ADVOCACY COMMITTEE MEETING

Jasmine Room, Hyatt Regency, Miami Thursday, June 21st, 2018, 8:30am – 9:45am

Objective of Advocacy Committee: To preserve, protect and enhance the competitiveness and profitability of the tourism industry throughout the Caribbean by advancing policies and programs which drive revenue, employment and investment activity. To Achieve This Objective the Committee will:

• Work with NHTAs, industry leaders, the Caribbean Tourism Organization and public and private sector stakeholder groups on issues and initiatives which support the industry’s growth and viability.

• Identify and share best and worst practices locally, regionally and internationally to recognize both successes and challenges and stimulate improvements

• Utilize and advance research from local, regional and global sources to support improvements

AGENDA 1. Call to Order 2. Approval of the Minutes * 3. Matters Arising from the Minutes 4. Update and Feedback: Key Matters Advanced at January Meeting

a) CARICOM Heads of Governments Meetings – (a) February, 2018 Outcome and Follow-Up*

(a) Regional Tourism Marketing Initiatives i. Short-Long Term Sustained Marketing

ii. Sustained Regional Tourism Initiative (b) Air Transportation Facilitation

b) Sharing Economy c) Zika d) TripAdvisor Fees/Servicing e) LGBTQ f) Contracts with Large Tour Operators g) Hurricanes and Crisis Management

a. Hurricane Cancellation Guidelines* b. Training and Webinars c. Crisis Communication Guide d. WTTC Economic Impact Report* e. Other Initiatives – Clinton Global Initiative; Branson Initiative

5. New Business a) Industry Taxation Concerns b) Continue Advocacy to Increase Public Understanding About Tourism c) CHTA’s Future Approach to Advocacy d) Other

6. Date of Next Meeting – 7. Adjournment

*Support Information attached

ADVOCACY COMMITTEE MEETING

San Felipe Room, Sheraton Puerto Rico Convention Center Monday, January 29th, 2018, 8:30am – 9:45am

Objective of Advocacy Committee: To preserve, protect and enhance the competitiveness and profitability of the tourism industry throughout the Caribbean by advancing policies and programs which drive revenue, employment and investment activity. To Achieve This Objective the Committee will:

• Work with NHTAs, industry leaders, the Caribbean Tourism Organization and public and private sector stakeholder groups on issues and initiatives which support the industry’s growth and viability.

• Identify and share best and worst practices locally, regionally and internationally to recognize both successes and challenges and stimulate improvements

• Utilize and advance research from local, regional and global sources to support improvements

MINUTES Present: Sanovnik Destang, Bill Clegg, Michael Juarbe, John Dennis, Jim Hepple, Rudy Gran, John Rocheford, Patricia Affonso-Dass, Karolin Troubetzkoy, Karen Whitt, Stacy Cox, Stephen odd, Roderick Cherry, Wyb Meijer, Clarisa Jimenez, Gilda Gumbs-Samuel, Lisa Hamilton, Tessie Dura Tonaco, Ted Tejada, Frank Comito and Matt Cooper. 8. Call to Order – At the request of Chairman Vincent Vanderpool-Wallace who offered regrets, Frank Comito called

the meeting to order. 9. Approval of the Minutes - A motion was adopted to approve the Minutes from the June 1, 2017 meeting. 10. Matters Arising from the Minutes - It was agreed that all matters arising would be covered in the agenda. 11. Update and Feedback: Key Matters Advanced at June Meeting

h) CARICOM Heads of Governments Meetings – (1) July, 2017 Outcome and Follow Up Re Short-Term and Sustainable Marketing Initiatives – F. Comito

referenced two reports shared with committee members in advance indicating continued progress towards securing Heads of Government support for a regional tourism initiative. He also advised that the meetings are providing an opportunity to create a greater understanding by the Heads of tourism’s value as an economic development, employment and revenue generating tool. He reported that a detailed recommendation for the proposed sustained initiative and a short-term marketing initiative will be presented at the next Heads of Government meeting in Haiti in February. Jim Hepple advised that a challenge may occur if any of the committed dollars through a traveler fee is required to go through local government. Comito advised that where possible, best to channel directly to the new governance entity, and will investigate as this advances. Gilda advised that it is important to engage Permanent Secretaries and Tourism Directors in the process.

(2) Air Transportation Facilitation – Framework document was shared with Heads of Government in July and appeal made for advancing the recommendations to fast-track the regional Multi-Lateral Air Services Agreement and other improvements.

i) Sharing Economy – Karolin indicated that CHTA should advise Airbnb that they need to better address how current and pending guests are handled in the event of a hurricane or threatening storm. Stacy advised that several destinations are making progress with taxing and regulating the accommodations part of the sharing economy. As information is received it is being shared with the NHTAs.

j) Zika – Karolin reported that CHTA has requested CARPHA’s support in helping to remove destinations from health warning and alert lists for travelers. CHTA has been advised that a destination can be removed typically if they have not had a reported zika case for one year. CHTA was advised to continue to push for removal. She also advised of growing concern by CARPHA of threats of dengue and yellow fever and the need for greater industry support in participating in the health monitoring system which CARPHA has developed for the industry.

k) TripAdvisor Fees/Servicing – Matt Cooper updated members on continuing efforts with TripAdvisor to address industry concerns. Two webinars are planned this year to allow members to discuss their concerns with TripAdvisor and better understand their system and servicing.

l) Climate Change – Karolin advised that climate change and frequency and intensity of storms may have an impact on investor confidence. A recommendation was made that CHTA look at how the ski industry is facing similar concerns and how they’ve banded together to address it.

m) LGBTQ – Karolin reported on positive feedback from the CHIEF session on LGBTQ and ensuing publicity about how to better confront diversity. She’s had discussions with a representative from the US State Department which expressed interest in the subject matter. F. Comito advised that through CHTAEF an initiative is being developed with Virgin Holidays to provide diversity training in several destinations, likely this fall. Virgin is also planning an informal discussion with Barbados public and private sector officials regarding the approach to LGBTQ this year and invited CHTA’s participation.

n) Rigidity of Contractual Arrangements with Large Tour Operators – Frank advised that a member webinar focusing on helping hotels to better understand the details in TO contracts and areas for possible negotiation is being planned.

