Caribbean Tourism:
The Private Sector
Can’t Do It Alone
As Caribbean economies reel from the impacts of global crises, public-private collaboration is essential. Governments must complement private sector efforts with targeted stimulus, liquidity measures, and coordinated recovery strategies to rebuild the region’s vital tourism industry.
Tourism’s Critical Role in the Caribbean
Tourism is the economic lifeblood of the Caribbean. It contributes more than 15 percent of GDP on average, and in some islands—such as The Bahamas—it accounts for over half of national income. The sector supports millions of livelihoods and fuels investment across transport, construction, and services.
When global crises such as the COVID-19 pandemic halt international travel, the effects ripple across every layer of society. The shutdown of hotels, cruise operations, and tourism-linked enterprises left economies exposed and struggling to stay afloat.
The Need for Coordinated Public Support
While the private sector has shouldered much of the burden in maintaining operations and protecting jobs, it cannot recover alone. Governments must play a decisive role by offering liquidity support, tax relief, and targeted financial assistance to prevent widespread insolvency.
Several governments, including The Bahamas, Barbados, and Jamaica, introduced paycheck protection and wage subsidy programs to mitigate the crisis’s immediate impact. However, these initiatives were largely temporary and not sufficient to sustain the sector through prolonged disruption.
Rebuilding Through Partnership
A comprehensive recovery strategy requires collaboration between public and private sectors. Governments can help tourism businesses remain solvent by offering tax incentives, extending credit guarantees, and encouraging banks to grant loan forbearance. Such support will allow operators to reopen and rehire furloughed employees once demand returns.
Reconstruction efforts must also include investment in infrastructure—airports, highways, and digital systems—that enhances competitiveness and resilience. Public funds, when strategically allocated, can crowd in private capital and accelerate regional recovery.
Restoring Confidence in Travel
Restoring traveler confidence is key to jumpstarting demand. Governments should adopt global health and biosecurity protocols to reassure visitors and residents alike. Standardized safety measures across airports, hotels, and attractions are essential for the region to compete effectively in a post-pandemic market.
Transparency, coordination, and consistent messaging will strengthen the Caribbean’s image as a safe and reliable destination, laying the groundwork for sustainable growth.
A Need for Shared Purpose
Caribbean tourism’s path to recovery hinges on unity and shared purpose. The private sector brings entrepreneurship, innovation, and efficiency; the public sector provides scale, stability, and coordination. When these forces align, the result is a stronger, more resilient tourism industry capable of weathering future shocks and driving inclusive prosperity across the region.
Originally published by Rogerio Basso, James P. Scriven, and Therese Turner-Jones. Republished and adapted by Impactum Capital Advisors.
