Dominica: Selected Issues
IMF Staff Country Reports, July 5, 2023
Source details
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- Dominica: Selected Issues
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Bibliographic details
- Published: July 5, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400247774.002
Overview
- This Selected Issues paper reviews the tourism sector landscape in Dominica, assesses its recent performance relative to peers, and analyzes the main determinants and constraints for tourism development.
- Tourism plays a vital role in Dominica’s economy, contributing significantly to growth, employment, and exports.
COVID-19 impact and recovery
- The coronavirus disease 2019 pandemic had a significant impact on Dominica’s tourism sector, and the recovery has been slower compared to peers.
- While the drop in tourist arrivals in Dominica was similar to regional peers, the recovery has been much slower.
- The underperformance appeared mainly explained by:
- the costs of stay, and
- timing of lockdown restrictions.
Econometric findings on determinants and shocks
- The econometric analysis shows:
- flight connectivity and demand variables play the most significant role in explaining tourism developments, and
- natural disasters can have negative lasting significant impacts.
- These findings imply a need to focus on infrastructure and resilience improvements.
Policy implications and recommendations
- Improve infrastructure and enhance resilience to mitigate lasting negative impacts from natural disasters.
- Invest in the expansion of skilled labor supply for the tourism sector to enhance competitiveness.
- Diversify product offers to reduce vulnerabilities and support recovery and sustainable growth.
Subject coverage and keywords
- Subject: COVID-19, Economic sectors, Environment, Health, Income, International organization, Monetary policy, National accounts, Natural disasters, Tourism
- Keywords: Caribbean, COVID-19, Income, market source, Natural disasters, Tourism, tourism flow, tourism recovery, tourism sector landscape, Yibin mu
Content in this bundle
- Dominica: Selected Issues; IMF Country Report No. 23/247; May 18, 2023