Economic Update

Published 26 Mar 2018

Improved air and sea connectivity is expected to bolster regional ties, and support growth in Trinidad and Tobago’s tourism sectors.

In mid-January national carrier Caribbean Airlines (CAL) inaugurated a direct flight from Port of Spain to the Cuban capital, Havana.

CAL will operate two flights on the new route each week on Tuesdays and Saturdays, timed to connect with its other regional destinations, including Grenada, Guyana and Barbados.

Initial interest in the service has been high, according to airline officials, with bookings strong for both inbound and outbound flights.

The airline plans to boost its regional presence further, announcing in March the launch of a non-stop service between the Caribbean islands of St Vincent and the Grenadines, and New York’s John F Kennedy International Airport.

The weekly service, the first linking the islands with North America, will open up new opportunities for passenger travel and business ties in the eastern Caribbean region.

New air services offer potential for tourism

In addition to improving transport links within the Caribbean, which is seen as a major barrier to growth in the region, the new routes could also strengthen international tourist numbers in T&T.

Overseas visitors fell by 10% between 2015 and 2017, according to the Trinidad Hotels, Restaurants and Tourism Association (THRTA), based on data sourced from the Immigration Division of Trinidad and Tobago and the Caribbean Tourism Organisation.

Although T&T is well connected to its primary source market of North America, with direct flights to New York, Fort Lauderdale, Orlando, Miami, Houston and Toronto, reductions in funding for the tourism sector by the government, particularly for destination marketing and promotion, have contributed to the downturn, according to Brian Frontin, CEO of the THRTA.

Seabridge disruptions weigh on hotel occupancy

However, in order for better international air connectivity to fully benefit the local market, industry stakeholders say transport infrastructure must be improved to facilitate the flow of passengers and goods around T&T.

The inter-island ferry service, known as the seabridge, provides a vital link between Tobago and Trinidad but frequently suffers disruptions due to maintenance, regulatory compliance issues and rough seas. Its unreliability causes difficulties for travellers relying on the service, especially those moving vehicles from one island to the other, while also impeding logistics firms and freight haulers.

In 2017 persistent disruptions to the seabridge and resulting congestion on domestic flights from Trinidad to Tobago had a substantial impact on Tobago’s hospitality sector, which depends heavily on domestic tourism.

Hotel occupancy stood at just 33.4% between January and September, compared to around 54% in 2016, according to the Tobago Hotel and Tourism Association.

New transport services to improve passenger and freight movement

The launch of a new inter-island ferry service this year is expected to help improve connectivity between the islands.

In early February the National Infrastructure and Development Company took delivery of a $17.4m mixed vehicle and passenger carrier from China following the completion of sea trials.

The catamaran vessel, christened the Galleons Passage, after the waterway separating the two islands, was built to carry 100 vehicles and 700 passengers per trip, and is due to enter into service in mid-April. 

Although its capacity is lower than those of the two vessels currently serving the route, it will relieve existing pressure on the waterway, allowing the other ferries – which have been in operation for over 20 years – to be taken out of service as required.

The same month, news broke of plans to strengthen the national bus service this year, which will also be welcomed by passengers.

Officials from the state-owned Public Transport Service Corporation said in February that the number of buses in operation had reached 360, up from 215 in January, after issues relating to parts and foreign exchange were resolved.

A further 35 buses will be brought into service in March, with an additional 30 expected to begin running in September, enabling the corporation to resume several routes.