Caribbean Tourism OrganisationCaribbean Tourism Organisation

Overview of Caribbean TourismOverview of Caribbean Tourism

Presented Presented ByBy

Winfield GriffithWinfield GriffithResearch & Information Management DivisionResearch & Information Management Division

Importance of TourismImportance of Tourism

The region remains profoundly dependent on Tourism to The region remains profoundly dependent on Tourism to employ its people, to lend fiscal and balance of payments employ its people, to lend fiscal and balance of payments support and to promote general economic growth.support and to promote general economic growth.

The WTTC estimates tourismThe WTTC estimates tourism’’s contribution to the s contribution to the regionregion’’s GDP as 14.5%.s GDP as 14.5%.

According to the WTTC over 2 million persons are According to the WTTC over 2 million persons are directly and indirectly employed by Tourism in 2009. directly and indirectly employed by Tourism in 2009.

Although significantly reduced by current global Although significantly reduced by current global economic events the level of tourism activity is still economic events the level of tourism activity is still high and exceeds that of the traditional producing high and exceeds that of the traditional producing sectors as employer, revenue provider and foreign sectors as employer, revenue provider and foreign exchange earner.exchange earner.

Tourism Trends in the CaribbeanTourism Trends in the Caribbean

Caribbean leaders recognize the need to develop and promote Tourism

Caribbean territories have been repackaging and diversifying their tourism product to appeal to the various markets including their domestic tourism markets

Caribbean islands are looking to new markets for potential business - Brazil in particular.

Governments are providing tourism and economic stimulus packages to service providers in order to sustain these businesses during the current economic crisis.

Threats to Caribbean TourismThreats to Caribbean Tourism

The RegionThe Region’’s Tourism is threatened by both internal & external s Tourism is threatened by both internal & external forces.forces.

Regional tourism has been heavily dampened by the Global Regional tourism has been heavily dampened by the Global Economic Crisis which has resulted in doubleEconomic Crisis which has resulted in double--digit declines in digit declines in some countriessome countries

The implementation of the UK Air Passenger Duty is expected The implementation of the UK Air Passenger Duty is expected to have a further negative impact on tourism in the Caribbean to have a further negative impact on tourism in the Caribbean _ especially the eastern C_ especially the eastern C’’bean.bean.

The emergence of new markets offering tropical experiencesThe emergence of new markets offering tropical experiences

Ecological harm to the environment caused by climate changeEcological harm to the environment caused by climate change

Crime still remains a major threat to tourism in the regionCrime still remains a major threat to tourism in the region

Arrival ActivityArrival Activity

Guyana, Jamaica, Cuba and Saba are the only countries Guyana, Jamaica, Cuba and Saba are the only countries to record an increase in tourist arrivalsto record an increase in tourist arrivals

Cozumel (Mexico) recorded significant doubleCozumel (Mexico) recorded significant double--digit digit declines in the Cruise (21%) and Staydeclines in the Cruise (21%) and Stay--Over categories. Over categories. H1N1 the major cause.H1N1 the major cause.

Most Caribbean countries continue to experience doubleMost Caribbean countries continue to experience double--digit decline in the major markets (US & Europe)digit decline in the major markets (US & Europe)

Canadian market is the only bright spark with 11 countries Canadian market is the only bright spark with 11 countries recording increases so far this yearrecording increases so far this year

10 out of the 23 countries that reported for Summer 2009 10 out of the 23 countries that reported for Summer 2009 recorded a further decline in arrivals when compared to recorded a further decline in arrivals when compared to the winter season.the winter season.

Trends in Visitor ArrivalsTrends in Visitor Arrivals

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10121416182022242628

1980

1982

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Y E A R

Mil

lion

s of

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rson

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Cruise Passengers Tourists Tot Expenditure US$Bil

Ttt

Growth in Visitor Arrivals 1980Growth in Visitor Arrivals 1980--20092009

1980198219841986198819901992199419961998200020022004200620082010

Y E A R S

PER

CE

NTA

GE

GR

OW

TH

Cruise Passengers Tourists Tot Exp

Monthly Tourist Arrivals in the Monthly Tourist Arrivals in the CaribbeanCaribbean ('000)('000)

20072007 20082008 20092009

%%CHCH

09/0809/08

%%CHCH

08/0708/07

Jan 1957 2074 2035 --1.91.9 6.06.0

Feb 2078 2243 2122 --5.45.4 7.97.9

Mar 2406 2515 2240 --10.910.9 4.54.5

Apr 2148 2098 2034 --3.03.0 --2.32.3

Winter 8588 8930 8432 -5.6 -4.0

MayMay 17461746 18291829 16571657 --9.49.4 4.74.7

JuneJune 19051905 19061906 17801780 --6.66.6 0.00.0

JulyJuly 21962196 21772177 20502050 --5.85.8 --0.90.9

YTD SummerYTD Summer(July)(July) 5,8475,847 5,9115,911 5,4875,487 -7.2 1.1

YTD ( July)YTD ( July) 14,16914,169 14,43514,435 14,84114,841 -6.2 2.8

Note: Imputed from data on international travel to member countrNote: Imputed from data on international travel to member countriesiesSource: CTO & CTO member CountriesSource: CTO & CTO member Countries