12. New Business e) Hurricane-Related

a. Post Hurricane Report – Lessons Learned; Project/Initiative Opportunities – Frank provided an overview of the report, focusing on improved communications and collaboration, the need for quicker feedback on destination and hotel damage in the event of a crisis, and improving destination and hotel readiness. He advised that CHTA will advance better practices in the coming months.

b. Briefings with Multilaterals, NHTAs, Local Government Representatives – Frank advised that CHTA is serving as a resource upon request, providing status reports and recommendations in support of expediting recovery.

c. Proposed CHTA Hurricane Cancellation Policy – Attendees were directed to a proposed policy. While they were supportive of CHTA providing guidance to destinations, they offered caution in CHTA adopting a blanket cancellation policy given the variances which already exist by destination and company. Stephen Todd agreed to share the Bermuda’s policy. Recommendation from the Committee is to advance the proposed policy with caveat comments from CHTA to the Executive Committee for further consideration.

d. Economic Impact Research of Hurricanes by WTTC – Frank advised that upon CHTA’s request WTTC is undertaking a regional hurricane impact study on tourism with Tourism Economics. CHTA and CTO are assisting. Results will be made available at the WTTC global summit in April.

e. Impact on Insurance Premiums and Member Concerns – Attendees expressed concern about the pending rise in insurance premiums. John Rocheford from allied member CGM Gallagher advised that members should anticipate increases of 15% and above depending upon location and other factors. Frank advised that CHTA will schedule training for members to better understand, adjust, and plan for future coverage.

13. Date of Next meeting – June 21, 2018, Miami FL 14. Adjournment – There being no other business, he meeting adjourned at 9:45.

Stimulating and Accelerating Caribbean Employment, Tax Collection and Economic Development

Through a Sustainable Public-Private Sector Funded Tourism Marketing Initiative

Indirect and Induced Impact of Direct Tourism Expenditures

Source: WTTC Country Economic Impact Analysis

A Case for Building Brand Caribbean: Caribbean Is Losing Global Market Share and Growth Rate is Slowing

Average Annual Tourism Growth

2.4% 3.0%

6.1%

3.6%

5.3%

1.7% 1.8%

4.2%

1.4%

3.9%

Caribbean Europe Asia& Pacific NorthAmerican

SouthAmerican

2005 - 2010 3.9% 2020 - 2030 NA

2.1%

50.6%

21.7%

10.4%

2.5% 1.7%

41.1%

29.6%

7.6% 3.2%

Caribbean Europe Asia& Pacific NorthAmerican

SouthAmerican

2010 NA 2015 NA 2030 NA

Market Share

SOURCE: United Nations World Tourism Organization

A Case for Building Brand Caribbean:

Source: Caribbean Tourism Organization

A Case for Building Brand Caribbean: 2017 Hurricanes Reinforce Need for Sustained, Managed and Funded Effort to Mitigate Impact

Monthly Tourist Arrivals ('000)

2016 2017e %CH 17/16

QTR1 8,500.1 8,617.6 1.4

QTR2 7,249.5 7,882.4 8.7

JUL 2,894.5 3,018.2r 5.9

AUG 2,360.0 2,548.2r 8.0

SEP 1,698.5 1,520.4r -10.5

QTR3 6,908.1 7,086.8 2.6

OCT 1,835.9 1,678.5 -8.6

NOV 2,182.1 2,042.3 -6.4

DEC 2,889.9 2,775.0 -4.0

QTR4 6,907.9 6,495.7 -6.0

YTD 29,565.6 30,082.6 1.7

Source: CTO Member Countries and CTO estimates.

Caribbean is a ‘Brand’…. In the Minds of the Public and Media the Entire Caribbean Was Devastated by The 2017 Storms….

Post 2017 Hurricanes…. • CTO and CHTA, Individual Destinations and Hotel Brands Attempted Damage

Control to Minimize the Impact on 70 Percent of the Region Which was Not in the Storm’s Path. This included: • Hundreds of Media Interviews, Press Releases, Social Media Outreach • Training Nearly 1,000 Travel Agents and Travel Partner Briefings • Promotional Campaigns Undertaken with Limited Resources

• Lesson Learned • Having a Dedicated, Managed and Funded ‘Caribbean Brand’ Marketing and

Communications Initiative In Place Would’ve Pre-empted and Countered the Negative Publicity, Minimizing the Impact, and Protecting Market Share

Caribbean Brand Public Relations Moved Consumer Awareness and Confidence

Did CTO/CHTA Efforts Help? Yes Were They Sufficient? No When Consumers Were Asked ‘Will the Caribbean be Open for Business to accommodate Guests in Peak Winter Season?’ • In October, 2017 – 26% Said Yes • In January, 2018 – 71% Said Yes Source: Travelzoo US member survey, October, 2017 and January, 2018

Negative PR to Return Over Coming Months: Residual Effect of 2017 Storms

Hurricane Forecast Reports….Already Out and More Scheduled in April

• June Start of Hurricane Season o Media Focus o Revisit Affecting Destinations with Destruction Footage

