BASSETERRE, St. Kitts — DESPITE growing geopolitical uncertainty and shifting global economic conditions, leaders within the Organisation of Eastern Caribbean States (OECS) remain optimistic about the future of the tourism sector, viewing it as a central pillar of sustainable development.
As small island economies navigate what officials describe as an increasingly fragmented global landscape, regional leaders are focusing on strengthening their economic foundations across five key development pillars — with tourism high on the agenda.
During the 112th Meeting of the Monetary Council, Prime Minister of St. Kitts and Nevis, Dr. Terrance Drew, addressed a question from SKNVibes News about the sector’s outlook, particularly in light of geopolitical shifts in the United States — the region’s largest source market.
Concerns have been raised that a slowdown in the U.S. job market could affect travel demand to the Caribbean. Dr. Drew acknowledged the changing global climate but pointed to the industry’s recent performance as evidence of its resilience.
“When you look at the number of arrivals — 3.3 million — the contribution would have been in the billions with respect to that. And so, we think that the sector is resilient; it has shown that resilience. When you look at the United States of America, based on what you say — which is possibly our largest source market — I think, well, I would have read that we expect economic growth in the United States of America," explained Dr Drew.
According to projections from the International Monetary Fund, the U.S. economy is forecast to grow by approximately 2.4 percent this year.
Caribbean arrivals increased lastyear, including in St. Kitts and Nevis prompting the optimistic outlook.
Still, leaders agree that growth alone is not enough. The focus now is on strengthening the sector’s resilience and ensuring it can withstand external shocks.
"So we expect tourism to continue to grow. However, I think the point that came out is that we must continue to grow a more resilient sector so that tourism can continue to derive what it has derived for us over so many years, but to take it to the next level. As you can see, it’s part of the big push, the big push meaning how can we get significant economic growth within the union to take us to the next level.
Locally, the government of St. Kitts and Nevis is also reporting positive trends, particularly during the Christmas carnival season, which saw a notable increase in visitor arrivals.
As global uncertainties persist, regional leaders appear confident that with strategic planning and a focus on sustainability, tourism will remain a cornerstone of economic development across the OECS.
"Therefore, I think the strategy that would be set as part of the union would be one to create a tourism sector that continues to grow and is resilient. So we think that the tourism sector, of course, will continue to be resilient and there is actually room for growth,” Dr Drew added.
