Economic and Financial Review June 2021 Eastern Caribbean Currency Union

The Economy (Real Sector)

Economic activity in the regional economy began to gradually recover in the latter part of the period, although overall activity in the first half of 2021 contracted relative to the previous year. Despite the resumption of global travel and the gradual vaccination uptake, tourism activity is estimated to have contracted in the first six months of 2021. Total tourist arrivals to the region declined by 89.8 per cent to 164,183, driven by a falloff in the stay-over (49.4 per cent) and yachting (90.9 per cent) segments, while cruise calls remained suspended in most member countries throughout the period (see figure 1).

Figure 1 - ECCU Visitor Arrivals (Jan - Jun)

The outturn of all three segments remained firmly below their pre-pandemic average levels, illustrative of the unprecedented impact of the pandemic on the industry. The fall in stay-over arrivals reflected declines from all source markets, with the sharpest contractions in Canada (95.5 per cent), the Caribbean (81.7 per cent) and the United Kingdom (80.1 per cent). The sharp declines in Canada and the United Kingdom reflected a number of travel and other restrictions introduced by Canada and the United Kingdom during the period to help contain virus transmission. Notwithstanding the overall contraction in arrivals, Saint Lucia recorded a notable 44.8 per cent year-on-year increase in visitors from the USA source market in the period, indicative of pent-up demand and the gradual recovery following global travel resumption. The allied service sectors, including transport, storage and communication, wholesale and retail trade and real estate, renting and business activities are all estimated to have remained subdued over the period, as tourist arrivals continued to perform well below pre-COVID-19 averages.

Notwithstanding the overall contraction in arrivals, Saint Lucia recorded a notable 44.8 per cent year-on-year increase in visitors from the USA source market in the period

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