• Added Negative Coverage as Each Tropical Storm and Hurricane Surfaces

Caribbean Branded Marketing and Communications Effort Essential to Mitigate Future Crisis Impacts and Build Global Market Share

World Travel and Tourism Council Commissioned Oxford Economics to Gauge Impact • Anticipated Reduction in 2017 Economic Performance • Ten-Year Growth Forecast Expected to be Lowered, Already Being Outpaced by

Emerging Markets Caribbean Development Bank Estimates Economic Impact of a One Percent Drop in Visitor Arrivals on 19 CDB Member Countries in 2015 Would Translate Into:

• 226,653 Fewer Visitors • $137.8M in Reduced Visitor Export Spending • Note: This does not include the Dominican Republic, Cuba, U.S. Virgin Islands, Puerto

Rico, Bermuda, Aruba, Curacao, Bonaire, St. Maarten, St. Martin, Martinique, and Guadeloupe which combined contribute to over 60 percent of the region’s arrivals.

Concurrently, Tourism Industry Rallies to Support Recovery and Relief Efforts

• Support Given to Relief Supplies, Fundraising, and Volunteer Efforts by hotels, cruise lines and unaffected destinations

• CTO and CHTA Engaged in Long-term Recovery Support With: o Voluntourism Efforts o Public Relations and Marketing Support o Employment Placement Support for displaced workers o Job Training Programs o Special Training on Insurance Claims and Rebuilding for Sustainability o Capacity Building Support for Associations and Institutions o Social Enterprise SME support o Small Tourism-related Infrastructure Improvements

Growing Investments in Destination Branded Marketing by Key Global Tourism Destinations

National DMO Budget (USD) Annual Visitation Approx. $ per visitor

USA $164 million (100% intl.) 78.6 million $2

Australia $122 million (100% intl.) 7.7 million $15.85

Canada $75 million (100% intl.) 20 million $3.75

Caribbean* $0 30 million (stopovers) $0

Government Motivations Behind Supporting ‘Brand’ Marketing Are Jobs And Revenue

BRAND USA MARKETING DRIVES HIGH ROI An independent analysis by Oxford Economics showed that: • Brand USA generated more than four times its budget in incremental federal taxes

and another $552 million in state and local taxes. • Brand USA generated $4.1 billion in incremental visitor spending to the US in

FY2016. Including indirect and induced impacts, a total of $8.9 billion in economic activity was generated by Brand USA.

• Economic activity generated by Brand USA sustained 59,463 jobs earning $2.6 billion in personal income.

Caribbean Share of US Travelers Jumps Following Two PPP ‘Brand’ Campaigns

Growing Caribbean Tourism Does Not Require Major Investments in Infrastructure and New Hotels

• Infrastructure Capacity Already Exists in Most Destinations • On Average Region Has Over 84,000 Vacant Hotel Rooms Each Night • Filling Just 10% of the Vacant Rooms Would Inject Nearly $2 Billion

Annually Into the Region • ($628 million in rooms revenue plus 2/3 added spend per visitor) • Filling Hotel Rooms Brings the Highest Spinoff Impact on Tax Revenue,

Employment and Economic Activity • A $2 Consumer Generated Fund Generates $20 Million for a Fund Which Will Yield

Far Greater Returns Source: STR and CHTA

Following Up On Direction Given at July Heads of Government Meeting in Grenada

CTO and CHTA Are Advancing an ‘Interim PPP Marketing Campaign’ to Shore Up 2018 Business and Counter Anticipated Negative Publicity as Hurricane Season Approaches Via….

• A Social-Digital Marketing and Communications Campaign • Public-Private Sector Funds Being Committed • A Jointly Managed Effort by CTO and CHTA • Initial Initiative of the ‘to be formalized’ Caribbean Coalition for Tourism (CCT)

CTO and CHTA Recommend the Creation of a Sustained Public-Private Partnership Under the Umbrella of the Caribbean Coalition for Tourism:

• Funded Primarily Through Consumer-Generated Funding of a $1-2 Air Passenger Fee (excluding Intra-Caribbean travel)

• The Formalization of the CCT Governance and Management Entity

Focus of Interim Campaign: Communicate and Celebrate the Positive…Counter the Negative

Public-Private Sector Supported Campaign Commence in May…. Continue As Funds Allow

• Showcase….the Vast Geography of the Region

• Celebrate…..the Incredible Diversity of Offerings

• Experience….the Flavors….Music…Beauty…History…Culture

• Introduction…..The Rhythm Never Stops

In Summary…. 1. Tourism is Our Most Important Economic Development Tool. 2. We Are the Most Tourism Dependent Region in the World. 3. Our Growth Is Slowing and We Are Losing Global Market Share. 4. Together We Can Turn This Situation Around. 5. Globally, Region and Destination Investments in Brand Promotion Are Yielding Returns. 6. An Annual $20 Million Investment Will Achieve Significant Measurable Results. 7. A Consumer Generated $1-2 per International Airline Passenger Fee Will Sustain the

Effort 8. Professional Management Through a PPP Caribbean Coalition for Tourism Essential 9. Overarching Theme: Communicate to the World the Diverse Wonders of the

Caribbean….its History, Diversity, People, Culture and Incredible Beauty. 10. CARICOM Heads Leadership Critical to Jump-Start This….As Occurred in the Past.

Together, We Can Do It Again, Sustainably.

