February 2025 Rethinking Caribbean Tourism Supplementary Annexes i © 2025 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved. This work is a product of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. 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Supplementary Annexes. © World Bank.” This study was generously financed by PROBLUE, an umbrella multi-donor trust fund administered by the World Bank that supports the sustainable and integrated development of marine and coastal resources in a healthy ocean. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. Photos: Cover © Jessie McComb / World Bank. Additional photos from Adobe Stock. Rethinking Caribbean Tourism Supplementary Annexes ii Contents Acronyms ................................................................................................................. v Annex 1. Cruise Deep Dive Case Studies ..................................................................... 1 1.1. Antigua and Barbuda ................................................................................................ 1 1.2. Barbados ............................................................................................................... 10 Annex 2. Accommodation Deep Dive Case Studies .................................................... 20 2.1. Jamaica ................................................................................................................. 20 2.2. St. Lucia................................................................................................................. 28 Annex 3. Adventure Deep Dive Case Studies ............................................................. 37 3.1. Dominica ............................................................................................................... 37 3.2. Dominican Republic ............................................................................................... 52 Annex 4. Sustainability Initiatives Being Implemented by All-Inclusive Resort Chains in the Caribbean ......................................................................................................... 64 Annex 5. Country Scorecards from Consumer Perception Survey ............................... 67 Antigua and Barbuda..................................................................................................... 68 The Bahamas ................................................................................................................ 69 Barbados ...................................................................................................................... 70 Belize ........................................................................................................................... 71 Dominica...................................................................................................................... 72 Dominican Republic ..................................................................................................... 73 Grenada ....................................................................................................................... 74 Jamaica ........................................................................................................................ 75 St. Kitts and Nevis ......................................................................................................... 76 St. Lucia ....................................................................................................................... 77 St. Vincent and Grenadines ........................................................................................... 78 Sint Maarten ................................................................................................................. 79 Figures Figure 1. Cruise arrivals versus overnight arrivals in Antigua and Barbuda .......................................... 2 Figure 2. Primary retail purchasing categories of transit visitors in Antigua and Barbuda (2023) ............ 4 Figure 3. Cruise arrivals versus overnight arrivals in Barbados ......................................................... 11 Figure 4. Passenger visits and average expenditures for cruises in Barbados .................................... 11 Rethinking Caribbean Tourism Supplementary Annexes iii Figure 5. Primary retail purchasing categories of transit visitors in Barbados (2023) .......................... 13 Figure 6. Rooms in accommodation establishments in Jamaica, 2013–2023 .................................... 21 Figure 7. All-inclusive versus other hotel rooms, 2013–2023 ............................................................ 21 Figure 8. Stopover visitors by area of stay, 2023 .............................................................................. 22 Figure 9. Length of stay in destination areas, 2023 .......................................................................... 22 Figure 10. Evolution of the number of rooms in registered accommodation in St. Lucia 2018–2024 .... 29 Figure 11. Concentration of registered accommodation establishments in St. Lucia’s districts, August 2024 ............................................................................................................................................ 29 Figure 12. Relationship between number of establishments and poverty rate in St. Lucia’s districts 2016 .................................................................................................................................................... 30 Figure 13. Stopover visitors’ place of stay by market, December 2023 .............................................. 31 Figure 14. Number of guest rooms (2016) and growth rate, 2006 to 2016 .......................................... 38 Figure 15. Growth in Global Air Connectivity, 2009-2019 ................................................................. 39 Figure 16. Visits to protected areas by type of visitor, 2024 .............................................................. 55 Tables Table 1. Characteristics of St. John’s cruise port ............................................................................... 2 Table 2. Summary of policy options for cruise tourism in Antigua and Barbuda ................................... 8 Table 3. Berthing capacity of Bridgetown Port ................................................................................. 13 Table 4. Summary of policy options for cruise tourism in Barbados .................................................. 17 Table 5. Airbnb stays in Jamaica..................................................................................................... 21 Table 6. Summary of recommendations for accommodation in Jamaica .......................................... 26 Table 7. Stopover visitors’ average length of stay (days) by market, December 2023 .......................... 31 Table 8. Summary of policy options for accommodation in St. Lucia ................................................ 35 Table 9. Key adventure activities and operators ............................................................................... 41 Table 10. Licensing fees for the tourism industry ............................................................................. 46 Table 11. Summary of policy options for adventure tourism in Dominica .......................................... 49 Table 12. Microclimate selected examples in the Dominican Republic beyond coastal and beach landscapes .................................................................................................................................. 54 Table 13. Licensing requirements for adventure tourism activities ................................................... 58 Table 14. Summary of policy options for adventure tourism in Dominican Republic .......................... 61 Table 15. Sustainability Initiatives being Implemented by All-Inclusive Resort Chains ....................... 64 Boxes Box 1. Jamaica's Agriculture Linkages Exchange ............................................................................. 23 Box 2. Resource efficiency in accommodation ............................................................................... 25 Box 3. St. Lucia’s Special Development Areas Act ........................................................................... 33 Box 4. Boosting coral reef systems and marine biodiversity in St. Lucia ............................................ 34 Box 5. Wildlife interaction regulations in Monkey Mia, Australia ....................................................... 40 Box 6. Privately-managed protected areas in Costa Rica ................................................................. 44 Box 7. 27 Waterfalls of Damajagua co-management success case .................................................. 60 Rethinking Caribbean Tourism Supplementary Annexes iv Acronyms ACCT Association for Challenge Course Technology ADOPETUR Dominican Association of Adventure Parks and Excursions ALEX Agriculture Linkages Exchange ASONAHORES Association of Hotels and Tourism of the Dominican Republic ATDI Adventure Travel Development Index ATV All-terrain vehicles BBD Barbados Dollar BTMI Barbados Tourism Marketing Inc. CAGR Compound annual growth rate CBI Citizen by Investment CLIA Cruise Lines International Association CTA Community Tourism Agency CTO Caribbean Tourism Organization DDA Discover Dominica Authority DHTA Dominica Hotel and Tourism Association DR Dominican Republic EC$ East Caribbean Dollar EDP Entrepreneurial Development Programme EMS Environmental Management System EU European Union FAO Food and Agriculture Organization FCI World Bank’s Finance, Competitiveness, and Innovation Practice GDP Gross Domestic Product GPH Global Port Holdings GSTC Global Sustainable Tourism Council HEART Human Employment and Resource Training Trust/National Service Training Agency IDB Inter-American Development Bank IMO International Maritime Organization INTRANT National Institute of Transit and Land Transportation JAMPRO Jamaica Promotions Corporation Rethinking Caribbean Tourism Supplementary Annexes v JCTI Jamaica Centre for Tourism Innovation JQI Job Quality Index JTB Jamaica Tourist Board LNG Liquefied Natural Gas LUCELEC Saint Lucia Electricity Services, Ltd. M Meter MICE Meetings, Incentives, Conferences, Exhibitions MIMARENA Ministry of Environment and Natural Resources (Dominican Republic) MITUR Ministry of Tourism (Dominican Republic) MOPC Ministry of Public Works (Dominican Republic) MSME Micro, small and medium enterprises MW Megawatt NEPA National Environment and Planning Agency NZ$ New Zealand Dollar OECS Organisation of Eastern Caribbean States PPP Public-Private Partnerships RADA Rural Agricultural Development Agency SAVE Scientific, Academic, Volunteer, and Educational SINAP National System of Protected Areas SLHTA Saint Lucia Hospitality and Tourism Association SLSWMA Saint Lucia Solid Waste Management Authority SLTA Saint Lucia Tourism Authority SLUNCF Saint Lucia National Conservation Fund SME Small and medium enterprise STR Short-term rental TEF Tourism Enhancement Fund TVET Technical and Vocational Education and Training UK United Kingdom UNDP United Nations Development Programme UNESCO United Nations Educational, Scientific and Cultural Organization UN Tourism United Nations Tourism US United States of America WNT Waitukubuli National Trail Rethinking Caribbean Tourism Supplementary Annexes vi Annex 1. Cruise Deep Dive Case Studies 1.1. Antigua and Barbuda ABSTRACT: The cruise sector in Antigua and Barbuda is a major driver of the country’s tourism industry, with cruise passengers constituting approximately 70 percent of total visitor arrivals annually. In 2019, Global Port Holdings assumed control of St. John’s port and made substantial investments in infrastructure, including the construction of a new berth pier and upgrading of the cruise terminal. Despite a significant influx of cruise visitors and a compound annual growth rate (CAGR) of 23 percent in cruise passengers from 2013 to 2023, Antigua and Barbuda face considerable challenges in maximizing the economic benefits from cruise tourism. Its environmental tax has been stagnant at US$1.50 since 2000, and its head tax is one of the lowest in the region at US$1.50. In an effort to boost revenue from the cruise industry, the country initiated homeporting operations in 2023. However, the success of these operations is limited by the island’s capacity constraints, prompting consideration of partial homeporting as a strategic compromise. While some initiatives have been launched to enhance local community benefits, their impacts remain limited due to the absence of a comprehensive local linkage policy, strategic planning, and the weak capacity of local stakeholders to supply goods and services. Additionally, the lack of a widespread mobile payment network significantly hampers the ability of visitors to spend and support local businesses. To address these challenges, Antigua and Barbuda are recommended to prioritize the following policies and actions: adjust the environmental and head taxes in coordination with Organisation of Eastern Caribbean States (OECS) countries, focus on partial homeporting, promote the widespread adoption of mobile payment systems, and establish platforms to connect local businesses with cruise lines. Overview of Cruise Tourism in Antigua and Barbuda Cruise tourism is a major driver of Antigua and Barbuda's tourism industry, with cruise passengers accounting for approximately 70 percent of total visitor arrivals (Figure 1). From 2013 to 2023, the country experienced a CAGR of 23 percent in cruise passenger numbers (CTO, 2024). The sector has faced recent challenges, including the COVID-19 pandemic and the choice of major United States (US) cruise lines to concentrate on shorter voyages near southern US home ports during the winter 2022–2023 cruise season. This resulted in a slower recovery for southern Caribbean ports, however, Antigua's cruise sector still demonstrated a remarkable rebound, achieving 74 percent annual growth from 2022 to 2023 (GPH, 2023). Rethinking Caribbean Tourism Supplementary Annexes 1 Figure 1. Cruise arrivals versus overnight arrivals in Antigua and Barbuda 100% 90% Percentage of arrivals 80% 70% 60% 50% 40% 30% 20% 10% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cruise arrivals Overnight arrivals Source: CTO, from National Tourism and Statistical Offices in member countries. St. John’s Harbor, the primary hub for cruise tourism in Antigua, has been managed by Global Ports Holding (GPH) since 2019 under a 30-year concession agreement, with an option to extend for an additional 10 years. GPH, the world’s largest independent cruise port operator, also manages the Port of Nassau in The Bahamas and the Port of St. Lucia, further solidifying its presence in the Caribbean. GPH has invested significantly in St. John’s port, committing US$80 million for infrastructure enhancements aiming to transform Antigua and Barbuda into a premier cruise destination (see Table 1 for port characteristics). This investment includes construction of a new pier and refurbishment of retail facilities to accommodate the world's largest cruise ships (GPH, 2019a). Table 1. Characteristics of St. John’s cruise port Total Total Max. length Max. width Max. draught Quay’s number of berthing line ship for berth ship for berth ship for berth depth berths length 275m No restriction 7m-9m 5 1,720m 10.3m Source: Antigua Cruise Port. The initial investment phase, completed in 2020, expanded the port infrastructure to five berths from the previous four, representing an investment of US$30 million. Following completion of the fifth pier, GPH initiated a second phase focusing on upgrading the existing retail operations and advancing additional commercial and retail developments (GPH, 2021). With an investment of US$45 million allocated for this phase, the project will introduce a new cruise terminal and a Day Club featuring a range of amenities such as pools, bars, restaurants, and entertainment options (WIC News, 2024). This comprehensive infrastructure development is essential to promote Antigua as a desirable homeport destination in the Caribbean. Rethinking Caribbean Tourism Supplementary Annexes 2 With the relatively high public debt and the government’s tight fiscal space1, private capital mobilized and expertise from GPH have contributed to development of cruise port infrastructure in Antigua. However, good contract management, continuous dialogue involving all stakeholders, and including regular public finance risk assessments and value for money analyses remain essential to ensure the sustainability of the concession. Policy Areas Creating Local Linkages Antigua and Barbuda benefit from cruises, with an estimated 15,000 tourists arriving daily according to consultations. The opportunities for tour operators and other cruise-related activities are important, but they are not fully exploited due to lack of a comprehensive local linkages policy, strategic planning, and weak capacity of both public and private sector stakeholders to provide local goods and services. This results in low onshore spending by cruise passengers. An examination of cruise passenger spending patterns in Antigua and Barbuda shows that jewelry stores capture the largest share of expenditure (43.61 percent) (Figure 2). While this may partly be attributed to the unique availability of lavender-colored jade – a rare local resource that is transformed into exclusive jewelry pieces – it is important to recognize that much of the jewelry sold may be imported. Like many tourist destinations, jewelry stores in Antigua often stock international luxury items – such as diamonds, high-end watches, and other non-local gemstones – benefiting from the duty-free shopping environment to attract cruise passengers. In addition to jewelry, another significant category in the top-five areas of cruise passenger spending is duty-free stores (6.27 percent), which predominantly offer imported goods and, as they are duty-free, offer no government tax revenue. This underscores a critical gap in local linkages within the cruise tourism economy. Although there is some reliance on unique local products like lavender jade, much of the revenue generated from cruise passengers is directed towards non-local goods, limiting the economic impact on local producers, artisans, and small businesses. 1 IMF Article IV. January 2024. Rethinking Caribbean Tourism Supplementary Annexes 3 Figure 2. Primary retail purchasing categories of transit visitors in Antigua and Barbuda (2023) 1.81% 1.72% 3.96% Jewelry Stores 4.05% Gift, Card, Novelty Stores 5.35% Cosmetic Stores Women's Ready To Wear Stores 6.27% Duty-Free Stores 43.61% Misc. Apparel/Access Stores Misc. Specialty Retail 6.94% Marinas, Service & Supply Luggage/Leather Stores 8.71% Sports/Riding Apparel Stores 9.18% Source: World Bank’s estimate is based on an extrapolated from aggregate card usage data provided by Visa Destination Insights for the period of January through December 2023. Strengthening the integration of locally-produced goods and services into the cruise sector presents a significant opportunity. By expanding the availability of locally-made products and promoting authentic Antiguan and Barbudan offerings, the local economy can capture a larger share of cruise passenger spending. Fostering these local linkages will not only increase revenue retention within the economy, but also foster a more inclusive and sustainable tourism model that benefits local producers, artisans, and small businesses alike. To address the economic challenges posed by cruise tourism, the government recently launched the Entrepreneurial Development Programme (EDP). The EDP aims to stimulate economic growth by fostering the creation of new businesses, which is expected to generate employment and drive innovation. The overall objective of the EDP is to provide Antiguans and Barbudans with greater ownership in the economy. The program, funded through general taxes, focuses on developing micro and small businesses, offering services and products that appeal to both locals and visitors. Small businesses can access loans of up to US$75,000, while micro businesses can access loans of up to US$25,000. Although the EDP is not exclusively targeted at tourism-related businesses, tourism has been identified as a priority sector for the program (Antigua and Barbuda EDP, n.d.). To further enhance local linkages, St. John’s cruise port launched the annual “Summer Cool Series” program. This initiative is designed to inform businesses about available opportunities and provide training that fosters growth. The program covers essential topics such as the fundamentals of the cruise industry, customer service training, digital marketing, and financial marketing. Looking ahead, the port has proposed a new initiative to connect cruise passengers with local tour operators. Through a partnership between a local cruise agent and tour operator, passengers who have not pre-booked tours can now book last-minute excursions with local operators directly at the port. This initiative, which involves collaboration with cruise lines to Rethinking Caribbean Tourism Supplementary Annexes 4 identify passengers without tour bookings, aims to boost local tour operator engagement and increase revenue from spontaneous bookings. In addition, GPH is recruiting locally and promoting local entrepreneurship at Antigua Cruise Port. This initiative aims to prioritize local employment over outsourcing (GPH, 2019a). Furthermore, GPH introduced a social initiative with a US$5 million fund, designed to support Antiguans aspiring to start new businesses or expand existing tourism-focused enterprises with a fund of US$5 million (GPH, 2019b). Despite these efforts, significant improvements are still needed in transportation infrastructure. Investments in tourism transportation, including upgrades to taxi services, are essential to accommodate the growing number of visitors and ensure a more efficient and enjoyable travel experience. Upgrading these services will enhance the overall tourism experiences and better support the local economy in the face of high visitor numbers. Payment methods also pose a challenge to maximizing the economic impact on the local community. Most vendors accept only cash due to the high fees charged by banks for credit card transactions. Additionally, the absence of a widespread mobile payment network further limits the payment options available to tourists, restricting their ability to spend and support local businesses. Enhancing Environmental Outcomes Antigua and Barbuda currently impose an environmental tax of US$1.50 per cruise passenger, a rate that has remained unchanged since 2000 when it was introduced in collaboration with other OECS countries. Past attempts to negotiate and increase the fee to US$2 have been unsuccessful due to weak bargaining power vis-à-vis the cruise lines. However, the government is now considering this increase, recognizing the pressing need for additional funding to support environmental protection, which is now a priority for all stakeholders in line with the Paris Agreement on climate change. Adjusting the environmental tax and reinvesting in conservation projects in a transparent manner will enhance environmental sustainability and build public trust and accountability in the management of these funds. One of the environmental concerns is the possible damage to reefs and seagrass beds during cruise ship and yacht berthing. This has already been seen in Barbados, where ships anchored in coastal waters during the COVID-19 pandemic caused significant damage to the coral reefs (Small & Oxenford, 2022). These delicate ecosystems are crucial for marine biodiversity and coastal protection, and they also represent a key tourist attraction for the country. As such, their degradation has significant ecological and economic implications. The government is seeking assistance in developing and implementing measures to protect these vital habitats. Waste management is a pressing issue in Antigua and Barbuda, especially as the islands are positioning as a homeport. The volume of waste generated by cruise ships, if off-loaded, may pose a substantial challenge, and current waste management infrastructure in the Rethinking Caribbean Tourism Supplementary Annexes 5 country requires significant improvement. Recognizing this need, the government is committed to enhancing waste management practices as part of a broader strategy to minimize environmental impact and adopt greener practices. Significant investment in infrastructure is required to address these challenges effectively. The government is actively seeking both advice and financial support to develop and implement more robust waste management systems. Addressing the waste management challenge also offers an opportunity to create economic benefits. To improve waste management infrastructure, Antigua and Barbuda can invest in advanced waste treatment technologies to boost waste processing capabilities, reduce environmental damage, and potentially generate revenue through recycling and waste- to-energy initiatives. This dual approach of improving environmental outcomes and fostering economic growth is essential for sustainable development of the tourism sector (The Commonwealth, 2023). The country is also considering development of facilities to accommodate cruise ships powered by liquefied natural gas (LNG).2 While acknowledging that LNG is not entirely clean, especially if methane leakages are not mitigated, it is increasingly being adopted by the cruise industry as a cleaner alternative to traditional marine fuels. Consequently, Antigua and Barbuda currently view LNG as the most viable option for reducing greenhouse gas emissions from cruise operations. However, there are no concrete plans for LNG infrastructure in Antigua and Barbuda. Despite third-party interest in establishing an LNG terminal, these projects have not progressed. The Caribbean LNG terminal, which is intended to supply LNG for power generation throughout the eastern Caribbean, remains under development. With the International Maritime Organization (IMO) setting a target to reduce the industry’s greenhouse gas emissions by at least half by 2050, designers are increasingly focused on eco-friendly vessel innovations. For instance, in 2019, Norwegian company Hurtigruten Expeditions launched the world’s first hybrid, battery-supported cruise ship. Looking ahead, greener alternatives are being considered with an electric cruise ship powered by solar panels expected to debut in 2030. This vessel will operate using batteries that can be charged in ports with clean energy, a feasible solution in countries like Norway, where renewables account for 98 percent of the electricity system (CNN Travel, 2023). As these sustainable ships emerge, ports have a significant opportunity to position themselves as hubs for eco-friendly vessels. To achieve this, Antigua Cruise Port could pursue EcoPort certification3 or implement an Environmental Management System (EMS), such as ISO 14001:2015. Ports with EMS in place not only reduce their environmental footprint, but also gain a competitive edge by appealing to environmentally conscious stakeholders and vessel operators. Furthermore, such certifications enhance a port’s reputation for sustainability, 2 LNG is natural gas that has been cooled to –260°F (–162°C), changing it from a gas into a liquid that is 1/600th of its original volume making it easier and safer to transport. LNG produces 40 percent less CO2 than coal and 30 percent less than oil (National Grid, 2024). However, LNG results in emissions of methane which has a global warming power 82.5 times that of CO2 (Transport & Environment, 2023). 