2008 Monographs

Is Tourism Allowing Entrepreneurs to Have a Higher Likelihood of Evading Poverty in St. Lucia?

Charles, Abigail S.

The Caribbean islands have long been associated with sun, sea and sand, i.e. a prime vacation destination. Indeed, tourism can be boasted as one of, if not the key economic- growth engines for many of the islands. Furthermore, it has been argued that it actually helps to keep the self-employed survive above the poverty line. If this is the case, then it is interesting to know what are the key components that capitalize on the opportunities that tourism provide, and transforms them into economic growth. The island of St. Lucia is a perfect example for such an investigation. In the 2005 Budget address made by the Prime Minister of St. Lucia, Dr. the Honourable Kenny Anthony, to Cabinet asserted that the Government was fully aware of the economic potential of the tourism sector, and as such, has made moves to develop incentives aimed at encouraging investments and on-going advancements within the industry. These moves included loans on preferential terms to entrepreneurs starting up businesses within the range of entertainment, accommodations and the restaurant business. Additionally, since the economy of St. Lucia has been long sustained by agriculture, Dr. Anthony made it a point to clarify that the tourism industry is positioned not to over-throw the agricultural industry, but rather to establish a symbiotic relationship. Indeed, while confirming that tourism holds the greatest potential for growth and development, the Government of St. Lucia has also agreed that unemployment is one of its greatest concerns. If this is the case, it becomes obvious that the tourism sector is the one which, consequently, has the greatest potential to help in reducing unemployment (as well as lifting many persons out of poverty). Noting this, the need for the analyses and discussion is surrounded by investigating ways in which the tourist industry can contribute to the growth of the St. Lucian economy.