CHTA wants U.S. to consider Caribbean exemptions to port fees proposal

Tourism officials in the Caribbean are raising concerns about proposals by the Office of the United States Trade Representative (USTR) to imposed significant fees on each port of call by a Chinese-made or flagged vessels.

The Caribbean Hotel and Tourism Association (CHTA), pointing to the mutual benefits that tourism brings to both the Caribbean and the United States, particularly Florida, is recommending alternatives to the proposed U.S. port service fees and tariffs.

The CHTA is advocating for modifications to the port-related policies currently under consideration, and is calling for a new approach to strengthen and safeguard the two-way ties in trade and travel between the region and the U.S.

In a recent submission to the USTR, the CHTA argued that the proposed service fees – of up to $1.5 million for each port call by a Chinese-made or flagged vessel – coupled with tariffs, will significantly increase the cost of imports—raising costs for both land and cruise travellers—and ultimately reduce traveller demand and spending.

And while it said that it acknowledged the U.S. government’s intention to expand the use of U.S.-built cargo vessels, the CHTA warned of the policy’s unintended consequences, particularly its timing.

The association highlighted the value of both land- and cruise-based travel to the U.S. and the Caribbean, as well as the challenges that U.S. and Caribbean-owned shipping companies would face in quickly transitioning away from Chinese-built vessels.

CHTA President Sanovnik Destang emphasized the socio-economic benefits that tourism brings to both regions, including job creation, business opportunities, and increased tax revenue.

Said Destang: “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.”

And the CHTA’s president continued: “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. One-third of our tourism-related businesses reported a net loss in 2024, according to CHTA’s annual performance study.”

In its submission to the USTR, CHTA aligned with the CARICOM Private Sector Organization (CPSO) and shipping interests serving the Caribbean, calling for exemptions from the proposed fees for the region and for protection of smaller shipping companies that serve the Caribbean—often via multiple small transshipment ports.

Caribbean states within the proposed exemption would include: Anguilla, Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, Bermuda, Bonaire, the British Virgin Islands, Guyana, Cayman Islands, Curaçao, Dominica, Dominican Republic, Grenada, Guadeloupe, Haiti, Jamaica, Sint Maarten, St. Barthélemy, St. Kitts & Nevis, St. Lucia, St. Martin, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago, and Turks & Caicos. Puerto Rico and the U.S. Virgin Islands would be included as U.S. territories.

The U.S. is the largest supplier of food products to the Caribbean, with food and beverages representing the highest input costs. An estimated 70 to 80% of these goods are delivered via maritime shipping from the U.S., according to the CPSO.

Florida, in particular, would feel the impact. Most cruise visitors to the Caribbean originate from the state, and cruise ships are provisioned through Florida-based suppliers and shippers—contributing significantly to U.S. businesses, employment, and local, state, and federal tax revenues.

The CPSO notes that each stayover visitor (i.e., staying in a hotel or guest accommodation) to the Caribbean contributes an estimated $944—directly and indirectly—toward incremental U.S. imports, approximating $6.2 billion in U.S. exports to CARICOM countries in 2023. Each cruise visitor is estimated to contribute $23—directly and indirectly—toward incremental U.S. imports, totaling approximately $0.3 billion in U.S. exports to CARICOM countries in 2023.

Destang observed that: “Given the clear mutual advantages to both the U.S. and the Caribbean of a vibrant Caribbean hospitality and tourism industry, and in the spirit of mutual collaboration, longstanding benefits from trade and tourism, and our shared commitment to free enterprise and democracy, we are hopeful that our recommendations are considered and adopted for our mutual benefit.”

Go to www.caribbeanhotelandtourism.com for more.