2020 Annual Economic and Financial Review

2020 Annual Economic and Financial Review

DOMESTIC ECONOMIC DEVELOPMENTS

2.7 per cent in the previous year. While declines were evident across all member countries, the severity of the decline differed across countries. The differences reflected the economic contribution of tourism, the level of government support provided and the duration of country-specific lockdowns. Contractions ranged from 2.7 per cent in Saint Vincent and the Grenadines to 27.4 per cent in Anguilla. The decline in value added was also broad-based across sectors. The hotels and restaurants sector (a proxy for the tourism industry) recorded the largest fall of 63.2 per cent, in contrast to growth of 10.0 per cent in 2019, as governments imposed unprecedented travel restrictions to contain the pandemic. This was reflected in widespread contractions across all member countries as well as in all visitor segments.

Within the stay-over segment, the number of visitor arrivals is estimated to have plummeted by 68.4 per cent, a reversal of the 11.5 per cent expansion recorded in 2019, due to declines in the number of arrivals from all of the major source markets. While lockdown-related restrictions eased in several member countries by the third quarter, a resurgence in COVID-19 cases in Europe and the USA in the second half of 2020 led to the re-imposition of restrictions, and exacerbated the fall in tourist arrivals. Overall, the total number of arrivals to the ECCU is estimated to have plunged by 65.4 per cent, contrasting a 3.5 per cent expansion in the previous year. The decline in value-added in the hotels and restaurants sector had major spill- over effects on activity in other economic sectors, including transport, storage and communications (25.7 per cent), wholesale and retail (12.4 per cent), construction (17.1 per cent) and real estate, renting and business activities (3.0 per cent).

ECCU Visitor Arrivals In thousands

4,000.0

3,500.0

3,000.0

2,500.0

2,000.0

1,500.0

1,000.0

500.0

Despite measures aimed at enhancing food security and production in several member countries, the agriculture,

0.0

2016

2017

2018

2019

2020

Stay-overs

Cruise Ship Passengers (Includes Excursionist)

Yacht arrivals

2