Governor: Economy boosted by extra 10 000 in for T20 cricket

The International Cricket Council Men’s T20 World Cup has been a major hit for the Barbados economy.

Central Bank Governor Dr Kevin Greenidge reported recently that the country’s gross domestic product (GDP) expanded by 4.5 per cent in the first half of the year, boosted by a near 10 000 increase in long-stay visitor arrivals in June.

Tourist arrivals for the January to June period grew by a record 17.9 per cent and Central Bank officials said that “beyond immediate economic gains, the marketing and global viewership of the World Cup has provided valuable exposure to the country”.

They believe that “this exposure will aid in attracting future visitors and investments, enhancing the island’s international visibility and reinforcing its reputation as a premier destination for sports tourism and a capable host for major international events”.

Speaking during a half-year press conference at the Courtney Blackman Grande Salle, Greenidge said significant expansions in the tourism and construction sectors, underpinned by successful events such as the ICC Men’s T20 World Cup, drove the “robust” economic growth Barbados has achieved so far this year.

Key macroeconomic indicators, including inflation and employment also improved, while Government’s fiscal position “strengthened significantly” with a primary surplus of $509 million achieved.

“Tourism recorded substantial gains in both long-stay and cruise arrivals, while construction projects, including major infrastructure developments, provided additional support,” he said.

“The tourism sector experienced vigorous growth, with a record 17.9 per cent increase in long-stay arrivals. The successful hosting of the ICC Men’s T20 World Cup along with more direct flights from major source markets, facilitated the increase in tourist arrivals.”

The Governor said the economic growth achieved and the near 10 000 increase in visitors in June when compared with 2023 were in line with Central Bank projections.

“So by the numbers [reported] we would have achieved that in terms of the arrivals. It could be a little more because while some persons said they come for business, you know the reason why they come for business is because cricket is going on at the same time,” the economist said.

Greenidge said the economic boost from the cricket tournament was also reflected in increased foreign reserves.

“The reserves increased by about $450 million in terms of net reserves from tourism receipts that we can identify, so that’s a strong first-half performance. We saw it in the reserves and then we will see it in the other numbers in terms of the other sectors which feel it,” he noted.

A Central Bank staff analysis on the World Cup’s “transformative impact on the economy” noted that the event “brought a surge of visitors from beyond Barbados’ traditional tourism markets”.

“Long-stay arrivals totalled an estimated 49 316 for June 2024, a 34.5 per cent increase over June 2023 (36 670 arrivals), marking the largest percentage increase on record for June outside of the pandemic recovery periods in 2021 and 2022,” the assessment stated. “Twenty teams participated in the ICC Men’s T20 Cricket World Cup, with tourists from 19 of these nations visiting Barbados in June – the exception being Papua New Guinea. The Cricket World Cup is estimated to be responsible for 78.5 per cent of this increase in tourist arrivals, equating to an additional 9 932 tourists.”

The report added: “The surge in tourist arrivals significantly impacted hotels and the sharing economy. Hotel occupancy rates grew by 9.6 percentage points compared to June 2023, moving from 45.3 per cent to 54.8 per cent in June 2024.”

It also said that “hotel revenues per available room also saw a significant year-on-year increase of 63.3 per cent, while occupancy within the sharing economy expanded by 7.7 percentage points”.

Following the boost from the T20 World Cup, the Central Bank expects the economy to grow by about 3.9 per cent overall this year, “driven by increased activity across the traded and non-traded sectors”.

The expectation is that “ongoing private and public sector investment [will] lead to growth in the short to medium term” and tourist arrivals “are expected to surpass pre-pandemic averages in all markets”. Greenidge said the several risks to the positive economic outlook included extreme weather events due to climate change, slower than anticipated global economic growth and high airline ticket prices.

The post Governor: Economy boosted by extra 10 000 in for T20 cricket appeared first on nationnews.com.