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Caribbean
Tourism at a Crossroads
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By John Collins (1)
St.
Lucia’s Prime Minister Kenny Anthony reviews challenges, opportunities of
region’s major industry following aftermath of
9/11 terrorist attacks.
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 “Our
crossroad can be seen either as a place of imminent crisis, or as a nexus of
need and opportunity,” said St. Lucia’s Prime Minister Kenny Anthony in
opening his feature address, “the Desired Destination,” to the recent 6th
Caribbean Hotel & Tourism Investment Conference at the Westin Rio Mar
Resort.
“It is a point where we
recognize the need to make definitive decisions about our future – both as a
region and as individual destinations – and the opportunity to chose new
directions from a map of options, or indeed to reconfirm that we are already on
the right growth path. A crossroads is not necessarily a bad place to be;
providing we use the opportunity to review progress, verify our position by
reading the signs and update our vision of the desired destination.”
A prominent attorney in his
own right and reelected to lead his country for a second term last year, Anthony
acknowledged that he’s hardly an expert on tourism but he can offer “some
public policy perspectives on issues confronting the region and its existing and
potential investors.”
“In the last two decades or
so there is no doubt that the region’s tourism industry has seen explosive
growth,” said the St. Lucian leader. “Gone are the days when sleepy little
islands awoke to the odd handful of curious adventurers who dared to make the
one Atlantic crossing of their lifetime.
“Caribbean tourism is now a
major engine of economic growth that few governments can afford to ignore,”
said Anthony. “In the regional context, tourism is even more crucial to
economic development, supporting as it does, the balance of trade and the
balance of payments, ensuring currency stability and underpinning growth in
traditional sectors like agricultural and construction.”
 St.
Lucia, located about 500 miles southeast of Puerto Rico, is an island nation
between Martinique and St. Vincent & the Grenadines in the Windward Islands.
It occupies 238 square miles and has a population of 158,018. Its gross domestic
product is an estimated $707 million accounting for a per capita income of
$4,302 per annum. Tourism has emerged as the principal economic activity in the
country.
With two major airports and
excellent port facilities, St. Lucia has emerged as one of the most important
destinations in the Eastern Caribbean. With an inventory of 3,000 rooms, it
received 250,132 overnight visitors in 2001, down from 285,422 in 2000 which
reflects the impact of the aftermath of the Sept. 11 terrorist attacks in the
U.S. The number of cruise
passengers also declined to 385,673 in 2001 from 486,961 in 2000.
Sandals or
Fairmont?
 St.
Lucia hoteliers want to forget the devastating last quarter of 2001 when
occupancy plummeted but most report
recovery since, while slow, has been better than expected. An exception was the
bankruptcy of the St. Lucia Hyatt (CB April
4, 2002) which is now at the center of a court case with the proposed
acquisition of the property by Sandals being contested by Canada’s Fairmont
Hotels. The controversy is expected to go to trial shortly.
Indicating that the delegates
at the conference “should not be daunted by the trying circumstances facing
them,” the prime minister said “let us welcome the circumstances, in so far
as they have provoked deep introspection. Let us be determined about moving
ahead with decisive action in the cause of the industry that most influences our
individual and collective welfare.”
In addressing the importance
of stimulating the return of investment capital to the region, Anthony said
“governments need to adopt pro-market policies while considering societal
welfare. Governments, together with the communities and constituencies they
represent also seek a return on their investment; even if that return is
measured in different units such as employment, foreign exchange earnings or tax
revenue.”
Calling for closure on the
debate on whether or not the Caribbean is high priced, Anthony said “we are at
the high end of the market and the goal should be to sustain that enviable
position through incremental quality improvements. If recent events teach us
anything, it is that high end product recovers faster and continues to see in
periods of economic uncertainty.”
Indicating that mass tourism
“cannot work for all of us,” the St. Lucian leader said some destinations
“must build slowly, with a cautious eye on the long-term effects of rapid
growth and equally rapid resource consumption.”
Describing the problem of
airline service as “a serious concern,” Anthony said “the trend of late
has been for international carriers to seek subsidies in return for guaranteed
flights. This places everyone in a precarious position and creates market
distortions which we may all someday regret.”
“While we may have varying
perspectives, we share the same hope – however differently expressed – of
maximizing the economic and social benefits of each tourism dollar,” said
Anthony. “Let us combine our resources to create, sustain and
enhance our considerable advantage in the production of the desired destination,
the home of the unforgettable Caribbean experience.”
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Other articles by the well known Caribbean author John Collins can be read
at:
www.pymesdominicanas.com
April
29, 2002
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