Beyond Beaches: A Sustainable Tourism Roadmap for the Caribbean’s Next Chapter

The World Bank's report urges the Caribbean to shift from mass, low-yield tourism to a sustainable, value-driven model that fosters inclusivity, environmental protection, and long-term resilience. It proposes a segmented strategy focused on cruise, accommodation, and adventure tourism, backed by regional coordination and policy reform.

The World Bank’s report Rethinking Caribbean Tourism: Strategies for a More Sustainable Future, developed in collaboration with the United Nations World Tourism Organization (UNWTO), the Caribbean Development Bank (CDB), and other key regional and international partners, presents a sweeping reassessment of the Caribbean’s tourism landscape. It urges a shift from the long-standing volume-driven model toward a more sustainable, inclusive, and resilient tourism strategy. The Caribbean, globally celebrated for its pristine beaches, marine life, and cultural heritage, is one of the world’s most tourism-dependent regions. In 2019, the sector accounted for about 22 percent of the region’s GDP and supported nearly 2.75 million jobs by 2023. Yet, the COVID-19 pandemic brutally exposed the fragility of this reliance, revealing deep structural weaknesses, economic vulnerabilities, and unsustainable environmental pressures.

The Limits of Mass Tourism

For decades, the Caribbean’s tourism development has been anchored in high-volume, low-yield models, heavily dominated by cruise ships and all-inclusive resorts. These models have brought in millions of visitors annually, but much of the economic benefit has flowed to foreign investors and international corporations. The report highlights that cruise tourism, despite representing over half of all arrivals, offers limited returns to local economies due to low onshore spending, high leakage, and weak local business linkages. Cruise lines, often oligopolistic and operating with considerable bargaining power, tend to prioritize their own integrated service chains over local vendors, guides, or artisans. Meanwhile, environmental costs from port congestion to ocean pollution remain largely unaddressed.

The all-inclusive resort model, while more stable and lucrative than cruise tourism, is similarly flawed. These resorts frequently import food, beverages, and services, resulting in minimal local procurement. Community engagement and inclusion of micro, small, and medium-sized enterprises (MSMEs) are often missing, creating a disconnect between tourism growth and broader economic development. The pandemic amplified these imbalances, showing that a model focused solely on maximizing visitor numbers is unsustainable in both economic and environmental terms.

Segmented Strategy for Sustainable Growth

The report calls for a paradigm shift through a segmented, evidence-based approach focused on three tourism categories: cruise, accommodation, and adventure tourism. These segments were selected after a comprehensive analysis involving stakeholder consultations across nine Caribbean countries and comparisons with international case studies from Alaska, Costa Rica, New Zealand, Japan, and Türkiye. This segmented model aims to align tourism growth with environmental preservation, cultural respect, and economic inclusivity.

Cruise tourism, though problematic, is not without potential. With better regulation, transparent environmental standards, and increased integration of local products and services, it could be reshaped into a more sustainable contributor. Regional collaboration, especially on taxation and environmental fees, could shift the current imbalance of power between cruise operators and Caribbean destinations.

The accommodation segment, especially high-end resorts, has demonstrated strong resilience. To make it more inclusive, the report recommends strengthening local supply chains, setting investor sustainability requirements, and providing targeted incentives to encourage responsible business practices. Countries like the Dominican Republic and Türkiye serve as examples where strategic governance and investor alignment have created more inclusive tourism sectors.

Adventure Tourism: The Untapped Gem

Adventure tourism emerges in the report as a major opportunity for the Caribbean. Underdeveloped yet full of promise, this niche appeals to high-spending, eco-conscious travelers who seek immersive cultural and nature-based experiences. Unlike traditional mass tourism, adventure tourism supports conservation, engages rural communities, and reduces pressure on overcrowded coastal hotspots.

The report cites Costa Rica and New Zealand as successful models, where robust destination management systems, conservation incentives, and community-based tourism have created thriving adventure economies. For the Caribbean, scaling this model will require investment in training, digital infrastructure, safety standards, and marketing. Moreover, governments must support local entrepreneurs and indigenous communities to participate meaningfully in tourism ventures.

From Vision to Action: A Regional Call

A key message in the report is that Caribbean countries cannot continue to operate tourism in silos. The region’s diversity requires tailored, destination-specific strategies, but coordination is essential for tackling systemic issues, like environmental regulation, taxation, and cruise negotiations, that transcend national borders. Regional bodies such as CARICOM are urged to play a central role in harmonizing policies, facilitating knowledge sharing, and providing a platform for collective bargaining with powerful tourism stakeholders.

The report is not merely diagnostic—it is a blueprint for action. It calls for better data collection, inclusive policy design, smarter regulation, and a rethinking of what tourism success looks like. Rather than measuring growth by visitor numbers alone, the focus should shift to maximizing long-term value, protecting natural and cultural heritage, and ensuring tourism benefits reach all layers of society.

A Turning Point for Caribbean Tourism

The study presents a compelling case for overhauling the region’s tourism model. By transitioning toward a value-driven, sustainable, and inclusive approach, the Caribbean can not only preserve its natural and cultural treasures but also create a more resilient and equitable future. The stakes are high, but the region also stands at a moment of opportunity. With strategic vision, regional unity, and committed leadership, the Caribbean can redefine its place on the global tourism map—not just as a destination of beauty, but as a model of sustainable development.