The Caribbean

TDM 458Ara Pachmayer

Main Geographical FeaturesTropical location: between 5 and 30

degrees north of the EquatorSheltered from strong trade windsSignificant and diverse maritime and

hydrological resources – in addition to oceans - reefs, ship wrecks, etc.

Diverse relief and ecological habitatsTropics, volcanic islands, beaches, deserts

Mild and reliable climatic conditions

Stretches about 2,000 miles from north to south (Florida to South America)

Consists of about 32 countries; each made up of several individual islands

Strategic location between North and South America (proximity to US & Canadian Market)

Location in summer hurricane region

Main Geographical Features

Map of Caribbean

Warm blue waters an average of 76F year round Many of the countries have evolved into

water-sport destinationsThey refined the luxury, all-inclusive

holiday conceptHeavy dependence on tourism

About 25%-75% direct and indirect employment is in tourism

The Caribbean

The Caribbean

Generally, single-destination “stay-puts”, but inter-island air travel and island hopping tourism is increasing

Leading cruise region in the worldExpanding wedding and

honeymoon tourism (Romance Tourism)

Bareboat self-charters and crewed yacht cruising are also important

Historical Factors

Originally settled by peaceful Arawak Indians

Followed by Fierce Carib IndiansEuropean exploration about 500

years ago, led by Spain; destruction of Caribs, Arawaks and their cultures Dominica - only island with a remaining indigenous

population

European colonization, exploitation, and mercantilism (mostly France, England, Spain and the Dutch)

Historical Factors

Introduction and establishment of plantation economy (sugarcane, banana, distilleries); Resulted in the region’s incorporation into

global economy through trade)Forced slave labor from West Africa to

support labor-intensive plantation economiesSimilar to the USA

Led to current Afro-Caribbean heritage in the forms of music, dance, language, religion, etc.

Historical Factors

Importation of indentured (domestic) labor from Europe, India and South AsiaSome regions still retain the cultural

influence of immigrants in the regionEuropean settlement in the region

during the wave of migration in the late 19th century

Political partitioning of the region between European countries in the late 1800s - English, Dutch, French and Spanish

Historical and Political Factors

Different policies affected socio-cultural landscape - Martinique and Guadalupe are overseas French territories

US influence - other US territoriesProhibition in the US and origins of

Caribbean cruise industry (booze cruises)

Post WWII economic diversification from traditional agriculture and expansion of the Tourism sector

Some Factors Central to Caribbean Tourism

Mild, pleasant, reliable climateUniquely attractive hydrological

resource baseRich, abundant, diverse natural

and cultural resourcesHospitality of the resident

population, despite their history of colonization and exploitation

Some Critical Factors

Proximity to the North American MarketLinguistic AssetsDollar zone, easy use of credit cardsPolitical Stability, foreign investmentsAffordability, competition among

destination and tourism service providers

Extensive marketing and promotion

Regional Cooperation

Caribbean Tourism Organization (CTO)http://www.onecaribbean.org/aboutus/ http://vimeo.com/16897755

Caribbean Hotel and Tourism Association (CHTA)http://www.caribbeanhotelandtourism.com/

Caribbean Basin Initiative (CBI)http://www.ustr.gov/trade-topics/trade-devel

opment/preference-programs/caribbean-basin-initiative-cbi

The Caribbean Community (CARICOM)http://www.caricom.org/

MicrostatesA Microstate is a country or sovereign state

with less than 1 million peopleMicrostates have small land area - less

than 1000 square kilometers of land Typically limited resource and economic

baseThere are numerous island and non-island

microstates around the worldCaribbeanOceaniaIndian OceanEurope

Tourism on Island Microstates

Tourism tends to dominate the economies of island microstates (measured in terms of tourism receipts accounting for more than 10% of export earnings or 5% of GNP)

Most Caribbean countries are considered Island Microstates

About 12 of these Caribbean microstates have tourism-dependent economies

Hence tourism can overwhelm, and lead to many severe adverse social, economic and environmental impacts

Tourism: The Irritant Industry

Although tourism is big business in the Caribbean basin, it has serious drawbacks: The invasion of poor communities by affluent tourists

result in a rising sense of local anger and resentment by the locals

The intervention of local governments and multinational corporation removes opportunities from local entrepreneurs in favor of large operations and major resorts, e.g., Club Med

Selected Impacts of Tourism in the Caribbean

Social: drugs, crime, prostitutionEconomic: Leakage, dependency,

urbanization, alienation of land, economic demonstration effect, high costs, inflation, land speculation

Environmental: pollution, excess carrying capacity, land use conflicts

Overview of Tourism in Caribbean

2011 - 20.8 million visitorsGrowth 1.6% 2000 -10…stagnant

(not much growth as we learned last week)