3 EcoPorts is the main environmental initiative of the European port sector. It was initiated by a number of proactive ports in 1997 and has been fully integrated into the European Sea Ports Organisation (ESPO) since 2011. The founding principle of EcoPorts is to create a level playing field on environment through cooperation and sharing of knowledge between ports (EcoPorts, n.d.). Rethinking Caribbean Tourism Supplementary Annexes 6 potentially drawing more business from the next green vessels, crucial for reducing maritime emissions (Inter-American Committee on Ports, 2020). The 2021 World Bank Caribbean Blue Port Study4 provides some guidance on the process for ports’ Green Marine/EcoPorts certification to align with peer markets such as the United States and European Union (EU) (World Bank, 2021). Increasing Government Revenue One growing source of revenue in cruise tourism is homeporting, which Antigua recently initiated. In 2023, P&O Arvia made the inaugural homeporting call to St. John’s, becoming the largest vessel ever to visit Antigua (Antigua Cruise Port, 2023). This milestone was made possible through collaboration with GPH, the port management company, which invested heavily in infrastructure to modernize the port. These improvements have enabled Antigua to become a homeport destination, successfully attracting several homeporting operations, particularly from the United Kingdom (UK) and European markets, offering a promising new revenue stream (GPH, 2024). The success of homeporting is contingent on the island’s capacity to support it . Antigua faces critical challenges that must be addressed to fully realize homeporting benefits, particularly in relation to accommodation, airport capacity, and possible traffic congestion. Currently, the island’s accommodation facilities are insufficient to meet the demands of all homeporting passengers. In terms of international access, while there are challenges related to capacity, Antigua’s airport infrastructure still provides a competitive advantage within the OECS, boasting a second terminal that can be dedicated exclusively to homeporting operations. To address these challenges, Antigua is exploring partial homeporting as a strategic compromise. Partial homeporting allows cruise ships to use the port as either the starting or ending point of their voyage, but not both. This approach aims to alleviate the pressure on accommodation capacity, while still allowing Antigua to benefit from the economic opportunities associated with homeporting. Antigua and Barbuda face significant challenges to maximize government revenue from cruise tourism. The primary direct source of revenue derived from cruise tourism comes from the head tax set at US$1.50 per passenger, alongside the environmental tax, which is an additional US$1.50 per passenger, plus other onshore sales tax. These relatively low tax rates underscore the nation’s constrained ability to negotiate higher fees, which limits direct financial benefits derived from cruise tourism. Additionally, the country struggles to supply cruise ships with locally-sourced food, most of which is imported, further diminishing the economic gains from this industry. Recognizing the need for stronger negotiation capabilities, Antigua and Barbuda acknowledge the importance of regional policy issues. Collaboration with OECS members 4 Find information about the report here: https://blogs.worldbank.org/en/transport/creating-sustainable-ports-caribbean- blueprint-blue-ports Rethinking Caribbean Tourism Supplementary Annexes 7 is essential as it enhances their collective bargaining power with cruise lines. By engaging together, OECS member states can reduce the cruise lines’ bargaining power and mitigate the risk of substitution, ensuring more favorable terms and potentially greater economic benefits for the whole region. Table 2. Summary of policy options for cruise tourism in Antigua and Barbuda Key Policy Areas Policy Options Creating local Encourage the widespread adoption of mobile payment systems . Promoting linkages mobile payment systems could increase the spending capacity of tourists and support local businesses. This initiative will enhance the convenience and efficiency of transactions, thereby boosting local economic activity. Invest in transportation infrastructure to support homeporting operations. Enhancing transportation links will ensure a seamless travel experience for tourists and improve the overall efficiency of homeporting activities. Establish formal platforms to connect local businesses and cruise lines. Facilitate the recruitment of local talent for onboard positions through job fairs and strengthen the relationship between local businesses and cruise lines, enabling a better understanding of each other’s needs. Enhancing Adjust environmental tax and reinvest in conservation projects in a environmental transparent manner. Implement a revised environmental tax structure and outcomes ensure that collected funds are transparently reinvested into conservation projects. This will enhance environmental sustainability and build public trust and accountability in the management of these funds. Develop waste management facilities through public-private partnerships. This approach will mobilize the necessary capital and expertise required to address the increasing waste management demands driven by the growth of homeporting activities. Increasing Focus on partial homeporting. Prioritize partial homeporting as a strategic government compromise by improving the quality of urban infrastructure, transportation revenue links, expanding accommodation capacity, and fostering partnerships between cruise lines and hotels. These efforts will encourage longer stays and boost the local economy. Leverage and upgrade the airport’s second terminal for homeporting operations. Utilize the airport’s second terminal to accommodate increased passenger traffic. This will enhance the airport’s capacity and efficiency, ensuring a seamless experience for passengers and improving the overall service quality. Adjust the head tax in coordination with OECS countries. This will reflect the improved quality of services and the need for further infrastructure and urban development. This coordinated approach will enhance the competitiveness of the destination and ensure that the adjustments are aligned with regional standards and expectations. References Antigua and Barbuda EDP. n.d. The Prime Minister’s Entrepreneurial Development Programme (EDP). Retrieved from https://antiguabarbudaedp.com/ Rethinking Caribbean Tourism Supplementary Annexes 8 Antigua Cruise Port. 2023. Antigua Cruise Port Completes Successful Homeporting of P & O's ARVIA. Retrieved from: https://www.antiguacruiseport.com/news-media/antigua-cruise-port- completes-successful-homeporting-of-pos-arvia Antigua Cruise Port. n.d. Technical Details. Retrieved from: https://www.antiguacruiseport.com/general-information CNN Travel. 2023. An electric cruise ship with gigantic solar sails is set to launch in 2030. Retrieved from https://www.cnn.com/travel/article/hurtigruten-norway-zero-emission-cruise-ship- climate-c2e-spc-intl/index.html CTO. 2024. Statistics EcoPorts. n.d. About us. Retrieved from: https://www.ecoports.com/about GPH. 2019a. Annual Report 2019. GPH. 2019b. When East Meets West. Retrieved from https://www.globalportsholding.com/in-the- press/when-east-meets-west/ GPH. 2021. Annual Report 2021. GPH. 2023. Annual Report 2023. GPH. 2024. GPH Spring News. IMF. 2024. Antigua and Barbuda: 2024 Article IV consultation report. International Monetary Fund. Inter-American Committee on Ports. 2020. Guide to Environmental Certification and Sustainability Reporting for Ports of the Americas. Retrieved from https://portalcip.org/wp- content/uploads/2021/03/Green-Port-Guide-Translation-CIP01177E05-JD-PBM-MAR.pdf National Grid. 2024. What is LNG? National Grid. Retrieved from National Grid: https://www.nationalgrid.com/stories/energy-explained/what-is-liquefied-natural-gas-lng Small, M., & Oxenford, H. 2022. Impacts of cruise ship anchoring during COVID-10: Management failures and lessons learnt. University of the West Indies. Barbados: ELSEVIER. Retrieved from: https://www.sciencedirect.com/science/article/pii/S0964569122003088 The Commonwealth. 2023. Rapid Readiness Assessment for the Transition to a Sustainable Blue Economy. Pilot project in Antigua and Barbuda. Retrieved from https://production-new- commonwealth-files.s3.eu-west-2.amazonaws.com/s3fs-public/2023-03/D19096-TONR- Transition-to-Sustainable-Blue-Econ-Antigua-Barbuda.pdf Transport & Environment. 2023. Cruise Ships. Transport & Environment. Retrieved from Transport & Environment: https://www.transportenvironment.org/topics/ships/cruise-ships Visa Destination Insights. 2023. WIC News. 2024. Antigua Cruise Port set to elevate with luxury terminal and exclusive day club. Retrieved from https://wicnews.com/caribbean/antigua-cruise-port-set-to-elevate-with- luxury-terminal-and-exclusive-day-club-285871911 World Bank. 2021. World Bank Caribbean Blue Port Study. Blue Ports Regional Project. Washington, DC: World Bank. Unpublished Rethinking Caribbean Tourism Supplementary Annexes 9 1.2. Barbados ABSTRACT: Barbados has faced challenges in meeting cruise passenger expectations, as average spending is trending down despite an increase in passenger arrivals from 2005 to 2024. Several factors have contributed to this, particularly outdated port infrastructure. To address this, Barbados doubled its head tax in 2024 for the first time in 30 years to fund necessary port improvements. Currently, the port serves both cargo and cruise ships, leading to bottlenecks and complicating the management of increasing cruise traffic. The outdated infrastructure further detracts from the visitor experience, making upgrades essential. Barbados is a homeporting destination, but has not fully capitalized on the opportunities homeporting offers, largely due to a focus on an air-to-sea model. Accommodation constraints, such as minimum stay requirements, hinder the development of pre- and post-cruise stays making the shift from the air-to-sea model more difficult. A significant portion of homeporting operations involve smaller boutique vessels, an emerging trend that caters to premium consumer markets. These markets typically spend more per capita, engage in more pre- and post-cruise stays, and prefer immersive experiences. The local community has not significantly benefited from the cruise industry. To address this, Barbados is increasing local sourcing for cruise provisions and encouraging local micro, small and medium enterprises (MSMEs) to participate in the global cruise industry by attending international events and forums. These initiatives aim to provide insights into operational needs, procurement processes, and quality standards. Additionally, environmental impacts have not been adequately addressed, as there is no environmental tax to mitigate the impact of cruise tourism. To address these challenges, Barbados should prioritize the following policies and actions: introduce an environmental fee commensurate with environmental impacts, enhance homeporting strategy to encourage pre- and post-cruise stays by negotiating flexible hotel stays for cruise passengers, develop strategies to extend the tourism season into the summer months, and enhance training and certification programs for MSMEs. Overview of Cruise Tourism in Barbados While Barbados is the largest country in the eastern and southern Caribbean in terms of population, its cruise industry is not as dominant as that of Antigua and Barbuda (Figure 3). While Barbados’ cruise visitor numbers have yet to return to pre-pandemic numbers, the country recorded a 76 percent increase between 2022 to 2023 (CTO, 2024). Rethinking Caribbean Tourism Supplementary Annexes 10 Figure 3. Cruise arrivals versus overnight arrivals in Barbados 100% 90% 80% Percentage of arrivals 70% 60% 50% 40% 30% 20% 10% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cruise Arrivals Overnight Arrivals Source: CTO, from National Tourism and Statistical Offices in member countries. Despite the growth in cruise passenger arrivals, expenditure per passenger has fallen short of expectations. Data from 2005 to 2024 shows that while passenger numbers increased from 400,000 to more than 600,000, average spending per passenger has trended down from US$110 to less than US$90 (Figure 4). According to the government’s cruise strategy report, several factors have contributed to the sector’s underperformance: aging and limited port infrastructure, an uncompetitive and unappealing shopping environment, a limited number of tourist attractions combined with a lack of new products, excessive consolidation within cruise sector representation and product distribution, limited implementation of strategic objectives by government institutions, and the need for small and medium enterprises (SMEs) to improve their offerings (National Cruise Development Commission, 2019). Figure 4. Passenger visits and average expenditures for cruises in Barbados 700 120 Average expenditure per Passenger onshore visits 600 100 passenger (US$) 500 (thousands) 80 400 60 300 40 200 100 20 0 0 2005-2006 2008-2009 2011-2012 2014-2015 2017-2018 2023-2024 Passenger onshore visits (thousands) Average expenditure per passenger Source: Economic Contribution of Cruise Tourism to the Destination Economies (Business Research & Economic Advisors, 2006, 2009, 2012, 2015, 2018, 2024). Rethinking Caribbean Tourism Supplementary Annexes 11 Bridgetown Port, the primary seaport of Barbados, is a publicly-owned and managed facility facing challenges from increased traffic and relatively limited capital to expand. In 2023, the port saw significant growth in its cruise operations, welcoming 376 cruise ships (see Table 3 for characteristics of Bridgetown Port). This marked an 18 percent increase from the previous year and a 35 percent rise compared to 2019 (Barbados Ministry of Tourism & International Transport, 2023). However, as Bridgetown Port primarily serves as a cargo port, it faces challenges in accommodating the growing number of cruise ships. The port’s dual role in handling both cargo and cruise operations often leads to logistical bottlenecks, making it difficult to efficiently manage the increasing volume of cruise traffic. This constraint limits the port’s capacity to fully capitalize on the surge in cruise arrivals, as space and resources are frequently allocated to accommodate commercial shipping. As cruise tourism in Barbados continues to grow, addressing this challenge will be crucial to maintaining smooth operations and enhancing the passenger experience. An emerging trend in Barbados' cruise tourism strategy is the focus on smaller, boutique vessels, which are easier to manage given port infrastructure constraints. These vessels cater to a premium consumer market that typically spends more per capita and values environmentally conscious travel. Boutique cruise passengers are often more inclined to engage in pre- and post-cruise stays, contributing significantly to the local economy through extended visits. Currently, these smaller boutique cruises are the focus of Barbados’ homeporting operations. While these vessels carry fewer passengers than larger ships, their clientele tends to seek more immersive and authentic experiences, such as visits to local communities, cultural and heritage tours, and engagements with local artisans. In alignment with this new trend, ongoing discussions have focused on the possibility of anchoring smaller cruise ships offshore at Holetown and Speightstown. This pilot project was first proposed in the government of Barbados’ report “A New Dawn for Cruise Tourism in Barbados” that identified these two locations as potential anchorages on the west coast to enhance accessibility to the island's north, which is less frequented by cruise visitors. In December 2018, a team from an interested cruise line visited Speightstown, identified as a favored location for potential anchorage. During its assessment, the team recognized several challenges, including the need for improved beach maintenance and repairs to the damaged jetty. Despite these technical constraints, the cruise line representatives expressed a willingness to collaborate with the government on potential developments, provided there is genuine interest in advancing the project. Looking ahead, it is anticipated that Speightstown will begin receiving these smaller boutique vessels as early as the 2025 cruise season. While interest from cruise operators has increased, the necessary infrastructure to accommodate even slightly larger vessels (around 100 passengers) is still lacking. Key improvements, such as installing moorings and enhancing shore operations, are required to fully realize this opportunity (Barbados Today, 2024). With these upgrades, this initiative could unlock new revenue streams for the government by offering a more "exotic" and exclusive berthing location away from the busy Bridgetown Port. Rethinking Caribbean Tourism Supplementary Annexes 12 Table 3. Berthing capacity of Bridgetown Port Number of berths that can Max. length of vessel Max. draught accommodate cruise ships accommodated 7 11m alongside berths 244m Source: Barbados Port Inc. 2024. Policy Areas Creating Local Linkages An examination of cruise passenger spending patterns in Barbados reveals that jewelry stores capture the largest share of expenditure (28.52 percent), followed closely by precious stones, metals and jewelry (18.36 percent) (Figure 5). While contemporary jewelry shops often feature imported items, the legacy of these artisanal practices still resonates in the island's offerings, appealing to tourists seeking authentic and locally crafted pieces. Another advantage of shopping for jewelry in Barbados is the availability of diamonds and other precious stones at tax-free prices, making them highly competitive and enticing for cruise passengers (Visit Barbados, n.d.). This creates an opportunity for local jewelers to leverage the cruise industry by enhancing their offerings and promoting the rich cultural heritage of Barbadian artisanry. Duty-free stores also rank among the top-five categories (5.66 percent), highlighting an opportunity to strengthen local linkages with the community. By expanding the promotion of authentic Barbadian jewelry and encouraging the use of locally sourced materials, the cruise sector can significantly contribute to the local economy. Strengthening these linkages would not only enhance the shopping experience for visitors, but also support local artisans and businesses to foster a more sustainable tourism model in Barbados. Figure 5. Primary retail purchasing categories of transit visitors in Barbados (2023) 1.92% 1.80% 1.54% Jewelry Stores 1.92% Precious Stones/Metals/Jewelry 3.58% 5.66% 28.52% Department Stores Gift, Card, Novelty Stores Duty-Free Stores 12.85% Misc. Specialty Retail Misc. Personal Serv - Def Women's Access/Specialty Men's/Women's Clothing Stores 13.40% Artist/Craft Shops 18.36% Source: World Bank’s estimate is based on an extrapolated from aggregate card usage data provided by Visa Destination Insights for the period of January through December 2023. Rethinking Caribbean Tourism Supplementary Annexes 13 However, visitor feedback indicates persistent concerns about the quality of service, neglected physical environment, and limited variety of products available. Addressing these issues requires a concerted effort by tourism authorities to set and enforce high standards of behavior and service within the sector. Additionally, there is a need to diversify the range of products and experiences offered to cruise passengers, which will not happen organically. This diversification requires proactive involvement from a dedicated agency or a public-private partnership capable of promoting and facilitating sector growth. Moreover, to foster the involvement of more SMEs in the cruise sector, significant support is necessary. A specialized institution, such as a cruise division within the Barbados Tourism Marketing Inc. (BTMI), could play a pivotal role in this regard, acting as a facilitator for the diversification and expansion of the island's visitor attractions (National Cruise Development Commission, 2019). Barbados is exploring opportunities to extend the cruise season into the traditionally slower summer months by targeting new markets and negotiating with cruise lines. This requires a strategic partnership across the southern Caribbean with countries negotiating as one to attract cruise lines during this period. This partnership could focus on increasing regional cruise traffic, exploring incentives for cruise lines to maintain a strong summer schedule, and cooperating in marketing and negotiating port fees, ultimately enhancing the competitiveness of the southern Caribbean as a cruise destination. Consultations with local stakeholders determined a growing demand for fresh and authentic experiences, given that 35 percent of cruise passengers are repeat visitors. While these repeat visitors often seek something beyond traditional tourist offerings, Barbados currently falls short of meeting these evolving expectations. Passengers are increasingly looking for immersive, genuine experiences which include visits to local communities, culinary exploration, and meaningful engagement with artisans. There is a noticeable shift in preferences toward smaller, more intimate tours that highlight the island’s rich history and cultural heritage. To meet these expectations, Barbados recognizes the need for innovation in its cruise sector. Enhancing the variety and authenticity of tours and experiences offered will be key to ensuring visitor satisfaction and encouraging repeat visits. Expanding beyond the typical beach excursions, the country could focus on developing niche tours that emphasize its unique cultural and natural assets, such as heritage walking tours, culinary classes with local chefs, and eco-friendly excursions that showcase the island’s biodiversity. The limited number of local tour operators working directly with cruise lines remains a challenge. Currently, fewer than five operators on the island have direct relationships with cruise lines, which restricts the diversity of available experiences for passengers. Insurance requirements were also highlighted as a barrier to more operators entering the market during stakeholder consultations. Addressing these issues will require a concerted effort to reduce regulatory and operational barriers for local businesses, allowing more operators to engage with the cruise industry. It will also require enhanced training and certification programs, particularly for tour guides, to improve overall visitor experiences. This focus on capacity building extends to service staff, including store employees, taxi drivers, and frontline staff at attractions, all of whom play a critical role in shaping tourists' perceptions of Barbados. Rethinking Caribbean Tourism Supplementary Annexes 14 To capture more value, Barbados is focusing on increasing local sourcing for cruise provisions. This includes efforts to boost local manufacturing of products used on cruise ships, such as food supplies like eggs and poultry. Increasing the presence of local goods on cruise ships will not only provide a new revenue stream for local manufacturers, but also enhance the authenticity of cruise experiences for passengers. To support these efforts, according to consultations, Barbados is encouraging more local businesses, particularly MSMEs, to participate in the global cruise industry. By attending international cruise events and forums, these businesses can gain insights into the cruise sector’s operational needs, procurement processes, and quality standards, equipping them to better engage with cruise lines. More comprehensive support through a dedicated government-managed fund, which does not current exist, is essential. Enhancing Environmental Outcomes Barbados continues to emphasize the importance of sustainable development within its cruise industry, recognizing the environmental challenges posed by increasing cruise traffic. Although they currently do not impose an environmental fee on passengers, the government is in the process of drafting legislation focused on environmental responsibility. The government has outlined an ambitious green initiative aimed at transforming Bridgetown Port into a more sustainable and environmentally friendly hub. One of its key components is the modernization of port operations, supported by a US$50 million loan from Inter-American Development Bank (IDB) Invest, approved in 2022. Central to this modernization effort is the installation of a waste-to-energy system, designed to manage the substantial waste generated by the cruise industry. This system will not only reduce the environmental footprint of waste disposal, but also contribute to energy production to help Barbados move closer to its sustainability goals. Additionally, as a homeporting destination, Barbados is committed to expanding its capacity to handle cruise waste in accordance with the International Convention for the Prevention of Pollution from Ships (MARPOL). The country is working towards implementing an environmental and social management system to ensure compliance with all legal and regulatory requirements related to environmental and social risks (Barbados Port Inc, 2022). However, Barbados faces certain limitations in its green infrastructure. This is particularly so for LNG