The Rhythm Never Stops

We Believe We Have a Winning Campaign and Theme

The Challenge is to Go Beyond

To Sustain the Effort

THANK YOU

COMMUNIQUÉ – 29th Intersessional Meeting of the Conference of Heads of

Government of CARICOM

Heads of Government and Heads of Delegation at the Twenty-Ninth Intersessional Meeting of the Conference of Heads of Government of CARICOM 26-27 February, 2018, Port-au-Prince, Haiti

The Twenty-Ninth Inter-Sessional Meeting of the Conference of Heads of Government of the Caribbean

Community (CARICOM) was held at Port-au-Prince, Haiti, on 26-27 February 2018. The President of

Haiti, His Excellency Jovenel Moïse, Chaired the proceedings.

Other Members of the Conference in attendance were Prime Minister of The Bahamas, Honourable Dr.

Hubert Minnis; Prime Minister of Barbados, Rt. Honourable Freundel Stuart; Prime Minister of Grenada,

Dr. the Rt. Honourable Keith Mitchell; Prime Minister of Jamaica, the Most Honourable Andrew Holness;

Prime Minister of Saint Lucia, Honourable Allen Chastanet; Prime Minister of St. Vincent and the

Grenadines, Dr. the Honourable Ralph Gonsalves; and Prime Minister of Trinidad and Tobago, Dr. the

Honourable Keith Rowley.

Antigua and Barbuda was represented by His Excellency Ambassador Colin Murdoch; Belize was

represented by Senator the Honourable Michael Peyrefitte, Attorney General; Dominica was represented

by the Honourable Francine Baron, Minister of Foreign Affairs; Guyana was represented by His

Excellency Vice President Carl Greenidge; Montserrat was represented by the Honourable Delmaude

Ryan, Deputy Premier and Minister of Education, Health, Youth Affairs, Sports and Social Services; St

Kitts and Nevis was represented by the Honourable Vance Amory, Senior Minister; Suriname was

represented by His Excellency Vice-President, Michael Ashwin Adhin.

Associate Members in attendance were British Virgin Islands represented by Dr. the Hon Kedrick

Pickering, Deputy Premier; the Turks and Caicos Islands represented by Hon. Sean Astwood, Deputy

Premier.

OPENING CEREMONY

The Opening Ceremony was addressed by the Secretary-General Ambassador Irwin LaRocque, the

immediate past chairman Dr. the Rt. Honourable Keith Mitchell, Prime Minister of Grenada, and the

Chairman, His Excellency Jovenel Moise, President of the Republic of Haiti.

The Secretary-General noted the challenge associated with accessing concessional funding for

CARICOM Member States. He pointed to how the challenge affected the countries who were affected by

the Hurricanes last September and cited the particular circumstances of Associate Members such as the

British Virgin Islands which have no recourse to concessional financing.

Ambassador LaRocque noted the heavy toll of crime and violence on the society including the role of

families in addressing this scourge. “The foundation of any strong society is the family, and it is within that

circle that the battle against this scourge must begin,” he stated.

Prime Minister Mitchell brought into focus the importance of completing the measures to fully implement

the CARICOM Single Market and Economy (CSME), which was key to building economic resilience by

ensuring that “we trade freely intra-regionally; particularly in agriculture products, which, for many of us,

form the backbone of our exports.”

He also underlined the urgency of applying the approved Implementation Plan for the period 2017-2019

to accelerate the use of the measures under the regime.

The Prime Minister noted that the Community had been steadfastly putting the pillars in place to build a

society that was viable and sustainable but pointed to significant challenges that had to be overcome,

both internally and externally. In this regard, he cited the unilateral blacklisting of countries as non-

cooperative tax jurisdictions as a major external challenge and the prohibitive cost of air travel regionally

as a serious internal issue which must be addressed.

President Moise announced that he would be organising an international conference on the strengthening

of the mechanisms of resilience to the effects of climate change and the management of natural disasters

in the Caribbean.

This, he indicated, would be “an opportunity for the States, partners and international development actors

to exchange ideas and make proposals on the best features of prevention and responses to natural

disasters.”

The Chairman noted that one of the options to counteract the harmful consequences of these adverse

events would be to establish or strengthen funding mechanisms for disaster risk.

“These will help countries affected quickly access, the next day even after disasters, funds for

reconstruction through affordable and effective procedures rather than be paralyzed by the expectation of

unlikely assistance which, in most cases, is too little, comes too late and, sometimes, never happens,”

President Moise added.

DISASTER MANAGEMENT AND RECOVERY

Heads of Government recognised the unprecedented occurrence of successive major hurricanes striking

in a period of less than two (2) weeks in September 2017 and the devastating impact on some Member

States and Associate Members. They acknowledged that such occurrences signalled the advent of a

new normal to which we must adapt given that the next hurricane season was less than five months

away.

They noted that the vulnerability of CARICOM Member States to natural hazards and the effects of

climate change remained key challenges to sustainable development.

Heads of Government welcomed the Caribbean Disaster Emergency Management Agency’s (CDEMA)

Comprehensive Disaster Management (CDM) Strategy 2014-2024 as the Caribbean’s platform for

achieving risk resilience. They noted that the Regional Response Mechanism (RRM) coordinated by

CDEMA was valuable and relevant but constrained by inadequate assets and financial resources.

They expressed appreciation for the solidarity shown by CARICOM Member States and regional

institutions, as well as, the support of International Development Partners which was provided to the

impacted Members States through the RRM.

Heads of Government recognised that strengthening infrastructure was a key component of building the

Region’s resilience, and that the implementation of building codes and associated standards was still a

significant challenge in the Region. In that regard, they requested the CDEMA Council of Ministers to

provide recommendations to the Conference for expediting implementation of building codes as a

mechanism to safeguard critical infrastructure.

