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Economic jitters spread to Caribbean
Although flights from South Florida to Jamaica and Trinidad have increased, the U.S. slowdown is causing concerns in the Caribbean.
Posted on Sat, Jun. 21, 2008reprint print email
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By DANICA COTO
Associated Press

SAN JUAN -- Expensive jet fuel and a soft American economy are threatening to sink Caribbean tourism as airline ticket prices soar and flights are sharply reduced, choking the flow of the vacationers that many tiny islands depend upon.

Tourism is the economic cornerstone of the Caribbean, which drew more than 15 million visitors last year to colonial cities and carefree beaches.

''Billions of dollars of investment are being exposed and thousands of jobs are being exposed,'' said Allen Chastanet, chairman of the Caribbean Tourism Organization.

Despite the cuts, however, South Florida has seen an increase in flights to Jamaica and Trinidad in recent months.

Recognizing the burgeoning Caribbean-American population in Broward County, several carriers in recent months have announced services out of Fort Lauderdale-Hollywood International Airport.

Caribbean Airlines, which recently began offering daily flights between Port-of-Spain and Fort Lauderdale, commemorated the event by sponsoring a ''Fly for Free'' contest for its Wednesday flight to Trinidad. The airline was already flying out of Miami International Airport.

Airlines are cutting back across the world as passengers balk at paying fares that have risen along with fuel costs. The Caribbean is particularly vulnerable because one foundering airline, AMR's American Airlines, controls much of the market -- carrying more than 60 percent of passengers traveling through Puerto Rico last year.

Earlier this month, American Airlines launched a daily service between Fort Lauderdale and Kingston, Jamaica. Spirit Airlines has also expanded its flights to include Trinidad.

The cuts and concerns amid the U.S. slowdown have prompted Caribbean leaders to make tourism a top priority. Caribbean tourism ministers and others will discuss the impact and economic future of the region Sunday through Tuesday in Washington, D.C., when the Annual Caribbean Tourism Summit (ACTS) meets there. Former Federal Reserve Chairman Alan Greenspan is the speaker.

American now expects to cut daily flights out of Puerto Rico's capital from 93 to 51 in September. Some flights will be cut to Santo Domingo, Antigua, St. Maarten, Aruba and Samana in the Dominican Republic, spokeswoman Minnette Velez said.

Fewer flights to Puerto Rico also could jeopardize the island's cruise ship industry, since it would be harder for passengers to reach the island to board.

Rather than raise ticket prices too high, American has decided to cut flights and reduce capacity, Velez said. Other carriers are making similar moves. Spirit Airlines recently said it would close its San Juan hub, and Continental Airlines expects to soon announce destination and flight cuts.

The Caribbean is still affordable for wealthy travelers, but resorts ''that appeal particularly to price-sensitive families are in a world of trouble,'' said Christopher Hart, a professor at the Cornell University School of Hotel Administration.

The flight cuts are coming despite increases in tourism this year to most of the islands, including double-digit growth in U.S. visitors to Antigua, St. Lucia and Jamaica, according to the Caribbean Tourism Organization. The Dominican Republic reported 407,000 U.S. tourists from January to April, a 6 percent increase from last year, and Puerto Rico reported increased airline passenger traffic as well.

Now many fear even more cuts, meaning the islands won't even have a chance to lure more tourists.

''This is just the beginning,'' said Peter Muller, a German native who owns the Hotel Coyamar in Samana, the Dominican Republic. ``We're going to reach a point where it's no longer worth keeping the airport open.''

In Antigua, where tourism officials tried to lure visitors last weekend with a music festival featuring Lionel Richie and Kenny Rogers, most of the tickets sold were to locals.

Antigua's tourism board announced in early June that Delta would soon launch a direct flight from New York to Antigua. The airline formally announced the flight on June 12.

if not already think it will spread to Central America as well....

It will spread.

It looks like Continental has already cut the number of flights from Houston to SJ. Making the planes they do have fill faster.

In no time at all mongering will become a very expensive hobby. The days of cheap travel I fear are past tense. I hope I am wrong...we will see.

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Spunk glazed Chicas are the building blocks of the universe!

In checking Spirit Air flights ACY (Philly area) to SJO, I see they've cut the # of flights but the price at least for long-term purchases seems to be holding @ $144 each way (plus taxes and fees but including fuel surcharge). Hinky about purchasing any flight more than 30 days out though--little recourse if the airline folds.

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"A man accustomed to hear only the echo of his own sentiments, soon bars all the common avenues of delight, and has no part in the general gratification of mankind"--Dr. Johnson
"Amen, brother"-ED

I think the economies of the third world will take a hard hit for many reasons. Food and oil increases can easily wipe out a lot of gains that 3rd world countries have made in recent times. The dollar against first world nations has had better days, but recently the dollar against 3rd nations has actually gained. Oil and food increases can cripple an economy and thus currency that hasn't had a very stable past very quickly.

There will be some cheap condos in some parts of the world very soon. This will actually be a good thing for them and for us when and if it happens (I'm not expert... LOL!).

As long as you pay with a major credit card there is no problem. Your CC company will credit the charge back to your account as the seller did not perform the service and therefore is not entitled to the money. The problem is if you pay cash. You then become a creditor and have a long wait and a very slim chance of recovering your money.

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Pura Vida
Only Irish coffee provides in a single glass all four
essential food groups:
alcohol, caffeine, sugar and fat.
Alex Levine

This will be a VERY interesting year or so. I think a lot will shake out in the travel industry. I think you will see a lot of fluctuation in oil prices between now and the end of the year. The damage is done to travel destinations for the next 24 months but flight prices may not increase too much. I will be interested to see if a small decrease in mongers can make it more of a buyers market.

Some very respected analysts are still predicting $100/ a barrel by year end as a lot of the "new" speculators like University's and charites begin to exit.

Hang on it will be an interesting ride!

I fly continental+check on flights reguarly and don't see less flights to san jose.

What dates are you looking at? This was posted in another thread:



I do not know if the info is accurate but you might try checking using dates after September 3.

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Pura Vida
Only Irish coffee provides in a single glass all four
essential food groups:
alcohol, caffeine, sugar and fat.
Alex Levine

On my last trip this past December my R/T fare was $254.00. I just checked the fare if I were to go in October. I picked October because it's one of the rainiest times of the year in C.R. so figured would be one of the least desirable travel periods. The fares I saw were all in the $700 -$800 range. Anybody that thinks that the U.S.'s problems won't eventually turn global has another thing coming.

... double posted ...

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- must not waste chalk.

Well, my ticket to SJO will cost me about 200 bucks more than usual. No getting away from it, most everyone is affected.

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- must not waste chalk.

Delta had a special in the Atlanta Sunday paper ATL-SJO $ 620.00 . That is why the Del Rey is having to do the E-Mails as well. Business is really off but as Greg told me even with business like it is they are still making lots of money. Advice to you guys hit your airline friends up for the buddy passes they get and a lot of times let expire. Each Delta employee for example working or retired get 8 passes a year to give to whom ever. ATL-SJO on standby for $ 216 r.t. go on a Thursday and come home on Tuesday almost always a seat. If first class is open boom up you go. I flew home Sunday in 2 d and sat beside a referee that worked the Soccer game the night before in Costa Rica. Just a little tip from a pilot (retired). Thanks, H.

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Always nice to wake up and see what will happen today