The Caribbean’s travel and tourism sector is recovering at a faster rate than any other region in the world, and if a few vital rules are followed there could be an even bigger performance boost, says the World Travel & Tourism Council (WTTC).

The region’s travel and tourism sector’s contribution to GDP is expected to rise more than 47 per cent this year, compared to just 30.7 per cent globally, according to new research from the WTTC, which represents the global travel and tourism private sector.

The WTTC notes that the recovery of the sector, globally, has been hindered by a lack of international coordination, severe travel restrictions and slower vaccination rates. However, the Caribbean is now benefiting from more relaxed restrictions around the world and low infection rates, which is in turn boosting international travel spend and aiding the region’s swift economic recovery.

While the global economy is set to receive a modest 30.7 per cent year-on-year increase from travel and tourism in 2021, representing US$1.4 trillion and is mainly driven by domestic spending, the Caribbean region can expect a year-on-year increase of 47.3 per cent, representing an increase of nearly US$12 billion, driven by both international and domestic travel spend.

However, while the Caribbean is recovering faster than other regions, this is still below its performance in 2019, a record year for the sector, where travel and tourism represented more than 14 per cent of the region’s GDP contributing more than US$58 billion to its economy.

The research also reveals that at the current rate of recovery, travel and tourism’s contribution to the Caribbean economy could see a further year-on-year rise of 28.7 per cent in 2022, representing a boost of US$10 billion. 

The data reveals that domestic spending growth is set to be stronger than international in all regions except for the Caribbean, and at the current rate of recovery international visitor spend across the region could see a year-on-year rise of 61.7 per cent in 2021, ahead of domestic spend which could witness a rise of 52.6 per cent.

Next year, international spend can continue to rise with a further year-on-year jump of 43.1 per cent, with domestic spending being also increasing by 13.6 per cent.

Last year, a year in which damaging travel restrictions brought much of international travel to a grinding halt, 680,000 travel and tourism jobs were lost across the popular holiday region, equating to almost a quarter of all jobs in the sector.

However, this year the research reveals an expected 12 per cent rise in jobs (compared to a meagre 0.7 per cent globally), with a similar potential year-on-year jobs rise across the sector next year, by a positive 11.5 per cent.

“Our research clearly shows that while the global travel and tourism sector is slowly beginning to recover from the ravages of COVID-19, the Caribbean is recovering much faster than any other region,” said Julia Simpson, WTTC President & CEO.

“Last year, the COVID-19 pandemic stole almost a quarter of all travel and tourism jobs from the region but due to a significant increase in international and domestic spend, both jobs and GDP are on the rise,” she added.

According to the research, the sector’s contribution to the region’s GDP and the rise in jobs could be more positive this year and next, if four vital measures are met by governments around the world.

These measures include:

• allowing fully vaccinated travellers to move freely, irrespective of their origin or eventual destination
• the implementation of digital solutions which enable all travellers to easily prove their COVID status, in turn speeding up the process at borders around the world
• the recognition of all vaccines authorised by WHO and/or SRA, and
• the agreement from all relevant authorities that international travel is safe with enhanced health and safety protocols, as well as vaccine equity to ensure no region is left behind.

The future could be brighter for the Caribbean

The research shows that if these vital rules are followed before the end of 2021, the impact on the economy and jobs could be considerable. 

According to the research, the sector’s contribution to the economy could rise 51.3 per cent this year (nearly US$13 billion), and a further year-on-year rise next year of 36.9 per cent (nearly US$14 billion).

This in turn could have a positive effect on employment with 15 per cent increase in jobs this year, and a year-on-year increase next year of 18.6 per cent to over 2.8 million, more than 75,000 more jobs than in 2019 when travel and tourism was at its peak.

A number of travel and tourism businesses in the Caribbean brought in new measures and enhanced health and safety protocols at the very beginning of the pandemic to reassure travellers, and the research suggests that these measures are helping to drive travellers back to the region.

“Confidence and trust are what drives visitor arrivals, and it’s the key to keep our economies thriving in our region,” said Adam Stewart, Executive Chairman of Sandals Resorts and WTTC member.

“At Sandals, we credit our Caribbean-wide rebound largely to the ‘Sandals Platinum Protocols of Cleanliness’, which we introduced early in partnership with the CDC, WHO, and the local Ministries of Health in the countries we operate. These enhanced measures are based on a thorough assessment of all points of guest contact, resulting in the integration of advanced hygiene practices across eighteen key touch points — from airport arrival through to departure.

“Our recently announced Sandals Vacation Assurance program is a continuation of this effort to build trust and boost confidence,” he added.