Caribbean Hotel and Tourism Association Calls for Alternative Measures

Introduction to the Issue

MIAMI, CMC—The Caribbean Hotel and Tourism Association (CHTA) has called on the United States to consider alternative measures to imposing tariffs and port fees on Caribbean destinations, noting the “considerable mutual benefits that tourism brings to both the Caribbean and the United States, particularly Florida.”

The CHTA said that it advocates for modifications to the port-related policies currently under consideration and calls for a new approach to strengthening and safeguarding the two-way ties in trade and travel between the region and the United States.

New Tariffs and Their Impact

President Donald Trump last Wednesday announced far-reaching new tariffs on nearly all US trading partners, including a 34 percent tax on imports from China and 20 percent on the European Union, among others. Economists and other traders say the move is designed to dismantle much of the global economy’s architecture and trigger broader trade wars.

In the Caribbean, Trump announced a 10 percent tariff on most regional countries, while in Guyana, the tariff is as high as 38 percent.

The US president also announced plans to impose a one-million US dollar to US$1.5 million levy on all Chinese-made ships entering US harbors.

CHTA’s Response and Concerns

In a statement, the CHTA, which describes itself as the region’s leading association representing private-sector tourism interests, cited its recent submission to the US Trade Representative (USTR) and other US officials in response to a call for comments regarding proposed port service fees.

“The organization argues that these fees, coupled with tariffs, will significantly increase the cost of imports, raising costs for both land and cruise travelers, and ultimately reduce traveler demand and spending.”

The CHTA said that acknowledging Washington’s intention to expand the use of US-built cargo vessels is a warning of the policy’s” unintended consequences, particularly its timing.”

Tourism’s Socio-Economic Benefits

CHTA President Sanovnik Destang underscored tourism’s socio-economic benefits to both regions, including job creation, business opportunities, and increased tax revenue.

“The region was beginning to see the light at the end of the tunnel with many tourism-related businesses recovering from the tremendous impact the pandemic had on travel and tourism,” said Destiny.

“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. One-third of our tourism-related businesses reported a net loss in 2024, according to CHTA’s annual performance study,” he added.

Call for Exemptions and Protection

In its submission to the USTR, CHTA aligned with the CARICOM Private Sector Organization (CPSO) and shipping interests serving the Caribbean, calling for exemptions from the proposed fees for the region and for the protection of smaller shipping companies that serve the Caribbean, often via multiple small transshipment ports.

It said Caribbean states within the proposed exemption would include Anguilla, Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, Bermuda, Bonaire, the British Virgin Islands, Guyana, Cayman Islands, Curaçao, Dominica, Dominican Republic, Grenada, Guadeloupe, Haiti, Jamaica, Sint Maarten, St. Barthélemy, St. Kitts & Nevis, St. Lucia, St. Martin, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago, and Turks & Caicos. Puerto Rico and the US Virgin Islands would be included as US territories.

Tourism’s Economic Contribution

The CHTA, citing the World Travel and Tourism Council, said tourism contributed an estimated US$91.2 billion to the region’s economies in 2024 and generated over 2.9 million jobs.

It said that figures provided by the Barbados-based Caribbean Tourism Organization (CTO) indicated that year, the region welcomed more than 68 million visitors, half via cruise ships and half through stays in hotels and other accommodations.

Conclusion

Destiny said that a vibrant Caribbean hospitality and tourism industry would clearly benefit both the US and the Caribbean. ” In the spirit of mutual collaboration, longstanding benefits from trade and tourism, and our shared commitment to free enterprise and democracy, we are hopeful that our recommendations are considered and adopted for our mutual benefit.”

Frequently Asked Questions

Q: What are the new tariffs announced by President Donald Trump?

A: President Donald Trump announced far-reaching new tariffs on nearly all US trading partners, including a 34 percent tax on imports from China and 20 percent on the European Union, among others.

Q: How will the tariffs affect the Caribbean?

A: The tariffs will significantly increase the cost of imports, raising costs for both land and cruise travelers, and ultimately reduce traveler demand and spending.

Q: What is the CHTA’s response to the proposed port service fees?

A: The CHTA argues that these fees, coupled with tariffs, will have unintended consequences, particularly in terms of timing, and calls for exemptions from the proposed fees for the region and for the protection of smaller shipping companies that serve the Caribbean.