World Bank2025-03-262025-03-262025-03-26https://hdl.handle.net/10986/43002This report assesses the current performance of tourism in the Caribbean1 and, in light of the new trends, identifies future pathways and policies for sustainable growth in three targeted segments. These segments were selected to include the traditional markets of cruise and all-inclusive resort accommodation as well as new opportunities in the high-value segment of adventure tourism. Cruise and all-inclusive resorts continue to be priorities for governments as they provide jobs, stimulate foreign direct investment (FDI), and generate the majority of regional demand (WTTC, 2022) (CTO, 2020). However, influence and market power in these segments have also created environmental and social risks and inhibited tourism diversification. Adventure tourism offers potential to add value and diversity to the rich endowment of natural and cultural assets and expand the value proposition and local economic impact of traditional markets. Additionally, it can create a new ecosystem of suppliers appealing to an entirely different market segment of high-spending tourists. Segment selection was based on analysis of current impacts, growth projections, and scales of environmental and social externalities that examined the importance and value of the segments to the Caribbean. It also integrated feedback from consultations with key stakeholders and alignment with national policies and trends.en-USCC BY-NC 3.0 IGOINDUSTRYTOURISMSUSTAINABLE CITIES AND COMMUNITIESSUSTAINABLE GROWTHFOREIGN DIRECT INVESTMENTReportWorld Bank10.1596/43002https://doi.org/10.1596/43002