The Caribbean Hotel and Tourism Association (CHTA) has issued a strong appeal to the United States to reconsider proposed port service fees and tariffs that could dramatically affect the economic and tourism relationship between the U.S. and the Caribbean. CHTA warns that the policy, while intended to encourage U.S. shipbuilding, could have unintended and damaging consequences for trade, tourism, and regional development.

At the center of the concern are proposed service fees of up to $1.5 million for each port call by vessels made in or flagged by China. CHTA, representing the region’s private-sector tourism interests, submitted formal comments to the U.S. Trade Representative (USTR), outlining how the policy could raise operational costs, increase consumer prices, and ultimately dampen traveler demand. These developments would come just as the Caribbean tourism sector is rebounding from the COVID-19 pandemic.

CHTA President Sanovnik Destang emphasized that despite the recovery, the region remains economically fragile. “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,” said Destang. He highlighted that one-third of tourism businesses reported a net loss in 2024.

In collaboration with the CARICOM Private Sector Organization (CPSO), CHTA is advocating for regional exemptions to the proposed U.S. maritime fees and tariffs. The call for exemptions includes more than 25 Caribbean nations and territories such as Jamaica, Barbados, the Dominican Republic, and St. Lucia, as well as U.S. territories like Puerto Rico and the U.S. Virgin Islands.

The CHTA also points to the reliance of Caribbean economies on U.S. imports—especially food and beverage supplies—70 to 80 percent of which are delivered via maritime shipping from the U.S. Florida, a central hub for Caribbean cruising, would also be significantly impacted. Most Caribbean cruise passengers originate in Florida, and many ships are stocked by Florida-based suppliers, supporting thousands of jobs and generating tax revenue at multiple government levels.

The economic stakes are high. According to the World Travel and Tourism Council, tourism generated $91.2 billion for the Caribbean in 2024 and supported over 2.9 million jobs. The Caribbean Tourism Organization (CTO) reported over 68 million visitors to the region last year—half arriving by cruise and half staying in hotels.

CPSO data reveals that each stayover tourist contributes about $944 to U.S. imports, totaling $6.2 billion in exports to CARICOM countries in 2023. Cruise visitors contribute approximately $23 each, adding another $0.3 billion in exports.

Destang concluded by urging policymakers to consider the shared economic benefits and long-standing partnership between the U.S. and the Caribbean. “We are hopeful that our recommendations are considered and adopted for our mutual benefit.”