Charting the Future of Caribbean Tourism: Sustainable, Inclusive, and Resilient Pathways

The World Bank’s "Rethinking Caribbean Tourism" report highlights how Caribbean nations must shift from traditional mass tourism toward more sustainable, inclusive, and resilient models, focusing on cruise reforms, accommodation modernization, adventure tourism development, and environmental sustainability. It offers detailed country case studies and strategic recommendations to secure the region’s long-term competitiveness.

In an ambitious effort to reshape the future of tourism in the Caribbean, the World Bank, supported by PROBLUE and in collaboration with local tourism authorities, national statistical offices, the Inter-American Development Bank (IDB), the Caribbean Development Bank (CDB), and other global consulting partners, released the "Rethinking Caribbean Tourism: Supplementary Annexes" in 2025. This detailed research provides an in-depth analysis of tourism sector dynamics, emerging challenges, and strategic opportunities across the region. Structured around cruise tourism, accommodation, adventure tourism, and sustainability initiatives, the annexes offer a critical guide for Caribbean nations looking to transform their tourism economies towards greater resilience, competitiveness, and inclusivity.

Cruise Tourism at a Crossroads: Antigua and Barbados Lead the Case Studies

The document first focuses on the cruise tourism sector, presenting detailed case studies on Antigua and Barbuda and Barbados. In Antigua and Barbuda, cruise passengers account for nearly 70 percent of all tourist arrivals, with Global Port Holdings’ multimillion-dollar investments transforming St. John’s Harbor into a premier Caribbean destination. Despite this, the benefits remain limited due to stagnant environmental and head taxes, an underdeveloped mobile payment ecosystem, and weak local supply chain integration. The World Bank recommends that Antigua strengthen regional collaboration with OECS countries, promote mobile payment adoption, and improve local supplier linkages to better capture cruise spending.

In Barbados, the paradox is stark. Cruise arrivals have grown, but average spending per passenger has declined due to aging port infrastructure and a congested dual-use cargo-cruise facility. In 2024, Barbados doubled its head tax, the first adjustment in 30 years, aiming to fund necessary upgrades. Still, accommodation barriers like minimum stay requirements continue to hamper pre- and post-cruise tourism development. Barbados is encouraged to introduce an environmental levy, better support small businesses in the cruise supply chain, and pivot towards attracting smaller boutique vessels that align with emerging sustainable travel trends.

Accommodation Dynamics: Growth, Gaps, and Innovation in Jamaica and St. Lucia

Turning to the accommodation sector, Jamaica and St. Lucia present contrasting but equally telling stories. Jamaica’s accommodation sector is booming, with a heavy dominance of foreign-owned, all-inclusive resorts mainly located along the north coast. The surge in short-term rentals (STRs), now representing nearly 30 percent of stopover stays, highlights a shift in visitor behavior. However, regulatory gaps for STRs, persistent skill shortages in hospitality, high leakages due to imported goods, and a lack of attractions outside of resort zones continue to constrain Jamaica’s tourism potential. The annexes recommend modernizing fiscal incentives, strengthening environmental enforcement, boosting platforms like the Agriculture Linkages Exchange (ALEX), and formalizing STRs under a revamped tourism policy.

In St. Lucia, non-registered STR properties have now overtaken formal hotels in the number of rooms available, signaling a seismic shift. The 2024 Tourism Development Act mandates the registration of all accommodation providers, expands the tourism levy, and aims to professionalize the growing STR segment. Nevertheless, issues such as petty crime, poor waste recycling systems, and limited SME access to renewable energy finance still hamper St. Lucia’s broader tourism goals. The report advocates for the development of eco-tourism districts in places like Micoud and Choiseul, along with digital marketing support and security enhancements in non-resort areas.

Adventure Tourism: Dominica’s Natural Riches Versus Systemic Gaps

Adventure tourism, a high-growth niche, is explored through Dominica and the Dominican Republic. Dominica, branded as the "Nature Island," is endowed with breathtaking assets: UNESCO World Heritage Sites, the Waitukubuli National Trail, and resident sperm whale populations. Yet, its tourism industry remains underdeveloped, plagued by weak air connectivity, decaying trail infrastructure, outdated regulations, and limited market knowledge among local operators. The World Bank emphasizes that Dominica must restore and maintain critical trails like the WNT, adopt sustainable financing for protected areas, and implement a comprehensive framework for licensing and safety standards in adventure tourism. Training programs to build local skills in conservation, product development, and business management are highlighted as critical priorities for unlocking Dominica’s full potential.

Meanwhile, the Dominican Republic, already a heavyweight in sun-and-sand tourism, is pivoting to promote adventure experiences in its interior regions. However, the transition is hindered by fragmented licensing systems, insufficient SME support, and weak industry coordination. Strategies to formalize adventure tourism, develop inland clusters, and strengthen local supplier ecosystems are urgently needed if the Dominican Republic is to successfully diversify its tourism economy.

Sustainability: A Common Challenge and the Next Frontier

Across the Caribbean, the need for sustainability is increasingly urgent. While several countries have launched commendable initiatives, such as waste-to-energy projects in Barbados, coral reef restoration in St. Lucia, and renewable energy projects in Jamaica, the overall regional picture remains patchy. Critical gaps in waste management, emissions reduction, and conservation funding still threaten the long-term viability of Caribbean tourism. The annexes stress the need for more transparent and sustainable environmental fees, public-private partnerships for waste and energy infrastructure, and expanded conservation efforts in both terrestrial and marine ecosystems.

The final section, based on a comprehensive consumer perception survey conducted through Visa Destination Insights, reveals that while Caribbean destinations enjoy high brand awareness globally, concerns about crime, environmental degradation, and lack of experiential diversity remain top-of-mind for travelers. Destinations that proactively address these issues, by offering immersive, sustainable, and culturally rich tourism experiences, will emerge as the winners in an increasingly competitive global tourism market.

The "Rethinking Caribbean Tourism" annexes offer not just a diagnosis of today’s challenges, but a forward-looking blueprint. They call on Caribbean nations to move decisively beyond traditional tourism models, anchoring their strategies in sustainability, resilience, and inclusive growth to secure a more prosperous future for generations to come.