Highlights
– CARICOM meeting focuses on economic, tourism issues in the region
– Leaders pledge new fund to market Caribbean as one cohesive destination
– Tourism likely to rise slightly in near-term with new advertising campaigns, but global oil prices to continue negative impact in long-term on foreign travel
Beginning on July 2, 2008, regional Caribbean leaders attended a four-day CARICOM (Caribbean Community) summit in Antigua to discuss issues plaguing the region. Comprised of English-speaking Caribbean nations, the community’s members include Antigua and Barbuda, Bahamas, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago. Statements issued at the close of the conference indicate that the group is trying to integrate decisions regarding tourism and economic decisions to strengthen the nations’ positions in the global market. While new tourism campaigns may boost tourism to CARICOM members slightly in the near-term, rising global prices will likely continue to have an negative impact on foreign visitors in the mid to long-term. Additionally, internal conflict among member nations’ leaders will likely hamper greater economic integration in the mid-term.
Tourism Woes
Meetings on the first day of the summit were devoted solely to the issue of tourism, as the Caribbean nations rely on this sector for the bulk of their annual gross domestic product. With increasing global fuel prices, transportation to many of the states has suffered. Regional airlines such as Air Jamaica and LIAT are operating at a deficit, and United States-based American Airlines recently announced plans to reduce the number of daily flights to Puerto Rico. US territory Puerto Rico serves as a major connection hub to travel throughout the rest of the region, and tourism will likely suffer in the mid-term while prices remain high.
Support and Dissent
In June 2008, St. Vincent and Grenadines Prime Minister Ralph Gonsalves publicly criticized the organization for being too divided. Gonsalves is one of nine Eastern Caribbean leaders calling for the establishment of an economic union, and expressed little hope that CARICOM would ever succeed in its goal of enacting a free trade zone. Known as the “Single Market and Economy (CSME)” plan, CARICOM hopes to have a merged economy and lift all restrictions on the movement of goods, services, workers, and capital.
However, other leaders have placed the blame on Gonsalves’ country and the other Eastern Caribbean islands he has allied with for the slow movement on the economic agreement. St. Vincent and several other nations were the last to sign an agreement necessary for the plan to move forward.
Fixes for the Future
To solve the problem of slumping tourism, regional leaders have decided to launch a US$60 million campaign to market their nations as a single vacation destination. Regional tourism ministers have also been tasked to lobby US officials to remove departure taxes when visiting the Caribbean, as well as expand duty free allowances and the number of pre-clearance immigration and customs hubs to other nations. Currently, only Puerto Rico, the Bahamas, Aruba and Bermuda allow passengers to clear immigration and customs there instead of in US airports. The new plan is likely to begin in December 2008, or early 2009. To the dismay of many of the leaders, a decision was not reached regarding inter-island travel.
However, funding for the campaign remains questionable. Governments plan to fund US$21 million of the total US$60 million needed for the campaign. However, the regional council of trade ministers will determine exactly how much each nation will be expected to contribute. The remaining funds will come from hotels, the cruise industry and possibly the Spanish-speaking Caribbean nations and the US territories.
The Caribbean has twice tried to formulate such an ambitious plan, failing at both attempts, but officials say there is now a “global urgency” to coordinate the effort. Deeper integration, as well as cohesion among the member nations’ leaders and representatives will be crucial for any future plans to succeed. While the new plan may boost tourism in the near-term, long-term increases in global oil prices will likely continue to limit international travel. Greater economic cooperation, such as the CMSE plan, will likely remain a long-term goal for CARICOM, as the community first focuses on the issue of tourism.
