When Curaçao began expanding its tourism industry, the focus was understandably on growth: more air connections, more hotel rooms and more visitors. That strategy has delivered results. Tourism has developed into one of the island’s most important economic pillars and now accounts for nearly one-third of gross domestic product.
But every successful growth model eventually reaches a point where the limiting factor is no longer the market, but governance.
The new Tourism Carrying Capacity Study shows that Curaçao has reached that point.
Anyone who reads the report carefully will discover that it is not really about tourism alone. At its core, it is about whether government is capable of managing economic development, infrastructure, nature, spatial planning and quality of life as one interconnected system.
That is fundamentally different from the traditional approach in which tourism is viewed primarily as an economic sector.
And that is precisely where the central challenge lies.
One Hotel Room Affects Much More Than Tourism
An additional hotel room may appear, on its own, to be an investment in tourism. In reality, it simultaneously creates additional demand on roads, water, electricity, waste management, housing, the labor market and the natural environment.
All of these systems are affected at the same time.
When one of those components falls behind, the consequences eventually affect not only residents’ quality of life, but also the quality of Curaçao as a tourism destination.
This is not a theoretical argument.
The study shows that Curaçao received nearly 10 visitors per resident in 2024, almost twice the sustainable reference value used in the analysis.
At the same time, the airport is approaching capacity, traffic congestion is increasing, waste-management capacity is being stretched and an estimated 80 to 90 percent of wastewater continues to be discharged into the sea without treatment.
The message behind these figures is not that one particular system is failing.
They demonstrate that several public systems are coming under pressure simultaneously.
Where Does the Tourism Money Go?
The economic analysis is equally relevant.
According to the researchers, approximately 58 percent of tourism expenditure leaks out of the local economy through foreign ownership, imports and international supply chains.
This creates a situation in which much of the social and infrastructural pressure remains in Curaçao, while a substantial portion of the economic benefits ultimately flows elsewhere.
That inevitably turns the tourism debate into a discussion about the quality of economic development.
Not every form of growth creates the same value for society.
Importantly, the study does not advocate less tourism. Nor does it reject economic growth.
On the contrary, the researchers outline several possible development paths and make clear that Curaçao’s future is not predetermined.
The essential choice is not whether Curaçao should grow, but how it should grow.
Growth that respects the island’s carrying capacity can ultimately strengthen the economy. Growth determined exclusively by market demand, on the other hand, increases the risk of undermining the very foundations on which that economy depends.
That may be the most important governance lesson contained in the study.
Curaçao’s Challenge Is Coordination
Curaçao’s greatest challenge is not attracting more visitors. The market can largely accomplish that on its own.
The greater challenge is creating coordination.
Tourism today affects virtually every area of public policy. This means spatial planning, environmental protection, infrastructure, housing, labor-market policy and economic development can no longer operate alongside one another as separate policy areas.
They must be governed as interconnected parts of the same system.
That insight is more important than any individual recommendation contained in the report.
An island ultimately competes not only through beautiful beaches or luxury hotels. It also competes through the quality of its institutions.
Good governance has therefore become an economic factor in its own right.
Without reliable and effective institutions, even the most attractive destination will eventually become less competitive.
From Analysis to Execution
That is why recommendations to introduce structural monitoring, clearly assign responsibilities and improve cooperation between ministries are much more than an administrative exercise.
They represent essential infrastructure for sustainable economic development.
The study demonstrates that the knowledge is available, the instruments have been developed and the policy direction is clear.
The discussion must therefore inevitably shift from analysis to execution.
The question now facing Curaçao is surprisingly simple.
It is not how many more tourists the island can accommodate.
It is whether our government can manage the quality of the destination with the same determination with which Curaçao has pursued tourism growth for years.
Because ultimately, the most important piece of tourism infrastructure is not another runway, another resort or an additional cruise pier.
It is good governance.
drs. Luigi A. Faneyte MSc., CFE, CICA, CCS
Economist, financial expert and parliamentary staff member for PAR in the Curaçao Parliament