They also acknowledged that the efficacy of building the Community’s resilience must involve the

interaction of social, economic and environmental policies while strengthening infrastructure and ensuring

that systems and institutions established to help the Region respond to natural disasters are adequately

resourced.

Heads of Government noted that the magnitude of reconstruction required significant levels of financing

which the Region was unable to generate on its own. They called for innovative financing mechanisms

as well as recapitalisation for the Caribbean Catastrophe Risk Insurance Facility (CCRIF). Therefore,

they noted the proposal by CCRIF to extend the range of risk covered.

They also mandated CDEMA to commission the preparation of a comprehensive assessment of the

resource requirements to operationalise an effective disaster risk management and mitigation strategy for

the Community.

Heads of Government noted the challenges experienced by Member States with regard to the evacuation

of nationals during the 2017 hurricane season, and the imperative of articulating a comprehensive

regional approach to addressing evacuation in response to catastrophic events. In that regard, they

welcomed the Model Evacuation Policy and Plan endorsed by the CDEMA Council of Ministers.

CLIMATE CHANGE

Heads of Government noted that focused implementation of the ambitious Paris Agreement was required

in order to limit the most dangerous climate change impacts.

In this regard, they also recognised the need for focused and coordinated participation by CARICOM

Member States in negotiations towards finalisation of the Paris Agreement Work Programme, in order to

support and supplement positions taken by the Alliance of Small Island States (AOSIS).

Heads of Government agreed that all countries that have not yet done so, would take the necessary

action to ratify the second commitment period of the Kyoto Protocol and the Paris Agreement as a matter

of urgency, in order to support more ambitious climate change action.

They committed to support regional preparations for participation in negotiations throughout the year, and

at COP 24, to take place in Katowice, Poland from 3-14 December 2018.

Heads of Government encouraged Member States to take advantage of the strategic opportunities for

financing under the Green Climate Fund and other climate financing options through the necessary

accreditation process.

SECURITY ISSUES

Heads of Government approved a Counter Terrorism Strategy and agreed to table related legislation by 4

July 2018.

Crime and Violence

Heads of Government recognised that the rising levels of crime and violence in Member States continued

to engage governments and indeed, all sectors of society. These high levels of crime and violence erode

confidence in Government, reduce the competitiveness of key industries and services, as well as reduce

confidence among potential investors and contribute to brain drain.

Given the gravity of the problem in the Region, Heads of Government agreed to strengthen the relevant

inter-sectoral systems at the national and regional levels to ensure efficient collaboration in planning and

execution of relevant programmes to address the multifaceted issues with regard to crime and violence.

In this regard they committed to considering the Five Pillar CARICOM Crime Prevention Action Plan in the

development of national initiatives.

Heads of Government further agreed to strengthen collaboration with international partners to build

capacity at all levels to address crime and violence.

Heads of Government mandated the Council for National Security and Law Enforcement (CONSLE) and

the CARICOM Implementation Agency for Crime and Security (IMPACS) to create an intra-regional task

force comprising experts in the field, to examine and suggest innovative regional solutions to combat the

rise in crime and violence in Member States.

They also mandated the Secretariat to develop a comprehensive Action Plan for the development of

Crime and Criminal Justice Statistics.

CARICOM SINGLE MARKET AND ECONOMY

Heads of Government reiterated the critical importance of the CARICOM Single Market and Economy

(CSME) to regional development. They agreed to hold a Special Session on the CSME on the first day of

the Thirty-Ninth Regular Meeting of the Conference in July 2018.

Heads of Government considered the Procedure on the Refusal of Entry of CARICOM Nationals to which

Member States would adhere. They agreed that the Legal Affairs Committee (LAC) would finalise the

procedure for the consideration of the Thirty-Ninth Regular Meeting of the Conference in July 2018.

Heads of Government called upon those Member States which have not yet implemented the decisions of

the Conference on waivers of visas for Haitian nationals who are holders of diplomatic and official

passports or businesspersons who are holders of US, Canadian or Schengen visas, to immediately

implement those decisions, inform the International Air Transport Association and relevant airlines, and

provide the Secretariat with the relevant documentation supporting the implementation by 30 March 2018.

Foreign Exchange Difficulties Affecting Trade between Member States

Heads of Government urged St. Vincent and the Grenadines and Trinidad and Tobago to resolve the

issue bilaterally and report to the next Regular Meeting of the Conference.

They also requested the Central Bank of Trinidad and Tobago and the Eastern Caribbean Central Bank

to meet urgently to seek a solution to this matter.

AIR TRANSPORTATION

Heads of Government welcomed the new CARICOM Multilateral Air Services Agreement (MASA) and

urged Member States to take steps towards its implementation. The assent of all Member States to the

new MASA would facilitate the creation of a liberalised environment consistent with emerging World

Trade Organization (WTO) aviation policies.

Heads of Government noted that this instrument is aimed at improving connectivity and the facilitating

increased trade in goods and services, including tourism. MASA has been expanded to include “the

conditions for a single security check for direct transit passengers on multi-stop intra-Community flights”

Heads of Government commended and expressed appreciation to the Government-owned airlines,

namely Caribbean Airlines, LIAT, Suriname Airways and Bahamas Air, and other carriers, for their

humanitarian efforts and exemplary performance following Hurricanes Jose, Irma and Maria, in rendering

assistance in the regional co-ordination and national mobilization of relief personnel, passengers, goods

and supplies.

