CAF engages with Caribbean Ministers of Tourism at FITUR 2023

Tourism is one of the most important sectors of the Caribbean economies. In 2019, it represented 42% of total exports; 26% of GDP; and generated 35% of total employment in the Caribbean. These figures highlight the magnitude of the impact of the pandemic on key aspects of Caribbean economies, which led to a 67% contraction in travelers in 2020.  In 2019, before the onset of the pandemic, Caribbean islands welcomed over 26.3 million tourists.

In keeping with CAF’s role as the Green Bank of Latin America and the Caribbean and its commitment to supporting the recovery of the region’s economies from the pandemic, CAF is providing dedicated support to the tourism sector with a focus on sustainable and regenerative tourism. Within the framework of FITUR 2023, CAF organized a meeting with Caribbean Ministers of Tourism during which ideas and experiences were shared on developing a tourism model based on community development, resilient infrastructures, the preservation of biodiversity, skills development and capacity-building, particularly for young people and women who represent the majority of tourism workers across the region.  

On behalf of CAF, Christian Asinelli, Vice President of Strategic Programming, presented the main lines of action of the organization's proposal for the tourism sector, with a view to helping alleviate the effects of climate change, preserving biodiversity, promoting cultural heritage and boosting related sectors such as transport, hotels, restaurants and gastronomy. Asinelli also emphasized that CAF’s recent capitalization of an additional US$7 billion dollars will result in the doubling of CAF’s portfolio in the region to US$60 billion by 2030, translating into increased development financing for all CAF shareholder countries.

Stacy Richards-Kennedy, CAF's Regional Manager for the Caribbean, highlighted the alignment of CAF’s strategy for sustainable and regenerative tourism with the unique circumstances of island states, with particular emphasis being placed on the vulnerability of the Caribbean to natural disasters and climatic events.  The devastating effects of these disasters result in tremendous social disruption and economic setbacks and crowd out the fiscal space for financing development projects. As an accredited entity with several global climate funds, CAF is firmly committed to working with Caribbean countries to unlock increased funding to strengthen resilience to disasters as well as external shocks and to promote higher levels of investment in the tourism development plans of Caribbean governments.

CAF's new strategy in sustainable and regenerative tourism

In addition to CAF’s Regional Office for the Caribbean based in Port of Spain, CAF has established an office in the Dominican Republic, which will have a dedicated focus on promoting sustainable and regenerative tourism in Latin America and the Caribbean.  This approach to tourism development goes beyond avoiding negative impacts on the environment, by helping to restore and enhance natural and cultural heritage as well as to ensure that tourism contributes effectively and equitably to the well-being of citizens.

CAF's sustainable tourism support will be advanced through the following lines of action:

• Identity, Social Equity and Cultural Heritage. Support and guarantee the economic, social and cultural well-being of the local host communities (rural, indigenous peoples and Afro-descendants) and thus contribute to reinforcing respect for their rights and their heritage, and incorporating their vision and knowledge to achieve environmental, development and conservation goals.
• Biodiversity and ecosystem services. Support the protection, conservation and regeneration of maritime, terrestrial and insular ecosystems, and increase biodiversity through the sustainable use of natural resources to obtain economic benefits with the minimum environmental impact.
• Vulnerability to natural disasters derived from climate change. Strengthening of monitoring systems and adaptation measures against extreme climate phenomena, especially in small island states.
• Local and National Governance. Support local governments in their planning process, seeking to develop tourism plans at appropriate scales in coordination with national authorities, respecting the carrying capacity of the territory and linking all social agents and subsectors of the tourism sector.
• Sustainability and Circular Economy. Accelerate the decarbonization of the sector seeking neutrality by 2050, promoting new business models through innovative solutions based on the use and reuse of resources, ecological regeneration, energy efficiency, management of water resources, integration of circularity throughout the tourism value chain under the parameters of the action framework of the Glasgow Declaration on Climate Action in Tourism and the Global Initiative on Tourism and Plastics.
• Urban Regeneration and Creative Economies: Support the revitalization and preservation of tangible cultural heritage and the generation of enabling infrastructure for Creative and Cultural Economies (cultural centers, museums, galleries, theaters, creative districts) for the consumption of products or services derived from the sectors where creativity, art and culture are promoted, as well as support for the training of local talent.