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KPMG survey: 2-3 years before Caribbean sees real growth in Tourism

Lenders believe it will take at least two to three years before there will be any meaningful growth in tourism in the Caribbean. This according to KPMG’s 2013 Caribbean Region Financing Survey: “Financing waters still choppy”.

KPMG launched its 9th annual Caribbean financing survey at the Caribbean Hotel & Resort Investment Summit in Miami on May 6.

“We thought CHRIS would be the ideal venue to launch our survey this year. Lenders will play a critical role as the region attempts to recover from the effects of the global economic downturn and we thought it would be very useful for delegates at CHRIS to understand the current views of lenders” said Steve Woodward, managing director of KPMG Enterprise in Bermuda.

In general terms the 2013 report card from lenders indicates that the worst appears to be over but continued patience is needed as recovery will be slow, KPMG said. There is no quick fix solution. Lenders believe it will take at least 2-3 years before there will be any meaningful growth in tourism in the Caribbean.

Leveraging off CHRIS’s theme of “Smooth Sailing Ahead?” KPMG asked survey participants to describe their outlook for the next 12 months using a sailing analogy. Their overwhelming forecast was that waters would be a “bit choppy” with the possibility of “rough seas”.

Clearly lenders are cautious and when they do return to the market it will be with a more conservative approach to managing risk, KPMG said.

The all important KPMG Caribbean Financier Confidence Barometer, however, gives cause for optimism. It rose for the fourth year in succession and lenders’ outlook for the Caribbean and Central American tourism over the next 12 months is more bullish than at any point since 2008.

Survey participants also indicate there are very few new troubled projects and that there are signs of recovery, KPMG said.

The Survey is based on interviews both with lenders who are physically represented in the Caribbean and other, non Caribbean based, institutions who are lending into the region. The combined loans to the Caribbean hospitality sector of the lenders interviewed approximates US$3 billion.

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Published June 03, 2013 at 3:01 pm (Updated June 03, 2013 at 3:00 pm)

KPMG survey: 2-3 years before Caribbean sees real growth in Tourism

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