The term ‘resiliency’ has become increasingly popular in a post-COVID context especially for Small Island Developing States (SIDS) in the Caribbean, which continue to grapple with the compounded challenges of climate change, global economic instability and increasing societal problems such as crime and violence. For these territories, resilience is of greater concern compared to more developed countries given their heavy dependence on tourism as a main economic earner. This dependence combined with tourism’s inherent vulnerability, places these countries at risk for extreme socio-economic fallout as seen during the pandemic. For instance, the International Monetary Fund (IMF) reported that tourism dependent economies in the Caribbean contracted by 9.8 percent in 2020 surpassing the 7.4 percent contraction regionwide in Latin America.[1] This occurred in part due to a 53.2 % drop in tourism GDP and a 25.8% reduction in tourism employment which accounted for approximately 708,000 jobs. [2]
Unpacking Tourism Resilience among Caribbean SIDS
One can argue that for SIDS, the resilience concept usually engenders a deep sense of trepidation over a never-ending struggle to overcome a constant flow of issues. The counter argument is that the constant exposure to shocks have built an innate resilience within SIDS societies that result in agile and innovative responses. In other words, SIDS should not be viewed as victims, but rather as victors, shaped by a history of adversity. As stated by Barbadian Prime Minister, Mia Mottley “Resilience is most certainly not a newfound trait of ours in the Caribbean…. In fact, while our history may feature many struggles and adversity, we have always prevailed.[3]” The proof is in the pudding, right? Evidently, in 2021, the Caribbean was reported to have had the fastest rate of recovery in its tourism sector compared to any other region in the world.
[4] More recently, ForwardKeys reported that, despite the devastating impact of Hurricane Beryl on several Caribbean islands during July 2024, the U.S.—the region’s largest source market—recovered more swiftly than in previous post-hurricane periods signaling the increasing resilience of the region’s tourism economy.[5] Perhaps, Dominica stands out as one of those true “Caribbean Tourism Comeback Stories’’ following the passing of Hurricane Maria in 2017. Despite the devastating effects on the island and on its tourism sector, Dominica experienced an increase in arrivals in the fourth quarter of 2018 and a further fifteen per cent increase for the first ten months in 2019 as compared to the same period in 2018. Specifically, an arrival figure of 89, 626 visitors was recorded for 2019 which represented a 42.5 per cent increase in stayover arrivals from 2018 and the cruise arrivals increased by 70 per cent. Furthermore, for the winter season period an 88.4% increase was recorded for 2019 compared to the same period in 2018 following Hurricane Maria’s passing in late 2017. This level of recovery was heralded as dramatic and significant. Notwithstanding the preceding discussion, some may argue that the metrics of visitor arrivals, expenditure and hotel bookings are insufficient indicators of resilience if it cements pre-existing inequalities, promotes continued environmental degradation and poor sectoral linkages and economic leakages.[6] The reality is that tourism resilience in Caribbean economies heavily dependent on tourism is a work in progress, that requires the proverbial ‘all hands-on deck’.
Caribbean Tourism: Strategies for a Sustainable Future
As the Caribbean celebrates Caribbean Tourism Month in November 2024 under the Caribbean Tourism Organization’s theme, “ONE CARIBBEAN: Building a Resilient Future,” the IDB remains committed to supporting the region’s tourism development and strengthening economies, communities, and resources through impactful initiatives. Our Tourism Sector Framework outlines key actions required for the resilience and sustainability of tourism destinations especially considering the vulnerability of coastal communities, beaches and tourism infrastructure- key elements that continue to define the Caribbean as one of the world’s most sought-after year-round, warm-weather destinations.[7] The Bank has identified six (6) lines of actions and continues to address both the current and future resilience needs of the Caribbean tourism sector along these lines. Here are a few examples:
- Strengthening Climate Resiliency in Barbados
In January 2024 the IDB approved a US$50 million loan to support Barbados in its efforts to boost the climate resilience of its coastal areas. This initiative will significantly enhance tourism resilience by strengthening Barbados’ coastal infrastructure, which is vital to the island’s tourism appeal. The support will bolster resilient coastal infrastructure in offshore breakwaters, drainage channels, and boardwalks, benefitting approximately 6,500 residents in coastal areas ultimately safeguarding the island’s tourism resources and enhancing its long-term sustainability.