and onshore power supply, as the country lacks the necessary capacity for these systems. These limitations pose challenges for the island’s ability to fully accommodate the latest environmentally friendly technologies being adopted by cruise lines worldwide. In response to new environmental regulations, such as the IMO’s Carbon Intensity Indicator, cruise lines are opting for shorter journeys to avoid penalties. As it takes longer to reach Barbados from the US than other Caribbean islands, cruise operators are commonly reducing their calls to stay within these regulatory thresholds. This presents a significant challenge for Barbados, as fewer port stops could impact its cruise tourism industry. In response, Barbados must not only advance its sustainability initiatives but also implement strategic measures to enhance its competitiveness – particularly by attracting higher-end luxury ships. Rethinking Caribbean Tourism Supplementary Annexes 15 Increasing Government Revenue Barbados has doubled its head tax in November 2024 to BBD$24 (approximately US$12). As a home port in Barbados, its existing fees are BBD$500 per ship (approximately US$253) for half turnaround5 and BBD$1,500 per ship (approximately US$758) for full turnaround (Barbados Port Inc., n.d.). After maintaining the same head tax for 30 years, Barbados decided to double it to address the urgent need to modernize and expand Port of Bridgetown. Given that the port primarily handles cargo, there is limited berthing space available for cruise ships. To alleviate this constraint, Barbados is exploring alternative locations to accommodate smaller and boutique cruise vessels. Barbados has not faced significant pushbacks from cruise lines with its recent head tax increase. This outcome is attributed to a proactive approach in discussions with cruise operators. By clearly communicating the reasons for the fee increase and detailing how the additional funds will be allocated, Barbados aligned its strategy with industry expectations, similar to the approach taken by Alaska. Barbados is focusing on expanding homeporting, which has shown promising growth. Despite this promise, Barbados has yet to fully capitalize on homeporting opportunities. With a primary focus on transportation, the significant benefits associated with hotel accommodation, restaurant dining, and nightlife entertainment have been neglected (National Cruise Development Commission, 2019). Barbados currently employs an air-to-sea homeporting model, where cruise passengers fly directly into the island and are transferred directly from the airport to the cruise ship. While this approach benefits transport operations, the country misses out on the larger economic advantages of homeporting, such as increased direct spending from pre- and post-cruise stays. In the Caribbean and Latin America, 22 percent of homeport passengers spend two and a half nights in a hotel before or after their cruise on average. In contrast, only 7 percent of homeport passengers in Barbados stay overnight, and they typically spend just one night either before or after their cruise (National Cruise Development Commission, 2019). Recognizing this gap, Barbados aims to refine its homeporting strategy by encouraging passengers to extend their pre- and post-cruise stays (National Cruise Development Commission, 2019). By promoting these visits, the island stands to benefit from a significant boost in local spending on accommodation, dining, entertainment, and cultural experiences. This shift will not only enhance the overall tourist experience, but also create additional revenue streams for local business, directly contributing to the island’s economy. However, several challenges need to be addressed to fully unlock these benefits. One major obstacle is the accommodation sector, as hotels often require a minimum stay, making shorter stays for cruisers difficult, especially during the weekend. This policy discourages 5 Half turnaround means that only some passengers disembark and embark. Full turnaround means all passengers disembark and new passengers board. Rethinking Caribbean Tourism Supplementary Annexes 16 cruise passengers who may only be looking for shorter stays, thereby limiting the appeal of extending their time on the island. To counter this, Barbados could work with local hotels and guesthouses to develop more flexible booking options tailored to cruise passengers. Additionally, regulatory constraints complicate Barbados’ positioning as a home port, for example, US Customs restrictions that limit the ability of cruise lines to pick up passengers from outside the US on certain routes. These restrictions reduce the flexibility of itineraries and may deter some cruise lines from fully utilizing Barbados as a homeporting base. To address these operational and regulatory challenges, Barbados can explore several solutions. One approach could be negotiating special arrangements with hotels to accommodate shorter stays, alongside efforts to streamline airport-to-cruise terminal logistics to make it more convenient for passengers. Barbados can also collaborate with cruise lines and international regulatory bodies to explore potential waivers or adjustments to US Customs regulations, making the island a more viable and flexible homeporting option. By overcoming these hurdles, Barbados hopes to fully capitalize on the economic benefits of homeporting, transforming it into a major driver of tourism growth. Enhancing the homeporting experience will not only increase local revenue, but also elevate Barbados’ status as a premier cruise destination in the Caribbean. Table 4. Summary of policy options for cruise tourism in Barbados Key Policy Areas Policy Options Creating local Develop strategies to extend the tourism season into the summer months. By linkages extending the season, Barbados can reduce pressures of overtourism during peak periods and alleviate traffic congestion. Enhance training and certification programs. Invest in the development and enhancement of training and certification programs for tourism professionals. This includes creating comprehensive curricula that covers essential skills, customer service excellence, and industry best practices. Partner with educational institutions, industry associations, and certification bodies to ensure the programs are up-to-date and relevant. Provide opportunities for continuous learning and professional development through workshops, seminars, and online courses. Diversify product offerings and support SMEs in the cruise sector . Focus on diversifying product offerings to cater to a broader range of interests and demographics within the cruise sector. This includes developing authentic and immersive experiences that align with emerging customer trends. Support SMEs by providing access to funding, resources, and training to help them innovate and grow. Foster partnerships between large cruise operators and local SMEs to integrate unique, locally-sourced products and services into cruise itineraries. Enhancing Introduce an environmental fee commensurate with environmental impacts. environmental Revenues should contribute to mitigation and adaptation initiatives benefiting all outcomes the stakeholders. Effective institutional coordination and transparent management of the fee’s utilization are essential to build trust and ensure accountability. Rethinking Caribbean Tourism Supplementary Annexes 17 Key Policy Areas Policy Options Expand waste management capacity in accordance with MARPOL regulations. Measures include investing in advanced waste treatment facilities, improving waste collection and segregation systems, and ensuring proper disposal and recycling processes. Increasing Enhance homeporting strategy to encourage pre- and post-cruise stays. This government could be achieved by developing attractive and unique experiences to encourage revenue cruise passengers to extend their stays before and after cruises. Negotiate flexible hotel stays for cruise passengers . Collaborate with local accommodation providers to develop more flexible booking options tailored to the needs of cruise passengers. This could include offering short-stay packages without minimum stay requirements. Improve airport-to-cruise terminal logistics. Enhance the transfer process to make it more convenient for passengers, thereby improving their overall experience. This includes upgrading signage, streamlining transportation services for quicker and more efficient transfers, and ensuring efficient baggage handling to minimize delays. References Barbados Ministry of Tourism & International Transport. 2023. Barbados Tourism Statistics Dashboard. Retrieved from Barbados Ministry of Tourism & International Transport: https://www.tourism.gov.bb/statistics Barbados Port Inc. 2022. Annual Report. Barbados Port Inc. 2024. Berthing Capacity. Retrieved from: https://barbadosport.com/berthing- capacity/ Barbados Port Inc. n.d. Other Charges. Barbados Port Inc. Retrieved from Barbados Port Inc.: https://barbadosport.com/other-charges/ Business Research & Economic Advisors. 2006. Economic Contribution of Cruise Tourism on the Caribbean Economy. Philipsburgh: Florida-Caribbean Cruise Association. Business Research & Economic Advisors. 2009. Economic Contribution of Cruise Tourism to the Destination Economies Vol. 1 & 2. Philipsburgh: Florida-Caribbean Cruise Association. Business Research & Economic Advisors. 2012. Economic Contribution of Cruise Tourism to the Destination Economies - Volume I- Aggregate Analysis. Philipsburgh: Florida-Caribbean Cruise Association. Business Research & Economic Advisors. 2015. Economic Contribution of Cruise Tourism to the Destination Economies - Volume I- Aggregate Analysis. Philipsburgh: Florida-Caribbean Cruise Association. Business Research & Economic Advisors. 2018. Economic Contribution of Cruise Tourism to the Destination Economies - Volume I - Aggregate Analysis. Philipsburgh: Florida-Caribbean Cruise Association. Business Research & Economic Advisors. 2024. Economic Contribution of Cruise Tourism to the Destination Economies - Volume I - Aggregate Analysis. Philipsburgh: Florida-Caribbean Cruise Association. National Cruise Development Commission. 2019. A new dawn for cruise tourism in Barbados. Rethinking Caribbean Tourism Supplementary Annexes 18 Barbados Today. 2024. Smaller cruise ships “may soon dock” at Speightstown. Retrieved from https://barbadostoday.bb/2024/07/30/smaller-cruise-ships-may-soon-dock-at-speightstown/ CTO. 2024. Statistics National Cruise Development Commission. 2019. A new dawn for cruise tourism in Barbados. Government of Barbados Visa Destination Insights. 2023. Visit Barbados. n.d. Retrieved from: https://www.visitbarbados.org/jewelry?pageindex=1 Rethinking Caribbean Tourism Supplementary Annexes 19 Annex 2. Accommodation Deep Dive Case Studies 2.1. Jamaica ABSTRACT: Jamaica’s accommodation sector is experiencing significant expansion in size and category, spreading into previously low-density tourism parishes. This brings new opportunities for Jamaicans to benefit from the accommodation sector. However, the country has a number of challenges to overcome first, including accelerating the regulation of short-term rentals, addressing insufficient fiscal incentives for mixed-use developments, closing gaps in environmental enforcement, addressing the lack of attractions outside resort hotels, and further strengthening linkages programs. Additionally, remaining skill shortages in the hospitality sector are evident, particularly in higher-level positions despite recent efforts to improve workforce training. Overview of the Tourism Sector in Jamaica Jamaica’s accommodation sector is dominated by all-inclusive properties that are majority foreign-owned and concentrated in four main parishes. Jamaica’s total registered and licensed room stock totals 32,048: a mix of hotel rooms (78 percent of all rooms), guesthouses, resorts cottages, villas, and apartments (Jamaica Tourist Board). The room stock has seen a 33 percent increase since 2004, largely driven by the hotel room category which has risen from 17,533 rooms in 2004 to 24,954 rooms in 2023 (Figure 6). The majority of these rooms—78 percent—are concentrated in four parishes: St. James (32 percent of hotel rooms), St. Ann (18 percent), Hanover (14 percent), and Westmoreland (13 percent). Jamaica’s accommodation sector is dominated by the all-inclusive model: of the 25,000 hotel rooms, 80 percent are all-inclusive, representing 62.4 percent of the total stock (Figure 7). According to the Jamaica Tourist Board (2024a), most all-inclusive hotels in Jamaica are foreign-owned and highly dominated by Spanish investors and brands such as Iberostar (1,500 rooms), RIU (4,300 rooms), Grand Bahia Principe, Grand Palladium, Moon Palace, and Playa Resorts, which represent Hyatt, Hilton, and Jewel Grande. Sandals, a major local hotel brand that operates across Jamaica and the Caribbean, has approximately 2,500 rooms in Jamaica spread across multiple hotels. Approximately 52,000 people are employed in the tourism accommodation sector, about 1.5 employees per room. Rethinking Caribbean Tourism Supplementary Annexes 20 Figure 6. Rooms in accommodation Figure 7. All-inclusive versus other hotel establishments in Jamaica, 2013–2023 rooms, 2013–2023 35,000 30,000 30,000 25,000 25,000 20,000 Rooms 20,000 Rooms 15,000 15,000 10,000 10,000 5,000 - 5,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 - 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Resort Cottages/Villas All-Inclusive Non-All Inclusive Guesthouses Hotels Hotel Rooms Source: Jamaica Tourist Board. The availability of short-term rentals (STRs) has increased significantly in the past five years. On the supply side, the Airbnb offerings have jumped from 9,600 listings in 2019 to 11,200 listings in 2024, while the share of stopover visitors staying in STRs has grown from 5.2 percent in 2019 to 27 percent in 2023 (Table 5). In 2023, an average of 69,000 visitors per month stayed in Airbnb-listed accommodation across the island, with an average length of stay of 4.3 days per property, at an average daily rate of US$159. According to the Jamaica Tourist Board’s Airbnb Report (2024b), the estimated gross foreign exchange earnings from Airbnb guests in 2023 was US$206.4 million, an increase of 37 percent from 2022. Table 5. Airbnb stays in Jamaica 2024 Airbnb stays 2019 2022 2023 (January–March) Number of Airbnb Visitors 138,700 597,740 826,000 234,780 % of total stopover visitors 5.2% 24% 27% 30% staying in Airbnb Number of Airbnb Listings 9,600 8,150 10,200 11,200 Source: World Bank Publication on the Sharing Economy, Jamaica Tourist Board Note: no formal data for 2020 and 2021 The vast majority (80 percent) of visitors to Jamaica stay on the North Coast, but for shorter periods than in other areas of the country. Of the 2.9 million stopover visitors in 2023, 1.1 million (39 percent) stayed in Montego Bay, followed by 21 percent in Ocho Rios and 18 percent in Negril (Figure 8). These areas are home to the bulk of tourism products – accommodation, attractions, and beaches – capturing 77.4 percent of all stop-over visitors to Jamaica. Recent data also shows there has been an uptick in visitors staying in Portland and the South Coast, likely due to an increase in tourism developments. Overall, the average length of stay for a visitor in Jamaica is 8.6 days, but visitors stay the longest in Portland (Port Antonio Rethinking Caribbean Tourism Supplementary Annexes 21 in Figure 9)—an average of 14.8 days—as opposed to Montego Bay where visitors stay an average of 6.5 days, Negril for 7.7 days, and Ocho Rios for 8.1 days (JTB). Longer periods of stay in Portland could be attributed to more explorative visitors doing outdoor activities and staying in non-hotel accommodations. Past research from the World Bank in Jamaica shows homestays provide more geographical spread than typical vacation rentals. It also suggests they capture demand from different tourism profiles, such as adventure travelers or music aficionados (World Bank Group, 2018). These findings are consistent with the Jamaica Tourist Board’s 2024 Tourism Accommodation Report (2024a) which highlights accommodation landscape of the country: whereas hotels in Portland represent just 1 percent of the total supply, this parish has a higher proportion of home stays (18 percent), guest houses (12 percent), and villas (5 percent). Figure 8. Stopover visitors by area of stay, Figure 9. Length of stay in destination areas, 2023 2023 16 14.8 13.6 Montego Bay 14 11.5 1% 12 5% 7% Ocho Rios 10 8.1 7.7 Days 8 6.5 6 9% 39% Negril 4 2 Kingston 0 18% Mandeville/South 21% Coast Port Antonio Source: Jamaica Tourist Board, 2024. Policy Areas Local Linkages In Jamaica, leakages are still considered to be high despite recent efforts. In 2015, a study funded by the Government of Jamaica and the World Bank estimated that the annual leakage due to imports approximated to US$410 million in the manufacturing sector and between US$10 million and US$32 million in the agricultural sector, with potential for import substitution (Government of Jamaica, 2015). Despite major initiatives improving the landscape during this past decade (see Box 1), in 2022 the World Bank Group still reported that tourism firms imported most inputs necessary to operate (IFC, 2022). Rethinking Caribbean Tourism Supplementary Annexes 22 Box 1. Jamaica's Agriculture Linkages Exchange Jamaica’s Agriculture Linkages Exchange (ALEX) online platform aims to connect local farmers and their produce with hotels that want to buy. Created in 2017 by the Rural Agricultural Development Agency (RADA), the program intended to directly connect local farms with hotels and build the capacity of farmers. Since its inception, ALEX has facilitated sales of US$7 million and connected 6,000 farmers with hotels. Although sales made through ALEX are remarkable, the platform faces challenges. Hotels have found it easier to purchase goods through purveyors, who offer full-service solutions, including delivery, cold storage, and quality assurance. Additionally, farmers struggle with delayed payments, as hotels can take up to 90 days to pay. Purveyors, better equipped to handle these terms, pay farmers faster and wait for hotel payments themselves. As ALEX benefits farmers with smaller operations without agent connections, there are lessons for other Caribbean countries looking to replicate the model. To optimize it further, ALEX could engage a local financial institution for advancement of payments to farmers through factoring, which would assist with short-term cash flows. It could also be expanded to include all players in the value chain (transportation, logistics, cold storage, and quality assurance). In addition to advancements with ALEX, farmers have asked the Ministry of Tourism to urge hotels to share data on their consumption patterns. For example, Grand Bahia Principe, a 1,500- room hotel in St. Ann, shared its annual consumption for Irish Potatoes (115,000 kg per year, 2,200 kg per week). If farmers could access this estimated information by quarter on a regular basis from hotels, they would be better able to supply the market. Tourism firms are less likely to buy domestically produced goods—both agricultural and manufactured—due to challenges related to quality, market connections, and incentives. Low and inconsistent supply and quality, high prices, limited information, weak connections to markets and links between actors in agricultural value chains, and land issues all contribute to leakages (IFC, 2022). Additionally, while Jamaica’s local manufacturing sector has matured, the current fiscal incentives regime—originally intended to attract international hotel investors by promoting the importation of manufactured goods—has not evolved to facilitate purchases from local manufacturers. Address Human Capital Needs Over the years, higher-level positions in the accommodation industry have been held mostly by international staff. Most higher-level jobs are held by international staff who obtain permits to work with internationally branded hotels in Jamaica. In a 2018 survey, 84 percent of employers said that recruiting appropriately skilled persons was a major challenge with a limited number of candidates with occupation-specific and soft skills (IFC, 2022). There have been recent efforts to level up skills. In 2018, the Government of Jamaica established the Jamaica Centre for Tourism Innovation (JCTI) to provide certification to hospitality, tourism, and culinary arts students. The JCTI was born out of the challenge that there are 14 schools in Jamaica that teach hospitality and tourism programs, yet employers Rethinking Caribbean Tourism Supplementary Annexes 23 were unclear of the nature of programs and had concerns regarding standardization. In parallel, HEART (Human Employment and Resource Training Trust/National Service Training Agency) and local universities have proven capable of preparing candidates for entry level positions, however certification and skills for supervisory and middle management are not readily available. The JCTI identified internationally benchmarked certification programs and offered certification to locals, which has made these workers more marketable, especially to foreign investors. The focus of training is supervisory and middle management positions for local staff to access higher level jobs within hotels. The certification is rigorous and those possessing it are more marketable than candidates without it. Employers are confident in the curriculum offered by these partner institutions and are more likely to hire candidates with this globally recognized certification. Post-pandemic, hotels have had challenges sourcing labor, particularly for entry level positions, and this is likely to amplify with the new investments. While the government has not had to import labor, there are concerns that with new rooms coming onstream, the current labor market may not be able to fill this gap. The JCTI is working with hotels, HEART and the local universities and colleges to address this gap and ensure that hotel needs are aligned with the curriculum taught. Alignment is critical as hotels have complained that local university graduates often do not have the relevant skillsets required for evolving sector demands. Strategic Planning and Zoning for Accommodation Jamaica’s accommodation landscape is evolving in size, height, and spatially, putting pressure on ecosystems. Recent hotel investments have seen an increase in the number of rooms per property. The Jamaica Promotions Corporation (JAMPRO) identified that tourism properties typically range from 100 to 400 rooms, but there has been a trend towards larger properties, with some now featuring 800 to 1,200 rooms. A notable example is a new 2,500- room property in Hanover. Along with the increase in room numbers, hotels have expanded offerings to include activities such as water and theme parks. Planning agencies have noted an increase in applications for overwater structures, villas, guesthouses, bed and breakfasts, and mixed-use developments. Land space along the coastline is scarce and hotels are moving to less popular areas (such as Trelawny) to build developments. There has also been an increase in building heights over the years and developments requesting 20-30 floors (National Environment and Planning Agency of Jamaica). Despite an established regulatory landscape for the sustainable development of investments, challenges in carrying capacity and enforcement gaps place the country’s endowments at risk. Tourism entities must go through a multi-agency investment approval process, with the National Environment and Planning Agency (NEPA) playing a central role. NEPA's guidelines, revised periodically, include zoning regulations to protect ecologically sensitive areas. However, enforcement of conditions is weak. Additionally, outdated legislation with low penalties discourages compliance, and issues like water shortages and congestion persist despite planning efforts and resource efficiency initiatives (Box 2). The current National Resource Conservation Act was enacted in 1991 and has not been updated. Rethinking Caribbean Tourism Supplementary Annexes 24 Box 2. Resource efficiency in accommodation More hotels in Jamaica are implementing sustainable environment business practices. According to NEPA, a number of hotels have been implementing green sustainable practices in addition to compulsory practices (rainwater harvesting, collection of storm water runoff, soak aways), such as LNG, alternative water sources using reverse osmosis, sewage investment plants, mangrove planting, installation of solar panels, and green energy. A number of hotels have even come off the national grid. The NEPA currently has a Green Business Program designed to help businesses become more aware, learn, and implement best practices in environmental stewardship . This is to reduce operation costs and reduce negative environmental impacts. This would translate to better sustainable management and the use of environmental and natural resources. This is a voluntary program that allows businesses to promote an environmentally friendly approach to their operations. Businesses can obtain awards through the program. Repeat investors and brands are expanding their presence in Jamaica, but fiscal regimes do not accommodate new investment models. For instance, RIU recently opened its sixth property in Trelawny, featuring 753 rooms. Additionally, properties that began as European Plan hotels have now introduced all-inclusive options to meet demand. There has also been a rise in interest and investments in mixed-use properties, which combine hotel, residential, and commercial components in one building. However, the current fiscal incentives regime does not accommodate this model, making it challenging to encourage and promote such developments. With the growing number of accommodation offerings, complementary activities need to be developed. There is insufficient activities, attractions, and entertainment options outside of hotels to complement accommodation offerings. JAMPRO is currently developing a Tech Accelerator Program which will give hotel guests the ability to get information on high-interest activities in the country, such as concerts, with ticket purchases through a legitimate channel. In collaboration with local licensed ground transportation providers, guests would be transported to and from these events, which would allow them to experience more of what the Jamaican culture has to offer, outside of hotels. A new business investment portal streamlines ease of doing business in Jamaica