ST. JOHN’S, Antigua – PRESIDENT of the Caribbean Hotel and Tourism Association (CHTA), Sanovick Destang, has confirmed that demand for travel to the region remains strong, even as global economic uncertainties pose significant challenges.
His remarks come amid concerns over a potential U.S. recession, new tariffs, and declining domestic travel within the United States—factors that could affect the Caribbean's primary source market.
The U.S. remains the major market, accounting for more than 60 percent of all travel to the region, Destang said while responding to a question from SKNVibes' Jermine Abel, acknowledging that the the region has faced challenges before, and we’ve weathered the storm.
Destang spoke during the 43rd CHTA Marketplace held in Antigua and Barbuda, where tourism stakeholders gathered to discuss the state of the industry, including issues such as airlift, market diversification, and sector resilience.
On the sidelines of the event, Sanovich emphasized the need for regional stakeholders to focus on their people and the authenticity of the Caribbean’s tourism offerings. “We need better linkages between tourism and other sectors—linkages that allow us to really showcase these authentic caribbean products and services that people are seeking when they travel,” he said.
The Caribbean tourism sector recorded a 6.1 percent increase in arrivals last year and a 6.9 percent increase over pre-pandemic levels. According to the Caribbean Tourism Organization, the region welcomed 34 million visitors in 2023, with Jamaica and the Dominican Republic among the most popular destinations.
“You see trends in foodie tourism, adventure tourism—beaches are back. These are things we have in abundance and can excel at if we really lean in and focus,” Destang added.
With evolving dynamics in the U.S. market, stakeholders are now calling for greater diversification. One area of focus at the CHTA meeting was the Canadian market, especially in light of strained U.S.–Canada relations.
Since the imposition of tariffs by former U.S. President Donald Trump, travel from Canada to the Caribbean has dropped by more than 20 percent.
“And of course, with the U.S. being our major market in the Caribbean and that market being at risk, we need to focus on alternative markets,” Destang said. “You often hear about Canada, you hear about the U.K.—that’s where people naturally gravitate. But there are 40 million people right here in the Caribbean, a market that remains very underserved given the demand.”
However, promoting intra-regional travel comes with its own set of challenges, including high airfare costs and difficulties with immigration procedures. In response, governments in Barbados and St. Lucia have agreed to reduce travel-related taxes by 50 percent in an effort to stimulate regional movement.
Meanwhile, hotel operators have raised concerns about how U.S.-imposed tariffs and taxes could eventually affect tourism demand in the region. Sanovich noted that early-year optimism within the sector has given way to caution, particularly after “liberation day”—a term he did not elaborate on.
“A lot of hotels have reported a downturn in booking pace, particularly from the U.S.,” he said. “Some segments, like luxury, may be holding up better, but there is concern, especially among middle-market hotels, about the impact of a potential U.S. recession.”
Again stressing the importance of regional markets, Sanovich said, “The reality is you're not in any business—certainly not hospitality and tourism—just for this year or next year. We have to think long-term.”
Despite the challenges, Sanovich and other tourism leaders remain hopeful that new tariffs and taxes won’t derail the sector, which remains the economic backbone of many Caribbean small island states.
