Gloomy Days Ahead for Barbados Tourism

Barbados could see a four to five percent drop in tourist arrivals next year that could translate into a similar fall in revenue from the country’s largest foreign exchange earner and the loss of thousands of jobs.

But the news could get even worse, according to the country’s Central Bank Governor Dr Marion Williams: “If the global recession is deep and prolonged, tourist arrivals could decline by 20 percent.”

And while it is still too early to determine whether the reduction will be as drastic as that, Dr Williams has revealed that the Central Bank’s short term outlook for tourism is not rosy.

“The Central Bank has developed various scenarios. A most recent forecast calls for a four to five percent decline in the long-stay visitors in 2009 and no growth in 2010. Gross expenditure could be nearly down four percent in 2009 before a small recovery in the following year, and during 2009 our foreign exchange reserves may fall by well over BDS$100 million ($50 million),” she said as she addressed the Barbados Hotel and Tourism Association’s (BHTA) final 2008 quarterly meeting.

The Central Bank Governor also urged hoteliers to get commitments of support from their bankers very early to ensure that when the situation gets rougher, they have financing to help cover operational costs.