With all the unrest that is presently happening in the Middle East the world tourism market is hoping it is quickly and peacefully resolved. With continued speculation by consumers and by extension the markets they control driving the price per barrel of oil upwards, it is feared that fuel and related costs for travel may also climb.
Will the tourism industry be adversely affected throughout the Caribbean? We have found that when oil prices rise significantly and airlines pass this cost to its passengers, tourism settles for destinations closer to its homes.
For example, American tourists go more to the Bahamas, Europeans to closer destinations within the continent and Canada to driving to the States or other parts of their country. Also cruise liners reduce the amount of planned voyages and destination ports have to accept less calls to their ports.
The result can be a ripple effect that can negatively affect the seasonal employment of locals affecting the islands’ GDP. Coupled with this as costs rise due to oil price pressures, people from the islands living in foriegn lands repatriate less money to their families in the islands leading to a negative impact on the countries financial inflows as well.
So the prayer for peace is not only for democracy to reign or for peace to prosper but also for our Caribbean market to weather a storm that after the recession of 2008/2009 we will not like to face in a hurry again.
Oil & Tourism
With all the unrest that is presently happening in the Middle East the world tourism market is hoping it is quickly and peacefully resolved. With continued speculation by consumers and by extension the markets they control driving the price per barrel of oil upwards, it is feared that fuel and related costs for travel may also climb.
Will the tourism industry be adversely affected throughout the Caribbean? We have found that when oil prices rise significantly and airlines pass this cost to its passengers, tourism settles for destinations closer to its homes.
For example, American tourists go more to the Bahamas, Europeans to closer destinations within the continent and Canada to driving to the States or other parts of their country. Also cruise liners reduce the amount of planned voyages and destination ports have to accept less calls to their ports.
The result can be a ripple effect that can negatively affect the seasonal employment of locals affecting the islands’ GDP. Coupled with this as costs rise due to oil price pressures, people from the islands living in foriegn lands repatriate less money to their families in the islands leading to a negative impact on the countries financial inflows as well.
So the prayer for peace is not only for democracy to reign or for peace to prosper but also for our Caribbean market to weather a storm that after the recession of 2008/2009 we will not like to face in a hurry again.