Most of the Caribbean is waiting for developed markets’ economies to improve, but high oil prices threaten the tourism-dependent and highly indebted region.
The Caribbean is seeing a glimpse of a recovery in tourism,
but activity is still not strong enough to get the
regions economy growing. With tourism accounting for
about 41% of the Caribbeans GDP, according to Citi
estimates, local economies are still waiting for improvements
in developed markets to jumpstart the flow of dollars to the
So far, that has not happened, and risks remain.
Tourism is very dependent on employment conditions,
mainly in the US, Canada and for some countries like Barbados,
the UK, says Gabriel Torres, vice president and senior
credit officer at Moodys. These countries
[employment figures] have improved, although they are still
kind of sluggish, he says.
That does not mean that tourism is not recuperating at all.
Data from the Caribbean Tourism Organization (CTO) show that in
2010, airline arrivals...
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