Distribution of Tourist by Sub-Region

Sub-RegionPercentage Share2007 2008

OECSOECS 6.2%6.2% 6.0%6.0%Other Commonwealth CaribbeanOther Commonwealth Caribbean 24.0%24.0% 23.1%23.1%

Dutch West IndiesDutch West Indies 7.2%7.2% 7.9%7.9%French West IndiesFrench West Indies 6.5%6.5% 4.7%4.7%

US TerritoriesUS Territories 18.8%18.8% 18.8%18.8%Other Countries*Other Countries* 37.2%37.2% 39.4%39.4%

TOTALTOTAL 100.0%100.0% 100.0%100.0%

* Represents other countries (Cancun, Cozumel, Cuba, Dominican * Represents other countries (Cancun, Cozumel, Cuba, Dominican Republic, Haiti & Suriname)Republic, Haiti & Suriname)Note: Note: CTO estimatesCTO estimatesSource:Source: Caribbean Tourism OrganizationCaribbean Tourism Organization

* Smith Travel Research * Smith Travel Research -- 11stst , 2, 2ndnd & 3& 3rdrd Quarter Quarter 20092009

Change in Caribbean Hotel Occupancy Change in Caribbean Hotel Occupancy and Room Revenue Statusand Room Revenue Status

-30

-25

-20

-15

-10

-5

0

1st Q 2nd Q 3rd Q

OCCADRRevPARRevTot

* Smith Travel Research 2007* Smith Travel Research 2007--08, 108, 1stst , 2, 2ndnd & 3& 3rdrd

Quarter 2009Quarter 2009

Change in Caribbean Hotel Occupancy Change in Caribbean Hotel Occupancy and Room Revenue Statusand Room Revenue Status

-25

-20

-15

-10

-5

0

5

10

15

2007 2008 2009

OCCADRRevPARRevTot

Cruise TrendsCruise Trends

The FloridaThe Florida--Caribbean Cruise Association (FCCA) stated Caribbean Cruise Association (FCCA) stated that the Caribbean remains the most appealing cruise that the Caribbean remains the most appealing cruise destination.destination.

Cruise liners offering more innovative features such as Cruise liners offering more innovative features such as rockrock--climbing, iceclimbing, ice--skating, private Jacuzzis, golf skating, private Jacuzzis, golf stimulators etc are the most popular choices for cruisers.stimulators etc are the most popular choices for cruisers.

Discounts and other incentives offered by cruise liners are Discounts and other incentives offered by cruise liners are attracting younger cruisers.attracting younger cruisers.

The opportunity to visit multiple destinations continue to be The opportunity to visit multiple destinations continue to be the number one reason to cruise.the number one reason to cruise.

Current Consumer BehaviourCurrent Consumer Behaviour

Travelers are more priceTravelers are more price--sensitive and hence seek more sensitive and hence seek more

costcost--effective destinations to vacation.effective destinations to vacation.

Health and safety are major concerns for travelers(H1N1 & Health and safety are major concerns for travelers(H1N1 &

Crime) Crime)

Mexico recorded a major decline in their tourism due to the Mexico recorded a major decline in their tourism due to the

spread of the H1N1 virusspread of the H1N1 virus

Travelers shifting more to the internet to look for deals and Travelers shifting more to the internet to look for deals and

packages, instead of travel agents and tour operatorspackages, instead of travel agents and tour operators

Tendency towards more last minute bookingsTendency towards more last minute bookings

Challenges to Regional TourismChallenges to Regional Tourism

Travelers in the main US & UK markets are still inclined to Travelers in the main US & UK markets are still inclined to settle for second best where necessary by taking holidays settle for second best where necessary by taking holidays closer to home.closer to home.

Hotels already hard hit are uHotels already hard hit are undender pressure to lower rates in r pressure to lower rates in order to stimulate occupanciesorder to stimulate occupancies

International & Regional airlines are struggling to maintain International & Regional airlines are struggling to maintain their frequencies of flights to various Caribbean their frequencies of flights to various Caribbean destinations.destinations.

The Caribbean is still lagging in technological advancement The Caribbean is still lagging in technological advancement (e.g. search engine optimization).(e.g. search engine optimization).

Prospects for the RegionProspects for the RegionCaribbean destinations will have to become more Caribbean destinations will have to become more innovative in order to capture a fair market share of global innovative in order to capture a fair market share of global tourism.tourism.

Some territories in the region are looking to attract visitors Some territories in the region are looking to attract visitors from Countries such as Brazil, China, India, Russia and from Countries such as Brazil, China, India, Russia and others with rising disposable incomes.others with rising disposable incomes.

The emergence of new carriers to the region is forcing The emergence of new carriers to the region is forcing traditional carriers to lower fares and hence attract traditional carriers to lower fares and hence attract consumers.consumers.

Cruise business is intensifying with further attractive Cruise business is intensifying with further attractive offerings to consumersofferings to consumers

The need for niche markets is now being recognized as the The need for niche markets is now being recognized as the islands move away from the traditional sun, sea and sand.islands move away from the traditional sun, sea and sand.