Caribbean tourism chiefs warn of ‘unintended consequences’ of US port fees proposals

Proposed new US port fees could hit Caribbean tourism, a leading regional trade body has warned.

 

The Caribbean Hotel and Tourism Association (CHTA) is calling on US policymakers to rethink hefty new service fees and tariffs currently under discussion. 

 

A proposed port service fee of up to $1.5 million for every call made by vessels built or flagged in China is at the centre of the debate. 

 

The organisation is calling for an alternative option that maintains and strengthens the longstanding relationship between the Caribbean and the US, especially covering trade and travel.

 

In a formal submission to the US Trade Representative (USTR) and other US officials, the CHTA warned that the charges, when combined with broader Trump-imposed tariffs, would sharply raise the cost of imports. 

 

The result would be higher prices for both cruise and land-based travellers, and a likely dampening of tourism demand and visitor spending.

 

While acknowledging the US government’s intention to expand the use of US-built cargo vessels, the CHTA warned of the policy’s “unintended consequences”, particularly its timing. 

 

The association highlighted the value of both land- and cruise-based travel to the US and the Caribbean, as well as the challenges that US and Caribbean-owned shipping companies would face in quickly transitioning away from Chinese-built vessels.

 

CHTA president Sanovnik Destang emphasised the socio-economic benefits that tourism brings to both regions, including job creation, business opportunities and increased tax revenue.

 

He said: “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. 

 

“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.”

 

The association is calling for exemptions from the proposed fees for the region and for protection of smaller shipping companies that serve the Caribbean.

 

Caribbean states within the proposed exemption would include: Anguilla, Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, Bermuda, Bonaire, the British Virgin Islands, Guyana, Cayman Islands, Curaçao, Dominica, Dominican Republic, Grenada, Guadeloupe, Haiti, Jamaica, Sint Maarten, St. Barthélemy, St. Kitts & Nevis, St. Lucia, St. Martin, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago, and Turks & Caicos. Puerto Rico and the US Virgin Islands would be included as US territories.

 

Tourism contributed an estimated $91.2 billion to the region’s economies in 2024 and generated more than 2.9 million jobs, according to the World Travel & Tourism Council. The region welcomed more than 68 million visitors - half via cruise ships and half through stays in hotels and other accommodations - according to the Caribbean Tourism Organisation (CTO).

 

The US is the largest supplier of food products to the Caribbean, with food and beverage representing the highest input costs. An estimated 70–80% of these goods are delivered via maritime shipping from the US.

 

Destang said: “Given the clear mutual advantages to both the US 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.”