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Would New U.S. Port Fees Impact Caribbean Travel? 

By: Caribbean Journal Staff - April 7, 2025 - 10:38 pm

As the Caribbean continues its post-pandemic tourism resurgence, the region’s top private-sector tourism body is raising the alarm over proposed U.S. port fees that could hit Caribbean economies — and Florida — hard.

The Caribbean Hotel and Tourism Association (CHTA) is calling on U.S. policymakers to reconsider hefty new service fees and tariffs currently under discussion. In a recent push, the organization is advocating for an alternative path that preserves and strengthens the longstanding, mutually beneficial relationship between the Caribbean and the U.S., especially in terms of trade and travel.

At the center of the debate is a proposed port service fee of up to $1.5 million for every port call made by vessels built or flagged in China. In its formal submission to the U.S. Trade Representative (USTR) and other U.S. officials, CHTA warned that these charges, when combined with broader tariffs, would sharply raise the cost of imports. The ripple effect? Higher prices for both cruise and land-based travelers, and a likely dampening of tourism demand and visitor spending.

CHTA leaders made clear they understand Washington’s interest in promoting U.S.-built cargo vessels, but cautioned that the timing and unintended consequences of this policy could be severe. The association presented robust data underscoring the importance of both cruise and land-based tourism to the U.S. and Caribbean economies, while noting the real challenges that regional shipping companies would face in trying to rapidly move away from Chinese-made vessels.

“The region was beginning to see light at the end of the tunnel with many tourism-related businesses recovering from the tremendous impact the pandemic had on travel and tourism,” said CHTA President Sanovnik Destang. “Even as our industry has rebounded, we remain highly vulnerable to the high cost of operations—particularly food and beverages—driven largely by five years of inflation. One-third of our tourism-related businesses reported a net loss in 2024, according to CHTA’s annual performance study,” he added.

The CHTA has joined forces with the CARICOM Private Sector Organization and shipping industry stakeholders, urging U.S. officials to exempt Caribbean ports from the proposed fees and to offer protections for small, regional shipping firms that often rely on complex transshipment networks.

The list of countries and territories that would fall under the proposed exemption reads like a Caribbean bucket list: Anguilla, Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, Bermuda, Bonaire, the British Virgin Islands, Cayman Islands, Curaçao, Dominica, the Dominican Republic, Grenada, Guadeloupe, Guyana, Haiti, Jamaica, Sint Maarten, St. Barthélemy, St. Kitts and Nevis, St. Lucia, St. Martin, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago, and Turks and Caicos. U.S. territories Puerto Rico and the U.S. Virgin Islands are already included.

Tourism, after all, is a powerhouse for the region. According to the World Travel and Tourism Council, the industry pumped an estimated $91.2 billion into Caribbean economies in 2024, supporting over 2.9 million jobs. The Caribbean Tourism Organization (CTO) reports the region welcomed more than 68 million visitors last year — split evenly between cruise passengers and stayover visitors.

And there’s another key connection: the U.S. is the Caribbean’s largest food supplier, with food and beverage imports accounting for the biggest share of operational costs for regional businesses. An estimated 70 to 80 percent of those imports arrive by sea from U.S. ports, according to CPSO data.

Florida, in particular, stands to feel the impact. The state is a gateway to the Caribbean, not only as the primary departure point for most cruise passengers, but also as a hub for provisioning cruise ships with supplies from Florida-based businesses. These activities generate significant economic returns, supporting jobs and contributing to state and federal tax coffers.

CPSO figures show that each stayover visitor to the Caribbean contributes around $944 toward U.S. imports, translating to roughly $6.2 billion in U.S. exports to CARICOM nations in 2023 alone. Cruise visitors add another $23 per person, amounting to about $300 million in U.S. exports.

“Given the clear mutual advantages to both the U.S. and the Caribbean of a vibrant Caribbean hospitality and tourism industry, and in the spirit of mutual collaboration, longstanding benefits from trade and tourism, and our shared commitment to free enterprise and democracy, we are hopeful that our recommendations are considered and adopted for our mutual benefit,” Destang said.

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