In previous postings I have talked about the impact of the current state of the world’s economy on international tourism. The drop in value of the US dollar has opened up many opportunities for European and Chinese travelers to explore the US on a cheaper budget. Likewise, the strength of the Euro and the Chinese Yuan has allowed Southeast Asian countries to capitalize on their established tourism infrastructure and attract a record number of tourists in 2007 and the beginning of 2008. My focus now lies on the Caribbean countries which rely heavily on tourism primarily from the US.

With the slow down of the US economy, Caribbean tourist destinations will begin to feel the pinch. Although not the only tourists to visit the Caribbean, American tourists do make up a significant portion of visitors. Caribbean countries will have to focus on visitors from other nations to make up a potential loss in visitor numbers in 2008. The bright side is that economic variables can lead to great traveling opportunities especially for countries with a solid set of natural and cultural attractions.

This is good news for travelers in that, it is when an expected slowdown in tourism in a specific region is around the corner, that we begin to see great deals to those locations that are concerned. Significant marketing efforts will be put into practice in order to attract more visitors and to offset a potential drop in visitor rates. Accessibility and ease of travel are two important variables which affect tourism revenue. Therefore it highly likely that hotels will begin to make special arrangements with traditional travel agents and online travel agents like Expedia will be able to leverage better package deals often combining flight and accommodation prices. Government tourism agencies will create travel campaigns making the country’s cultural heritage and renowned sites easily accessible to tourists. Take for example Thailand’s Amazing Thailand campaign, a reaction to the 1997 Asian crisis which eventually created a completely new tourism platform which its infrastructure is now based upon. Another example is New York City’s free bike rides campaign where tourists could get a free bike ride to locations around the city.

The continuing decline of the US economy will continue to put pressure on American’s travel budgets and on Caribbean tourism revenues throughout the year. Although not as evident now, marketing efforts will begin to roll out around mid year given the fact that the major travel season is over and travel plans for the Christmas ’07 season were planned before the US dollar declined heavily. My advice to some of you looking to get away to the Caribbean islands this year; keep an eye open for good deals over the next few months, book around spring for trips in the summer to maximize value.