The Caribbean Hotel and Tourism Association is calling on the US to rethink proposed tariffs and port service fees that could hit Caribbean economies hard and increase travel costs for American tourists.

In a submission to the US Trade Representative, the association requested exemptions from proposed port fees of up to $1.5 million per call for vessels built or flagged in China.

The move, they argue, could disrupt the flow of goods and raise costs for both cruise and land-based visitors, ultimately reducing demand and hurting businesses on both sides of the water.

Sanovnik Destang, the CHTA president, warned that the timing of the policy could stall the region’s fragile recovery from the Covid-19 pandemic.

“The region was beginning to see light at the end of the tunnel with many tourism-related businesses recovering from the tremendous impact the pandemic had on travel and tourism,” he said.

“Even as our industry has rebounded, we remain highly vulnerable to the high cost of operations ― particularly food and beverages ― driven largely by five years of inflation.”

The association noted that one-third of tourism businesses in the region posted a net loss in 2024, according to its own performance study.

In partnership with the Caricom Private Sector Organisation, CHTA’s letter to US officials urged them to protect smaller shipping companies that service the Caribbean, often via multiple transshipment hubs, and exempt the region entirely from the new fees.

The requested carve-out would include most Caricom members and territories. Bermuda is a Caricom associate member. It would also be affected, as would territories such as Aruba, the Dominican Republic and the British and US Virgin Islands.

Tourism remains one of the largest contributors to the region’s economic output.

According to the World Travel and Tourism Council, the industry generated $91.2 billion in 2024 and supported over 2.9 million jobs. Nearly 70 million visitors arrived that year, about half by cruise ship.

Mr Destang said the economic link between the US and the Caribbean, particularly Florida, should not be overlooked.

“Given the clear mutual advantages to both the US and the Caribbean of a vibrant Caribbean hospitality and tourism industry … we are hopeful that our recommendations are considered and adopted for our mutual benefit,” he said.

Cruise ships are often provisioned in Florida, while an estimated 70 to 80 per cent of food imports to the Caribbean arrive by sea from the US, according to CPSO data.