Tourism slump costs jobs in the Caribbean

The tourism slump in the Caribbean, the result of the recession in the United States and the economic decline in Europe, has begun to cost jobs in the region.

Today, an Associated Press report said Sandals Resorts International is laying off 650 Caribbean hotel workers as a result of the decline in tourist bookings.

The cuts will take place as Sandals Resorts in the Bahamas, Jamaica and St Lucia represents seven per cent of the chain's workforce.


The hotel operator said the layoffs will help the company stay competitive during the world financial crisis, which has resulted in less people from key markets travelling to the region. As a result, the construction of some new developments has also been halted.

In Antigua, which also has a Sandals hotel, Tourism Minister Harold Lovell said Friday he has learned the company is planning layoffs there as well.

The announcement added to economic woes in the Bahamas, where the tourism sector employs 65 percent of the work force and several other properties including the sprawling Atlantis resort have announced major cutbacks.

Prime Minister Hubert Ingraham. according to AP, said earlier this week that tourist arrivals are projected to fall eight per cent this year in the Bahamas, where Americans typically account for 80 per cent of visitors. He said bookings for early 2009 do not look strong.