[ad_1]
The International Cricket Council Men’s T20 World Cup has delivered a significant shock to the Barbados economy.
Central Bank Governor Dr Kevin Greenidge recently reported that the country’s gross domestic product (GDP) grew by 4.5% in the first half of this year, helped by an increase of nearly 10,000 long-term tourists in June.
The number of inbound tourists grew by a record 17.9% between January and June this year, and central bank officials said that “in addition to direct economic benefits, the marketing and global viewership of the World Cup also provided valuable exposure opportunities for the country.”
They believe that “this exposure will help attract future visitors and investment, raise the island’s international profile and consolidate its reputation as a premier destination for sports tourism and host of major international events”.
Speaking at the half-year press conference at Courtney Blackman Hall, Greenidge said a significant expansion in the tourism and construction sectors, as well as a boost from successful events such as the International Cricket Council Men’s T20 World Cup, had driven the “robust” economic growth Barbados has achieved so far this year.
Key macroeconomic indicators such as inflation and employment also improved, while the government’s fiscal position “strengthened significantly” with a primary surplus of $509 million.
“The tourism sector has seen strong growth in both long-stay accommodation and cruise ship arrivals, while construction projects, including major infrastructure developments, have provided additional support,” he said.
“Tourism is booming, with long-stay visitor numbers recording a 17.9 per cent increase. The success of the ICC Men’s T20 World Cup and more direct flights from key source markets have contributed to the growth in visitor numbers.”
The governor said the economic growth and increase in tourist arrivals by almost 10,000 people achieved in June compared to 2023 were in line with the central bank’s forecasts.
“So from the (reported) numbers, we have achieved that target in terms of arrivals. The actual number could be a little bit more because while some people say they are here for business, you know the reason they are here for business is because of the cricket matches going on at the same time,” the economist said.
Greenidge said the economic growth brought about by the cricket tournament is also reflected in the increase in foreign exchange reserves.
“From what we can identify as net tourism revenue reserves, the reserves are up about $450 million, so it’s a very strong first half. We see that in the reserves and then we’ll see it in other numbers in other sectors,” he noted.
In analyzing the World Cup’s “transformative impact on the economy,” staff at the Central Bank of Barbados noted that the tournament “attracted a large number of tourists from outside Barbados’ traditional tourism markets.”
“The total number of long-stay visitors in June 2024 is estimated at 49,316, an increase of 34.5% from June 2023 (36,670), and the largest percentage increase in June outside of the recovery period of 2021 and 2022,” the assessment noted. “Twenty teams participated in the ICC Men’s T20 Cricket World Cup, with visitors from 19 countries visiting Barbados in June – the exception being Papua New Guinea. The Cricket World Cup is estimated to have contributed 78.5% to the growth in visitor arrivals, equivalent to an additional 9,932 visitors.”
The report added: “The surge in tourist arrivals has had a significant impact on the hotel and sharing economy. Compared to June 2023, hotel occupancy rates increased by 9.6 percentage points, from 45.3% to 54.8% in June 2024.”
The report also stated that “hotel revenue per available room increased significantly by 63.3% year-on-year, while the occupancy rate of the sharing economy increased by 7.7 percentage points.”
Boosted by the T20 World Cup, the central bank expects the overall economy to grow by about 3.9% this year, “supported by increased activity in both trade and non-trade sectors”.
It expects “continued private and public sector investment to deliver growth in the short to medium term”, while “tourism arrivals in all markets are expected to exceed pre-pandemic averages”. Greenidge said several risks to the positive economic outlook include extreme weather events caused by climate change, lower-than-expected global economic growth and high airfares.
[ad_2]
Source link
