Update Country Report Curaçao 08 Nov 2018

Event

In mid-October Paul Pennicook was appointed as the new CEO of the Curaçao Tourism Development Foundation, with a remit to boost arrivals to the island and expand tourism marketing programmes. This marks part of a drive by the island to revive its tourism sector, which is slowly recovering after a period of decline.

Analysis

Mr Pennicook, who previously served twice as Jamaica's tourism director, is currently overhauling the island's branding. A forthcoming marketing campaign is set to use the slogan "Curaçao: feel it for yourself" in an effort to attract more visitors to the islands, which is sometimes overshadowed as a tourist destination by the larger Caribbean islands.

More international marketing, combined with increased collaboration with industry organisations such as the Curaçao Hospitality and Tourism Association and the Curaçao Airport Authority, should help to consolidate a gradual improvement in tourist arrivals. After a period of declining arrivals in 2017, largely led by a sharp drop in tourists from nearby Venezuela, arrivals are starting to rise again.

Official statistics show that tourist arrivals grew by 5% year on year in September 2018, led by an 18% surge in arrivals from South America. This boosted growth in the first nine months of the year to 6%, boding well for a return to full-year growth in 2018. A further indicator of the industry's improving fortunes is increased investment in the hotel sector, with several new hotels opening in time for the high season. This will also be positive for government revenue, which can then be reinvested back into the industry in the form of expanded marketing and improved island infrastructure.

Impact on the forecast

Increased government and business investment into the tourism sector will drive improved industry value into 2019 as the island continues to decouple itself from the economic struggles in Venezuela. This supports our forecast for a partial rebound in economic growth in 2019.