KPMG’s annual Caribbean Region Financing Survey examining the status of lending in the hospitality and tourism sector across the Caribbean has been released at the Caribbean Hotel & Tourism Investment Conference. The 2011 Survey focuses on financing trends, the outlook for the region and the identification of current changes in the lending environment.
The Survey was conducted via telephone interviews between February and April 2011 and covered nine countries and 19 lenders and financiers. Hotel financing brokers/consultants were also included, for the first time in the Survey, as they represent a new source of financing for the sector. Survey respondents represented an aggregate portfolio US$2.8 billion in loan exposure in the region.
KPMG’s Raymond Campbell reported, at the opening session, that a key finding was that that "only 36% of the Survey participants have positive views for the prospects of the Caribbean tourism industry over the next 12 months”.
Moreover, global economic issues were seen as the most significant challenge facing the sector. Interestingly, other factors including social issues, the UK Travel Tax and quality of the hotel product were not seen as significant.