## Dominica: Selected Issues

_IMF Staff Country Reports, July 5, 2023_

## Source details

**Canonical URL:** [Dominica: Selected Issues](https://www.imf.org/en/publications/cr/issues/2023/07/05/dominica-selected-issues-535755)

## Other formats

- [Markdown version](/en/publications/cr/issues/2023/07/05/dominica-selected-issues-535755/index.md)
- [Structured JSON version](/en/publications/cr/issues/2023/07/05/dominica-selected-issues-535755/index.json)
- [Bundle manifest](/en/publications/cr/issues/2023/07/05/dominica-selected-issues-535755/bundle-manifest.json)

## Bibliographic details
- Published: July 5, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400247774.002

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### 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

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## Content in this bundle

- **Dominica: Selected Issues; IMF Country Report No. 23/247; May 18, 2023**
  - [Dominica: Selected Issues; IMF Country Report No. 23/247; May 18, 2023 (Markdown version)](/-/media/files/publications/cr/2023/english/1dmaea2023002.pdf.md){rel="alternate" type="text/markdown"}
  - [Dominica: Selected Issues; IMF Country Report No. 23/247; May 18, 2023 (PDF)](/-/media/files/publications/cr/2023/english/1dmaea2023002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2023/07/05/dominica-selected-issues-535755_