May 01, 2025
In light of concerns about “fake news” and misinformation, the Government of Saint Lucia (GOSL) and the Ministry of Tourism have struggled to provide accurate data on the tourism industry. This raises questions about accountability and the true state of tourism.
The 2025/26 budget address claims that tourism in the Eastern Caribbean Currency Union (ECCU) has returned to pre-COVID levels. However, the imposition of tariffs by the US and retaliatory measures may negatively impact global economic growth and, consequently, Saint Lucia’s tourism industry.
Tourism is crucial for Saint Lucia, contributing 65% of GDP and being the main source of foreign exchange earnings. Despite previous political forecasts, the IMF’s 2024 Article IV Consultation indicates that Saint Lucia’s tourism-dependent economy has rebounded post-pandemic. The current account deficit narrowed to 1.9% of GDP in 2023 due to tourism recovery, although the fiscal deficit widened to 2.6% of GDP, and debt increased to 74.5% of GDP.
The government announced a landmark XCD 3.5 billion in tourism revenue last year, despite operating with 500 fewer hotel rooms. This figure has sparked debate about its accuracy and the distribution of revenue within the economy. Visitor arrivals reached XCD 3.5 billion, with significant contributions from US and UK visitors.
Saint Lucia’s tourism authority has developed a global strategic marketing plan to address economic uncertainties, leveraging digital platforms and promoting sustainable tourism. The government aims to support small and medium-sized enterprises (SMSEs) to capitalize on tourism opportunities.
The budget address highlights the importance of private sector investments in housing and tourism, noting that 2024 was a record year for stayover arrivals and visitor spending. The government has made public debt information available for scrutiny, with the debt-to-GDP ratio at 73.5% in 2024.
A regional tourism consultant has expressed concerns about the 2025/26 budget, predicting hardship ahead despite the reported tourism revenue and low unemployment rate. The Saint Lucia Tourism Authority stands by its figures, emphasizing improved data collection methods.
Source: (Caribbean News Global)
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