The high cost of jet fuel and weakening of the US economy are threatening to sink the Caribbean tourism industry, according to a story published by the AP.
Prices for airline tickets have gone up markedly and reduced the number of flights to the islands, which in turn reduced the number of tourists who are a vital source of income for Caribbean Island Nations.
Tourism is a cornerstone of the Caribbean economy, which received 15 million visitors, attracted by the beaches and other island charms. There are billions of dollars in investments and thousands of jobs at stake, said Allen Chastanet, president of the Caribbean Tourism Association.
The airlines are reducing their services globally because passengers are not willing to pay the new ticket prices, which went up in order to compensate for the high cost of jet fuel. The Caribbean is particularly vulnerable because American, which controls a good part of the Caribbean market, is going through some truly turbulent times. For example, American transported 60% of the passengers traveling to Puerto Rico last year. However, it is proposing a reduction from 93 to 51 flights to the island. It is suspending its services to Santo Domingo, Antigua, Saint Martin and Aruba among others.
The reduction of flights could also affect the cruise ship industry since it will be more difficult to get to Puerto Rico to board the ships. Ten cruise ships initiated their voyage from Puerto Rico last year.
Instead of raising ticket prices to prohibitive levels, US airlines have chosen to limit the number of flights and reduce their capacity. Airline flights would be totally inaccessible if airline tickets went up with oil prices.
At TicosLand, we ask ourselves: How long will it be before Costa Rica’s tourism industry is affected? It’s time to switch our focus to Europe where the Euro continues to strengthen. Therefore, it is a market with an enormous potential.
Tags: airline ticket prices, airlines, ticosland costa rica, tourism