2011 - $23.9 billion in tourist expenditure

$1,150 per visitorExpenditures up from 2010 but per

visitor expenditures down by $30/visitor

OVERVIEW OF SOME DESTINATIONS IN THE CARIBBEAN

Puerto RicoAmerican territory, cruise ship hub,

airline gateway to the Caribbean and Latin America

Beach, forest and cultural resourcesProximity to USVIMajor hotel construction and

renovations3.7 million arrivals 2010 (no stats -

2011)$3.6 billion

Dominican Republic

Has some of the best beaches in the Caribbean

Expanding tourism marketing in Europe, North, and South America

Major resort beach developmentAmong the fastest growing destinations in

the Caribbean 2000-20064.1 million arrivals (2010), 4.3 million

(2011)$4.2 billion (2010), $4.35 billion (2011)

JamaicaDiversified product: golf, beaches,

mountains, fine resorts, music festivals, wedding and honeymoon tourismVery popular as an all inclusive resort

destinationMain resorts include Montego Bay, Negril,

and Ocho RiosRecent violence and increase in crime

threaten to undermine tourism1.9 million arrivals (2010), same in 2011$2 billion (2010), same in 2011

Cayman IslandsDive tourism and

international bankingPioneered strict rules for

coral reef protectionConsiderable cruise tourismFairly up-scale and expensive

destination

The Bahamas

Has about 700 islands, many labeled “paradisical”

Major tourism is concentrated on Grand Bahamas, Nassau/Paradise Islands

Off-shore international bankingGambling, Casinos and cruise tourismProximity to the USA - only 160 miles from

Florida1.37 million arrivals (2010), 1.34 million

(2011)$2.1 Billion (2010), no stats for 2011

BermudaBermuda consists of 150 islands and

islets, of which 20 are inhabitedThe country is divided into 9 ParishesTotal land area is 55 Square Kilometers

with a population of about 62,000Population density is 1127 people per

square kilometer (compared to Japan = 326, US = 26 and Bahamas = 27)

BermudaProximity to North America influences

tourismAbout 600 miles from the eastern

seaboard87% of tourists are from the USAPer capita income is higher than USA Tourism is the main employer,

contributes 33% to GNP

BermudaTourist receipts in 2008 - $550 million

Down to $466 million in 2011Air arrivals in 2008 - 350,000Cruise arrivals in 2008 - 280,000During peak tourist season, ratio is

about 10 tourists per 1 resident - High Irritation Index

Bermuda video

Go to Bermuda promotional videohttp://www.youtube.com/bermuda#p/

u/7/_jfILNAPZkI

Bermuda

Bermuda Hospitality Institutehttp://www.bhi.bm/website/?page_id=

2Hospitality is a way of life in

BermudaHospitality Skills = Life Skills

http://www.youtube.com/user/LookBermudaTV

Other leading destinations

Aruba - 871,000 visitors, $1.3 billion (2011)http://www.youtube.com/watch?v=nf

y2E_Xp7eo&feature=related

Barbados - 568,000 visitors, just under $1 billion (2011)http://www.youtube.com/watch?v=-7

TtY_kTbD8

Emerging Destinations

Cuba: Havana and the Varadero resort areas 2.5 million arrivals (2010), 2.68

million arrivals (2011)$2.1 billion (2010), no stats for

2011

History Between WWI and the late 1950’s Cuba

was a major destination for AmericansHavana was dubbed the “Latin Las Vegas”# 1 tourism destination in the Caribbean

Socialist Revolution in the 1950’sResulted in placement of communist

governmentImproved relations with the USSR and CubaDisintegration of relations with the US and

CubaEconomic embargo that stands until today

Travel to Cuba prohibited, purchase or use of Cuban products illegal for Americans

1961 - arrivals dropped to only 4180 tourists!

History until today

Tourism to Cuba was generally curtailed after the revolution Perceived connection to capitalism High spending tourists replaced by low spending

tourists from the Eastern block countries to some extent

1970’s renewed interest in travel to Cuba (small #s)

Early 1990’s collapse of the Soviet Union Results in collapse of Cuban economy as they were

tied so closely to the USSR economy New interest by the Cuban government in

development of tourism - mainly as a quick means to earn money

Goals - 1) increase revenues generated by the tourism industry

2) increase the number of tourist arrivals

Strategies to develop

Three measures to meet goals (1990s)Build relationships with international

companies to build and manage hotels and other facilities

Attracting new foreign investment in other sections of their economy

Restructuring of bureacracy responsible for tourism

This has worked - tourists increased, revenues increased

Some problems

Some major tourist developments in Cuba but much of the infrastructure is not on par with other Caribbean countries

Lack of skilled managers and other professionals educated in tourism profession

Differentiation from other Caribbean destinations

Worldwide economic recession Tourism unlikely to grow while the US embargo

is still in place

Some positive things

“Untouched by time”Health tourismHavana designated a UNESCO World

Heritage siteWell known people have history in CubaPotential novelty of travel to CubaRelatively higher levels of safety

No Reservations - Cuba

http://www.travelchannel.com/Video/relive-cuba-with-tony-15423