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Caribbean suffers slump in UK arrivals

The Caribbean has suffered a 300,000 slump in travellers from the UK in three years, largely blamed on high rates of Air Passenger Duty.


The total of 1.1 million UK arrivals last year was down from 1.4 million in 2007, latest figures from the Caribbean Tourism Organisation show.


UK travel to the region as a whole is expected to improve “marginally at best”.


“The number has declined significantly in the past three years in the backdrop of weak European economies and high air fares precipitated by substantial increases in APD in the last two years,” CTO chairman Ricky Skerritt said.


“This represented 23% of European arrivals or 5.0 per cent of total arrivals to the region.”


Overall arrivals grew by 4% in 2010 to 23.1 million from 22.1 million the previous year bringing numbers back to pre-recession levels in 2008. Cruise tourism registered a 6% increase in 2010.


“However, this is tempered by the lingering effects of the global economic crisis which led to caution and austerity on the part of governments and consumers alike,” Skerritt said.


“This has translated into lower disposable income and lower average visitor spending.


“The evidence indicates that average visitor spending is now back down to the level from which it ascended six years ago.”


Looking forward, the CTO said “all indications” suggest that the US and Canadian markets will continue to perform well in 2011.


Overall arrivals to the region is expected to increase by around 5% this year.


“Travellers are still expected to hold a tight purse in light of continued uncertainty in their home economies and globally,” said Skerritt.


Hotel revenues continue to fall short of where they were four to five years ago.


Hotels will continue to offer “attractive offers” in an effort to restore viable levels of occupancy in the face of reduced average spend by guests.


“The accommodation sub-sector will still be under considerable pressure to sustain operations at past levels,” Skerritt said.


“Barring any international or regional unforeseen economic or social trauma in 2011 the indicators of Caribbean tourism performance should continue to move in a positive direction.”


 



 

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