Caribbean leaders urge US to rethink port fees amid potential blow to tourism
Published:Wednesday | April 9, 2025 | 12:09 AMJanet Silvera/Gleaner Writer
WESTERN BUREAU:
Caribbean leaders and tourism stakeholders are expressing alarm over proposed US port service fees and tariffs, warning that these could severely impact the region’s fragile economies and tourism industry.
The Caribbean Hotel and Tourism Association (CHTA), the leading private-sector tourism group, has formally appealed to the US Trade Representative and other US authorities for exemptions to the fees, which could potentially reach US$1.5 million per port call for Chinese-built or flagged vessels.
The CHTA is urging the US to consider the Caribbean’s unique vulnerabilities and the long-standing economic and social ties between the two regions.
“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 (COVID-19) had on travel and tourism,” said CHTA President Sanovnik Destang. “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.”
Destang noted that a third of tourism-related businesses in the region reported net losses in 2024.
CHTA argues that the proposed policy, which aims to reduce reliance on Chinese vessels, could harm small and mid-size Caribbean shipping companies, which play a critical role in the tourism sector by importing goods. The association, joined by the CARICOM Private Sector Organization (CPSO) and regional shipping groups, is calling for the Caribbean to be exempted from these fees.
Reinforcing these concerns, Barbados Prime Minister Mia Amor Mottley issued a warning during a recent address, stating that the economic impact of these policies could extend far beyond goods and logistics.
“This crisis, my friends, will impact not only goods, but it may also have a large spill-over effect on tourism,” said Mottley, who is the current chairman of CARICOM. “We suggest that the region takes steps to sustain the tourism industry, as likely worsening conditions and many of our source markets will have negative impacts on people’s ability to travel.”
VITAL FOR GROWTH
Mottley emphasised the historical importance of US-Caribbean cooperation, citing the Caribbean Basin Initiative from the 1980s. She noted that US-Caribbean collaboration has been vital for social stability, economic growth, and security in the region, often considered “America’s third border”.
Tourism is a key contributor to the Caribbean economy, with an estimated US$91.2 billion in 2024 and 2.9 million jobs supported. In 2024, over 68 million visitors came to the region, half via cruise ships and half through traditional accommodations. The CHTA and CARICOM stakeholders warn that rising operational costs because of tariffs or port fees could disrupt the region’s recovery, jeopardising millions of jobs. They are asking for exemptions for Caribbean nations and US territories like Puerto Rico and the US Virgin Islands.
“The spirit of cooperation must prevail,” Mottley concluded. “We must re-engage urgently, directly, and at the highest possible level with our friends in the United States of America.”