Essay on Economic Repercussions of Tourism in the Caribbean

1058 Words 5 Pages
Economic Repercussions of Tourism in the Caribbean

The tourism industry is one of the largest contributors to the world
GDP. It employs millions worldwide and provides a livelihood for nations and individuals alike. Focussing on a more specific economy - the economy of the Caribbean - a similar picture emerges. Much of the population has found employment in industries directly related to tourism and many more have done so in industries indirectly related to tourism. Albeit, there lurks a reality that defies this rosy illusion.
The adverse effects of tourism on the economy are many and significant. In the long run, few clear advantages are visible. For countries of the Caribbean, that support their total national revenue
…show more content…
Since the islands rely so heavily upon the flow of capital from the tourist sector, they can easily be devastated financially if even the slightest natural phenomena occur. Volcanoes and hurricanes - two common and well known natural disasters - are quite frequent in the Caribbean, owing to the physical geography of the regions. Such events can easily deter potential tourists and sent the economy into a downward spiraling recession, amplifying the challenge of recovery.

The increased demand for goods that ensues subsequent to the establishment of tourism as the primary contributor to national income leads to an unprecedented demand for products and services. And as according to the dictates of the laws of supply and demand, as inflation beings to skyrocket, the purchasing power parity of individuals plummets. This imbalance between an extremely high aggregate demand and a relatively inelastic aggregate supply (in part due to the short time frame) places locals in a difficult position.
High costs of living necessitate drastic changes in traditional lifestyles and often lead to poverty; these events in turn result in even greater social and economic chaos.

Unlike the development of high-tech industries by public and private sector contributions, heavy investment in tourism yields few other advantages, especially in digital communications networks. To
illustrate

More about Essay on Economic Repercussions of Tourism in the Caribbean

Open Document