- Enhancing Knowledge to Strengthen Resilience in Trinidad and Tobago and Barbados
Currently, the IDB is supporting Trinidad and Tobago with technical assistance amounting to US$200,000 to provide updated information on tourism demand and airlift determinants, which will inform key policy decisions. Moreover, through the IDB funded National Tourism Program in Barbados which focuses on increasing the resilience of the Barbados tourism industry, with a focus on increasing tourism receipts, a cashless payment study for the sector is underway. The study promises to provide deep and valuable insights into digital payment options for the tourism value chain with a focus on micro and small businesses, as well as informal enterprises that remain outside the formal financial system. As echoed in a recent speech by Anton Edmunds, IDB’s General Manager-Country Department Caribbean, “…true resilience cannot be built without the foundation of knowledge.” These support activities underscore the importance of data-driven decision-making in strengthening the resilience and sustainability of the region’s tourism sector.
- Increasing economic benefits of tourism and its local contribution in Belize
Through the Sustainable and Inclusive Belize Project, the IDB hopes to improve incomes and promote sustainable livelihoods in the agriculture and tourism sectors. The specific objectives are to improve Micro Small and Medium-sized Enterprises (MSMEs) competitiveness, climate resilience, and environmental sustainability. More specifically, the project intentionally targets women, the youth, indigenous people, afro descendant, and migrants’ and their specific constraints to strengthen the economic benefits of tourism to vulnerable groups.
- Strengthening Tourism Governance in Jamaica
The IDB is supporting the Government of Jamaica in developing an updated Tourism Strategy taking into consideration the new post-COVID 19 challenges and trends, as well as the need for a stronger focus on developing an environmentally, socially, and economically sustainable tourism sector, that is more inclusive and resilient, and that contributes to a lesser extent to the exacerbating challenge of climate change.
The Caribbean Tourism Resiliency Outlook
The IDB is doing its part, but there is undoubtedly much more to be done. As we reflect this month on how we can build a more resilient future for Caribbean tourism, let us gather- regional and international development agencies, local, regional, and global tourism bodies, civil society, the private sector, the public sector, and all other stakeholders.
The Caribbean is no stranger to diversity—differences in opinion, mindset, and approach are what make the region unique, appealing, and define its identity. It is through this diversity that unity can be forged, allowing the region to tap into the resilience needed to overcome challenges and the creativity required to build a prosperous future for tourism. Together, the IDB and its partners—both current and future—can transform obstacles into opportunities, shaping a tourism sector that is sustainable, inclusive, and vibrant for generations to come. The IDB Group remains unwavering in its commitment to this cause!
[1] https://www.imf.org/en/News/Articles/2021/03/11/na031221-how-the-caribbean-can-avoid-becoming-a-covid-19-long-hauler
[2] https://wttc.org/Portals/0/Documents/Reports/2022/Travel-and-tourism-in-the-caribbean.pdf
[3] https://caricom.org/caricom-chair-praises-resiliency-of-caribbean-people/
[4] https://www.guardian.co.tt/business/caribbeans-travel-and-tourism-expected-to-recover-faster-than-rest-of-world-6.2.1402708.5838c8c92e
[5] https://forwardkeys.com/hurricane-beryl-impacts-caribbean-tourism-but-rapid-recovery-follows/
[6] Roberts, S. (2021). Conceptualizing Resilience in Small Island States. In: Lewis-Cameron, A., Jordan, LA., Roberts, S. (eds) Managing Crises in Tourism. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-80238-7_3
[7] https://www.tripcast360.com/why-the-caribbean-is-the-most-desired-warm-weather-travel-and-tourism-destination/
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