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Unlocking Tourism Potential for Sustainable and Inclusive Growth in Dominica
Author:
Mr. Yibin Mu
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Sinem Kiliç Çelik https://isni.org/isni/0000000404811396 International Monetary Fund

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Archit Singhal
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Series:
Selected Issues Papers
Volume/Issue:
Volume 2023: Issue 061
Language:
English
Publication Date:
11 Aug 2023
DOI:
https://doi.org/10.5089/9798400251771.018
ISBN:
9798400251771
ISSN:
2958-7875
Pages:
15
Keywords:
Island economy; tourism; Caribbean states; tourism sector; tourism development; Dominica's economy; demand variable; stringency index; Natural disasters; COVID-19; Inclusive growth; Income; Caribbean
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IMF Selected Issues Papers are prepared by IMF staff as background documentation for periodic consultations with member countries. It is based on the information available at the time it was completed.
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Tourism is an important driver of Dominica’s economy. The damage of the pandemic on Dominica’s tourism sector was severer than in most regional peers, and the recovery has also been much slower, mostly due to the timing of lockdown restrictions. This paper reviews the tourism sector landscape in Dominica, assesses its recent performance relative to peers, and analyzes the main determinants and constraints for tourism development. Our econometric analysis shows that flight connectivity and demand variables play the most significant role in explaining tourism developments, while natural disasters can have negative lasting significant impacts. This calls for improving infrastructure and enhancing resilience.

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Cover Selected Issues Papers
Selected Issues Papers
Publisher:
International Monetary Fund