TOURISM IN THE REGION: BUILDING A CARIBBEAN TOURISM DEVELOPMENT AND MARKETING

INITIATIVE

Heads of Government recognised that Tourism was the Caribbean’s largest economic sector and it

needed to be stimulated urgently and sustainably for the region’s long term development prospects.

Heads of Government agreed to further consider the proposal of a levy on air transportation for

passengers travelling from outside the region to participating countries, which would fund a new regional

tourism marketing campaign, bearing in mind the need to also consider the issue of security in the

marketing of tourism.

Heads of Government also agreed that the Council for Trade and Economic Development (COTED) on

Tourism and Transportation, and the Council for National Security and Law Enforcement (CONSLE)

would make recommendations on this proposal for the consideration of the Conference at its next

meeting in July.

Heads of Government welcomed the agreement reached to establish the Global Centre of Tourism

Resilience and Crisis Management reached at the recently concluded UNWTO, Government of Jamaica,

World Bank, Inter-American Development Bank Conference on Jobs and Inclusive Growth to be hosted at

the University of the West Indies, Mona, Jamaica. The Global Centre will assist destination preparedness,

management and recovery from disruption and crisis that impact tourism and threaten economies and

livelihoods.

Heads of Government noted the invitation from Guyana for Member States to participate in the XXIV

Inter-American Congress of Ministers and High Level Authorities of Tourism to be held in Georgetown on

21-24, March 2018. They also noted that the occasion was an excellent opportunity for CARICOM

Ministers of Tourism to have a dialogue with their counterparts from the Americas on matters that affect

the growth and development of the tourism industry.

BLACKLISTING AND DE-RISKING

Heads of Government deplored the significant reputational damage inflicted on Member States from their

inclusion in the list of ‘non-cooperative tax jurisdictions’ published by the European Union Council in

December 2017 as well as other unilateral processes which label Member States as ‘tax havens’.

Heads of Government noted that these actions are occurring outside of the established global inclusive

processes which CARICOM States have endorsed and in which they continue to participate, often at

significant cost, to advance the implementation of agreed international standards domestically.

They recognised the need for Member States to continue to ensure that they meet all requisite standards

set by the globally recognised authorities in respect of global tax co-operation and related

initiatives. However, they denounced the unilateral processes underway in the European Union as

detrimental to Member States’ economic progress and efforts to achieve sustainable development. They

agreed that they should forge links beyond CARICOM because of shifting global standards.

Heads of Government have also mandated that Ministers of Finance and Central Bank Governors meet

expeditiously to consider proposals on a CARICOM Strategy which have been prepared by a CARICOM

Technical Working Group and to formulate appropriate solutions to overcome this egregious challenge.

Heads of Government acknowledged the importance of regional advocacy efforts and agreed to continue

engaging international partners and raising the issues at various international fora.

CLICO/BAICO

Heads of Government agreed that the issue would be resolved bilaterally between St Vincent and the

Grenadines and Trinidad and Tobago. They requested that the Conference receive periodic updates on

the matter.

ENLARGEMENT POLICY FOR THE COMMUNITY

Heads of Government agreed that the Community proceed in the first instance with the applications for

Associate Membership by the Dutch territories of Curacao and Sint Maarten.

They mandated the Secretary-General to begin the process of negotiations on Associate Membership

with these Dutch Territories in order to better determine their expectations of Associate Membership as

well as what benefits this relationship could yield for the Community.

Heads of Government also agreed that further consideration would be given to the applications from the

French Overseas territories of Guadeloupe, Martinique and French Guiana.

They further agreed to continue to examine the issue of an Enlargement Policy for the Community.

WEST INDIES CRICKET

Heads of Government having reviewed relevant legal opinions agreed that cricket in the Caribbean

Community (CARICOM) was a regional public good and, as a consequence, a course of action could be

pursued whereby Governments would intervene in the governance of West Indies Cricket, as distinct from

managing the operations of the sport.

They also agreed to move towards the development of a legislative framework for the governance of

cricket which was consistent with international best practices and with the International Cricket Committee

(ICC) principles.

Heads of Government further agreed that Member States would where necessary hold broad-based

consultations with stakeholders on the matter

They indicated that as a follow-up to the letter of 14 March 2016 from the then Chairman of the

Conference, Rt. Hon. Dean Barrow, Prime Minister of Belize, to the Chairman of the ICC, Mr. Shashank

Manohar, there would be further communication with the ICC advising of the intended course of action of

the Community.

Heads of Government also agreed that the Prime Minister of Trinidad and Tobago would be a member of

the Prime Ministerial Sub-Committee on Cricket.

BORDER ISSUES:

Belize-Guatemala Relations

Heads of Government received an update on the most recent developments between Belize and

Guatemala.

Heads of Government expressed concern that the undertaking by both countries and the Organization of

American States (OAS), to engage in the design and development of a mechanism of co-operation for the

Sarstoon River, remains outstanding and urged both countries and the OAS to redouble their efforts in

this respect.

They noted that in accordance with the Special Agreement to Submit Guatemala’s Claim to the

International Court of Justice, Guatemala is preparing to hold its referendum on 15th April 2018 on

whether to submit their claim on Belize to the International Court of Justice for a final resolution, and

expressed their hope that both countries will continue advancing their efforts to fulfill all their obligations

under that Agreement.

Heads of Government expressed support for the continuous and critical role of the OAS in the process

aimed at resolving the dispute arising from Guatemala’s claims on Belize and further called on the

international community to continue supporting the OAS Office in the Adjacency Zone.

Heads of Government emphasized their unflinching support for the sovereignty, territorial integrity and

security of Belize.

