ Ministries of Finance
• The establishment of a one Stop Security Check system
• The development of an OECS MASA (Multilateral Air Services Agreement) consistent with Article 19.8 of the Revised Treaty of Basseterre, which calls for the establishment of a single Economic Union Area Air Space.

The meeting funded by 10th EDF was convened at the Jolly Beach Resort & Spa. The OECS Member States of Antigua and Barbuda, the British Virgin Islands, Dominica, Grenada, St. Kitts & Nevis, Montserrat, Saint Lucia as well Saint Vincent & the Grenadines were represented. Delegates from Martinique were also in attendance. Airlines represented were LIAT, SVG Air, Grenadine Airways, Fly Montserrat, Air Antilles and Air Caraibe.

The Eastern Caribbean Central Bank, the Eastern Caribbean Civil Aviation Authority, the Caribbean Development Bank, the Caribbean Tourism Organisation, the International Air Transport Association and CARICOM were also represented at the workshop.

ANTIGUA: CTO Figures Reveal Mixed Tourism Stats For Antigua & Barbuda

Figures from the Caribbean Tourism Organisation (CTO) are showing a mixed outlook for Antigua & Barbuda for the first half of 2015.

Cruise passenger arrivals from January to June 2015 were up 25 per cent (400,253 to 318,842) over the same period in 2014, among the highest rates in the region.

As promising as these numbers are, they come against the backdrop of recent reports that the twin-island state attracts one of the lowest spending rates from cruise passengers in the region — close to US $40 below the Caribbean average.

The country’s stay-over tourist visits have however slipped, falling 2.9 per cent for the first six months of 2015.

This is in stark contrast to the Caribbean average, which shows a 5.8 per cent rise.

Also, a market-by-market analysis of total tourist arrivals shows slight decreases for 2015 visits from the US, and Canada, with European visits remaining stable.

The balancing of the European market is thanks in major part to an increase in UK visitors – the major market-share of European visitors (35, 662 of 44, 268 for the year so far).

Overall tourist visits are down 4.2 per cent compared to the same time last year.