for tourism investors. The Ministry of Industry, Investment and Commerce has developed the Jamaica Business Gateway, an online business portal which allows investors to apply for incentives, building permits, approvals and licenses in a “one stop shop” that reduces the time to obtain licenses and permits. The Ministry of Tourism will conduct a phased approach and is only processing transportation concessions through the portal for now. Regularizing the Short-Term Rental Sector The STR sector is growing organically and provides diversification options for Jamaica’s future tourism accommodation growth, particularly outside the all-inclusive resort Rethinking Caribbean Tourism Supplementary Annexes 25 segment. However, because the segment is a relatively recent global tourism innovation, whose growth has been rapidly accelerated by digital platforms such as Airbnb, it has not been fully integrated into the regulatory and licensing framework for accommodation in Jamaica. Currently, the licensing process through the Jamaica Tourist Board Act requires tourism accommodations to be licensed by the JTB through the Tourism Product Development Company (TPDCo). Based on their category, accommodations are provided licenses for which they must meet several requirements and submit relevant documentation. To access fiscal incentives, property owners must change their designation from residential to commercial, which is an issue for those who obtained initial build-approvals from local parish councils for residential properties, as is the case with most of the current inventory. As the STR segment falls outside zoning regulations, it poses a range of other challenges. According to the Ministry of Tourism’s International Position Paper on Short Term Accommodations, the accommodations located in residential communities have caused several social issues. Neighbors and residents have complained about security concerns, and misuse of common areas. Additionally, since properties in certain areas are not regulated, they lack safety requirements such as fire extinguishers, insurance, and security measures. Many stakeholders have urged the government to address these issues, which are negatively impacting the “Jamaica Brand”, and to implement proper regulations. The Government of Jamaica is currently amending the Tourist Board Act to register and license all accommodations offered for commercial purposes, including STRs. Under the new legislation, all entities providing accommodation for commercial purposes will need to be registered and licensed by JTB under one of the existing categories. The new Destination Assurance Framework and Strategy will serve as a long-term guide for the Tourism Ministry and its agencies, focusing on creating a safe, secure, and seamless travel experience. This initiative is a significant step towards regulating STRs, while reinforcing existing policies and introducing new ones. The overarching goal is to enhance visitor satisfaction and the well-being of local communities, for which targeted strategies will address the quality and management of tourism services and products across the local value chain. Additionally, Jamaica aims to align with the United Nations International Code for the Protection of Tourists, which establishes minimum international standards for safeguarding tourists in emergencies and upholding consumer rights. Table 6. Summary of recommendations for accommodation in Jamaica Key Policy Area Recommendation Local linkages Develop the Agricultural Linkages Exchange by involving local financial institutions and more players in the value chain, and by supporting value creation activities. Improve the flow of information between producers and buyers to better match local supply and demand, including forward-looking projections and purchasing agreements. Review the current fiscal incentive for imports of manufactured goods to consider changes in the local offering. Rethinking Caribbean Tourism Supplementary Annexes 26 Key Policy Area Recommendation Address human Ensure local educational curricula are aligned with the hospitality sector's capital needs current and future skill requirements through industry collaboration. Include labor availability and skills in overall tourism growth strategy , including a plan to accommodate new workers and families near the workplace. Strategic planning Update and strengthen environmental legislation to reflect current and zoning for environmental challenges and introduce higher penalties for non- accommodation compliance. Legislation should incorporate updated guidelines on carrying capacity and sustainability, with specific focus on mitigating the environmental impacts of large-scale hotel developments, such as water and energy use. Revise fiscal incentives for mixed-use developments. Update Jamaica’s fiscal incentives to support mixed-use properties, encouraging diverse investment models in tourism infrastructure. Expand complementary tourism activities. Develop a strategy to promote off- site attractions and entertainment, enhancing visitor experiences and spreading economic benefits beyond hotels. Regularizing the Under the Amendment to the Tourism Policy Act, provide a clear path to STR sector regularization of the STR sector aligned with regional (and global) practices. Streamline and lower the cost of registering accommodation properties . JTB should consider a simplified licensing process for single property owners based on criteria such as a limited number of rental days per year. Offer STR incentives under certain conditions. Owners or entities offering multiple STR rooms and developing STR as a commercial concern (such as property management companies or estate agents) in zoned locations with environmental aspects in place, could be considered for similar incentives to other commercial accommodation. References Jamaica Tourist Board. 2024a. Tourism Accommodation Report Jamaica Tourist Board. 2024b. Air BnB Report Ministry of Finance and Planning, Jamaica. 2013. The Fiscal Incentives (Miscellaneous Provisions) Act, 2013. https://www.mof.gov.jm/wp-content/uploads/The-Fiscal-Incentives-Miscellaneous- Provisions-Act-2013-3.pdf Rural Agricultural Development Authority. n.d. Agri-Linkages Exchange (ALEX). Retrieved from: https://rada.gov.jm/node/176 World Bank. 2018. Tourism and the Sharing Economy: Policy & Potential of Sustainable Peer-to-Peer Accommodation. Washington, DC: World Bank Group Rethinking Caribbean Tourism Supplementary Annexes 27 2.2. St. Lucia ABSTRACT: St. Lucia’s formal accommodation sector is dominated by large hotels with all- inclusive plans concentrated in three main districts. In 2024, the non-registered stock—mostly comprised of short-term rentals—surpassed the formal sector in the number of rooms. The Tourism Development Act (2024) is expected to level the playing field by requiring mandatory registration of all tourism accommodation providers, implying that every business will need to pay the tourism levy, but will also have access to incentives, financial aid, and promotion activities. The average length of stay has decreased in the past five years, and the current accommodation offering is not aligned with new trends, which could encourage longer stays. Challenges include: i) a lack of an integrated tourism strategy, ii) high crime rates, iii) lack of waste recycling systems, iv) inability of SMEs to invest in renewables and resilience, v) lack of local talent and stronger connections with international buyers, which undermine the potential of the local economy. Overview of Tourism in St. Lucia Visitor arrivals in St. Lucia have grown slowly over the past decade (0.76 CAGR between 2013 and 2023), reaching 1,036,066 arrivals in 2023. Cruise arrivals represent 59 percent of the total, followed by stay-over arrivals (37 percent) and yacht arrivals (4 percent). The market is quickly recovering from the pandemic: as of July 2024, year-to-date stopover arrivals represented 95.7 percent of pre-pandemic levels, and cruise arrivals surpassed 2019 numbers by 3 percent (Saint Lucia Tourism Authority). Despite the higher number of cruise visitors between 2012 and 2017, total tourist expenditure from stay-over visitors represented 97 percent of total expenditure, whereas expenditure from cruise visitors represented only the remaining 3 percent. The US is the largest source of visitors for stay-over arrivals (54 percent in 2023), and their market share has been increasing since 2012. In 2023, tourism contributed to 60,000 direct and indirect jobs (WTTC, 2024). Overview of Accommodation in St. Lucia St. Lucia has the largest number of hotels and resorts amongst the smaller Caribbean6 countries (TripAdvisor, 2023), with the accommodation and food service industry directly employing 14 percent of the labor force (Central Statistical Office of Saint Lucia, 2024). It also has the most all-inclusive hotels after Dominican Republic and Jamaica (Ibid). In 2023, there were 11 accommodation projects in the pipeline with 2,046 rooms (STR)—the highest in the Caribbean after Dominican Republic and Jamaica. In 2023, the accommodation and food services industry directly employed 13,508 workers, 48 percent of whom were women (Central Statistical Office of Saint Lucia, 2024). Most rooms available nationally are offered by the STR sector, followed by large hotels with all-inclusive plans concentrated in three-in-ten districts. In 2024, the non-registered 6 In this reference, Caribbean includes Antigua and Barbuda, The Bahamas, Barbados, Dominica, Dominican Republic, Grenada, Jamaica, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines. Rethinking Caribbean Tourism Supplementary Annexes 28 sector, mostly comprised of STRs, had a larger inventory of available rooms than the hotel sector (5,584 versus 4,449 rooms)Figure 10). Recently, the Saint Lucia Tourism Authority (SLTA) conducted a market assessment and concluded that less than 10 percent of STRs were registered with it. Large hotels represent 11 percent of registered properties and 67 percent of registered rooms—50 percent are in Gros Islet, followed by Castries (where cruise lines stop). Small hotels have a higher presence in La Soufriere (45 percent), whereas apartments and guest houses are slightly more equally distributed. In 2024, the highest concentration of registered accommodation establishments was in Gros Islet (41 percent), followed by Castries (26 percent), La Soufriere (16 percent), and Vieux Fort (9 percent) (Figure 11). Additionally, it has been reported that 68 percent of daily expenditure by visitors in St. Lucia is spent at the hotel (CDB, 2017). Figure 10. Evolution of the number of rooms Figure 11. Concentration of registered in registered accommodation accommodation establishments in St. establishments in St. Lucia, 2018–2024 Lucia’s districts, August 2024 6,000 Apartments 5,000 Guest Houses Number of rooms 4,000 Villas 3,000 Small Hotels 2,000 Large Hotels 1,000 of which all- inclusive 0 informal sector stock Source: Saint Lucia Tourism Authority, 2024. Source: Own elaboration with data from Saint Note: no data for 2021 Lucia Tourism Authority, 2024. Districts with a higher number of registered accommodation properties have generally lower incidences of poverty (Figure 12). This suggests a positive sector contribution to employment and quality of jobs. This is the case for all districts except Choiseul, and to a lesser extent Laborie, the two least populated districts in 2016. These results are consistent with findings of a recent job quality analysis in four Caribbean countries. St. Lucia was the country with most people employed in accommodation (as a percentage of tourism employment), and also had higher job quality, both overall and higher than other sectors in terms of benefits, income, and working conditions (World Bank, 2023). Rethinking Caribbean Tourism Supplementary Annexes 29 Figure 12. Relationship between number of establishments and poverty headcount rate in St. Lucia’s districts, 2016 50 Poverty headcount rate, 2016 45 Dennery 40 Anse la 35 Raye/Canaries VieuxFort 30 Micoud 25 Soufriere Laborie Castries 20 Choiseul 15 10 Gros Islet 5 0 0 5 10 15 20 25 30 35 40 45 50 Registered accommodation establishments, 2016 Source: Saint Lucia Tourism Authority and Central Statistics Office, 2024. All-inclusive hotels perform better in terms of occupancy and daily rates than other accommodation categories. Overall, average hotel occupancy in 2023 was 69.1 percent, higher than the 2012–2016 average (65.4 percent), indicating some improvement in the hospitality sector’s performance. From the reported hotel categories, the all-inclusive segment had the highest occupancy rates between 2012–2016 (76.6 percent on average), followed by those offering a European Plan (64.6 percent) and small properties (56.9 percent). In 2022, average daily rates started at US$151 for economy properties, followed by boutique (US$390), all-inclusive (US$372), and luxury properties (US$1,002) (Invest in Saint Lucia, 2023). Most key source markets, except for regional Caribbean visitors, stay in hotels (72.60 percent) and spend less time in St. Lucia than pre-pandemic. Stopover visitors from the US, UK, and Canada mostly stay in hotels (71 percent of visitors for US and UK, 67 of visitors for Canada). Regional Caribbean visitors are more likely to stay in their own home (54 percent), with friends and relatives, or in non-classified forms of accommodation. Similarly, most visitors from the DACH region7 and France stay in places other than hotels, though they represent a small share of the market (Figure 13). There is also some seasonality in the choice of stay, with a slight increase in stays in apartments and villas during the busy months of December to April. This suggests some flexibility in supply, which has the capacity to become available when demand peaks. With respect to pre-pandemic, the average length of stay in St. Lucia has decreased for all markets except for South America. From the main source markets, UK visitors spend the longest time (10.7 days on average), followed by visitors from Canada (9.6 days on average) (Table 7). 7 Austria, Germany, and Switzerland. Rethinking Caribbean Tourism Supplementary Annexes 30 Figure 13. Stopover visitors’ place of stay by Table 7. Stopover visitors’ average length of market, December 2023 stay (days) by market, December 2023 Markets 2019 2022 2023 Difference 20,000 US 8.1 8.3 7.5 -0.8 18,000 Canada 10.3 11.1 9.6 -1.5 16,000 UK 10.8 12.1 10.7 -1.4 14,000 DACH 10.1 12.4 10.7 -1.7 Stopover visitors 12,000 Region 10,000 France 6.4 8.6 6.6 -2.0 8,000 Italy 9.4 16.8 8.9 -8.0 6,000 Rest of 10.9 12.7 10.6 -2.1 4,000 Europe 2,000 Caribbean 7.8 8.6 7.6 -1.0 0 South 7.8 8.2 9.2 1.0 America Central 9.4 8.7 8.2 -0.5 America Rest of 9.3 16.0 11.6 -4.5 World Hotels Guest Houses Apartments/ Villas Other* Total 9.0 9.5 8.5 -1.0 Source: Saint Lucia Tourism Authority, 2024. Note: other includes own home, staying with friends or relatives, and other accommodations. The Tourism Enhancement Fund (TEF), an expanding voluntary initiative, has supported close to 400 projects so far. Managed by the Saint Lucia Hospitality & Tourism Association (SLHTA), the principal tourism private sector agency in the country, it is responsible for facilitating tourism sector development and management. Since 2013, the association has been collecting a US$2 voluntary contribution per guest per night in participating accommodation establishments in the program. Funds, collected directly at the properties, have ranged from US$1.5 million to US$2 million annually, with a temporary set-back brought by the pandemic. In the last decade, the TEF has sponsored close to 400 projects in the areas of environment, health and wellness, human resources, safety and security, entrepreneurship, community development, and product development. Projects are competitively selected through an application process, and disbursements above minimal amounts are linked to performance indicators. Currently, the TEF is looking to expand to other tourism service providers, such as cruise lines. SLHTA has a grouping of 180 members covering several segments of the economy including tourism, retail and wholesale distribution, agriculture, and other services sectors. Approximately one-third of its members are in the accommodation industry. The Tourism Development Act No. 1 (2024) is poised to improve the tourism industry regulatory environment, with special implications for the accommodation sector. The Act, which consolidates and updates existing legislation, came into force on April 15, 2024, to “facilitate inclusive, resilient and sustainable tourism development; […] tourism certification; incentives for tourism investment; […] incentives for resilience; the imposition, collection, remittance, assessment and payment of a tourism levy; the establishment of the Tourism Development Fund and Tourism Information Database […].” Rethinking Caribbean Tourism Supplementary Annexes 31 Key Policy Areas Local Linkages Private sector initiatives to connect local farmers with buyers can be advanced . SLHTA is committed to promoting agro-tourism linkages in St. Lucia, and has launched several initiatives in support. It holds an Annual Linkages in Tourism trade show to foster cross-sectoral collaboration, where all members have the opportunity to meet local farmers and artisans. In 2016, through the TEF, SLHTA sponsored the pilot project Virtual Agricultural Clearing House, creating a digital space to promote communication between farmers and potential buyers. In total, the project had 100 producers, 60 chefs, and achieved approximately US$1 million worth of trade. Similarly, in October 2019, SLHTA launched the Link Up program to allow small producers of fashion, arts, craft, and agro-processed items to share their offerings with visitors at hotels. In response to the pandemic, the “Eat What We Grow” campaign launched in July 2020 aimed to support local producers, reduce the food import bill, and promote better nutrition. The Saint Lucia Bureau of Standards plays an important role in fostering the development of linkages through certifications. Established under the Standards Act No. 14 (1990), it develops and promotes standards for local products and services, covering a broad range of industries. Of particular importance is certification of agro-processed products, based on adherence to health and hygiene conditions, food safety training, labeling, and inspections when necessary. By gaining certification, businesses signal commitment to quality, safety, and differentiation of products. St. Lucia's accommodation sector struggles with a shortage of qualified personnel, especially culinary experts and health certification members. This gap affects both hard skills like food preparation, and soft skills such as customer service. Given the expected growth of the accommodation industry, it is important to address these gaps. Sustainable Growth of the Accommodation Landscapes Over time, the tourism regulatory landscape of St. Lucia has evolved to include provisions for smaller accommodations and less favored districts. Income tax incentives and other fiscal concessions are provided under the Fiscal Incentives Act, Tourism Incentives Act, Special Development Areas Act (Box 3), and other concessions granted by the Cabinet of Ministers (PwC, 2024). The extent of incentives and concessions granted are specific to the legislation or Cabinet conclusions and depend on the impact that the investment would have on local employment, exports, and the generation of foreign exchange earnings. In 2022, the Community Tourism Development Act was enacted to involve Saint Lucians in the tourism industry8, and established the Community Tourism Agency (CTA), a collaborative partner which supports small local entrepreneurs. Before enactment of the Act, only accommodation establishments with six or more rooms would qualify for incentives and other forms of support 8 The Act aids MSMEs with funds and financing, operational support, capacity building, marketing and technical assistance on various topics such as environmental impact assessments. In the case of accommodation, it supports establishments that have one to 10 rooms. Rethinking Caribbean Tourism Supplementary Annexes 32 by the government. Additionally, the Tourism Development Act (2024) aims to create a more inclusive tourism sector by mandating all property owners (local and foreign) that offer tourism services to obtain certification. It also formalizes the online hospitality service sector. With the new Act, the tourism levy9 will expand its coverage and this is expected to increase revenues for the financing of the SLTA. Box 3. St. Lucia’s Special Development Areas Act The Special Development Areas Act was originally enacted in 1998 to rectify uneven development in St. Lucia. It currently covers the districts of Vieux-Fort, Anse la Raye, Soufriere, Canaries, Choc Estate, and Dennery. Special concessions offered under this law include exemption on stamp duty and import duty on inputs for the construction of new buildings and the renovation or refurbishment of existing buildings, land and house tax, stamp duty payable by vendors and purchasers on the initial purchase of property, higher tax allowances, and accelerated depreciation. Among the types of businesses that may qualify are facilities directed towards the improvement or expansion of services to the tourism sector, and tourism projects highlighting the heritage and natural environment of St. Lucia (U.S. Department of State, 2024). Despite new legislation, there remain gaps in accommodation and product development. Previously informal properties will be incentivized to register to avoid penalties and access the same incentives and funds as other accommodation establishments. They may also be included in SLTA promotion efforts. Still, the results of the Act remain to be seen. Additionally, the Tourism Enhancement Fund's bookstlucianow.com booking engine supports small hotels, but lacks a digital payment system. This forces many properties to redirect to larger platforms, reducing profitability and adding to leakages. STRs have the potential to absorb part of the demand increase during peak events, however petty crime is a threat to STR growth, as they are usually located outside safer all-inclusive tourist areas. Finally, there is an opportunity to develop products in line with each district’s strength. For instance, Micoud is a district well positioned to be an eco-tourism destination, but eco-lodges or “glamping” experiences are largely missing. Choiseul is well known for its artistic atmosphere and could be linked to small artistic accommodation experiences. Empower Stakeholders for a Green Transition The hospitality sector in St. Lucia faces high energy prices, an impediment to economic competitiveness and growth. More than half (55 percent) of firms in St. Lucia identified the high cost of electricity as a major constraint to doing business and industry decarbonization (World Bank, 2021). Despite its potential for geothermal, solar, and wind for power generation, the country remains almost completely dependent on expensive imported fuels for diesel- based generation (92 percent of the country’s primary energy supply) (Government of Saint Lucia, 2023). Saint Lucia Electricity Services, Ltd. (LUCELEC) has an exclusive license to generate electricity from fossil fuels, as well as transmit, distribute, and sell electricity. The 9 The tourism levy is a night head tax which goes from EC$8 (US$3) to EC$16 (US$6). The amount tourists need to pay depends on whether the property is big or small. Rethinking Caribbean Tourism Supplementary Annexes 33 installed generating capacity from renewable energy is 4.7MW, of which LUCELEC operates 3MW. Private power producers operate the remaining 1.7MW of generators (Ibid). Currently, the amount of grid-tied renewable energy that commercial enterprises are allowed to produce is capped at 25 kilowatts. In relative terms, the St. Lucia hospitality sector’s usage of solar power is among the highest in the Caribbean (Erman, De Vries Robbe, Browne, & Solis Uehara, 2021), but there is potential for much more. SLHTA has informed the government of potential to partner with LUCELEC to generate a 20 percent ratio of power for hotels by renewable energy. This would not only contribute to national climate change commitments, but also make St. Lucia more marketable to environmentally-conscious travelers and organizations (SLHTA, 2018). Despite available financing instruments for resource efficiency and resilience, small operators remain disadvantaged. In response, the Tourism Development Act (2024) introduced a voluntary Sustainable Tourism Certificate, whereby an approved tourism operator must provide an environment plan that specifies targets set and actions taken to achieve efficiency in energy, water usage, greenhouse gas emissions, and waste management. They must also provide evidence of engaging customers, staff, and community towards environmental sustainability. The Saint Lucia Development Bank offers blended financing for energy efficiency and renewable energies thanks to a program comprised of grant and loan financing10 in the tourism sector with a focus on buildings (Saint Lucia Development Bank, 2020). The Tourism Development Act of 2024 provides incentives for investing in resilience, for which an application must be accompanied by a proposal for building resilience. Overall, small businesses are required to make a substantial investment to comply with the financing terms or conditions for voluntary certification. Waste collection systems are well developed and efficient throughout the island, but recycling is limited. The Saint Lucia Solid Waste Management Authority (SLSWMA) is responsible for the collection, treatment, and disposal of the island’s solid waste. The Styrofoam and Plastics (Prohibition) Act bans the import of all Styrofoam and selected single- use plastic food service containers. To boost recycling, the PROBLUE RETF Grant for St. Lucia is financing US$250,000 for development of a Waste Management Strategy (World Bank, 2022). There are examples of conservation activities in St. Lucia, which support sustainable tourism activities. Box 4 outlines coral reef conservation activities to protect marine biodiversity and improve scuba diving off the island. Box 4. Boosting coral reef systems and marine biodiversity in St. Lucia In 2021, the Saint Lucia National Conservation Fund (SLUNCF) sponsored a one-year project to build local capacity in coral gardening and scuba diving, establish artificial reefs, and 10 It comprises 20 percent grant funding and