Caribbean Hotel and Tourism Association Advocates for U.S. Policy Shift to Protect Caribbean Tourism

• The Caribbean Hotel and Tourism Association (CHTA) recommends changes to proposed U.S. port service fees and tariffs to protect tourism trade between the U.S. and the Caribbean.
• CHTA warns that these proposed fees could increase the cost of imports, affect the tourism industry, and reduce traveler demand and spending.

The Caribbean Hotel and Tourism Association (CHTA) is advocating for a change in proposed U.S. port service fees and tariffs, citing their potential detrimental impact on the tourism trade between the Caribbean and the United States.

The CHTA has submitted to the U.S. Trade Representative (USTR) and other U.S. officials in response to proposed service fees of up to $1.5 million for each port call by a Chinese-made or flagged vessel. The association fears that these fees, coupled with tariffs, will significantly increase the cost of imports, affecting both land and cruise travelers and reducing traveler demand and spending.

The CHTA acknowledges the U.S. government’s intention to encourage the use of U.S.-built cargo vessels. However, it warns of the policy’s unintended consequences, particularly its timing. The CHTA provided data showing the value of both land—and cruise-based travel to the U.S. and the Caribbean and the challenges that U.S. and Caribbean-owned shipping companies would face in transitioning away from Chinese-built vessels.

CHTA President Sanovnik Destang highlighted the socio-economic benefits of tourism to both regions, including job creation, business opportunities, and increased tax revenue. He pointed out that one-third of tourism-related businesses reported a net loss in 2024 due to high operational costs, driven by five years of inflation.

In its submission to the USTR, the CHTA aligned with the CARICOM Private Sector Organization (CPSO) and shipping interests serving the Caribbean, calling for exemptions from the proposed fees for the region and for the protection of smaller shipping companies that serve the Caribbean.

According to the World Travel and Tourism Council, tourism brought an estimated $91.2 billion to the region’s economies in 2024 and generated over 2.9 million jobs. The U.S. is the largest supplier of food products to the Caribbean, with food and beverages representing the highest input costs. An estimated 70-80 percent of these goods are delivered via maritime shipping from the U.S., according to the CPSO.

Florida, in particular, would feel the impact of the proposed fees. Most cruise visitors to the Caribbean originate from the state, and cruise ships are provisioned through Florida-based suppliers and shippers, significantly contributing to U.S. businesses, employment, and tax revenues.

Destang expressed hope that their recommendations would be considered and adopted for the mutual benefit of the U.S. and the Caribbean.