Tuesday, April 8, 2025
The Caribbean Hotel and Tourism Association (CHTA), representing private-sector tourism interests in the region, is calling for a reevaluation of the proposed U.S. port service fees and tariffs. The association emphasizes the substantial benefits tourism provides to both the Caribbean and the United States, particularly Florida. In light of the potential changes, CHTA is offering alternative approaches to the current policies under review and pushing for a new strategy that would strengthen and safeguard the vital trade and travel links between the Caribbean and the U.S.
In its recent response to the U.S. Trade Representative (USTR) and other key U.S. officials, CHTA addressed a request for feedback on a proposed policy that could introduce service fees as high as $1.5 million per port call for vessels flagged or constructed in China. The association expressed concerns that such fees, combined with tariffs, would increase import costs, negatively impacting both land-based and cruise tourism. This could result in a decrease in traveler demand and spending, ultimately hurting the tourism sectors on both sides.
The Caribbean Hotel and Tourism Association (CHTA) acknowledges the U.S. government’s goal of increasing the use of American-built cargo vessels but warns about the potential negative impacts of such policies, particularly at this critical time. The association pointed to key data that emphasizes the vital role of both land and cruise tourism in the economies of the U.S. and the Caribbean. It also highlighted the challenges U.S. and Caribbean shipping companies would face in swiftly transitioning from Chinese-made vessels.
“The region was beginning to see recovery after the pandemic’s devastating effects on the travel and tourism industry,” said CHTA President Sanovnik Destang. “Even though our sector is bouncing back, we remain extremely vulnerable to rising operational costs, especially in food and beverage sectors, driven largely by five years of inflation. One-third of tourism-related businesses reported a net loss in 2024, according to CHTA’s annual performance study,” he continued.
Destang emphasized the socio-economic benefits that tourism brings to both regions, including job creation, business growth, and increased tax revenue.
In its submission to the U.S. Trade Representative (USTR), CHTA joined with the CARICOM Private Sector Organization (CPSO) and other Caribbean shipping stakeholders, urging the exclusion of the region from the proposed fees. They also advocated for the protection of smaller shipping companies serving the Caribbean, many of which depend on multiple smaller transshipment ports.
The Caribbean nations seeking exemption from the proposed fees include: Anguilla, Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, Bermuda, Bonaire, the British Virgin Islands, Guyana, Cayman Islands, Curaçao, Dominica, the Dominican Republic, Grenada, Guadeloupe, Haiti, Jamaica, Sint Maarten, St. Barthélemy, St. Kitts & Nevis, St. Lucia, St. Martin, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago, and the Turks & Caicos Islands. Puerto Rico and the U.S. Virgin Islands, as U.S. territories, would also be covered by the exemption.
Tourism was a major contributor to the region’s economies in 2024, generating an estimated $91.2 billion and supporting more than 2.9 million jobs, according to the World Travel and Tourism Council. The Caribbean welcomed over 68 million visitors in 2024, with half arriving via cruise ships and the other half staying in various accommodations, as per the Caribbean Tourism Organization (CTO).
The U.S. remains the largest supplier of food products to the Caribbean, with food and beverages representing a significant portion of import costs. Around 70-80% of these goods are delivered through maritime shipping from the U.S., according to the CPSO.
Florida, in particular, stands to face substantial impacts from the proposed changes. The majority of Caribbean cruise visitors are sourced from Florida, and Florida-based suppliers and shippers provide provisions for these cruise ships. This contributes significantly to U.S. businesses, local employment, and both state and federal tax revenues.
The CPSO pointed out that each stayover visitor to the Caribbean contributes approximately $944 toward U.S. imports, totaling roughly $6.2 billion in U.S. exports to CARICOM countries in 2023. Likewise, each cruise visitor contributes about $23, resulting in $0.3 billion in U.S. exports to CARICOM nations in the same year.
“Given the clear mutual benefits to both the U.S. and the Caribbean from a thriving Caribbean hospitality and tourism sector, and in the spirit of collaboration, free enterprise, and democracy, we hope our recommendations will be considered and adopted for the benefit of both regions,” said Destang.
Comments: