The LIAT Chairman on what’s in store for 2014
By Jean Holder
Op-Ed Contributor
I AM more of an optimist than a prophet, otherwise I could not do what I do every day. I have an abiding faith in the resilience of the tourism industry and why this is so I have dealt with at length in my new book “Caribbean Tourism,” soon to be released by the UWI Press.
In spite of recent setbacks, the tourism industry will continue to be the driver of the economies of almost all the Caribbean countries into the future.
It is therefore critical that we do not lose faith in it but continue to take the necessary steps to deal with its present short comings.
Recent indications are that the Caribbean will have a reasonably good winter and that arrivals will grow slightly over 2013 in 2014 but expenditure will continue to be affected negatively by the slow state of economic recovery in our traditional source markets.
The industry will become even more competitive as our traditional source markets compete with the Caribbean for business, while maintaining a high level of taxes seen by them not only as a source of revenue but as a way of supporting their domestic tourism by keeping their people holidaying at home.
The Caribbean is challenged therefore to keep improving and diversifying its product, to ramp up the range and the methods of its marketing and to explore new opportunities in non-traditional markets.
None of this will happen however, unless the region stops paying lip service to regional approaches and genuinely works together in all areas, including air transportation, as a Caribbean destination.
This is true whether we are speaking about courting visitors in Latin America or the Far East.
NO single Caribbean country, for example, working alone, can penetrate the Chinese market or offer in isolation a product that will satisfy the expectations of Chinese visitors.
Given the dire economic situation of most Caribbean countries and the restricted spending power of Caribbean people at this time, the intra-Caribbean market will continue to be challenged in 2014 by the falling demand, by a regime of high taxes, by the inadequate financial support of Caribbean carriers by most of the countries being served, and certain structural deficiencies of the carriers themselves.
The carriers will need to take tough decisions in 2014 both about structures and strategies in order to emerge leaner and more focussed on cutting costs, increasing revenues while offering a far better and affordable service to customers.
A major hurdle remains achieving an improved industrial climate that seeks what is best for the customer and an understanding that this is a time for sacrifices on the part of all for the good of the customer and the companies involved.
I pray God’s Blessing on our region and improved circumstances for all of us in the New Year.
Jean Holder is the Chairman of LIAT’s Board of Directors.
Note: the opinions expressed in Caribbean Journal Op-Eds are those of the author and do not necessarily reflect the views of the Caribbean Journal.
