hkskyline
June 7th, 2005, 06:37 AM
Passport plan puts $2.6bn black cloud over Caribbean
Amy Yee in New York
5 June 2005
Financial Times
The Caribbean, the most tourism-intensive region in the world, stands to lose as much as $2.6bn in holiday spending because of a new rule requiring US citizens to carry passports when travelling there.
The requirement is part of more stringent US border control and security policies.
Tourism accounts for 14.8 per cent of the Caribbean's total gross domestic product and generates 15.5 per cent of total jobs, according to the World Travel and Tourism Council.
The rule, which is proposed to go into effect from January 1 next year, requires US citizens to have a passport to re-enter the US from the non-US territories of the Caribbean. Only 15 per cent of Americans currently hold passports. Spending on Caribbean goods and services by US visitors reached $2.6bn (?2.1bn, GBP1.4bn) out of total visitor spending of $20.7bn last year, according to a study by the WTTC on behalf of the Caribbean Hotel Association.
The findings, released during a summit of Caribbean tourism officials in New York, also concluded that the new passport rule and potential decrease in visitors could cost the region more than 188,000 tourism jobs.
The new passport restrictions will "cause significant hardship for several destinations" said Jean-Claude Baumgarten, president of the WTTC.
Currently, US citizens need only show proof of citizenship, such as an expired passport or driver's licence, to travel to most Caribbean destinations.
Regional tourism officials are vigorously lobbying the US to grant the same January 1 2008 deadline that visitors to Canada and Mexico face, in order to allow more time to prepare travellers for the new rule.
The cruise industry, which also stands to take a big hit from the passport requirement, has also been vocal about extending the deadline. More than 3,578 cruise ships visited the Caribbean last year with a total passenger potential of 6.3m visitors, according to the International Council of Cruise Lines. Of 10m total cruise passengers last year, 8m were North Americans. The Caribbean is the most heavily visited cruise destination, accounting for about 45 per cent of cruise itineraries.
The rule adversely discriminates against the Caribbean, the ICCL said. Until 2008, a US citizen "will likely choose Mexico or Canada over anywhere else because of the extra cost [$100] and time of obtaining a passport. If they are a last-minute traveller [without a passport], there will be no other option but Mexico or Canada".
The Caribbean Hotel Association also expects that the passport rule will result in "a permanent realignment of traffic, with spontaneous, last-minute travel significantly reduced". The US Department of Homeland Security emphasised that the 2008 deadline was a proposal and subject to change following public comment.
"Our goal is to make travel safer and secure, but also to facilitate legitimate travel through the western hemisphere. We don't want to negatively impact the tourism community," the department said.
Amy Yee in New York
5 June 2005
Financial Times
The Caribbean, the most tourism-intensive region in the world, stands to lose as much as $2.6bn in holiday spending because of a new rule requiring US citizens to carry passports when travelling there.
The requirement is part of more stringent US border control and security policies.
Tourism accounts for 14.8 per cent of the Caribbean's total gross domestic product and generates 15.5 per cent of total jobs, according to the World Travel and Tourism Council.
The rule, which is proposed to go into effect from January 1 next year, requires US citizens to have a passport to re-enter the US from the non-US territories of the Caribbean. Only 15 per cent of Americans currently hold passports. Spending on Caribbean goods and services by US visitors reached $2.6bn (?2.1bn, GBP1.4bn) out of total visitor spending of $20.7bn last year, according to a study by the WTTC on behalf of the Caribbean Hotel Association.
The findings, released during a summit of Caribbean tourism officials in New York, also concluded that the new passport rule and potential decrease in visitors could cost the region more than 188,000 tourism jobs.
The new passport restrictions will "cause significant hardship for several destinations" said Jean-Claude Baumgarten, president of the WTTC.
Currently, US citizens need only show proof of citizenship, such as an expired passport or driver's licence, to travel to most Caribbean destinations.
Regional tourism officials are vigorously lobbying the US to grant the same January 1 2008 deadline that visitors to Canada and Mexico face, in order to allow more time to prepare travellers for the new rule.
The cruise industry, which also stands to take a big hit from the passport requirement, has also been vocal about extending the deadline. More than 3,578 cruise ships visited the Caribbean last year with a total passenger potential of 6.3m visitors, according to the International Council of Cruise Lines. Of 10m total cruise passengers last year, 8m were North Americans. The Caribbean is the most heavily visited cruise destination, accounting for about 45 per cent of cruise itineraries.
The rule adversely discriminates against the Caribbean, the ICCL said. Until 2008, a US citizen "will likely choose Mexico or Canada over anywhere else because of the extra cost [$100] and time of obtaining a passport. If they are a last-minute traveller [without a passport], there will be no other option but Mexico or Canada".
The Caribbean Hotel Association also expects that the passport rule will result in "a permanent realignment of traffic, with spontaneous, last-minute travel significantly reduced". The US Department of Homeland Security emphasised that the 2008 deadline was a proposal and subject to change following public comment.
"Our goal is to make travel safer and secure, but also to facilitate legitimate travel through the western hemisphere. We don't want to negatively impact the tourism community," the department said.