Dr. Carla Barnett, Secretary-General of the Caribbean Community (CARICOM), has issued a compelling call for international cooperation to address the mounting insurance costs plaguing the tourism industry in Small Island Developing States (SIDS). Speaking at the 6th Global Services Forum during the 16th United Nations Conference on Trade and Development (UNCTAD16), Dr. Barnett underscored the severe vulnerabilities of CARICOM’s service-driven economies to climate-related disruptions. She emphasized that rising insurance premiums for older tourism properties and the near-impossibility of securing coverage for new investments pose significant threats to the region’s economic stability. The forum, centered on the theme “Services: A New Frontier of Economic Transformation for Equitable, Inclusive and Sustainable Development,” highlighted the services sector’s critical role in driving global GDP, which accounts for approximately two-thirds of economic output. In CARICOM nations like The Bahamas, Saint Lucia, and Barbados, services contribute up to 75% of GDP, while even more diversified economies such as Trinidad and Tobago and Jamaica rely on services for around 60% of their economic activity. Dr. Barnett also addressed the tourism sector’s heightened anxiety during extreme weather events, such as Hurricane Melissa, and stressed the need for preparedness and resilience. She advocated for strengthened international partnerships with organizations like UNCTAD, the World Trade Organization (WTO), and international development banks to bridge structural gaps and enhance institutional capacities. One key initiative highlighted was UNCTAD’s Trade in Services project, which focuses on building data infrastructure to support evidence-based policymaking. The CARICOM services sector spans diverse industries, including tourism, financial services, ICT, professional services, and entertainment. Dr. Barnett reiterated that targeted global support is essential to unlocking the sector’s potential and safeguarding it against the escalating impacts of climate change.
CARICOM SG calls on global support to lower insurance costs for islands vulnerable to hurricanes