a loan interest rate at 4.5 percent, available for lighting replacement, cooling equipment, building envelope, renewable energy and resource efficiency technologies. Rethinking Caribbean Tourism Supplementary Annexes 34 undertake coral restoration. The project’s total value is US$270,000, with US$100,000 funded by SLHTA’s TEF. For implementation, SLUNCF partnered with the St. Lucia Dive Association “Anbaglo”. Deliverables included certifications for reef rescue divers, sinking vessels for use as artificial reefs, and plantation of trees. (SLUNCF, 2021) Table 8. Summary of policy options for accommodation in St. Lucia Key Policy Area Policy Options Local linkages Align talent development with tourism market trends . Investing in training programs and partnerships with international institutions can help build a skilled workforce to meet industry demands. Establish online marketplaces and regular farmers markets to facilitate direct connections. Training farmers in sustainable practices and business management can also improve the quality and reliability of local produce for the accommodation sector. Sustainable Develop tourism products away from main touristic hubs, to include offerings growth of the in line with emerging demands for sustainability and local experiences. accommodation Monitor and enforce the registry of informal accommodations , offering a landscape simplified and easy process, as well as information on the benefits of being registered. Integrate a secure payment system and offer digital marketing training to help small hotels improve their online presence and market linkages. Improve security in non-resort areas through publication of security guidelines to be followed in public spaces, a tourist assistance service, and continuous information flows on potential risks and safety measures. Empower Develop clear and supportive regulatory frameworks, with the active stakeholders for involvement of public and private stakeholders. This includes streamlining a green transition approval processes, ensuring legal clarity, and providing incentives for private sector involvement. This also includes exploring PPPs in the renewable energy/energy efficiency, waste management, carbon reduction, and related spaces. Provide financial support and technical capacity to small businesses for small-scale investment in resource efficiency and resilience, and compliance with sustainable certification. References CDB. 20217. Tourism Industry Reform. Strategies for Enhanced Economic Impact. Caribbean Development Bank PwC. 2024, August 28 Saint Lucia - Corporate tax credits and incentives. Retrieved from https://taxsummaries.pwc.com/saint-lucia/corporate/tax-credits-and-incentives Saint Lucia Development Bank. 2020, October 8 SLDB’s Special Grant & Loan Offer. Retrieved from https://www.sldb.lc/sldbs-special-grant-loan-offer Saint Lucia Tourism Authority. (2024). Accommodation Data. SLHTA. SLHTA expresses interest in renewable energy development. Retrieved from https://www.govt.lc/news/slhta-expresses-interest-in-renewable-energy-development Rethinking Caribbean Tourism Supplementary Annexes 35 World Bank. 2021, July 21 World Bank Approves US$21.9 Million to Fund Geothermal Energy Exploration in Saint Lucia. Retrieved from https://www.worldbank.org/en/news/press- release/2021/07/28/world-bank-approves-us-21-9-million-to-fund-geothermal-energy- exploration-in-saint-lucia Rethinking Caribbean Tourism Supplementary Annexes 36 Annex 3. Adventure Deep Dive Case Studies 3.1. Dominica ABSTRACT: Dominica’s adventure tourism sector has significant potential, driven by its unique natural and cultural assets. The island's adventure tourism is anchored by attractions like the UNESCO World Heritage site Morne Trois Pitons National Park, the Waitukubuli National Trail (WNT), and its unique status as a habitat for resident sperm whales. Despite strong natural tourism assets, Dominica remains one of the less visited Caribbean destinations, attracting just 1 percent of regional tourists in 2019. In the same year, cruise tourism accounted for 72 percent of visitor arrivals, but only 6.3 percent of total tourism expenditure, highlighting the sector’s over reliance on this lower-value market. This reliance is likely due to underlying sector challenges, such as poor air connectivity and limited accommodation options. It is critical to address several key policy areas to enhance the adventure tourism industry. Strengthening conservation and access to protected areas is key, including updating regulations to protect sensitive sites and developing frameworks for sustainable concessions. Investment in public lands is also necessary, with priorities on maintaining and revitalizing infrastructure, such as the WNT, plus creating sustainable funding mechanisms to support conservation efforts. There is also a need to update adventure tourism standards, incorporating safety, quality, and environmental impact considerations, while regional collaboration on standards could help improve compliance. Further, improving local skills is essential for product development. Programs should provide training in adventure-specific skills, business management, and conservation awareness to better align products with market demand. Lastly, enhancing coordination between the public and private sectors, developing comprehensive marketing strategies to promote adventure tourism, and improving connectivity through planned infrastructure upgrades are critical. By addressing these issues, Dominica can leverage its unique natural and cultural assets to grow its adventure tourism sector, driving sustainable local economic development. Overview of Tourism in Dominica Dominica has a unique tourism offering, but remains one of the lesser-visited destinations in the Caribbean. The country received 230,000 cruise visitors (1 percent of all cruise visitors to the region) and 90,000 overnight visitors in 2019 (1 percent of all overnight visitors to the region).11 Both cruise and overnight arrivals had a 1 percent CAGR between 1999 and 2019. Cruise arrivals reached a peak of 532,000 in 2009, but have since fallen. 11 Analysis includes the Caribbean Community Countries and Dominican Republic. No data for Guyana or Suriname for cruise, or Suriname for overnight arrivals. Rethinking Caribbean Tourism Supplementary Annexes 37 Still, the country remains highly dependent on cruises, likely related to challenging air access and limited accommodation. The number of available rooms grew only 3 percent CAGR from 588 in 1995 to 1,101 in 2016 (UN Tourism, 2023). While the growth rate of available rooms in Dominica was among the region’s highest12 between 2006 and 2016 (35 percent), it still had the smallest national accommodation supply in the region. In comparison, Grenada had more than 2,000 rooms available, and St. Lucia supplied 4,000 (Figure 14). The small number of overnight visitors, perhaps due to low connectivity, has restricted investment in accommodation. In terms of air connectivity, Dominica was the region’s worst performer (52 points) on IATA’s Air Connectivity Score in 2019. In comparison, St. Lucia scored 4,995 and Dominican Republic 64,970 (IATA, 2020). Air connectivity to Dominica experienced negative growth between 2009 and 2019, unlike most regional competitors (Figure 15). Figure 14. Number of guest rooms (2016) and growth rate, 2006 to 2016 Growth Rate of Number 80000 45.0% 40.0% of Guest Rooms 70000 2006 - 2016 35.0% Number of Rooms 60000 30.0% 50000 25.0% 40000 20.0% 30000 15.0% 10.0% 20000 5.0% 10000 0.0% 0 -5.0% Number of Rooms (2016) Growth Rate Source: UN Tourism 2023. 12 Of those countries with available data for the required period. Rethinking Caribbean Tourism Supplementary Annexes 38 Figure 15. Growth in Global Air Connectivity, 2009-2019 440% 390% Growth in global air connectivity 340% between 2009 and 2019 290% 240% 190% 140% 90% 40% -10% -60% Anguila UK Virgin Islands Dominica Bermuda Trinidad and Tobago St. Kitts and Nevis Bahamas Curacao Haiti Barbados Martinique Aruba Cayman Islands Antigua and Barbuda Jamaica St. Lucia Guadeloupe Dominican Republic Grenada Cuba St. Vincent and the Grenadines Source: IATA 2020. Overview of Adventure Tourism in Dominica Dominica's adventure and nature tourism assets have carved out a unique position for the country within the Caribbean. Unlike neighboring Caribbean islands that have a strong sun, sea, and sand draw, Dominica’s appeal lies in its natural landscapes and rich cultural heritage. The island’s uniqueness is emphasized through its UNESCO World Heritage Site―Morne Trois Pitons National Park and the Boiling Lake―along with the presence of nine active volcanoes and the largest species of Amazon parrot. Additionally, Dominica is the only place in the world with resident sperm whales, with more than 200 residing in the waters off the coast year-round. As the only Caribbean Island home to the last remaining Kalinago people, Dominica also offers a distinct cultural experience. To utilize these assets, Dominica developed the WNT in 2013, the longest hiking trail in the Caribbean at 115 miles long, divided into 14 sections of a day each. Originally developed with funding from the European Union, the Dominican Government, and the Regional Council of Martinique, this unique trail successfully attracted hundreds of hikers each year, until suffering damage from Hurricane Maria in 2017. Dominica is also in the process of establishing a whale sanctuary to protect the resident sperm whales while providing more sustainable tourism opportunities to wildlife watch. Tourism activities within the sanctuary will be regulated to reduce disruptions to resident whales, with regulations still under development. Monkey Mia in Western Australia provides a good practice example of regulating wildlife experiences for tourism (Box 5). Rethinking Caribbean Tourism Supplementary Annexes 39 Box 5. Wildlife interaction regulations in Monkey Mia, Australia Monkey Mia, in Western Australia, is located within UNESCO World Heritage area, Shark Bay. For decades, Monkey Mia Conservation Park has drawn visitors due to the large number of Indo-Pacific bottlenose dolphins that reside in the area. Visitors started feeding dolphins in the 1960s, feeding from the beach and fishing boats. In 1982, a research team arrived at Monkey Mia, founding the Shark Bay Dolphin Project, researching resident dolphin behavior, ecology, genetics, communication, and more (Monkey Mia Dolphins 2024). The research identified a disturbing trend in survival rates for beach-visiting dolphins: between 1983 and 1994, only four out of 15 dolphin calves survived (27 percent survival rate). In 1994, an external review made a number of recommendations to the Conservation Park, based on the research team’s findings, to ensure less disturbance of the dolphins in the future (Murex Consultants, 1996). These recommendations came in succession with new regulations for wildlife conservation in Western Australia (specifically the Wildlife Conservation (Close Season for Bottlenose Dolphins in Shark Bay Marine Park) Notice 1995, Western Australian Government 1995). The Wildlife Conservation Notice required a permit for feeding the resident dolphins, dependent on meeting specific conditions, leading the Conservation Park to introduce new feedings restrictions. Feeding encounters must now be initiated by the dolphins, meaning the Parks and Wildlife staff and visitors cannot enter the identified coastal area unless a dolphin in the program enters the area demonstrating engaging behavior. There is to be no touching of dolphins during the experience, by visitors or staff, and they are restricted to a maximum of three experiences per day, only during morning hours – all based on scientific findings. In 1994, the recommendations for food weight were a maximum of 2kg per day (of the 8kg food required for adult bottlenose dolphins). The feeding and tourist experience program is regularly reviewed internally, as well as through external audits, which has led this to be reduced to only 300g per experience, or a maximum of 900g per day. Dominica's tourism strategy and marketing focus are deliberately aligned with its natural assets – with national branding labeling it the Nature Island. Recognizing the absence of typical Caribbean beaches, the island has differentiated itself with a focus on nature, adventure, and ecotourism. Adventure tourism in Dominica is inherently tied to the island's landscape, offering activities that range from hiking and canyoning to whale watching and snorkeling. Regional tourists make up Dominica’s largest source market, contributing 61 percent of overnight visitor arrivals in 2019―Guadeloupe alone contributes 19 percent (UN Tourism, 2023). Many of these visitors, particularly from Guadeloupe and Martinique, are drawn by the island’s reputation for wellness and nature, and will often visit as part of tours organized by social interest groups, such as hikers. Cruise tourism continues to play a significant role in Dominica’s tourism economy, accounting for 72 percent of visitor arrivals in 2019 (UN Tourism, 2023). However, cruise visitors contributed only 6.3 percent of total tourism expenditure in the same year, despite their numbers (IMF, 2023). While cruise visitors are generally not considered adventure visitors, they do participate in adventure activities in Dominica, though mostly soft adventure. Many of the island’s natural sites are easily accessible, making it an attractive destination for cruise visitors interested in nature, but only have limited time in port. World Bank consumer research Rethinking Caribbean Tourism Supplementary Annexes 40 indicates that, on average, cruise visitors spend four to six hours at port in Dominica, equal to the average time spent at ports across the Caribbean (World Bank, 2024). A few ports in the region have a higher average time spent, for example, visitors spend on average more than 10 hours at Harvest Caye, Belize. Higher dwelling times in ports usually correlates with greater spending. Dominica is also one of the less-visited cruise destinations. According to the World Bank Consumer Market Research only 8 percent of cruise survey respondents visited Dominica’s port of call in Roseau, compared to 47 percent of cruiser respondents that visited the most popular port of call in Nassau, Bahamas. The structure of Dominica’s tourism industry reflects its emphasis on a unique experience, with a high presence of SMEs. Almost the entire industry in Dominica consists of locally-owned SMEs, except a few larger international operators in the accommodation sector―namely the InterContinental, and the upcoming Marriott. The hotel industry remains relatively simple, with a few luxury exceptions, with limited air access posing challenges to further investment and development. All tour operators in Dominica would be considered SMEs, and most are locally owned. Some larger SMEs work with cruise lines and outbound operators to sell to international visitors. Approximately 92 percent of tour operators specialize in adventure and nature offerings since this is the main draw to the island (Table 9).13 The Dominica Hotel and Tourism Association (DHTA) represents the private sector, with 89 percent of members accommodation-focused. There is an ongoing movement to develop an industry association for tour guides, but it has not formed successfully. Table 9. Key adventure activities and operators Total Number of Percent of Number of Adventure Activity Operators SMEsc Operators Tour operators and drivers 37a 100% 35 Activity providers 13a 100% 11 Accommodation (number of 118b 98% - providers) Accommodation (number of 1,101b - - rooms) a Compilation of online research. b Central Statistics Office of Dominica (2020). Number of hotels, guesthouses and apartments 1989 to 2016. c Estimate based on stakeholder consultations. Dominica's adventure tourism industry faces several overarching challenges. These include air connectivity limitations, high costs of imports, and difficulties accessing capital. Access to Dominica remains a significant challenge―most visitors need to stay overnight in transit destinations traveling inbound and outbound. In terms of tourism products, SMEs find it difficult to access financing for growth and expansion, as business and personal loans require land to use as collateral. Additionally, the high cost of importing essential equipment further strains the profitability of adventure tourism businesses, forcing operators to pass on 13 Compilation of online research and consultations. Rethinking Caribbean Tourism Supplementary Annexes 41 costs to tourists. Aside from these overarching restraints on tourism growth, adventure tourism in Dominica faces unique challenges, to be discussed below. Policy Areas This section explores a series of policy recommendations aimed at enhancing Dominica's adventure tourism sector. It covers five key policy areas: culture of exploration and access to skills, conservation and access to protected areas, investment in public lands and protected areas, adventure tourism regulations and insurance, and sector and industry coordination. Under each policy area, key challenges and opportunities are presented, followed by specific policy recommendations. These recommendations are designed to address identified challenges and leverage Dominica's unique natural and cultural assets to foster sustainable and high-quality adventure tourism. Culture of Exploration and Access to Skills Local communities in Dominica generally have good knowledge of landscapes and natural features at the destination, but lack insights into developing marketable tourism products. All tour guides and operators in Dominica are locally-owned and managed, demonstrating interest in adventure tourism. However, limited local participation in outdoor recreation and an understanding of which nature-based products encourage visitation are apparent. The industry is aware of the increasing market interest in nature-based and adventure tourism, as well as Dominica’s high potential, but there is a knowledge gap around market intelligence, particularly for visitor preferences and needs in adventure tourism products. This knowledge gap is compounded by limited capacity of local entrepreneurs to develop packages and present products in a way that aligns with market demand. Addressing these gaps in knowledge and capacity will be essential for Dominica to grow its adventure tourism market, with skills training in product development, understanding and relaying cultural and natural heritage, and linkages between conservation and nature tourism. A primary challenge in Dominica's adventure tourism sector is the lack of specialized training programs that cater to specific industry needs. Discover Dominica Authority (DDA) and the Dominica State College provide a training program that is a mandatory part of the licensing process for tour guides, accommodation operators, and souvenir vendors. Training is held over the space of a week and covers mostly general information at a basic level, including standard operating procedures. The curriculum does not cover training specific to adventure tourism. Wild Dominique, a conservation NGO, developed a training program specific to tour guides with a greater focus on conservation and biodiversity, and why protection is important for tourism and their livelihoods. This training is now incorporated as a session in the mandatory training for tour guides. Still, the limited scope of mandatory training is a challenge. Training provided is at a basic level, with little to no inclusion of conservation, cultural training, or adventure-specific skills. Training is only required for accommodation, tour operators, and vendors. In the future, training could be more inclusive of topics related to adventure and nature-based tourism, as well as information on the history and culture of the island to prepare Rethinking Caribbean Tourism Supplementary Annexes 42 guides and tourism staff to educate and share with visitors. It is also critical to highlight the important role of safety standards in adventure tourism. Despite making up more than 90 percent of operators, the absence of specialist programs for adventure activities has resulted in an acute skills gap. Instead, adventure skills are mostly taught by private sector operators on the job, including specialized skills for canyoning and whale watching. Diving and snorkeling operators must obtain their own international dive certification to operate. A previous program by OECS in 2010 developed the Network of Excellence in Tourism and Hospitality Training and Education (OECS, n.d.). This program aimed to develop ‘centers of excellence’ on each of the islands in the region, with specialized training for activities specific to that island. While Dominica was selected as the center of excellence for adventure, the program has gone dormant and left a gap in advanced training opportunities. Not only are training programs for hard skills required, there is a need for capacity building in general business skills. Dominican adventure tourism operators have gaps in knowledge around business literacy, digital marketing, management skills, market intelligence on outbound adventure markets, and more advanced tour guide training highlighting the island’s natural and cultural heritage. The case study from New Zealand, highlighted in the main body of the report, indicated that building technical skills to establish and market interesting products was more important to tourism development than access to capital (Brown, M.N.R., 1997). Building capacity in Dominica will be essential to establish them as a leading adventure tourism destination. Conservation and Access to Protected Areas The majority of Dominica’s tourism assets are located within protected areas, however governance over tourism activities is limited and restrictions are not always enforced. Protected areas in Dominica are managed by the Division of Forestry, Wildlife, and National Parks. It is responsible for selling site passes, maintaining the protected areas, and ensuring proper management of trails and visitor infrastructure. Site fees to National Parks in Dominica are US$2 per site, or US$5 for a day pass to all ecotourism sites (Government of the Commonwealth of Dominica, 1997). These fees are not directed to a separate fund, but are absorbed into the general government budget, not set aside for reinvestment into protected area management or conservation. Tourism activities are restricted by the National Parks Regulations, 2003, SRO 54 (Government of the Commonwealth of Dominica, 2003). This regulation restricts visitor entrance to parks, the use of bicycles, disturbances of wildlife, damage to nature, as well as fires and firearms. It also restricts entrepreneurs from selling within parks, excepting a small list of products, and requires licensing. The UNESCO World Heritage Site at Morne Trois Pitons National Park also restricts camping, but occasionally visitors will still do so with no repercussions. The government has been relatively lenient in enforcing these regulations, which raises concerns about the potential degradation of the natural resources that draw tourists to the island. Additionally, outside these regulations, there are no legal restrictions on concessions within national parks. Costa Rica demonstrates an innovative way of improving protected area management, through a network of privately-managed protected areas (Box 6). Rethinking Caribbean Tourism Supplementary Annexes 43 Box 6. Privately-managed protected areas in Costa Rica Costa Rica has gained recognition for its commitment to a more sustainable form of tourism, and protection of its natural areas. In fact, 25 percent of the country’s land area is protected areas: 14 percent of these are state-owned areas, while 11 percent are privately protected areas registered with the Costa Rica National System of Conservation Areas (UNDP, 2019). In order to register, landowners must follow specific restrictions and conservation programs. This system of privately-owned protected areas has worked in Costa Rica since 1996, when the Forestry Law 7575 of 1996 allowed landowners to volunteer their land as protected forests. In Costa Rica, private wildlife refuges are the most common form of private conservation, established for terms of five, 10, or 20 years, with the possibility of renewal. To ensure effective conservation, each refuge must have a management plan outlining specific actions and strategies for protected the designated natural resources. Costa Rica has financial incentives in place to encourage private land conservation, including tax incentives. Between 1997 and 2000, the government also paid per hectare for environmental services, encouraging a big uptick in private protected areas. Dominica has a number of policies in place for conservation, yet enforcement is lenient and many are out of date. Ecotourism within protected areas is governed by the National Parks and Protected Areas Act (1975). This act allows the Government of Dominica to establish land for protection and restricts its sale. A 2015 amendment to this act allows the State to alter the description of the Cabrits National Park, including boundaries (Government of the Commonwealth of Dominica, 2015). In that same year, construction started on a new hotel in this area (originally opened as Kempinski and rebranded to InterContinental in 2023), under the Citizenship by Investment (CBI) program, which allows international investors to become a Dominican citizen if they invest more than US$200,000 in the Economic Diversity Fund or in real estate (Government of the Commonwealth of Dominica, 2024a). Cabrits National Park is home to Dominica’s only coastal wetlands and is essential to the island’s biodiversity. More recently, there are plans to build a marina in the same area, however no environmental and social impact assessment is available. An amendment in 2024 altered the boundaries of Cabrits National Park and established new boundaries to allow for this construction (Government of the Commonwealth of Dominica, 2024b). There is a need for a stronger management framework to protect sensitive areas from high-impact tourism activities, particularly in national parks, protected areas, and UNESCO sites. The World Bank project ‘Leveraging Eco-Tourism for Biodiversity Protection in Dominica’ is supporting the update of management plans for Dominica’s three national parks. Concessions frameworks should also be in place to balance conservation goals with sustainable economic activities. Involving stakeholders such as relevant government bodies, private sector, industry