The UNWTO Barometer reports that the Caribbean is the only one of the world’s sub-regions to have recorded a decline in arrivals in the first eight months of 2007. The Caribbean experienced a drop of 3%, through August, when compared to 2006.
The principal factors seem to have been the US economy and the effects of the WHTI. Nevertheless, Puerto Rico, a destination where the WHTI passport requirement does not apply, has reported a 7% decline up to May. Cuba and St. Lucia report 8% drops, and tourist arrivals are down 7% in the Bahamas. Travel from the US to the DR was down from 841,404 travelers in August 2006 to 824,860 travelers registered through August 2007, an decline of almost 2%.
The shift in travel to Asia and the Pacific seems to be one explanation. Otherwise, UNWTO is having a hard time explaining the decline. “Since most Caribbean products are priced in US dollars, the decline in the value of the US dollar should not have had a serious effect,” reports WTO. “Quite the reverse in fact, since other destinations would have become more expensive for US travelers and Caribbean destinations cheaper, not only for US travelers, but also, for instance, for Canadians and Europeans,” states the report. It points out that a large increase in arrivals from Canada and a smaller increase from Europe were insufficient to make up for the decline from the USA. However, cruise passenger arrivals (mainly from the USA) are reported to be up about 4%.
The UNWTO prognosis is for continuing stagnation or decline during the rest of the year for the Caribbean.