By Lilia Burunciuc, World Bank Country Director for the Caribbean
For generations, Caribbean tourism has been defined by its idyllic trinity of sun, sea, and sand—an image that continues to captivate the world. During my four years serving in the region, I’ve had the privilege of experiencing its stunning landscapes and vibrant cultures both professionally and personally. Yet, behind the postcard-perfect scenery lies a tourism model under growing strain.
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The COVID-19 pandemic laid bare the region’s overreliance on tourism and exposed the fragility of its economies. It also created a critical opportunity: to reimagine the kind of tourism that not only sustains visitor numbers, but truly benefits Caribbean people, economies, and ecosystems for the long term.
Tourism currently accounts for over 22% of GDP across the Caribbean and supports 2.75 million jobs—many filled by women and youth. Despite these figures, the economic returns are uneven. Cruise tourism now dominates, representing more than half of all arrivals. Yet cruise passengers spend relatively little—ranging from US$37 to US$140 per visit—and many do not disembark. In contrast, overnight visitors spend an average of US$1,600 per trip, while adventure travelers contribute close to US$2,300, not including airfare and accommodations.
This spending gap reflects deeper structural challenges. The sector’s economic footprint remains narrow, with foreign-owned, all-inclusive resorts repatriating profits and importing goods and services. This “leakage” of earnings stifles local enterprise, reduces job creation, and pressures governments into offering costly tax breaks and concessions. Between 2010 and 2013 alone, these incentives cost Caribbean governments as much as 7% of GDP in foregone revenue.
Environmental degradation adds another dimension of urgency. Cruise ships and mega-resorts generate substantial waste, deplete water and energy resources, and damage delicate coastal ecosystems. Mangroves, coral reefs, and beaches—the very assets that attract tourists—are increasingly under threat from unchecked development and climate-related stressors.
To ensure long-term competitiveness, Caribbean nations must pivot from volume to value. Travelers are seeking more immersive, sustainable, and culturally authentic experiences. Destinations that adapt to this shift—and govern tourism responsibly—stand to gain.
A more sustainable path begins with stronger governance. Transparent and predictable investment frameworks can attract ethical tourism investors while enforcing environmental and community standards. Environmental and visitor fees should reflect the true cost of maintaining tourism infrastructure and protecting ecosystems—and those revenues must be reinvested directly into communities and conservation.
Equally vital is ensuring tourism benefits more people. Local farmers, artisans, and entrepreneurs should be integrated into the tourism value chain. Achieving this requires better access to finance, skills training, and coordination between public and private actors. Encouragingly, countries like Saint Lucia are leading the way. Its Tourism Enhancement Fund channels voluntary visitor contributions into local sustainability initiatives—an approach that could be replicated and scaled region-wide.
There is also vast untapped potential in non-traditional tourism. Adventure tourism already accounts for over 30% of global leisure travel and generates more than US$680 billion annually. The Caribbean—with its rainforests, rivers, reefs, and ridges—is a natural fit. Dominica’s Waitukubuli National Trail, for instance, offers a glimpse of how the region can position itself as a premier nature-based destination. But scaling such efforts will require targeted investment, marketing, and collaboration.
Critically, these reforms cannot happen in isolation. Fragmented competition among Caribbean states often leads to weakened standards and lost opportunities. Regional cooperation—on tax policies, investment incentives, destination branding, and environmental safeguards—can help the Caribbean negotiate better deals and build a more resilient tourism ecosystem.
The ingredients for transformation already exist: world-class natural beauty, rich cultural heritage, and a deepening spirit of innovation. What’s needed now is bold leadership and policy vision. The future of Caribbean tourism must be rooted not only in what attracts visitors, but in what uplifts local communities and protects the environment for generations to come.
