TRINIDAD AND TOBAGO - Caribbean Tourism Organization

CAPITAL
INVESTMENT
IN 2005,TRAVEL & TOURISM CAPITAL INVESTMENT IN TRINIDAD AND
TOBAGO IS EXPECTED TO TOTAL TT$1.8 BILLION (US$283.6 MILLION),
OR 12.6 PER CENT OF TOTAL INVESTMENT.
The largest component of capital investment originates from the
private sector in new plant and equipment, while the public
sector invests in new Travel & Tourism infrastructure.
This represents a return to a more normalized capital
investment growth following several years of sharp increases.
Over the next ten years (2006-2015), the contribution of Travel
& Tourism to Trinidad and Tobago’s capital investment account is
expected to increase at an average rate of 4.6 per cent per annum
in real terms.
Examination of Travel & Tourism Capital Investment results
and forecasts lends greater insight into the market forces at work
in a given economy and the expectations by the public and
private sectors to meet the challenges and opportunities in the
years ahead. For the most part, Travel & Tourism Capital
Investment tends to be cyclical, with strong links to major public
policy initiatives, the business/market cycle, major events (such as
natural disasters) and significant socio-political changes.
Worldwide,Travel & Tourism Capital Investment is expected
to generate 9.4 per cent of total investment in 2005. The
expectation for global growth from 2006-2015 is 4.8 per cent per
year (in constant US dollars). In the Caribbean, the respective
figures are 20.7 per cent of total capital investment in 2005 and
2.7 per cent real growth over the coming decade.
The charts below illustrate several interesting points. First,
Trinidad and Tobago’s Travel & Tourism Capital Investment is
expected to show a more regular pattern following its recent
jumps. Second, when compared with neighbouring and
competing countries,Trinidad and Tobago’s ranking is favourable
– as it is in the broader listing of 174 countries in investment
percentage terms for 2005. With Travel & Tourism estimated at
12.6 per cent of total investment,Trinidad and Tobago ranks 70th
in the world listing, behind Martinique (39th place).
However, as is the case with its ranking in terms of GDP
growth, Trinidad and Tobago’s Travel & Tourism Capital
Investment growth prospects for 2006-2015 place it within the
top tier of the WTTC league tables – in first and 65th positions
respectively in the regional and the world listings. This ranking
sends a positive message to Travel & Tourism operators at home
and abroad that Trinidad and Tobago is positioned to attract new
business ventures.
In Tobago,Travel & Tourism Capital Investment is expected
to total TT$230.8 million (US$36.6 million), or 82.4 per cent of
total investment, in 2005, growing by 3.8 annually over the next
ten years to 85.2 per cent of total capital investment by 2015.
250
225
200
175
150
125
250
200
150
100
50
0
TRINIDAD & TOBAGO
Travel & Tourism Capital Investment
(2000 Constant US$ mn)
2000 2001 2002 2003 2004 2005
TRINIDAD & TOBAGO
Travel & Tourism Capital Investment
(Cumulative Real Growth, %)
1990 1995 2000 2005 2010 2015
WTTC LEAGUE TABLE EXTRACT
Travel & Tourism Capital Investment
(2005, % of Total)
2 Aruba ......................................................76.4
4 Bahamas ..................................................66.1
8 Anguilla....................................................54.4
9 Antigua and Barbuda............................51.8
11 Bermuda..................................................45.8
13 Saint Lucia ..............................................40.2
24 Saint Kitts and Nevis ..........................25.2
28 Grenada ..................................................24.2
39 Martinique ..............................................17.6
70 Trinidad and Tobago..................12.6
5.2
5.0
4.8
4.6
4.4
4.2
4.0
250
200
150
100
50
0
CARIBBEAN
Travel & Tourism Capital Investment
(1990 Constant US$ bn)
2000 2001 2002 2003 2004 2005
CARIBBEAN
Travel & Tourism Capital Investment
(Cumulative Real Growth, %)
1990 1995 2000 2005 2010 2015
65
WTTC LEAGUE TABLE EXTRACT
Travel & Tourism Capital Investment
(10-Year Real Growth,Annualized, %)
Trinidad and Tobago....................4.6
83 Martinique ................................................4.1
101 Aruba ........................................................3.9
127 Saint Lucia ................................................3.2
134 Antigua and Barbuda..............................3.1
142 Saint Kitts and Nevis..............................2.8
150 Anguilla......................................................2.6
159 Bermuda....................................................2.1
168 Bahamas ....................................................1.5
171 Grenada ....................................................0.3
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