Guyana-Venezuela Relations

The Heads of Government received an update from Guyana on recent developments on the controversy

between the Cooperative Republic of Guyana and the Bolivarian Republic of Venezuela, and the decision

of the United Nations Secretary General, H.E. Antonio Guterres issued on January 30, 2018, in choosing

the International Court of Justice as “the means that is now to be used for the solution to the controversy”

between Guyana and Venezuela.

The Heads expressed their full confidence in the decision of the United Nations Secretary General, in

exercise of his authority under the Geneva Agreement of 1966.

The Heads of Government reiterated the firm and unequivocal support of the Caribbean Community for

the maintenance and preservation of Guyana’s sovereignty and territorial integrity.

A.

Heads of Government endorsed the candidacy of St Vincent and the Grenadines for a seat on the United

Nations Security Council for the period 2020-2021.

LEGAL INSTRUMENTS FOR ADOPTION AND SIGNATURE

The Revised Agreement Establishing the Caribbean Examinations Council (CXC)

Barbados

Belize

Guyana

Montserrat

St Vincent and the Grenadines

Multilateral Air Services Agreement

Belize

Guyana

St Vincent and the Grenadines

CARICOM Arrest Warrant Treaty

The Bahamas

Barbados

Agreement Establishing the Accreditation Authority in Medicine and other Health Professions

Montserrat

Agreement Establishing the Caribbean Centre for Energy and Energy Efficiency

Caribbean Hotel and Tourism Association Hurricane Cancellation Guidelines

The likelihood of a hurricane directly affecting most areas of the Caribbean in any given year is rare, given the vast geography of the over one millions square miles of the Caribbean basin. The frequency of hurricanes varies greatly from year to year. Therefore, what happens in one part of the Caribbean will often not have an effect on other parts of the region. Not every hurricane may directly affect travel plans. Nevertheless, recognizing public concerns and perceptions regarding travel to the Caribbean during the hurricane season and the need to provide assurances to travelers and prospective travelers, the Caribbean Hotel and Tourism Association has established voluntary guidelines for the region’s 32 hotel and tourism associations and its accommodations and attractions members. These guidelines are intended to provide minimum assurances. A number of Caribbean destinations, independent properties, hotel chains, and airlines exceed these assurances with established guidelines and policies for addressing travel cancellations, extended stays, early departures and rescheduling. In addition, airlines and many hotels offer traveler insurance, either directly or through third-parties booking services. Recommended Guidelines: • Policies or practices should consider travelers who would need to postpone or cancel their

vacation or extend their stay in the event of an official hurricane warning being issued by the Government for the destination and/or the closure of an airport, flight cancellation, and property damage which may prevent travel on the scheduled dates. Additionally, special considerations should be given when a tropical storm warning or hurricane watch have been issued

• A clearly formulated cancellation policy should be available when the destination’s Government

officially declares that a tropical storm warning, hurricane watch or hurricane warning is in effect and the storm is forecasted to pass over or within 75 miles of the destination. These policies may vary depending whether a tropical storm warning, hurricane watch or hurricane warning are in effect

• In the event that a hurricane warning is in place during scheduled travel dates or the

destination/hotel is unable to accommodate a guest, consideration should be given to offering the traveler a choice of using deposits or payments toward a future stay at their property or an affiliated property. This offer should be valid for a defined period (Note: offers are typically provided for re-booking dates up to 90 and as long as 360 days following the original travel date.)

• In the event that a guest is already staying at a hotel in a destination under a hurricane warning

and needs to extend their stay beyond the original departure date due to the temporary closing of an airport or airline cancellations, it is recommended that CHTA member hotels agree to offer a room rate at or below the rate which is part of their existing arrangement.

• Should a guest choose to depart early from the hotel or destination due to a hurricane warning, it is recommended that the guest not be billed for unused nights or services.

DRAFT – June 11, 2018

• Guests who are unable to arrive due to a flight cancellation or airport closure should be able to arrive on a later date without penalty.

• Group bookings and third-party bookings (i.e. online travel agency, travel wholesaler and tour

operator) will be handled in accordance with the policies of the third-party. Although it is not mandatory that all hotels in the Caribbean should adopt the Hurricane Cancellation Policy, the properties that are members of the CHTA have been encouraged to adopt it. CHTA’s Hurricane Cancellation Guidelines are designed to facilitate the comfort of guests as well as to protect the reputation of hotels and destinations in the Caribbean.

RESILIENCE AND RECOVERY APRIL 2018

THE IMPACT OF THE 2017 HURRICANE SEASON ON THE CARIBBEAN’S TOURISM SECTOR

EXECUTIVE SUMMARY

Travel & Tourism is one of the most important economic sectors in the Caribbean. The 46.7 million international visitors who came to the region in 2016 spent US$31.4 billion which supported a total of $56.4 billion in GDP and 2.4 million jobs. Meanwhile, the domestic market generates more than 25% of the region’s Travel & Tourism GDP.

Overall, Travel & Tourism contributes 15.2% of the Caribbean’s GDP and 13.8% of employment. However, in many Caribbean countries, the sector accounts for over 25% of GDP – more than double the world average of 10.4%. In the case of the British Virgin Islands (BVI), the sector contributes 98.5% of GDP – the highest share of any country worldwide.

It is therefore vital to the Caribbean economy that Travel & Tourism recovers as quickly as possible from the damage caused by the unusually severe hurricanes of 2017 – most notably Hurricanes Irma and Maria in September. They had a major impact on popular tourist destinations such as the BVI and Puerto Rico, although around two thirds of the region avoided any damage.

This report by the World Travel & Tourism Council (WTTC) assesses the immediate and long-term impact of the 2017 hurricane season on the Travel & Tourism sector across the Caribbean as a whole and on specific islands.

