Nation’s leaders remain ‘optimistic’ as global tourism declines
By Ryan Haas
Reporter-SKNVibes.com
BASSETERRE, St. Kitts- MINISTER with responsibility for Finance Dr. Hon. Timothy Harris has stated that the global economic recession is likely to affect St. Kitts-Nevis in the new year and that stakeholders should be “realistic but optimistic”.
The allocation for 2009 tourism expenditures received a near 9% boost of $1.6 million in order to offset a downturn in travel from the U.S. Harris said that this downturn has already significantly impacted stay-over visitors to St. Kitts-Nevis.
“Stay-over arrivals in 2007 declined by 10.9% to reach 125,026 when compared to 140,248 in 2006. [These] arrivals declined by roughly the same average as was experienced across the Caribbean, impacted mostly by a decline in U.S. arrivals to our region following the implementation in January 2007 of the Western Hemisphere Travel Initiative,” Harris said.
Because that initiative requires persons traveling to any U.S. port to have a valid passport, Harris said it created a backlog in the passport application process which significantly impacted the number of travelers to St. Kitts-Nevis.
Despite the decline in air travel and stay-over visits, Harris said the tourism sector was largely bolstered in 2007 by a booming cruise ship industry and actually experienced an 8.4% increase overall.
“Yacht and cruise ship passenger arrivals to our Federation increased by 21.3% to 255,086 in 2007. The robust performance of passenger arrivals by sea has continued in 2008 and can be attributed to the very first weekly cruise ship calls at Port Zante which will happen for the entire year.” 
Additionally, Harris said the tourism sector in recent years was bolstered by special events such as Cricket World Cup and the CARIFTA Games, as well as building projects such as Christophe Harbour and the planned Marriott Vacation Club International Project.
Despite these continued “investment projects” and significant concessions to small hoteliers in the new year, Harris said that stakeholders should be prepared for a slowdown in the early part of 2009.
“The current world economic slowdown and low consumer confidence pose a significant threat to the performance of our local and regional tourism sector in this, the last quarter of 2008, and…our Tourism Sector can expect to feel the brunt of this from early 2009.”
The Minister said that if tourism stakeholders in St. Kitts-Nevis are prudent during 2009 it is likely that they will be able to fully rebound without large amounts of loss.
“We need to be watchful but aggressive in the market place, to be cost efficient but customer focused in our operations. We must be prudent during slow economic times, but ready for the inevitable rebound which could come more quickly than expected.”
