The Caribbean tourism industry continues to lead the region’s economic recovery. However, despite a promising summer travel season, the islands still face formidable financial challenges.

According to the Caribbean Hotel and Tourism Association (CHTA), “rising operating costs, labor shortages, increasing airfares, global competition, economic uncertainty and pressures from some governments to increase taxes” threaten the region’s most lucrative source of income.

CHTA president, Nicola Madden-Greig, released a statement regarding the looming pressures that could affect the industry responsible for most of the island’s income.

“Despite these challenges, the industry remains bullish about the future of tourism in the Caribbean,” Madden-Greig said.

“While we’ve turned the pandemic corner, we’re not out of the woods yet,” she continued. “Many businesses are still climbing out of massive debts and facing global competitive pressures on price increases. Now is not the time to increase taxes, as we are hearing from several countries.”

Madden-Greig added that the real concerns should be uncontrollable “labor shortages and climate changes” She also mentioned how critical it was to begin “strengthening links between tourism and other areas” of the Caribbean’s economy.

In February, the association surveyed a little under 100 businesses. Seventy-seven percent of the participating entities were based in hospitality. The remaining 23 percent comprised tourism-related firms such as attractions, tour/excursion operators, and restaurants.

According to Travel Pulse, the survey findings identified several areas of concern for business owners. The outlet named “airlift cost and availability, taxes and duties, labor shortages, crime and safety, and poor infrastructure” as the primary stressors. Inevitable environmental factors, such as “climate change, sargassum, and waste management,” were also listed as areas to analyze.

The survey also revealed that tourism companies are being forced to use profits to cover any debts incurred during the pandemic. Since capital and expenditure pricing is increasing, they also have to invest more of their operating budget into products.

Madden-Greid declared that one way to combat these issues would be for regional and government marketing agencies to market the area correctly and honestly.

“Another key concern of tourism stakeholders is insufficient destination marketing,” Madden-Grieg said. She also added that “concerns still remain about the lack of a more strategic regional marketing approach.”

Martie Bowser is a journalist and public relations professional in Charlotte, NC. She enjoys amplifying the voices of POC and women that fill a void within their community. Her bylines include “person of interest” interviews, small business highlights, pop culture commentary, entertainment features, and everything Beyonce.