Unlocking Tourism Potential for Sustainable and Inclusive Growth in Dominica

Abstract

Tourism is an important driver of Dominica’s economy. The damage of the pandemic on Dominica’s tourism sector was severer than in most regional peers, and the recovery has also been much slower, mostly due to the timing of lockdown restrictions. This 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. Our econometric analysis shows that flight connectivity and demand variables play the most significant role in explaining tourism developments, while natural disasters can have negative lasting significant impacts. This calls for improving infrastructure and enhancing resilience. RECOMMENDED CITATION: Yibin Mu, Sinem Kilic Celik, Archit Singhal; Unlocking Tourism Potential for Sustainable and Inclusive Growth in Dominica (SIP/2023/061); International Monetary Fund, Washington, DC JEL Classification Numbers: B32, N36, O18