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The International Development Research Centre is a public corporation created by the Par Iiament of Canada in 1970 to support research designed to adapt science and technology to the needs of developing countries. The Centre's activity is concentrated in five sectors: agriculture, food and nutrition sciences; health sciences; information sciences; social sciences; and communications. IDRC is financed solely by the Parliament of Canada; its policies, however, are set by an international Board of Governors. The Centre's headquarters are in Ottawa, Canada. Regional offices are located in Africa, Asia, Latin America, and the Middle East. '~ 1982 International Development Research Centre Postal Address: Box 8500, Ottawa, Canada KIG 3H9 Head Office: 60 Queen Street, Ottawa Seward, S.B. Spinrad, B.K. IDRC-196e Tourism in the Caribbean : the economic impact. Ottawa, Ont., IDRC, 1982. 163 p. : ill. rfourism/, /economic implications/, I Antigua/, I Aruba/, /St. Lucia/, /Uni,ted States Virgin Islands/ - /consumer demand/, /consumer expenditures/, /trade volume/, /hotel industry/, /seasonal fluctuations/, /tax revenues/, /foreign exchange/, /employment creation/, /data collecting/, /IDRC mentioned/, bibliography. UDC: 380.8.003(729) ISBN: 0-88936-334-X Microfiche edition available IDRC-/96e Tourism in the Caribbean: The Economic Impact EDITORS: SHIRLEY B. SEWARD AND BERNARD K. SPINRAD Contributors: Franrois J. Belisle Caribbean Tourism Research and Development Centre Jerome L. McElroy Shirley B. Seward Bernard K. Spinrad John F. Tinsley Abstract I Résumé I Resumen Over the past 30 years, international tourism has become an increasingly important economic activity. The impact of tourism on the host societies is of considerable interest to policymakers, planners, and academics. This interest assumes keen proportions in the Caribbean where, it is argued, tourism makes a significant contribution Io economic development. This volume includes individual detailed studies of the economlc impact of tourism in four micro­ economies of the Caribbean: the United States Virgin Islands, St. Lucia, Aruba, and Antigua. These studies assess tourism's contribution to gross domestic product, employment, government revenue, and foreign exchange, and provide quantitative data. An introductory chapter provides a context for the studies and a concluding section summarizes ar.d compares the findi~gs, and draws implications for policy. ln addition, critical areas for further research and the need for ongoing data collection and analysis throughout the Caribbean are emphasized. Le tourisme international est depuis une trentaine d'années une activité économique d'importance croissante. Aussi, les retombées du tourisme dans les pays d'accueil sont-elles d'un intérêt considérable pour les décisionnaires, les planificateurs et les universitaires. Cet intérêt est d'autant plus grand aux Antilles que le tourisme y joue un rôle de premier plan dans le développement économique. Ce livre contient des études détaillées sur l'impact économique du tourisme dans quatre micro­ économies des Antilles, soit les îles Vierges américaines, Sainte-Lucie, Aruba et Antigua. Ces études évaluent la contribution du tourisme au produit intérieur brut, à l'emploi, aux revenus publics et aux réserves de devises étrangères, et fournissent des données quantitatives.L'introduction précise le cadre des études et la conclusion résume et compare les résultats obtenus et dégage les implications en matière de politiques. On y trouve aussi des recommandations sur les domaines de recherche prioritaires et sur la nécessité d'organiser la collecte et l'analyse des données dans les Antilles. En los ultimos 30 aiios el turismo intemacional ha llegado a ser una actividad econ6mica de creciente importancia. El impacta del turismo en la sociedad receptora es de panicular interés tanto para quienes toman decisiones, cornu para planificadores y académicos. En el Caribe, donde segun se dice el turismo constituye un aporte significativo al desarrollo econ6mico, este interés asume proporciones de especial importancia. El presente volumen incluye una serie de estudios detallados sobre el impacta econ6mico del turismo en cuatro microeconomfas del Caribe: las lslas Virgenes de los Estados Unidos, Santa Lucia, Aruba y Antigua. El capftulo introductorio provee un marco de referencia para los estudios. Estos evaluan la contribuci6n del turismo en el producto interna bruto, el empleo. los ingresos del gobierno y las divisas extranjeras, aspectas sobre los cuales proveen informaci6n cuantitativa. La secci6n de conclusiones resume y compara resultados, derivando implicaciones sobre polftica de turismo. Enfatizan. asi mismo, areas criticas para futura investigaci6n y la necesidad de una permanente recolecci6n y