Regional and multinational lending institutions across more than 20 markets in the region were consulted for the Survey. Respondents represented an aggregate portfolio in excess of US$3 billion in Caribbean real estate and hospitality exposure.
Some of KPMG’s key finding of the Survey were:
- "73% of the Survey participants are of the view that the biggest challenge for Caribbean tourism in 2012 is the fragile economic recovery”.
- Most respondents feel that “The expectation is that growth will continue to be slow” with “meaningful growth returning to the market in 2014 or beyond”.
- The Caribbean Financier Confidence Barometer held steady at 5.18 [on a scale of 1 (bearish) to 10 (bullish)] in comparison to 2010 and 2011 which reported ratings of 5.15 and 5.17 respectively.
- Current credit terms reflect caution in the market, remaining tight when compared to prior years. An uptick in pricing was evident.
It was clear from the Survey that any recovery in visitor arrivals and hotel performance will take time to translate into a recovery for residential and mixed-use projects in the region.
Overall, “patience” seems to be the watchword for the foreseeable future.