Based on analysis from Tourism Economics1, insights provided by the Caribbean Hotel & Tourism Association (CHTA) and the Caribbean Tourism Organization (CTO), contact with affected hoteliers, flight and accommodation data gathered from other analytics sources, and prior research of other crises, we describe the losses that the sector has already experienced2, forecast when Travel & Tourism is likely to return to its previous level of growth, and recommend government policies and marketing strategies that can help speed economic recovery.

The key findings of the report are:

• The impact of the 2017 hurricane season on the Caribbean’s Travel & Tourism sector was significant, and while the islands which were directly hit were worst affected, other islands which were not in the path of the hurricanes also suffered. A public misconception that the entire Caribbean was struck by the storms has been damaging to the region.

• The hurricane season resulted in an estimated (loss) in 2017 of 826,100 visitors to the Caribbean, compared to pre-hurricane forecasts. These visitors could have generated US$741 million and supported 11,005 jobs.

• Research suggests that recovery to previous levels could take up to four years, and if this is the case, the region will miss out on over US$3 billion over this timeframe.

• Governments across the region can work together and with the private sector to speed up recovery through a range of policy initiatives including:

• increasing access to capital for SMEs, and easing entry and work permit restrictions for specialised services, which will incentivise the private sector to speed up recovery

• increasing duty-free exemptions on commonly-purchased goods and reduce tourism costs such as departure taxes and resort fees, which will stimulate travel and traveller spending

• improving the ease and experience of traveller arrivals and departures, though use of technology in airports and visa facilitation, which will increase customer satisfaction and the attractiveness of the region

• investing in tourism sector training and education to sharpen and upgrade the skills of temporarily displaced workers, which will ensure the sector has access to a skilled workforce as it recovers and grows

• improving connectivity between islands, which will increase the competitiveness of the Caribbean as a destination and spread the benefits more widely

• providing trip insurance when conditions in the host destination are unstable, which will encourage visitors to continue to visit

• adopting a specialised approach to marketing and public relations, including establishment of a long term messaging strategy, creating a rainy day fund for tourism marketing and supporting regional tourism marketing programmes

¹ Tourism Economics is an Oxford Economics company² The range of Caribbean countries analysed in the research was dependent on data availability during and immediately after the hurricane period.

RESILIENCE AND RECOVERY APRIL 2018

The World Travel & Tourism Council is the global authority on the economic and social contribution of Travel & Tourism.

WTTC promotes sustainable growth for the Travel & Tourism sector, working with governments and international institutions to create jobs, to drive exports and to generate prosperity. Council Members are the Chairs, Presidents and Chief Executives of the world’s leading private sector Travel & Tourism businesses.

Together with Oxford Economics, WTTC produces annual research that shows Travel & Tourism to be one of the world’s largest sectors, supporting over 292 million jobs and generating 10.2% of global GDP in 2016. Comprehensive reports quantify, compare and forecast the economic impact of Travel & Tourism on 185 economies around the world. In addition to the individual country reports, WTTC produces a world report highlighting the global economic impact and issues, and 24 further reports that focus on regions, sub-regions and economic and geographic groups.

To download reports or data, please visit www.wttc.org

Assisting WTTC to Provide Tools for Analysis, Benchmarking, Forecasting and Planning.

Tourism Economics is an Oxford Economics company with a singular objective: combine an understanding of tourism dynamics with rigorous economics in order to answer the most important questions facing destinations, developers, and strategic planners. By combining quantitative methods with industry knowledge, Tourism Economics designs custom market strategies, destination recovery plans, tourism forecasting models, tourism policy analysis, and economic impact studies.

Oxford Economics is one of the world’s leading providers of economic analysis, forecasts and consulting advice. Founded in 1981 as a joint venture with Oxford University’s business college, Oxford Economics enjoys a reputation for high quality, quantitative analysis and evidence-based advice. For this, it draws on its own staff of more than 250 professional economists; a dedicated data analysis team; global modelling tools, and a range of partner institutions in Europe, the USA and in the United Nations Project Link. Oxford Economics has offices in London, Oxford, Dubai, Philadelphia, and Belfast.

The path of Hurricanes Irma and Maria, September 2017

CARIBBEAN SEA

JAMAICA

CAYMAN ISLANDS

TURKS AND CAICOS ISLAND

BRITISH VIRGIN ISLAND

VIRGIN ISLAND

ANGUILLA

HAITI

CUBA

DOMINICANREPUBLIC

THEBAHAMAS

U.S

PUERTORICO

ST. KITTS AND NEVIS

HURRICANE IRMA TRACK

HURRICANE MARIA TRACK

ANTIGUA AND BARBUDA

AUGUST SEPTEMBER OCTOBER

Nate

Maria

Irma

Harvey

Major impacts inthe Carribean

Source: Caribbean Disaster Emergency Management Agency Source: National Hurricane Center

Timeline of major Atlantic Hurricanes, 2017

Even though the destructive hurricanes came and went in September 2017, their economic impact on residents and the Travel & Tourism sector is likely to continue for up to four years. Natural disasters such as this will continue to hit the Caribbean and elsewhere, perhaps on an increasingly frequent basis because of climate change. As the economies of most islands grow ever more reliant on the sector, it is imperative that governments and Destination Management Organisations (DMOs) in each destination develop and have in place plans and strategies to minimise this long-term impact and encourage visitors and spending to return to pre-hurricane levels of growth as soon as possible.

We hope this report provides the Travel & Tourism community in the Caribbean – and in other global destinations at risk of a natural disaster – with a starting point for this journey.