analisis de informaci6n sobre el turismo en el Cari be. 2 Contents Pre/ace 5 Introduction 7 De/initions 21 United States Virgin Islands 23 St. Lucia 67 Aruba 93 Antigua 131 Summary and conclusions 151 Acknowledgments The editors and contributors of this volume are grateful to the many senior Caribbean govemment officiais, representatives of regional organizations, and indi­ viduals in the private sector who made this research possible. During the course of the studies, the researchers were given liberal access to the necessary data and received continuai encouragement. To Dr François Bélisle, a contributor who shared the task of editing the volume, the editors are especially grateful. To ail those individuals who have been involved over the years in the research studies and the publication, we express our sincere appreciation. 4 Preface The relationship between tourism and economic development is a topic of interest to policymakers, planners, and researchers everywhere tourism plays an important role within the social and economic fabric of society. This interest assumes keen proportions in the Caribbean, where, it is argued, tourism makes a significant contribution to economic development. According to this argument, tourism has the potential to provide much-needed foreign exchange and employment opportunities. It can also help broaden the economic base of the se countries through its linkages with the agricultural, industrial, and service sectors of the economy. However, the benefits from, and dependence upon, tourism differ significantly from island to island. Yet, in spite of the vital importance of tourism in the Caribbean, there is a Jack of systematic and reliable research on its economic impact, which makes integrated planning extremely dif­ ficult. The Caribbean Tourism Research and Development Centre (CTRC) 1 has recog­ nized the need for a comprehensive study of the economic impact of tourism within the region. In 1976, in pursuit ofthis aim, CTRC requested financial support from the International Development Research Centre (IDRC) of Canada. With IDRC funding, a CTRC mission undertook an exploratory tour of several islands in the region to assess interest in such a study and to seek the participation of researchers, policy­ makers, and practitioners. After this mission, IDRC and CTRC jointly sponsored a regional meeting in Barbados in December 1976. As a result of the meeting, several worthwhile project proposais and qualified researchers were identified. A research network was established, consisting of national teams in Barbados, Jamaica, Puerto Rico and the U .S. Yirgin Islands, each responsible for conducting studies in its own country. 2 CTRC assumed responsibility for undertaking studies in Antigua, Aruba and St. Lucia. Research activity began in several of the countries in early 1978. To coordinate the efforts of the network and exchange information on an ongoing basis, a series of three workshops involving the principal researchers in the network were held in St. Thomas, U.S. Yirgin Islands (December 1978), Aruba (September 1979), and San Juan, Puerto Rico (June 1980). Immediately after the San Juan meeting, the research­ ers proceeded to Santo Domingo, Dominican Republic, where a summary of findings 1 The Caribbean Tourism Research and Development Centre (formerly called the Caribbean Tourism Research Centre) is a regional organization established in 1974 by Caribbean govemments and academic and priva te groups directly involved in tourism. Jts purpmes are to promote policy-oriented research and to provide technical assistance in matters related to tourism development throughout the Caribbean. 2 The research te a ms were: the Barbados Ministry of Tourism and Barbados Jnstitute of Management and Productivity (BIMAP); the lnstitute of Social and Economie Research (!SER). University of West lndies, Mona. Jamaica; the Compania de Turismo and associated consultant and planning bodies, Puerto Rico; and the Office of Policy Planning and Research, Department of Commerce, U.S. Virgin Islands. 5 and policy recommendations was presented to regional and national policymakers and representatives of international funding agencies at the fourth annual Caribbean Tourism Conference. At this conference, policymakers asked that the research findings be made public and be widely disseminated in the region. The purpose of this publication is to present the major findings for four of the countries studied: Antigua, Aruba, St. Lucia and the U.S. Yirgin Islands. These countries were chosen as the y are representative of the microstates of the Caribbean. The publication should be of particular interest to Caribbean policymakers and planners, to the private sector in tourism, to the academic community, and to international
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