Likely bleak future for Barbados tourism industry

By Melissa Bryant’
Reporter~SKNVibes.com

~~Adz:Right~~BRIDGETOWN, Barbados – BARBADOS could see a four to five percent drop in tourist arrivals next year that could translate into a similar fall in revenue from the country’s largest foreign exchange earner and the loss of thousands of jobs.

According to Caribbean 360, Central Bank Governor Dr. Marion Williams has revealed that “if the global recession is deep and prolonged, tourist arrivals could decline by 20 percent”.

She urged the tourism industry to be modest in its spending.

“If we cut back sharply on the spending on new projects, we will hasten the recession which we wish to avoid. If we spend too rapidly we will deplete our foreign exchange reserves.
We have to have a compromise situation where we don’t overspend and we don’t under-spend,” Williams said.

Barbados Hotel and Tourism Association Vice-President Sue Springer stated that hotels are already feeling the effects of the crisis, noting the majority of them have seen a reduction in the pace of bookings.

Despite Williams’ advice, Prime Minister David Thompson has rejected belt tightening measures in response to the current global financial crisis. Instead, he contends that there needs to be more spending and investment at home to keep the economy going.

Thompson outlined some measures designed to achieve that objective, which include accelerating the increase in tax credit and increasing pensions.