associations, and NGOs in protected area planning and management ensures a collaborative effort in protecting natural assets while developing the destination. Priorities of government entities involved in tourism and conservation also need to be aligned through regular communications to set clear guidelines for infrastructure and concessions within protected areas. Rethinking Caribbean Tourism Supplementary Annexes 44 Investment in Public Lands and Protected Areas Investment in protected area infrastructure remains fragmented. While visitor centers at major sites provide essential amenities, the maintenance of trails and other facilities is lacking. This is compounded by natural disasters such as Hurricane Maria in 2017 that caused sufficient damage to require significant re-investment in trails. The WNT, a major tourism draw to the island, has largely been non-maintained since the hurricane, with many sections damaged. Some hoteliers and tour operators have privately maintained areas of the trail for their own use. WNT trails also have a rich history, having been used for centuries by both the Kalinago and as escape routes for slaves during colonial times. The historic nature of the trails is untapped, with little to no interpretation or signage along the trail. The financial model for maintaining protected areas is also flawed. Although site fees were intended to fund their upkeep, revenues are now absorbed into the general government budget with limited reinvestment into conservation efforts. A current World Bank project in Dominica is investing in upgrades to several sections of the WNT, particularly around the Kalinago region, however, several sections remain in need of improvement and continual upkeep. The New Zealand case study demonstrated the importance of continued investment in infrastructure in protected areas. The maintenance and operation of trails and infrastructure in the Abel Tasman National Park costs NZ$1.2 million per year, but the park delivers NZ$45 million per year in output (Department of Conservation, 2006). The potential for economic benefit from national parks is dependent on sustainable infrastructure and maintenance. New construction within protected areas is causing potential trade-offs between high- volume tourism markets – in particular cruise tourism, with the higher-value overnight market. In 2012, cruise visitors represented 74 percent of all arrivals to Dominica, but only 11 percent of tourism expenditure (Government of the Commonwealth of Dominica, 2012). In contrast, overnight visitors made up only 22 percent of arrivals, but 87 percent of spending.14 Overnight visitors are more valuable per arrival than cruise visitors, however, likely due to low growth and absolute in overnight arrivals, the Government of Dominica continues to prioritize the cruise market. A recent investment in a cable car, supported by the CBI program, will take riders 4.1 miles from the Roseau Valley to the UNESCO World Heritage Site the Boiling Lake, and become the longest cable-car in the world (Government of the Commonwealth of Dominica, 2024c). This 10-minute trip will allow cruise visitors arriving at Roseau to visit the boiling lake without needing to undertake the four-hour hike currently required―a popular activity for overnight visitors, who often hire local guides for this purpose. While this project improves accessibility, the lake is located on highly volatile land with no carrying capacity studies. This development will increase the number of visitors to the boiling lake, particularly cruise visitors, but could reduce the need for guides and interest from overnight adventure and nature-based tourists to the area. To address these issues, Dominica can refocus efforts on sustainable infrastructure development and maintenance in protected areas. The revitalization of the WNT should be a priority, as it is a unique offering in the Caribbean. To start, the trail needs revitalization and restoration to its previous state. Priority actions would include trail maintenance, interpretive 14 Overnight visitors include students. Rethinking Caribbean Tourism Supplementary Annexes 45 signage, and development of community-based tourism products to spread the benefits of tourism. It is also essential to implement a sustainable source of funding for development and maintenance of tourism infrastructure. Visitor access fees may be directed to a special tourism fund for protected area management for tourism activities. To ensure sustainable development, all new ventures within protected areas should be required to present sustainable business and maintenance plans to support the longevity of infrastructure. Business plans should include details on how the venture aligns with market demands to demonstrate feasibility. Adventure Tourism Regulations and Insurance Dominica's adventure tourism sector is regulated by a framework of licensing and standards designed to ensure safety and quality. Licensing fees and requirements vary by sub-sector (Table 10), with accommodations, watersports, and tour operators among those required to obtain licenses under the Tourism Act 13 (Regulation and Standards) Amendment of 2016. The existing Nature Island Standards of Excellence standards are centered around customer service and product quality. Compulsory training is mandated for accommodations, tour guides, and souvenir vendors for each renewal of licensing. There are ongoing efforts, driven by the public and private sectors, to update and expand standards for certain activities not currently covered, including canyoning and whale watching. Table 10. Licensing fees for the tourism industry Sub-Sector Licensing Requirements Fee Structure 10 rooms or less - EC$50 (approximately Adhere to standards US$18.50) Accommodation Insurance 11-25 rooms - EC$100 (approximately US$37) Mandatory training Every additional room - EC$5 (approximately US$1.85) Adhere to standards Watersports EC$100 (approximately US$37) Insurance Car rentals Adhere to standards EC$100 (approximately US$37) Adhere to standards Tour operators EC$100 (approximately US$37) Insurance Food and Adhere to standards EC$100 (approximately US$37) beverage Travel agencies Adhere to standards EC$100 (approximately US$37) Adhere to standards Taxi operators EC$50 (approximately US$18.50) Insurance Adhere to standards Vending EC$50 (approximately US$18.50) Mandatory training Adhere to standards Tour guide EC$50 (approximately US$18.50) Mandatory training Sources: Government of the Commonwealth of Dominica. 2016. Tourism Act 13 (Regulation and Standards) (Amendment) 2016; Discover Dominica Authority 2005. Rethinking Caribbean Tourism Supplementary Annexes 46 While these industry standards exist, they have a narrow scope. Moreover, many adventure activities, such as ziplining and bungee jumping, are not currently regulated under these standards. Those instances where standards exist, compliance is mostly limited to safety and customer service. In many cases where activity-specific standards are lacking, the private sector self-regulates, often by adhering to international standards. This lack of standards is not restricting development of activities in Dominica due to the industry’s tendency to self- regulate or meet international regulations. However, having standards in place for these activities may improve insurance schemes and reduce premiums for adventure operators. There are no conservation or environmental considerations in existing standards. Mandatory training for accommodations, vending, and tour guides is basic and no other form of qualification or training is required. To ensure effective management of adventure tourism, existing standards should be updated and expanded. Tourism standards should cover all existing activities in Dominica, as well as other adventure activities with high potential. All standards should include quality, safety, and environmental regulations. Dominica may consider adopting regional standards within the Eastern Caribbean – or wider Caribbean region – hosted by the OECS or Caribbean Tourism Organization (CTO). This would allow for regional auditors and inspectors, and the ability to market high-quality and safe adventure tourism at a regional level. The cost of insurance is severely restricting operations for entrepreneurs, with many choosing to remain unlicensed to avoid these high costs. Insurance is required for accommodations, water sports, tour operators, and taxi drivers as part of the licensing standards (Discover Dominica Authority, 2005). Despite this, many operators will not apply for insurance during initial years of operation due to high costs and limited access, forcing them to operate informally without a license. High premiums make it difficult for SMEs to comply with insurance requirements, particularly in the face of challenges like post-hurricane property insurance costs. In order to work with cruise ships, a large proportion of the market, operators must have a minimum of US$2,000 of business insurance on top of liability and property insurance. The absence of affordable insurance options forces many SMEs to operate without insurance or under the coverage of larger operators, limiting their income potential. Dominica could consider introducing group insurance options at a national, or regional, level to make insurance more affordable for SMEs. This can help to reduce the financial burden on small operators and encourage compliance with licensing requirements. Group insurance schemes should require adherence to existing quality and safety standards. In Dominica, group insurance is only available for registered associations or entities and, as such, it is essential that appropriate associations are set up for tour guides and operators, as existing Hotel and Tourism Association members are primarily accommodation-focused. Sector and Industry Coordination Coordination between public and private sectors in Dominica is generally well-managed, but is more limited across government agencies. Efforts to enhance communication with private sector have been introduced, including new monthly meetings between the Ministry of Tourism, DHTA, and DDA. It is also possible for businesses to schedule one-on-one sessions with government entities when required. However, formal stakeholder meetings and Rethinking Caribbean Tourism Supplementary Annexes 47 consultations with private sector tend to only be scheduled around the start of the cruise season, to ensure adherence to standards and quality. In terms of public sector coordination, there has historically been limited communication between the Department of Forestry and the Ministry of Tourism, resulting in weaker management of protected areas. At times, there appears to be a disconnect at a government level in recognizing the critical role of Dominica’s natural resources in the tourism industry. The branding of Dominica as the ‘Nature Island’ comes from the uniqueness of the island’s natural assets, as well as an early adoption of the island of conservation efforts. However, recent efforts toward conservation indicate the need for capacity building around what it means to be branded as the ‘Nature Island’, including tourism management, conservation, protected area management, and the importance of nature in adventure tourism. Access to Dominica remains a significant challenge. The country has poor international connectivity which forces most visitors to stay overnight in transit destinations traveling inbound and outbound. Efforts are being made to address this, with recent upgrades to the main international airport runway, and plans to enhance port facilities in the north. There are plans to develop an international airport in the north of the island (Montreal Management Consultants Development Ltd., 2024), and several new accommodation establishments are being developed in anticipation of the increase in overnight arrivals. After the new airport opens (scheduled for 2026), efforts should be made to work with airlines to improve connectivity, with more direct flights to larger destinations, and better connections from regional transits. There is a need to encourage longer stays and overnight visitation to Dominica. Branded the ‘Nature Island’, it is a unique selling point that appeals to eco-conscious and adventure travelers. However, recent market research on the US outbound market found that Dominica did not score well on perception of having good natural assets (14 percent of respondents). The highest scorers in the region were Bahamas (45 percent), and Jamaica (30 percent). This is likely due to an overall lack of knowledge of Dominica, as 54 percent of respondents were aware of Dominica as a destination, but only 18 percent had visited, and just 18 percent would consider visiting. Marketing strategies can be used to improve awareness of Dominica and promote overnight stays, for example, highlighting the direct flight from Miami and improving access to the undiscovered nature of the island. Promotional materials should include activity- specific posts for key activities such as diving, whale watching, and hiking. The Discover Dominica Authority is the entity responsible for marketing, however, there is no existing marketing strategy. Realizing it is one of five strategic areas for development in the National Tourism Strategy. There is no recent information on marketing budgets, however the Tourism Master Plan 2012–2022 highlighted Dominica’s low marketing budget, the smallest budget among Caribbean tourism organizations as a proportion of tourism spending. A sustainable and regular source of funding is required to support ongoing marketing activities. Rethinking Caribbean Tourism Supplementary Annexes 48 Table 11. Summary of policy options for adventure tourism in Dominica Key Policy Area Policy Options Conservation Develop a strong management framework for protected areas. Implement and access to regulations to safeguard sensitive areas from high-impact tourism activities, protected particularly in national parks, protected areas, and UNESCO sites. Concession areas frameworks should balance conservation goals and sustainable economic activities. Involve stakeholders in protected area planning and management. Involve government, private sector, industry associations, and NGOs in planning and managing protected areas as a collaborative effort in protecting natural assets while developing the destination. Harmonize priorities of government entities involved in tourism and conservation. Improve communications between government departments to align guidelines for infrastructure and concessions within protected areas. Investment in Implement sustainable sources of funding for protected area infrastructure public lands development and maintenance. Use tourism revenues, such as visitor fees, to and protected invest in foundational infrastructure in protected areas. areas Maintenance and revitalization of infrastructure. Focus on restoring the WNT through trail maintenance, signage, and community-based tourism products. Establish a sustainable funding mechanism for ongoing maintenance. Sustainable business and maintenance plans. Ensure all new ventures in protected areas are economically viable and sustainable, with business and maintenance plans in place. Adventure Update and expand standards. Broaden tourism standards to cover all adventure tourism activities, with a focus on safety, quality, and environmental impacts. Regional regulations standards would allow for marketing and safety consistency. and insurance Facilitate group insurance schemes. Make insurance more affordable for SMEs by creating national or regional group insurance options tied to adherence to safety standards. Exploration Update and expand mandatory training. Include topics on adventure and nature- and access to based tourism, safety, biodiversity and conservation education in mandatory skills training. Ensure guides are knowledgeable about history and culture of the island. Programs to develop adventure-specific skills and knowledge. Build capacity in adventure tourism, product development, and market demand. Hard skills related to existing and potential adventure activities are also needed. Capacity building programs in business skills. Offer training on business literacy, marketing, and product development, providing adventure market intelligence and workshops. Sector and Develop a marketing strategy to improve destination awareness and encourage industry overnight visitation. Leverage ‘Nature Island’ branding to boost awareness and coordination overnight adventure tourism, with activity-specific marketing materials such as diving, whale watching, and hiking. Build capacity of government entities. Provide training on tourism management, conservation, protected area management, and the economic importance of nature in adventure tourism. Secure a regular source of funding. Establish a sustainable and regular source of funding to support ongoing marketing activities. Monitor effectiveness of marketing campaigns to assess the return on investment and adjust strategies as needed. Rethinking Caribbean Tourism Supplementary Annexes 49 References Brown, M.N.R. 1997. On the Edge: A history of adventure sports and adventure tourism in Queenstown. University of Otago: Dunedin. Central Statistics Office of Dominica. 2020. Number of Hotels, Guesthouses and Apartment 1989 to 2016. Department of Conservation. 2006. The value of conservation. Department of Conservation: Wellington, NZ. Discover Dominica Authority. 2005. Tourism Standard: Code of Practice. Government of the Commonwealth of Dominica. 1997. National Parks and Protected Areas (Eco- Tourist Site) (User Fee) Regulations 1997. https://www.dominica.gov.dm/laws/1997/sro27- 1997.pdf. Government of the Commonwealth of Dominica. 2003. National Parks Regulations, 2003, SRO 54. Retrieved from https://dominica.gov.dm/laws/2003/sro54-2003.pdf. Government of the Commonwealth of Dominica. 2012. Tourism Master Plan 2012-2022. Retrieved from https://tourism.gov.dm/images/documents/tourism_master_plan/01_tourism_master_plan_j une2013_part1.pdf Government of the Commonwealth of Dominica. 2015. National Parks and Protected Areas (Amendment) Act 1. Retrieved from https://dominica.gov.dm/laws/2015/National%20Parks%20and%20Protected%20Areas%20( Amendment)%20Act,%202015.pdf Government of the Commonwealth of Dominica. 2016. Tourism Act 13 (Regulation and Standards) (Amendment) 2016 Government of the Commonwealth of Dominica. 2024. Dominica Citizenship by Investment Programme. Retrieved from https://www.cbiu.gov.dm/dominica-citizenship/ Government of the Commonwealth of Dominica. 2024a. National Parks and Protected Areas (Cabrits National Park) Order, 2024. Retrieved from https://dominica.gov.dm/laws/2024/national_parks_and_protected_areas_cabrits_national_p ark_order_2024_sro_5_of_2024.pdf Government of the Commonwealth of Dominica. 2024b. Dominica Cable Car Project: Transforming Tourism and Igniting Economic Growth. Retrieved from https://www.cbiu.gov.dm/news/dominica/dominica-cable-car-project-transforming-tourism- and-igniting-economic-growth/ IATA. 2020. Air Connectivity: Measuring the connections that drive economic growth. https://www.astrid-online.it/static/upload/air-/air-connectivity.pdf IMF. 2023. Unlocking Tourism Potential for Sustainable and Inclusive Growth in Dominica. https://www.elibrary.imf.org/view/journals/018/2023/061/article-A001-en.xml Monkey Mia Dolphins. 2024. The Shark Bay Dolphin Project. https://www.monkeymiadolphins.org/ Montreal Management Consultants Development LTD. 2024. Dominica International Airport. Retrieved from https://mmce.ae/mmcdevelopment/aviation/airport/ Murex Consultants. 1996. Supplementary Review of Dolphin Management at Monkey Mia – January, 1996. https://library.dbca.wa.gov.au/FullTextFiles/020723.pdf OECS. n.d. Supporting Tourism in the Eastern Caribbean. Retrieved from https://oecs.int/en/supporting-tourism-in-the-eastern-caribbean#nethte-ecit Rethinking Caribbean Tourism Supplementary Annexes 50 UNDP. 2019. International Outlook for Privately Protected Areas. Retrieved from https://landconservationnetwork.org/wp- content/uploads/2022/09/Costa20Rica20Country20Profile20on20Privately20Protected20Are as_7_24_2019-1.pdf UN Tourism. 2023. Tourism Statistics Database. Accessed January and July 2024. Western Australian Government. 1995. Wildlife Conservation (Close Season for Bottlenose Dolphins in Shark Bay Marine Park) Notice 1995. https://www.legislation.wa.gov.au/legislation/prod/gazettestore.nsf/FileURL/gg1995_045.pdf/ $FILE/Gg1995_045.pdf?OpenElement World Bank. 2024. Tourism in the Caribbean: Travel Consumer Research Report USA Outbound Tourism. Unpublished report. WTTC. 2022. “Travel & Tourism in the Caribbean. Prospects for Growth.” London: World Travel & Tourism Council. Rethinking Caribbean Tourism Supplementary Annexes 51 3.2. Dominican Republic ABSTRACT: The Dominican Republic is a tourism powerhouse in the Caribbean, with robust growth in recent years and the largest volume of overnight visitors in the region. While the country's tourism is primarily driven by sun and sand, adventure tourism is experiencing a significant rise. While this segment is often not the primary reason tourists visit, it leverages the country’s diverse microclimates and natural assets to offer a variety of activities and capture a growing share of the market, backed by consistent growth in overnight and cruise arrivals. The adventure tourism value chain in the Dominican Republic is tiered, with large international tour operators consolidating demand and partnering with domestic operators who offer a variety of activities, which in turn often collaborate with smaller specialized providers. To maintain the segment’s steadfast growth and position the country as a renowned adventure tourism destination, authorities need to prioritize several policy areas. First, the government can replicate and scale-up successful interventions in sustainability and sectoral coordination. These include initiatives like the government’s “Saona Sostenible” geared towards eliminating single-use plastic in the Saona Island, and co-management of the 27 Waterfalls of Damajagua in Puerto Plata among community members and associations, the Ministry of Environment and the Ministry of Tourism (MITUR). Second, the government can strengthen critical areas that enable a well- functioning adventure market. This would include actions like updating the Organic Law on Tourism to better plan, regulate, and supervise the sector, increasing and enhancing promotion efforts of adventure tourism at key events and improving certification standards of adventure operators as well as MITUR’s supervision capacity of such standards. The Dominican Republic has the opportunity to leverage its adventure tourism market through targeted policy interventions in key areas. With its strong air connectivity, proximity to major origin markets, favorable market and geographic size compared to the Caribbean, and diverse natural assets, the country can position adventure tourism as a distinct sector. Overview of Tourism in the Dominican Republic The Dominican Republic is the giant of tourism in the region. Tourism in the Dominican Republic has shown robust growth, with a 5.3 percent CAGR in non-resident visitors from 2010 to 2023, reaching eight million visitors in 2023, 68 percent being foreign non-residents (Central Bank of the Dominican Republic, 2024a). It received 53 percent of all overnight arrivals in the Caribbean in 2023. The US is the largest source of visitors, contributing to the US$9.8 billion of total tourism receipts in 2023 (Central Bank of the Dominican Republic, 2024b). Tourism has significantly boosted employment, surpassing pre-pandemic levels with more than 424,397 jobs in 2023. The average length of stay has gradually decreased over the years, from 9.32 nights in 2003 to 7.94 nights in 2023 (Central Bank of the Dominican Republic, 2024c). However, average expenditure per trip increased from US$973 in 2003 to US$1,229 in 2023 (Central Bank of the Dominican Republic, 2024d). Rethinking Caribbean Tourism Supplementary Annexes 52 Overview of Adventure Tourism in the Dominican Republic Tourism remains mainly driven by the country’s strong air connectivity around its sun and sand product. Among the 6.7 million non-resident foreign visitors in 2023, only 2.6 percent mentioned that adventure-related reasons (natural and historic endowments) were the primary reason for visiting, compared to 51.5 percent who stated that quality of beaches was the main motivation (Central Bank of the Dominican Republic, 2024e). Nevertheless, adventure is quite active as a complementary activity for sun and sand tourists, as shown by the increasing number of adventure providers. The national tourism registry includes more than 100 authorized adventure tourism companies, offering a variety of high and low-risk adventure activities across the country’s diverse microclimates (Table 12 for an overview of microclimates in Dominican Republic) (Ministry of Tourism of the Dominican Republic, n.d.). Regarding the adventure value chain in the Dominican Republic, it can be described as a tiered structure. At the top, large international tour operators (such as TUI) consolidate demand with hotels and resorts, which in turn typically offer bundles that include access to established domestic adventure operators. These domestic adventure operators, which often act as destination management companies, typically generate synergies by collaborating among themselves to offer a broader activity package (for example, adventure parks may bring in off-road ATV excursion companies). In other cases, domestic operators engage SME specialized activity providers to complement their offerings (for example, rappelling or diving specialists). Subsequently, these SMEs employ tour guides who are accredited by MITUR, or they bear the costs to certify themselves as instructors for these activities requiring specialized expertise and training. The Dominican Association of Adventure Parks and Excursions (ADOPETUR) is the primary organization representing 80 percent of adventure tourism operators. Its members include: • Large excursion companies: Runners Adventures, Redtour Dominicana, Punta Caracol excursions • Adventure Parks: o Zipline parks: Monkey Jungle, Samaná Zipline, Bavaro Adventure Park o Natural Parks: Scape Park, Nature River Park, Wonder Caves (Cuevas de las Maravillas) o Marine Life Parks: Dolphin Island Park, El Dorado Park, Marinarium Park, Dolphin Downtown, Ocean World. While not the main motivation for visiting the Dominican Republic, the adventure tourism segment has recently