BARBADOS. Caribbean arrivals were up by +7% in 2003, according to the Caribbean Tourism Organization (CTO). This compares to a decline of -1.2% in world tourism and places tourist arrivals marginally above 2000 levels.
The CTO reports that while winter tourist arrivals in 2003 were below those for 2001, summer arrivals exceeded those for both 2001 and 2002. This was despite the adverse impact of war in Iraq and SARS.
Tourist arrivals from the US were up +8.2% in winter and +5.1% in summer. Arrivals from Canada were up +26.8% in winter and +13% in summer. Arrivals from Europe rose +7.3% in winter and +15.4% in summer.
The CTO states that “the perception of stability and safety in the Caribbean, the improving global economic climate, the strong Euro and Canadian Dollar and recent icy conditions [in the US] provide favourable conditions for the continued good performance of the Caribbean tourism sector. Additionally the current English cricket tour will benefit those destinations hosting matches during their visit.
“Against this backdrop, and coupled with positive feedback both from the market-based travel trade and from within the region, the outlook is for a good 2004 winter season. Furthermore, despite the possible dampening effect on travel to the region due to the coming summer Olympics and the likely resurgence in visits to competing destinations, the CTO projects a +3% to +5% growth in tourist arrivals to the region in 2004.”
Regarding cruise arrivals, the CTO reported a +10% increase in passengers in 2003. While the winter season remains the peak period, significant increases were also reported in the late summer period. Destinations closest to the US have continued to grow the fastest.
The future prospects for the US market to the Caribbean remain strong. Since 2001, Americans have shown a preference for short-haul destinations. The Caribbean has benefited from this, as well as from a more competitive pricing position against the UK and Europe. The stronger Pound Sterling and Euro have made travel to Europe more expensive than Caribbean destinations whose currencies are pegged to the US Dollar.
Estimated arrivals from Canada to the Caribbean increased by a record +21% in 2003 compared to 2002. This increase was due primarily to the performance of Cuba (+30.2%) and the Dominican Republic (+31.6%). Tour operators and the retail travel agency sector are reporting strong business for the winter season.
European arrivals to the Caribbean from Europe increased +12% when compared to 2002. Some 25% of all arrivals to the Caribbean originated from the European region, with France, the UK, Germany, Italy, Netherlands and Spain being the most important markets for the region. Emerging European markets include Sweden, Switzerland and Belgium.
The UK remained one of the most important markets for arrivals to the Caribbean, generating around 25% of all European arrivals. Its relative importance is even greater for the Commonwealth Caribbean which received about 57% of the total UK visitors to the region.
The exchange rate of the Pound to the US Dollar is the highest since 1992 which should boost travel as Caribbean destinations price most of their products in US Dollars. However, there is expected to be increased competition from US destinations due to the attractive exchange rate, cheaper fares and attractive retail prices in the US.
