Former Central Bank Governor Dr Delisle Worrell is calling for policymakers to provide fresh data on the net economic benefits of cruise tourism.
In his December economic letter, Dr Worrell claimed that retailers in Barbados and some other Caribbean islands no longer benefit from cruise tourism because of major changes in the industry.
“There are three reasons one may think of for the disappearance of domestic retail spin-offs from the cruise industry. Firstly, the much larger cruise ships that have become the norm in the 21st century, all provide onboard shopping featuring many of the brands which were formerly only available to those passengers who disembarked,” Dr Worrell stated in the letter.
“Secondly, as cruising has become more affordable, the average cruise passenger is no longer interested in duty-free purchases of jewelry and personal and household items.
“The typical purchase is an inexpensive souvenir, displaying local scenes and symbols, but imported from far away. The third related factor is that local producers cannot match the prices of the imported items. Local creatives and skilled artisans offer unique, high-quality items, but the prices they must charge in order to sustain a viable business are beyond the reach of the typical cruise tourist,” the former consultant to the International Monetary Fund (IMF) maintained.
“This change in circumstances suggests a need for Caribbean governments, policy makers and research institutions to provide the public with new accounting of the net benefit to the economies of host countries from cruise tourism. The assumption that there is a positive net balance may now be called into question.”
Dr Worrell referenced Punda, a once thriving commercial district in Curaçao, once considered the mecca for tourists, most of whom arrived on cruise ships.
He said the district, which once featured banks and stores selling clothing, perfumes and jewelry, was now a shadow of past glory.
Dr Worrell pointed out that the shops which remain sell the same souvenir items as those in the neighbouring Otrabanda District.
“We did find one shop that sells exclusively locally-made craft items, the only place we were able to purchase unique gift items.
“The disappearance of a bustling onshore duty-free commercial street, fueled by the passengers from visiting cruise ships, is a phenomenon that may also be observed in Bridgetown, the capital of Barbados,” Dr Worrell stated.
“In the closing decades of the last century, Broad Street in Bridgetown was a thriving avenue of venerable retail establishments, along with international banks that ran their operations for the Eastern Caribbean from head offices located on the street.”
He added: “On days when large cruise ships docked, visitors thronged the street and shops opened on Sunday, when they would normally be closed whenever cruise ships were in the harbour. Today, the last of the iconic commercial houses has disappeared from Broad Street; when bloggers post videos of Bridgetown nowadays, they ignore Broad Street in favour of the capital’s bustling bazaar on Swan Street.”
The ex-consultant to the UN Economic and Social Council said that although Curaçao and Barbados are the only examples where he can claim to have observed the loss of retail businesses, a recent visit to the Dockyard in Bermuda confirms the impression that there are few benefits for retail businesses from cruise tourism.
“There is a pier for large cruise ships at the Dockyard, which has seen an officially-supported program to renovate the historic buildings of this former bastion of British naval power and convert them into a commercial district.
“However, when we visited, the streets were quiet and the shops mostly empty, in spite of the nearby presence of large cruise ships,” reported the author of several economic publications.
emmanueljoseph@barbadostoday.bb
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