experienced growth by capturing scale by leveraging spillovers from sun and sand-focused hotels and resorts. The demand for adventure tourism consolidated and grew during the pandemic due to the government's policy of remaining open, while most countries restricted incoming flights. By 2021, demand for large adventure companies had recovered to 2019 levels by leveraging the 10.1 million total visitors to the country (7.9 million overnight and 2.2 million cruise passengers). Most visitors are captured by the larger market players listed above. For example, according to Runners Adventure – largest Rethinking Caribbean Tourism Supplementary Annexes 53 adventure excursions operator, it alone served 300,000 visitors in 2023, while Isla Saona (an island in the East National Park, off the southeastern region of the country) receives approximately 700,000 visitors each year (Ministry of Environment and Natural Resources, 2024). Table 12. Microclimate selected examples in the Dominican Republic beyond coastal and beach landscapes Microclimate Region (Provinces) Highlighted Activities Risk Level Subtropical Central region (La Vega – Paragliding Jarabacoa, kayaking and High highlands Constanza and Jarabacoa rafting in Yaque del Norte River, municipalities) camping in Constanza and Jarabacoa Alpine Central Region (Duarte Peak – Pico Duarte trek (three-day hike), Valle High 14th highest peak in North Nuevo trek (sub-zero temperatures) America at 10,164ft) Tropical North (Puerto Plata) Samaná Zipline park, Monkey Jungle Mid-High rainforest Northeast (Samaná, María Zipline Park, Cabarete kitesurfing, hike Trinidad Sánchez) and swim at Limon Waterfall and 27 Waterfalls. Whale watching, boat ride through Los Haitises National Park Maritime/ Southeast (La Altagracia, La Sailing, catamaran, and diving at Mid-low marine Romana) Catalina and Saona Islands Arid and semi- Southwest (Enriquillo, Enriquillo Lake flamingo and iguana Low arid Pedernales, Peravia) watching, Baní dunes, Hoyo de Pelempito park Most large domestic operators began operations in Punta Cana due to its higher volume of arrivals compared to other tourism hubs, then subsequently expanded to Bayahibe, Samaná, and Puerto Plata. Large domestic operators harnessed Punta Cana’s scale of international tour operators and have now established connections with the cruise industry, driven by substantial increases in cruise arrivals in Puerto Plata. Cruise passenger numbers in Puerto Plata grew from 653,000 in 2019 to 1.8 million in 2023 (Central Bank of the Dominican Republic, 2024f), which has positively spilled over to some adventure operators. This growth is noteworthy as cruise activity is projected to continue to rise with pipeline projects in Pedernales, the flagship tourism development of the government, and Samaná. Both projects are spearheaded by ITM Group, the company that developed and operates Taino Bay cruise port in Puerto Plata. Rethinking Caribbean Tourism Supplementary Annexes 54 Policy Areas15 Conservation and Access to Protected Areas The Dominican Republic’s adventure tourism potential is reflected in the growth and volume of visits to protected areas. Visits to protected areas grew 7.2 percent to August 2024 relative to the same period in 2023, totaling 1.5 million visits by August 2024 (Ministry of Environment and Natural Resources, 2024). Foreign visitors comprised the largest share of 1.5 million visits to protected areas during 2024, with an average of 132,000 visits per month, while domestic visitors averaged 53,000 visits per month (see Figure 16). In December 2023, visits by domestic and foreign visitors reached 1.8 million (Ministry of Environment and Natural Resources, 2024). National parks were the most visited assets, compared with natural monuments, wildlife refuges, and maritime sanctuaries. Cotubanamá was the most visited national park, where Saona Island is located. The 27 Waterfalls of Damajagua were the most visited natural monument in the country. Figure 16. Visits to protected areas by type of visitor, 2024 180 Visitors in Thousands 160 140 120 Foreign 127 100 100 80 60 40 Domestic 20 0 Jan Feb Mar Apr May Jun Jul Aug Source: Ministry of Environment and Natural Resources, 2024 The National System of Protected Areas (SINAP) was established in 1974 and is tasked with the management of areas of strict protection, national parks, natural monuments, nature reserves, maritime sanctuaries, and wildlife refuges. SINAP is housed in and managed by the Ministry of Environment and Natural Resources (MIMARENA) and plays a vital role in conserving the country’s protected areas through a comprehensive framework of legal classifications and management strategies. Covering a quarter of the nation's territory and significant marine areas, SINAP encompasses 126 conservation units, including national parks and natural monuments, ensuring protection of biodiversity, while facilitating sustainable access for public enjoyment and scientific research. SINAP has three main sources of funding: budget allocations for MIMARENA in the national budget, revenues collected from public use/access of protected areas, and financial support from international organizations for specific projects. 15 The team conducted informational consultations with the public sector ( MITUR), private sector operators (including Runners Adventure, CanyoningRD), and private sector associations (ADOPETUR). Rethinking Caribbean Tourism Supplementary Annexes 55 The National System of Conservation Areas in regional peer Costa Rica provides an example of how these established systems can create synergies with sustainable tourism management, where protected areas are preserved through community-centered concessions, governed by local councils, and designed to balance conservation with local development (Box 29 in the main report). Seamless coordination between MITUR and MIMARENA allows for productive management of protected areas, positively contributing to eco-tourism in the country. Article 14 of the Protected Areas Law 202-04 considers tourism among possible uses in national parks. For example, the Saona Island of Cotubanamá National Park operates under concession, provided it adheres to MIMARENA’s management and conservation plans. This ensures that ecotourism infrastructure complies with authorities’ plans. The law also mandates avoiding activities that harm ecosystems, in accordance with Law 64-00 of the environment, which criminalizes tree cutting, harming endangered species, waste dumping, and regulatory non-compliance. Tour operators and excursions must get authorization from MIMARENA to access any protected area. MIMARENA assigns specialized guides at park entrances, where kiosks charge visitors a small fee (US$3.50). The fee is collected and managed by MIMARENA who formally budgets preservation interventions across national parks. The level of stringency varies by park sensitivity, with Valle Nuevo National Park and the Baní Dunes facing stricter regulations due to frequent illegal exploitation (informal agriculture settlements and material extraction). In response to the environmental impacts of tourism-related waste, private stakeholders have adopted sustainable practices that could be replicated in national parks and other adventure destinations. Puntacana Group Foundation partnered with the IDB's Innovation Lab (IDB-Lab) to implement project named ‘Circular economy model for organic waste in tourist zones’ to address the global issue of food waste. Similarly, the foundation implemented “zero waste,” a solid waste management program geared towards recycling efforts, reducing landfill waste, minimizing health risks, and protecting the community from pollution to make Punta Cana a better place to live and visit. Other programs put in place by the foundation focus on coral restoration and conservation, sea turtle conservation, and more. A key challenge of developing adventure tourism is establishing strong waste management capabilities. For example, Saona Island has a landfill spanning 3km that encroached into a mangrove ecosystem, endangering local wildlife and potentially contaminating surrounding waters (Acosta Guzmán, 2023). Although there are waste collection and classification programs in place, illegal dumping and the relocation of these landfills persist, highlighting the need for stricter waste controls to protect the natural environment and ensure sustainable tourism development. In particular, the widespread use of single-use plastics must be tackled with effective regulations. In 2023, MIMARENA enacted a resolution to eliminate the use of polystyrene foam and single-use plastics within the island's protected areas, such as Cotubanamá National Park and the Catalina Island Natural Monument. This regulation, part of a broader initiative called "Saona Sostenible," aims to foster sustainability by working closely with local communities, Rethinking Caribbean Tourism Supplementary Annexes 56 tour operators, and other stakeholders. However, the transition to a plastic-free environment requires active participation from all parties – including residents, tourists, and local businesses – to reduce pollution and promote responsible waste management practices. The conservation of natural parks in the Dominican Republic faces multifaceted challenges driven by climate change, but commonly exacerbated by tourism. In response, the Caribbean Biodiversity Fund developed the Biodiversity Conservation and Resilient Livelihoods (Caribbean Biodiversity Fund) initiative to protect biodiversity and livelihoods in Montecristi Protected Areas through ecosystem restoration and capacity-building measures. This approach addresses threats from coastal erosion and climate impacts, exacerbated by tourism activities. Authorities are making strides in this direction through the design and implementation of the National Eco-Tourism Strategy 2030 which aims to focus on financing climate resilience and preserving cultural heritage and the environment in its intersection with tourism. Infrastructure Infrastructure is robust and investments to upgrade and expand the main airports and roads have been enablers of adventure tourism. Key infrastructure is integrated by seven international airports currently operating, and a 19,705km road system. The transport network has five main arteries that run from the northwest to southeast, connecting Santo Domingo to all tourism destinations. Overall, 47 percent of roads are paved, and the quality of infrastructure is comparable to Costa Rica (World Bank, 2023). In the decade to 2011, significant investments were made to expand and modernize airport infrastructure, including Santo Domingo airport, which operates under concession to Vinci airports, and Punta Cana Airport which is fully private and owned by Grupo Punta Cana. Challenges remain in terms of institutional coordination for infrastructure investment and tourism sector management. In 2017, the Dominican Republic created the National Institute of Transit and Land Transportation (INTRANT) to regulate and supervise all ground mobility and transport, including for tourism. Thus, INTRANT must differentiate the specific needs of tourism transport from other sectors, including licensing and permits for four-wheel vehicles, safari trucks, party buses, city tours, trains, hotel taxis, bus and car rentals, and bicycles. INTRANT could become more agile in its licensing procedures by adopting best practices and lessons learned from MITUR, which digitalized most procedures. Lastly, sanctions under INTRANT differ from those under tourism law. Dominican Republic’s road accident rate is the highest in the region. While roads are in good condition, the high use of scooters (motorbikes, mopeds, four wheels) by tourists and residents contributes to risks. Private companies have lobbied authorities to enhance road safety and investment planning. Dominican Republic’s traffic death rate is the highest in the western hemisphere (27.4 deaths per 100,000 population), almost twice as much as Costa Rica (15.5) (WHO, 2023). These results, derived from weaknesses in road supervision and control, negatively affect tourism as a whole. Road planning and construction fall under the jurisdiction of the Ministry of Public Works (MOPC), making it crucial for MITUR and MOPC to Rethinking Caribbean Tourism Supplementary Annexes 57 coordinate effectively to ensure the proper design and implementation of tourism-enabling road projects. Regulating Adventure Tourism Activities Insurance compliance is perhaps the highest barrier to entry for small adventure operations in the country. The adventure segment is driven by private stakeholders who proactively meet international standards required by global operators, exceeding MITUR's requirements. While robust insurance companies exist domestically, adventure operators contract liability insurance abroad, despite being more expensive, to access the pool of international tour operators which prefer international coverage (typically requesting liability, professional indemnity, and financial failure insurance). The coverage of liability insurance contracted by private players is typically in the US$2-5 million range, well above the upper limit established by MITUR of US$800,000. Given these high costs, insurance represents a barrier to entry for SME adventure operators, which reinforces the need to be connected to a larger adventure operator. Similarly, security standards and regulations compliance are proactively adopted by private operators through certification. While not strictly required by authorities, stakeholders obtain international certifications independently to capture the packaged holiday market from large tour operators. Adventure companies have led adoption of Association for Challenge Course Technology (ACCT) standards in zip-lining, for example. ACCT handled the first international certification of a zipline in the country, coordinated by the private sector, and later organized capacity-building workshops from which other zipline parks benefitted. Similarly, the need for certifications is acknowledged by SME specialized operators, who seek certifications in their activities from abroad when possible. This limits certification potential to only those operators with the available resources to travel abroad for certification. Licensing requirements for adventure tourism activities recognized by MITUR are summarized in Table 13. The following technical requirements apply to all activities: descriptive map and route letter, contingency plan, inspection approval, MIMARENA no- objection letter, emergency plan, first-aid kit, commitment or intention letters, inspection approval. A Navy and Tourism Specialized Security Force Evaluation is required depending on the activity (for example boat rides, paintball). Table 13. Licensing requirements for adventure tourism activities Activity Financial requirements Licensing costs Water (catamaran, Insurance coverage ranging from US$25,000 US$120 for recreational kayak, snorkel, windsurf, for 10 passengers to US$85,000 for 80+ US$200 for schools kitesurf, waterski) passengers Insurance coverage ranging from US$25,000 US$120 (10 passengers) Maritime transport for 10 passengers to US$85,000 for 80+ to US$400 (80+ (bananas, ringos, tubes) passengers passengers) Rethinking Caribbean Tourism Supplementary Annexes 58 Activity Financial requirements Licensing costs Insurance policy documentation, coverage in Adventure parks (theme accordance with value of equipment in US$1,000 and water parks) operation, projected volume of operations, and carrying capacity of the attractions. Zipline Insurance coverage of US$25,000 US$500 Excursions Insurance coverage of US$25,000 US$400 Paintball Insurance coverage of US$25,000 US$300 Horse ranch Insurance coverage of US$25,000 US$300 Source: MITUR. With tourism evolving as a cornerstone of the economy, Dominican Republic's tourism law would benefit from being updated. The organic tourism law dates back to 1969 (Law 541- 69) and despite several supplementary laws,16 there is an opportunity to reform the legal framework to formally reflect the sector's current global trends and strengthen its supervisory powers. Sanctions considered by the law are administrative, with room for stronger monetary penalties. There is an opportunity to further refine definitions for adventure excursions, types of agencies, receptive tour operators, and DMCs in the law, although they function properly in practice. Similarly, despite proper functioning, transport transfers do not explicitly exist in the legal framework. While the role of tour guides is clearly defined, there is potential to enhance standardization, capacity building, and establish a pipeline of new guides through government programs. Similarly, the private sector recognizes the 2030 National Development Strategy as a strong foundation, with room to add more granularity in tourism-related initiatives to strengthen the sector’s strategic focus and policy design. Tighter supervision and regulations can minimize risks stemming from irregular guides and agencies providing services to visitors. While tourists seldom question insurance details when booking through regulated large tour operators, problems arise when visitors are approached by unregulated domestic agencies or guides not certified in specific activities and lack proper insurance coverage. Regulated operators view this as a source of reputational risk, given that untrained or ill-equipped operations have higher likelihoods of accidents (Dominican Today, 2023). MITUR consistently urges tourists to hire services from certified operators. Efforts geared towards stronger enforcement and supervision can be assumed by the Tourism Enterprises and Services unit at MITUR tasked with conducting audits to ensure security quality. While MITUR's licensing framework provides a solid foundation, there is an opportunity to expand it to include a broader range of adventure activities that have emerged in recent years. For example, domestic companies providing canyoning excursions operate under a no- objection letter instead of a MITUR license to provide services to theme parks, for example, as rappelling and climbing were not recognized as licensable activities in the national tourism registry. As new adventure activities emerge and are internalized by the market, authorities should ensure these new activities are properly institutionalized. This will persist as an issue 16 For example, Law 158-01 which introduced the tax exemptions for tourism developments. Rethinking Caribbean Tourism Supplementary Annexes 59 to the extent operators continue to include new adventure activities in their offerings with the emergence of new adventure activities. In New Zealand, an adventure tourism aspirational peer, adventure activity regulations are developed in partnership with expert reference groups that include auditors, adventure industry, and tourism sector representatives. Further, the WorkSafe (primary regulator and policy implementor for adventure activities) scheme created a market for safety auditors facilitating the existence of multiple safety companies, creating competition and ensuring availability of auditing services (Box 33 in the main report). Sector and Industry Coordination Coordination in the adventure segment occurs in public-private and intragovernmental spaces. Public-private coordination and dialogue mainly occurs through two avenues: (i) tourism clusters, which exist in each province encompassing the entire value chain (hotels, restaurants, experiences), and (ii) associations such as the Association of Hotels and Tourism of the Dominican Republic (ASONAHORES), the main tourism association and interlocutor with authorities, as well as ADOPETUR. Intragovernmental coordination happens across different themes. As highlighted, ground transportation and road infrastructure are coordinated among MITUR, INTRANT and MOPC. Moreover, national parks and protected area management and strategy is coordinated by MITUR and MIMARENA, which functions more effectively and smoothly than the former. Regarding adventure tourism in small communities, municipality-level cooperation and coordination is the norm. Developing adventure tourism within municipalities requires strong interactions and cooperation with local authorities. Numerous necessary permits fall under local government jurisdiction, necessitating buy-in from local authorities and communities. However, local governments are often not cognizant of adventure tourism's potential. To achieve buy-in from communities, especially when private operators are involved, prior efforts to engage community members are critical. Additionally, capacity building for local tour guides is essential to support sector growth. In 2010, a co-management agreement between MIMARENA and the Association of Lifesaving Guides of Damajagua River was fully implemented to oversee the 27 Waterfalls of Damajagua in Puerto Plata province (Box 7). This partnership has not only formalized site management and safety standards, but also generated significant economic benefits for local communities, creating hundreds of jobs through sustainable tourism. Box 7. 27 Waterfalls of Damajagua co-management success case The 27 Waterfalls of Damajagua are located in a canyon with tunnels and natural pools in Puerto Plata, declared a protected area in 2002. The government through MIMARENA made initial investments on soft infrastructure with donor support (UNDP). A co-management agreement was established in 2005 and fully implemented in 2010 with clear lines of authority and organization for management of site visits which previously happened informally without supervision. Currently, it is jointly managed by MIMARENA and the Association of Lifesaving Guides of the Damajagua River. This collaboration defines roles, establishes access fees and allocation of revenue for expenses Rethinking Caribbean Tourism Supplementary Annexes 60 related to maintaining the trails, and determines distributions of benefits for public and private sectors. Visitors can explore the area under strict safety measures. Community member trained guides earn income from service fees and additional ventures like a restaurant and gift shop. This initiative has positively impacted 10 neighboring communities, generating more than 125 direct and 650 indirect jobs, facilitating microloans and infrastructure improvements, ensuring sustainability and community empowerment within a formalized tourism framework. Source: Convention on Biological Diversity International, Ministry of Environment Guidelines for Co-Management of Protected Areas Promotion of adventure tourism by MITUR is complemented by private efforts from stakeholders which have potential for expansion. Authorities’ efforts on promotion of adventure tourism have relied on two key avenues. First, ministry officials have traditionally promoted sun and sand at key events like the International Tourism Fair. Second, social media is used by MITUR to boost domestic tourism. Adventure promotion efforts have traditionally been relegated behind the all-inclusive model, which has resulted in a lack of promotion of mountains, rivers, and microclimates, leading to poor flows of primary adventure tourists. This has left operators mostly reliant on hotels and resorts. Given this context, private players have proactively attended international events to connect with demand from international tour operators. After strong coordination by private operators, MITUR attended the Adventure Travel Trade Association convention with a delegation in 2024. The continued capacity building of tourist guides is essential for the adventure segment’s growth. Authorities have successful precedents, particularly through technical assistance from Japan International Cooperation Agency in the 2000s, with a program that trained and certified eco-tour guides in cultural and adventure tourism, focusing on product development and promotion. These guides were issued identification badges and compiled an extensive list of activities, with 60 percent classified as adventure tourism. Scaling the pipeline and enhancing the skills of tour guides will be essential as a complementary element of the tourism adventure market in the Dominican Republic. Table 14. Summary of policy options for adventure tourism in Dominican Republic Key Policy Area Policy Options Conservation Advance the National Eco-Tourism Strategy: Ensure effective implementation and access to and continuity of the National Eco-tourism Strategy 2030 (ENEC-2030), focusing protected on climate resilience, cultural heritage, and environmental preservation through areas the established "Interinstitutional Committee on Ecotourism." Scale conservation and sustainability initiatives: Replicate successful circular economy models like Punta Cana’s "zero waste" efforts and expand wildlife conservation and habitat restoration programs. Prioritize government initiatives like “Saona Sostenible” to promote eco-friendly practices and reduce single-use plastics. Infrastructure Improve coordination and digitize authorization processes for vehicles, especially adventure vehicles: INTRANT must differentiate tourism transport Rethinking Caribbean Tourism Supplementary Annexes 61 Key Policy Area Policy Options needs and digitize its procedures to match MITUR’s agility. Effective institutional coordination is essential for efficient licensing, permitting, and management of tourism transport services, including off-road ATVs, safari trucks, buggies. Enhance road safety and strategic planning: Authorities need to improve road safety measures and invest in strategic road planning to reduce traffic fatalities and enhance access to key tourist destinations. MITUR and MOPC must coordinate closely to ensure the proper design and implementation of tourism- enabling infrastructure projects. Adventure Enhance supervision and certification: Set minimum standards and tourism certifications aligned with ACCT, and boost supervision. Promote awareness regulations campaigns to encourage hiring certified operators for safety and reputation. Modernize licensing framework: Modernize MITUR's licensing framework to include new adventure activities and ensure proper regulation. This will prevent operators from relying on no-objection letters and support the sector's sustainable growth in tandem with the emergence of new adventure activities. Sector and Expand government promotion: MITUR should emphasize promotion of industry adventure tourism at key events, highlighting mountains, rivers, and coordination microclimates to reduce dependence on traditional resorts. Collaborate with private stakeholders: Maintain and expand partnerships with private operators and attend international events like Adventure Travel Trade Association to boost global awareness and connections with tour operators. Scale community tour guides: Expand and improve eco-tour guide training programs, building on past JAICA efforts, to support growth of adventure tourism in local communities. References Acosta Guzmán, M. 2023. Vertederos y aguas sustraídas de manantiales en Isla Saona. Hoy. Retrieved from https://hoy.com.do/vertederos-y-aguas-sustraidas-de-manantiales-en-isla-saona/ Caribbean Biodiversity Fund. n.d. Biodiversity Conservation and Resilient Livelihoods in Coastal Areas Threatened by Climate Change, Intensive Tourism, Traditional Fishing and Infrastructure Development in National Parks and Protected Areas Central Bank of the Dominican Republic. 