Caribbean tourism officials are urging the U.S. government to exempt the region from proposed port service fees targeting Chinese-made or flagged vessels, warning the measures could significantly harm an industry vital to both economies.
The Caribbean Hotel and Tourism Association submitted recommendations to the U.S. Trade Representative regarding the proposed fees of up to $1.5 million per port call for Chinese-made or flagged vessels, according to a statement released Monday.
The organization warned the fees would increase import costs for both land and cruise travelers, potentially reducing traveler demand and spending throughout the Caribbean.
In its submission, CHTA aligned with the CARICOM Private Sector Organization to request exemptions for 27 Caribbean territories, including popular destinations like The Bahamas, Jamaica and the Dominican Republic. U.S. territories Puerto Rico and the U.S. Virgin Islands would also be included in the exemption.
The association provided economic data highlighting the interconnected nature of U.S.-Caribbean tourism. According to the World Travel and Tourism Council, tourism contributed an estimated $91.2 billion to Caribbean economies in 2024 and generated over 2.9 million jobs. The region welcomed more than 68 million visitors last year, split evenly between cruise ships and hotel stays.
CHTA emphasized that the U.S., particularly Florida, would feel significant economic impacts from the proposed fees. Most Caribbean-bound cruise visitors originate from Florida, and cruise ships are provisioned through Florida-based suppliers and shippers.
The CARICOM Private Sector Organization estimates each stayover visitor to the Caribbean contributes approximately $944 toward incremental U.S. imports, which amounted to about $6.2 billion in U.S. exports to CARICOM countries in 2023. Cruise visitors contribute an estimated $23 each, totaling approximately $0.3 billion in U.S. exports.
While acknowledging the U.S. government’s intention to expand the use of American-built cargo vessels, the CHTA warned of unintended consequences, noting that U.S. and Caribbean-owned shipping companies would struggle to quickly transition away from Chinese-built vessels.