| Abstract: |
Although tourism has been a major economic sector in the Car ibbean s ince the
mid-1960s, the sector
now faces significant challenges as competit ion
intensif ies in the global tourism market. These
challenges include
environmental impacts, and the need for continued high levels of public
investment in
order to sustain the tourism product. The precariousness of the
sector was made starkly evident with the
onset of the global recession in
2009, when the sector recorded significant decline. Notwithstanding
some
limited recovery since that time, the recent experience highlighted the need
for Caribbean
countries to undertake more vigorous efforts towards
diversifying their economies in general, and
enhancing their tourism sectors
in particular. One area identif ied for specific development is yachting
and
marina services, a sub-sector which is widely regarded as having significant
economic potential.
Towards this end, the present study seeks to examine the
nature of recreational demand for yachting and
marina services in the
Caribbean. In order to achieve this, a simple demand model is estimated,
and
elast icities calculated for three demand var iables. Using data from
eight countries, the model identified
income in the source market, airline t
icket cost, and the frequency of hurricanes as the three most
critical
variables which influenced consumers’ decision to seek yachting and
marina services in the Caribbean. |