Mr. Chairman, the Right Honourable Hubert Ingraham, Prime Minister of the Commonwealth of the Bahamas,
His Excellency the President of Guyana;
Other Esteemed Heads of Government;
Honourable Ministers;
Representatives of Regional Organizations;
Senior Government Officials;
Distinguished Ladies and Gentlemen.
The Caribbean Hotel Association wants to place on the record, its gratitude to CARICOM, for hosting this historic summit.
When we met here in October, I expressed the hope, that that Meeting would mark the beginning, of a much closer working relationship, between the wider tourism industry, and policy makers of the Region, at the highest possible level.
It is gratifying to note, the speed at which this summit has come to fruition. And, it is certainly a reflection of the importance, you place on our industry, and the contribution tourism makes to the national economies, and people of the Caribbean.
This meeting has the potential to revolutionize Caribbean tourism. The agenda developed for this Summit, cuts to the core of the major challenges to success.
Honourable Prime Ministers:
There is no need for CHA to underline the devastation that has hit Caribbean economies since September 11th. This is a common experience we all share. The simple truth is, that long before September 11th, the Region had been experiencing a growing crisis, as Caribbean destinations became increasingly less competitive, in a fiercely competitive global tourism marketplace.
Parallel with this, the contraction of the world's major economies, had been exacting a heavy toll on tourism performance in the Region. Permit me if you will, an opportunity to do a quick scan, of the environment in which we now operate.
- The IMF is predicting world GDP growth at 2.6% this year, against 4.7% last year. Where economists were projecting current GDP in the United States at 1%, they expect the US economy to shrink by nearly 1% instead.
- Some 200,000 American workers were made redundant in the month before the terrorist attacks.
- Analysts expect a drop of twenty five to thirty percent in profits for the top fortune 500 companies.
- Indices on the international stock markets are some 30% below their 1999/2000 peaks.
- Close to 2 million hotel rooms have stood empty in the united states every day since September 11th.
- Consumer confidence among Americans, British and Europeans is near an all time low.
I am not being a prophet of gloom and doom, but this is the reality of the environment in which we operate. What is very heartening however, is the initiative of a number of Caribbean leaders, in devising measures to assist the tourism sector. From increased funds to market destinations, to aid packages for hotels, and the waiver of some industry taxes.
While these measures are welcomed, and there have been some signs of a recovery for Caribbean tourism since September 11th, bookings for the fall have been at significant discounts, and prospects for the coming winter season are still well below projections.
Honourable Prime Ministers:
The decision taken at the October meeting on regional marketing, is the perfect example of what can be achieved when the public and private sector combine forces.
We are excited in the private sector that at last a formula has been developed that allows there to be a genuine partnership for a regional marketing program, and this has been exemplified by the welcome that we have received, in discussions with potential strategic partners. As a result, we have been able to develop a revised funding formula, that will permit us to be on television by mid-January. This type of cooperative initiative, is at the core of an aggressive and flourishing regional tourism industry.
In our discussions with the Caribbean Tourism Organisation, we have also developed a formula for a sustainable public/private sector funding mechanism, to propel the Region forward.
In the immediate short term, and in the longer term, the great challenge facing the Caribbean, is to devise a strategy for stabilization and survival, in the current tourism crisis, and for recovery and reconstruction, and a return to success and growth.
Central to such a strategy, is that government reach decisions at this summit, on the areas determined as critical success factors, to regional tourism, and regional economies. If we are to move forward as a Region, then the decisions we make over the next 48 hours, must lead to;
1. Recognition of tourism as a key strategic export industry.
2. A review and rationalization of the factors responsible, for the relatively uncompetitive cost of hotel operations in the region.
3. Creation of a tax policy as a developmental tool in overall tourism policy.
4. Support of the recommendation for a sustainable fund that would enable us to compete with destinations like, Mexico, Florida and Canada.
5. Development and support of international and regional air services.
While we anticipate, that many decisions will be taken at this Summit on the way forward for Caribbean tourism, we urge Heads of the Community, to establish, at this Summit, the process and the mechanisms, that will allow the decisions to be acted on.
This initiative must provide a clear and concise plan of action, to move the decision taken at this Summit forward. To accomplish this, we urge the establishment, of a multi-partite Caribbean Tourism Task Force, at the highest possible level. This Caribbean Tourism Task Force, would help to unify the Region's response to the challenges facing us.
We further urge Heads of the Community, to give tourism the priority it deserves on CARICOM's agenda, and that tourism is brought within the ambit, of the Caribbean Single Market and Economy.
Honourable Prime Ministers, there is the belief, that out of every tragedy comes triumph. There is no need to remind you that September 11th, has forced the world to reconsider the way it does business. It has forced us to hold two very important meetings in a relatively short period of time, bringing the Caribbean closer together.
We need to ensure that this level of dialogue and cooperation is continuous, particularly in view of the fact that tourism is the engine of economic growth in our Region. We are therefore calling for a dedicated annual tourism summit to review the status of the industry and action taken on decisions made.
Honourable Heads of the Community:
The Caribbean Hotel Association pledges to aggressively support, every Regional initiative, that will propel tourism forward.
In an effort to ensure the widest possible support for the initiatives being discussed, we have canvassed our membership across the Caribbean, in developing these submissions with the Caribbean Tourism Organization. We are indeed mindful of Governments' desire to widen the tourism pie, encouraging greater participation of the ancillary sectors, and developing more entrepreneurs, particularly in areas where we in the private sector can help. This would obviously enhance the revenue base, and create additional employment opportunities, for the people of the Region.
Importantly, if this Region is to advance, and tourism is to be the engine of growth for the foreseeable future, then, this Meeting needs to take firm decisions, on the topics being discussed here. We stand ready to play our part.
Governments can call on the collective insight and enterprise of the Caribbean Hotel Association, and our industry partners, to improve our tourism prospects, to generate jobs, and to help to grow the Region's economies. My colleagues will provide specifics on the key sectors of Caribbean tourism, attracting our attention at this summit.
Honourable Prime Ministers
I can think of countless times when the phrase, “there is no time like the present”, has been used to stress the importance of taking positive decisions, during critical discussions. I, too, at the risk of being repetitive, would respectfully suggest, that there is no time like the present to resolve the issues facing Caribbean tourism.
The Caribbean Hotel Association thanks you, for the opportunity to share our thoughts, at this critical juncture.
