Three Keys for Supporting the Caribbean After Natural Disasters

The Challenge of Natural Disasters

Over just two weeks, the Caribbean was struck by two Category 5 hurricanes, devastating homes, hotels, and infrastructure. Tourism—one of the region’s primary economic drivers—came to a halt, with revenues plummeting by as much as 50 percent in some markets. The destruction underscored the vulnerability of island economies that depend heavily on tourism for jobs and foreign exchange.

Building Sustainable Infrastructure

Reconstruction presents an opportunity to rebuild stronger. Incorporating resilient design principles and sustainable materials can protect assets from future storms. Hotels in Miami and the Dominican Republic that invested in reinforced structures and hurricane-proof systems suffered far less damage than those built under older codes.

By rethinking project design—such as relocating vulnerable facilities, using flood-resistant materials, and reinforcing critical systems—the Caribbean can reduce losses and ensure faster post-disaster recovery.

Ensuring Access to Resources for Rebuilding

Insurance and access to financing play pivotal roles in resilience. Many properties remain underinsured or lack sufficient capital reserves for reconstruction. Parametric insurance mechanisms and catastrophe bonds can help bridge funding gaps and provide immediate liquidity after disasters.

Beyond coverage, financial institutions can incentivize rebuilding to higher standards by offering favorable loan terms for sustainable reconstruction projects.

Public-Sector Support and Coordination

Governments must complement private-sector recovery with coordinated policy responses and investment in public infrastructure—airports, roads, and utilities—that enable tourism to rebound. Temporary tax relief, duty exemptions for construction materials, and targeted grants can ease the financial burden on affected businesses.

Examples from around the world show that rapid public intervention—such as Chile’s infrastructure recovery program after its 2010 earthquake—can significantly accelerate economic normalization.

Shaping a Stronger Future

The Caribbean’s future competitiveness depends on its ability to adapt and build resilience against natural disasters. By combining sustainable infrastructure, access to reconstruction capital, and public-private collaboration, the region can turn crises into opportunities. Resilient tourism is not just about rebuilding what was lost—it’s about shaping a stronger, safer, and more sustainable future for the Caribbean.

Originally published by Rogerio Basso and Stefan Wright.
Republished and adapted by Impactum Capital Advisors.