2024a. Tourism Arrivals Statistics Central Bank of the Dominican Republic. 2024b. Balance of Payments Statistics Central Bank of the Dominican Republic. 2024c. Tourism Sector Statistics Central Bank of the Dominican Republic. 2024d. Tourism Expenditure Statistics Central Bank of the Dominican Republic. 2024e. Survey of Opinion, Attitude, and Motivation of Non- Resident Foreigners Central Bank of the Dominican Republic. 2024f. Maritime Arrival Statistics Convention on Biological Diversity International. 2018. Celebrating 25 Years of Action for Biodiversity, https://www.cbd.int/idb/image/2018/case-studies/cbd25-book.pdf Dominican Today. 2023. Dominican Republic investigates death of tourist forgotten at sea during excursion at Jellyfish Beach. Retrieved from: Rethinking Caribbean Tourism Supplementary Annexes 62 https://dominicantoday.com/dr/tourism/2023/05/05/dominican-republic-investigates-death- of-tourist-forgotten-at-sea-during-excursion-at-jellyfish-beach/ Ministry of Environment and Natural Resources. 2024. Protected areas visits statistics Ministry of Tourism of the Dominican Republic. n.d. Retrieved from https://mitur.gob.do/ WHO. 2023. Global Health Observatory World Bank. 2023. Logistics Performance Index Rethinking Caribbean Tourism Supplementary Annexes 63 Annex 4. Sustainability Initiatives Being Implemented by All-Inclusive Resort Chains in the Caribbean Table 15. Sustainability Initiatives being Implemented by All-Inclusive Resort Chains Resort Brand Sustainability initiatives Locations in the Caribbean Sandals Sandals Foundation: Supports education, environmental Jamaica, St. Lucia, Resorts sustainability, and community projects. Antigua, Barbados, - Energy-efficient lighting, solar water heating. Grenada, The - No single-use plastics, water conservation efforts, recycling Bahamas, Curaçao programs. Beaches - Part of Sandals Foundation, with environmental Jamaica, Turks and Resorts conservation projects. Caicos - Beach cleanups, no single-use plastics, turtle conservation programs Iberostar Wave of Change initiative: Focuses on eliminating single- Dominican use plastics, responsible seafood sourcing, coral reef Republic, Jamaica, restoration, and coastal health. St. Lucia - Carbon-neutral commitment by 2030. - Large-scale coral restoration projects in the Caribbean Club Med Happy to Care Program: Focus on reducing carbon Dominican emissions, energy efficiency, recycling, eco-certifications. Republic, Turks and - Partnership with the WWF to promote sustainability. Caicos - Use of renewable energy, sustainable seafood sourcing, and waste reduction RIU Hotels & RIU Hotels' Sustainability Program: Water and energy Aruba, The Resorts conservation, eco-friendly certifications (Travelife Gold). Bahamas, - Waste management and recycling. Dominican - Solar energy usage in new projects, reduction of food waste Republic, Jamaica, Sint Maarten Excellence Commitment to sustainable tourism. Dominican Group - Energy-efficient infrastructure, water-saving systems, and Republic, Jamaica community engagement. - Focus on waste management and minimizing environmental impacts. AMR Clean Complete Verification: Includes sustainability Dominican Collection programs such as recycling, energy efficiency, and water Republic, Jamaica, conservation. Curaçao, Sint - Participation in local community programs and wildlife Maarten, Aruba conservation. - Eco-friendly certifications like Rainforest Alliance. Rethinking Caribbean Tourism Supplementary Annexes 64 Resort Brand Sustainability initiatives Locations in the Caribbean Royalton - Energy-efficient operations, water conservation, and waste Dominican Resorts management programs. Republic, Jamaica, - Support for local communities through charitable St. Lucia, Antigua, programs. Grenada - Use of eco-friendly materials and reduction of single-use plastics Couples Environmental initiatives include water conservation, solar Jamaica Resorts energy usage, and reef protection. - Community support and engagement in local sustainability efforts. - No single-use plastics, recycling programs. Majestic - Water and energy conservation programs. Dominican Resorts - Commitment to reducing carbon emissions and using Republic environmentally friendly technologies. - Waste management systems and recycling efforts Bahia Principe Eco-Bahia Foundation: Focuses on biodiversity Dominican conservation, including marine life and forest protection. Republic, Jamaica - Coral reef and mangrove conservation programs. - Reduction of energy consumption, water usage, and carbon emissions. Palladium Corporate Responsibility Program: Focus on reducing Dominican Hotel Group plastic, sustainable energy use, and waste management. Republic, Jamaica - Energy-efficient operations, eco-certifications like EarthCheck. - Commitment to biodiversity protection and local community support. Melia Hotels EarthCheck and Travelife certifications for sustainability. Dominican & Resorts - Water conservation, energy-efficient lighting, and waste Republic reduction programs. - Community involvement and support of local environmental projects. Zoëtry - Use of organic and locally sourced ingredients in dining. Dominican Wellness & - Focus on energy conservation, waste reduction, and Republic, Jamaica Spas minimizing plastic use. - Eco-friendly programs aimed at sustainability in wellness and spa services. Secrets Waste reduction, energy-efficient operations, and water Dominican Resorts & conservation efforts. Republic, Jamaica, Spas - Partnership with local communities for conservation and Sint Maarten sustainability projects. - Use of eco-friendly certifications like Rainforest Alliance. Hilton All- Travel with Purpose: Focus on responsible travel, energy Dominican Inclusive efficiency, water conservation, and carbon reduction. Republic, Jamaica Resorts - Use of renewable energy, recycling programs, sustainable building certifications, and reduction of single-use plastics. Marriott Serve 360 program: Focuses on reducing environmental St. Lucia, International footprint, sustainable food sourcing, and community Barbados, Antigua, Rethinking Caribbean Tourism Supplementary Annexes 65 Resort Brand Sustainability initiatives Locations in the Caribbean support. Jamaica, - Water and energy conservation, reducing carbon footprint. Dominican - Sustainable certifications (LEED). Republic, Aruba Barcelo Hotel Barceló Responsible program: Focus on sustainability, Dominican Group energy and water conservation, and reducing carbon Republic, Aruba emissions. - Partnerships with local conservation groups, sustainable food sourcing. - Eco-friendly certifications and solar energy usage. Rethinking Caribbean Tourism Supplementary Annexes 66 Annex 5. Country Scorecards from Consumer Perception Survey Country scorecards show consumer awareness of each Caribbean country. Participants in the consumer market research survey were asked to indicate whether they had previously heard of or visited the country, and if they would visit in the future. Participants also rated each country on a set of destination characteristics, indicating which characteristics they associate with that country. The full methodology of the Consumer Market Research is available in Annex 3 of the main report. Rethinking Caribbean Tourism Supplementary Annexes 67 Antigua and Barbuda About 1 in 2 of Caribbean Adventure Travelers are aware of Antigua and Barbuda and 1 in 5 have visited this country. As a destination for future travel, it is being considered by similar numbers (1 in 5). Amongst the Caribbean Adventure Travelers, Antigua and Barbuda has its strength in offering safety and stability to the adventure tourists and is seen as a destination that promotes sustainability, an aspect important to this audience. Antigua and Barbuda Caribbean Adventure Traveler — Awareness | Visitation | Consideration for future AWARE OF 56% Derived Importance GAT: 64% EVER VISITED 20% GAT: Global Adventure Traveler GAT: 8% VISIT IN PAST 5 YEARS 13% Significantly higher or lower vs GAT: 1% Global Adventure Traveler CONSIDER FOR FUTURE 23% GAT: 8% Among the total travelers to the country, 37.9% are Perceptions of the destination Adventure Travelers, and compose 1.8% of total Adventure Travelers to the 12 countries Antigua and Antigua and High The Caribbean Barbuda Barbuda Sustainability -0.1 0.3 13% Reliable healthcare -0.2 -0.4 10% Government trust / emergency -0.2 -0.1 12% Derived Importance Low crime -0.2 0.4 14% Safe / Health / Stable Infrastructure -0.2 0.0 13% Hygiene & sanitation -0.2 0.4 14% Politically stable -0.2 0.1 13% Well planned tourism 0.1 0.4 15% Planned Tourism / Support Tourist support -0.2 0.4 16% Shopping -0.4 0.2 14% Shops / Entertainment / Dining Entertainment 0.1 0.0 14% Quality cuisine -0.3 0.1 15% Easy to travel around 0.3 -0.1 13% Flight options 0.5 -0.5 10% Access Inexpensive flights 0.9 -0.5 9% Accessible 1.0 0.0 13% Financial services 0.2 -0.1 12% Utilities / Financial Services Utilities -0.4 0.0 13% Natural disasters -0.5 0.1 11% International hotels -0.1 -0.4 12% Accommodation / Hotels Accommodation range -0.3 0.0 14% Activities -0.3 -0.2 14% Inexpensive 0.8 -0.6 9% Cultural assets -0.6 0.0 15% Natural & Cultural Assets Natural assets -0.4 0.1 16% Local food & crafts -0.4 0.2 16% Visa requirements 1.0 -0.1 11% Climate -0.1 0.0 16% Language 0.7 0.0 10% Base: Caribbean Adventure Travelers (n=1,000); Global Adventure Traveler (n=306) Q12a1. Which of these countries or destinations listed below are you aware of? | Q12a2. Which of these countries or destinations have you ever visited when travelling internationally on vacation? | Q12a3. And which of these countries / destinations did you visit when travelling internationally on vacation in the past 5 years (2019 -2024)? | Q12a4. And which of these countries / destinations are you planning to travel to when travelling internationally on vacation, in the next 3 years? Rethinking Caribbean Tourism Supplementary Annexes 68 The Bahamas Awareness of the Bahamas is very high, as is visitation and consideration for future travel – in fact it leads on all these metrics, amongst the 12 Caribbean countries surveyed. Amongst the Caribbean Adventure Travelers, Bahamas is a popular destination as it is seen to be easy to access (as the whole region is with proximity to the US), with availability of healthcare facilities, financial services and infrastructure for tourists. Additionally, language is not a barrier, and the country is perceived as affordable. The Bahamas Caribbean Adventure Traveler — Awareness | Visitation | Consideration for future AWARE OF 90% Derived Importance GAT: 90% EVER VISITED 74% GAT: Global Adventure Traveler GAT: 27% VISITED IN PAST 5 YEARS 64% GAT: 5% CONSIDER FOR FUTURE 58% GAT: 37% Among the total travelers to the country, 35.7% are Adventure Travelers, and compose 19.9% of total Perceptions of the destination Adventure Travelers to the 12 countries High Derived Importance Base: Caribbean Adventure Travelers (n=1,000); Global Adventure Traveler (n=306) Q12a1. Which of these countries or destinations listed below are you aware of? | Q12a2. Which of these countries or destinations have you ever visited when travelling internationally on vacation? | Q12a3. And which of these countries / destinations did you visit when travelling internationally on vacation in the past 5 years (2019 -2024)? | Q12a4. And which of these countries / destinations are you planning to travel to when travelling internationally on vacation, in the next 3 years? Rethinking Caribbean Tourism Supplementary Annexes 69 Barbados Barbados has high awareness, however lower level of conversion to visitation amongst the adventure travelers to the Caribbean. It is perceived to have reliable healthcare, however as a destination it does not have any other standout features – it is undifferentiated compared to other countries in the region. Barbados Caribbean Adventure Traveler — Awareness | Visitation | Consideration for future AWARE OF 72% GAT: 81% GAT: Global Adventure Traveler EVER VISITED 30% GAT: 13% VISITED IN Significantly higher or lower vs PAST 5 YEARS 22% Global Adventure Traveler GAT: 0% CONSIDER FOR FUTURE 30% GAT: 14% Among the total travelers to the country, 34.7% are Perceptions of the destination Adventure Travelers, and compose 2.2% of total Adventure Travelers to the 12 countries High Derived Importance Base: Caribbean Adventure Travelers (n=1,000); Global Adventure Traveler (n=306) Q12a1. Which of these countries or destinations listed below are you aware of? | Q12a2. Which of these countries or destinations have you ever visited when travelling internationally on vacation? | Q12a3. And which of these countries / destinations did you visit when travelling internationally on vacation in the past 5 years (2019 -2024)? | Q12a4. And which of these countries / destinations are you planning to travel to when travelling internationally on vacation, in the next 3 years? Rethinking Caribbean Tourism Supplementary Annexes 70 Belize Around 1 in 2 Caribbean Adventure Travelers are aware of Belize. Visitation and consideration for future travel sits at 20%. Belize’s strengths lie in its local arts and crafts and its natural and cultural assets are attractive to the adventurer travelers. Its climate is also a key strength and it is seen to be an inexpensive destination for travel. However, travelers have negative imagery of safety and stability of the destination. Belize Caribbean Adventure Traveler — Awareness | Visitation | Consideration for future AWARE OF 53% Derived Importance GAT: 72% EVER VISITED GAT: 72% 20% GAT: Global Adventure Traveler GAT: 11% VISITED IN GAT: 11% PAST 5 YEARS 13% GAT: 1% GAT: 1% CONSIDER FOR FUTURE 20% GAT: 16% Among the total travelers to the country, 42.0% are Perceptions of the destination Adventure Travelers, and compose 5.9% of total Adventure Travelers to the 12 countries High Derived Importance Base: Caribbean Adventure Travelers (n=1,000); Global Adventure Traveler (n=306) Q12a1. Which of these countries or destinations listed below are you aware of? | Q12a2. Which of these countries or destinations have you ever visited when travelling internationally on vacation? | Q12a3. And which of these countries / destinations did you visit when travelling internationally on vacation in the past 5 years (2019 -2024)? | Q12a4. And which of these countries / destinations are you planning to travel to when travelling internationally on vacation, in the next 3 years? Rethinking Caribbean Tourism Supplementary Annexes 71 Dominica Around 1 in 2 Caribbean Adventure Travelers are aware of Dominica and 1 in 5 have visited this country. A similar number of respondents consider it as a potential future travel destination (1 in 5). While Dominica scores well on its offer of ‘quality cuisine’, it is not perceived to have any distinctive or stand out features. Dominica Caribbean Adventure Traveler — Awareness | Visitation | Consideration for future AWARE OF 54% Derived Importance GAT: 53% EVER VISITED 18% GAT: 3% GAT: Global Adventure Traveler VISITED IN PAST 5 YEARS 13% GAT: 0% CONSIDER FOR FUTURE 18% GAT: 6% Among the total travelers to the country, 35.4% are Adventure Travelers, and compose 0.2% of total Perceptions of the destination Adventure Travelers to the 12 countries High Derived Importance Base: Caribbean Adventure Travelers (n=1,000); Global Adventure Traveler (n=306) Q12a1. Which of these countries or destinations listed below are you aware of? | Q12a2. Which of these countries or destinations have you ever visited when travelling internationally on vacation? | Q12a3. And which of these countries / destinations did you visit when travelling internationally on vacation in the past 5 years (2019 -2024)? | Q12a4. And which of these countries / destinations are you planning to travel to when travelling internationally on vacation, in the next 3 years? Rethinking Caribbean Tourism Supplementary Annexes 72 Dominican Republic Awareness of the Dominican Republic is very high, and visitation and consideration as a destination for future travel are also fairly high. In the minds of the Caribbean Adventure Travelers, Dominican Republic Caribbean offers easy access as an advantage, with many flight options and inexpensive fares. As a destination too it is seen to be inexpensive. Dominican Republic Caribbean Adventure Traveler — Awareness | Visitation | Consideration for future AWARE OF 80% Derived Importance GAT: 87% EVER VISITED 46% GAT: 16% GAT: Global Adventure Traveler VISITED IN PAST 5 YEARS 35% GAT: 1% CONSIDER FOR FUTURE 39% GAT: 27% Among the total travelers to the country, 37.9% are Adventure Travelers, and compose 35.4% of total Perceptions of the destination Adventure Travelers to the 12 countries High Derived Importance Base: Caribbean Adventure Travelers (n=1,000); Global Adventure Traveler (n=306) Q12a1. Which of these countries or destinations listed below are you aware of? | Q12a2. Which of these countries or destinations have you ever visited when travelling internationally on vacation? | Q12a3. And which of these countries / destinations did you visit when travelling internationally on vacation in the past 5 years (2019 -2024)? | Q12a4. And which of these countries / destinations are you planning to travel to when travelling internationally on vacation, in the next 3 years? Rethinking Caribbean Tourism Supplementary Annexes 73 Grenada While 1 in 2 of the Caribbean Adventure Travelers have heard of Grenada, only 1 in 10 have visited the country. Consideration as a destination for future travel is also fairly low. Grenada is perceived as a place that is easy to travel around, offering a range of activities and with good natural assets. Grenada Caribbean Adventure Traveler — Awareness | Visitation | Consideration for future AWARE OF 46% GAT: 56% EVER VISITED 12% VISITED IN GAT: 3% GAT: Global Adventure Traveler PAST 5 YEARS 7% GAT: 0% CONSIDER FOR FUTURE 12% GAT: 7% Among the total travelers to the country, 35.3% are Adventure Travelers, and compose 1.2% of total Perceptions of the destination Adventure Travelers to the 12 countries High Derived Importance Base: Caribbean Adventure Travelers (n=1,000); Global Adventure Traveler (n=306) Q12a1. Which of these countries or destinations listed below are you aware of? | Q12a2. Which of these countries or destinations have you ever visited when travelling internationally on vacation? | Q12a3. And which of these countries / destinations did you visit when travelling internationally on vacation in the past 5 years (2019 -2024)? | Q12a4. And which of these countries / destinations are you planning to travel to when travelling internationally on vacation, in the next 3 years? Rethinking Caribbean Tourism Supplementary Annexes 74 Jamaica Jamaica is a fairly popular destination amongst the Caribbean Adventure Travelers, with high levels of awareness and consideration for future travel. Jamaica’s perceived strengths are similar to the region as a whole: affordability, no language barrier, and it’s accessible to the US with many flight options and inexpensive fares. However, travelers have negative perceptions of safety and stability. Jamaica Caribbean Adventure Traveler — Awareness | Visitation | Consideration for future AWARE OF 84% Derived Importance GAT: 92% EVER VISITED 56% GAT: 21% GAT: Global Adventure Traveler VISITED IN PAST 5 YEARS 42% GAT: 2% CONSIDER FOR FUTURE 42% GAT: 24% Among the total travelers to the country, 39.7% are Perceptions of the destination Adventure Travelers, and compose 27.3% of total Adventure Travelers to the 12 countries High Derived Importance Base: Caribbean Adventure Travelers (n=1,000); Global Adventure Traveler (n=306) Q12a1. Which of these countries or destinations listed below are you aware of? | Q12a2. Which of these countries or destinations have you ever visited when travelling internationally on vacation? | Q12a3. And which of these countries / destinations did you visit when travelling internationally on vacation in the past 5 years (2019 -2024)? | Q12a4. And which of these countries / destinations are you planning to travel to when travelling internationally on vacation, in the next 3 years? Rethinking Caribbean Tourism Supplementary Annexes 75 St. Kitts and Nevis Awareness of St. Kitts and Nevis is fairly low with only 4 in 10 respondents being aware of it. The destination scores well on aspects of political stability and safety. However, compared to the other Caribbean countries, it has negative imagery around access - limited flight options and no reasonable fares. St. Kitts and Nevis Caribbean Adventure Traveler — Awareness | Visitation | Consideration for future AWARE OF 44% Derived Importance GAT: 54% EVER VISITED 16% GAT: 8% GAT: Global Adventure Traveler VISITED IN PAST 5 YEARS 12% GAT: 1% CONSIDER FOR FUTURE 19% GAT: 9% Among the total travelers to the country, 33.1% are Adventure Travelers, and compose 0.9% of total Perceptions of the destination Adventure Travelers to the 12 countries High Derived Importance Base: Caribbean Adventure Travelers (n=1,000); Global Adventure Traveler (n=306) Q12a1. Which of these countries or destinations listed below are you aware of? | Q12a2. Which of these countries or destinations have you ever visited when travelling internationally on vacation? | Q12a3. And which of these countries / destinations did you visit when travelling internationally on vacation in the past 5 years (2019 -2024)? | Q12a4. And which of these countries / destinations are you planning to travel to when travelling internationally on vacation, in the next 3 years? Rethinking Caribbean Tourism Supplementary Annexes 76 St. Lucia St. Lucia’s conversion to visitation is fairly high relative to the level of awareness. However, the destination does not have a strong imagery in the minds of the Caribbean Adventure Travelers – with no distinct stand out aspects. St. Lucia Caribbean Adventure Traveler — Awareness | Visitation | Consideration for future AWARE OF 66% Derived Importance GAT: 67% EVER VISITED 29% GAT: 10% GAT: Global Adventure Traveler VISITED IN PAST 5 YEARS 19% GAT: 1% CONSIDER FOR FUTURE 31% GAT: 11% Among the total travelers to the country, 36.4% are Adventure Travelers, and compose 2.6% of total Perceptions of the destination Adventure Travelers to the 12 countries High Derived Importance Base: Caribbean Adventure Travelers (n=1,000); Global Adventure Traveler (n=306) Q12a1. Which of these countries or destinations listed below are you aware of? | Q12a2. Which of these countries or destinations have you ever visited when travelling internationally on vacation? | Q12a3. And which of these countries / destinations did you visit when travelling internationally on vacation in the past 5 years (2019 -2024)? | Q12a4. And which of these countries / destinations are you planning to travel to when travelling internationally on vacation, in the next 3 years? Rethinking Caribbean Tourism Supplementary Annexes 77 St. Vincent and Grenadines 1 in 2 of Caribbean Adventure Travelers have heard of St. Vincent and Grenadines, however it has relatively low visitation and fairly low consideration for future travel. Its strengths lie in its perceptions of safety – low crime levels and low risk of natural disasters. St. Vincent and the Grenadines Caribbean Adventure Traveler — Awareness | Visitation | Consideration for future AWARE OF 48% Derived Importance GAT: 54% EVER VISITED 12% GAT: 5% GAT: Global Adventure Traveler VISITED IN PAST 5 YEARS 9% GAT: 0% CONSIDER FOR FUTURE 19% GAT: 9% Among the total travelers to the country, 35.2% are Adventure Travelers, and compose 0.4% of total Perceptions of the destination Adventure Travelers to the 12 countries High Derived Importance Base: Caribbean Adventure Travelers (n=1,000); Global Adventure Traveler (n=306) Q12a1. Which of these countries or destinations listed below are you aware of? | Q12a2. Which of these countries or destinations have you ever visited when travelling internationally on vacation? | Q12a3. And which of these countries / destinations did you visit when travelling internationally on vacation in the past 5 years (2019 -2024)? | Q12a4. And which of these countries / destinations are you planning to travel to when travelling internationally on vacation, in the next 3 years? Rethinking Caribbean Tourism Supplementary Annexes 78 Sint Maarten Around 1 in 2 of Caribbean Adventure Travelers are aware of Sint Maarten and 1 in 5 have visited this country. It has a relatively strong travel intention relative to its awareness – giving it potential for future growth as a travel destination. Sint Maarten scores well on aspects of political stability, safety and infrastructure. Its climate is also a strength for the destination. However, travelers perceive the airfares as expensive. Sint Maarten Caribbean Adventure Traveler — Awareness | Visitation | Consideration for future AWARE OF 46% Derived Importance GAT: 53% EVER VISITED 21% GAT: 13% GAT: Global Adventure Traveler VISITED IN PAST 5 YEARS 14% GAT: 3% CONSIDER FOR FUTURE 21% GAT: 8% Among the total travelers to the country, 34.6% are Adventure Travelers, and compose 2.2% of total Perceptions of the destination Adventure Travelers to the 12 countries High Derived Importance Base: Caribbean Adventure Travelers (n=1,000); Global Adventure Traveler (n=306) Q12a1. Which of these countries or destinations listed below are you aware of? | Q12a2. Which of these countries or destinations have you ever visited when travelling internationally on vacation? | Q12a3. And which of these countries / destinations did you visit when travelling internationally on vacation in the past 5 years (2019 -2024)? | Q12a4. And which of these countries / destinations are you planning to travel to when travelling internationally on vacation, in the next 3 years? Rethinking Caribbean Tourism Supplementary Annexes 79 Rethinking Caribbean Tourism Supplementary Annexes 80