WILLEMSTAD – The Caribbean Hotel and Tourism Association (CHTA) has announced plans to investigate how much tourism spending actually remains within Caribbean economies. The organization has issued a Request for Proposals for a large-scale Tourism Demand Study covering six to eight islands across the region.
According to the association, tourism remains the most important economic sector in the Caribbean. However, heavy dependence on imports and limited connections between the tourism industry and local producers reduce the sector’s overall economic impact.
The study aims to quantify how much demand exists within the tourism sector for locally produced goods and services, including agricultural products, industrial supplies and entertainment. It will also analyze so-called “leakages,” referring to tourism spending that leaves local economies through imports.
The research will build on an earlier Tourism Demand Study conducted in Jamaica during 2014 and 2015. The new project seeks to provide a broader regional overview by examining supply chains, estimating the potential for replacing imports with local products and developing policy and investment recommendations to strengthen the link between tourism and domestic economies.
Focus on agriculture, industry and entertainment
The study will concentrate on three key sectors that supply goods and services to the tourism industry. The first is agriculture, including products such as vegetables, fruit, meat and seafood. The second involves industrial goods such as processed foods, linens, toiletries and furniture used by hotels and resorts. The third area is entertainment services, including live music, theater and culinary experiences.
A central part of the analysis will involve calculating the share of tourism demand currently met through imports. In the earlier Jamaican study, import leakages in some product categories reached several tens of percent of total demand.
Islands from across the Caribbean to be included
The research will include a representative group of islands from both the Greater and Lesser Antilles, as well as from different linguistic regions of the Caribbean, including the Dutch Caribbean.
Countries and territories mentioned as possible participants include Jamaica, Dominican Republic, Bahamas, Barbados, Saint Lucia, Aruba, Grenada and Saint Kitts and Nevis.
At least six to eight islands are expected to be included in the project. Researchers selected for the assignment will have six months to deliver a final report, including policy recommendations, an executive summary and presentations for stakeholders across the region.