Connections

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Connections is a weekly series of knowledge notes from the World Bank Group’s Transport & Information and Communication Technology (ICT) Global Practice. It covers projects, experiences, and front-line developments.

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Want to Keep Tourists Away? Keep Flying Solo: A Lesson from Small Caribbean Ctates

2014-12, Briceno-Garmendia, Cecilia, Bofinger, Heinrich, Cubas, Diana, Millan-Placci, Maria Florencia

The island states of the eastern Caribbean are wastefully competing with each other for the lucrative, yet stagnant, stay-over tourist trade by ‘flying solo’: separately building long-haul airports and agreeing to expensive bilateral subsidy deals with airlines.1 Instead, they could vastly increase their tourist revenue and lower their costs through collaboration to remove barriers to inter-island travel. The linchpin of such joint efforts will be a hub-and spoke airline system that funnels stay-over tourists to the edge of the region and then allows them to easily fly to their final destination.