A new landmark study from the International Labour Organization (ILO) has shone a spotlight on systemic challenges facing the tourism industry across the Eastern Caribbean, including the sector in Dominica, calling for targeted policy action to formalize small businesses and uplift working standards across the region.
Titled *Informality in the tourism sector in the Eastern Caribbean*, the research analyzes tourism ecosystems across five island nations: Dominica, Antigua and Barbuda, Barbados, Grenada and Saint Lucia. The ILO’s core argument frames coordinated progress on three interconnected goals — boosting productivity, expanding access to decent work, and cutting informal economic activity — as the only sustainable path forward for the region’s most economically critical industry.
Across the five study countries, tourism contributes an average of 39% of total gross domestic product and accounts for more than 11% of all employment, underscoring just how deeply the sector’s health shapes regional livelihoods. These figures represent regional averages, not standalone data for Dominica specifically.
The study outlines a web of overlapping barriers that plague both informal tourism workers and small business operators across the region. Limited access to affordable financing, widespread skills mismatches, gaps in social safety net coverage, and weak enforcement of existing labor regulations all create persistent headwinds for informal operators. Compounding these challenges, seasonal fluctuations in tourist demand and growing exposure to climate-related shocks make it even harder for small businesses to invest in long-term growth and maintain formal, regulated operations.
For Dominica specifically, the research finds that one-size-fits-all policy solutions will not deliver meaningful change. Different types of tourism enterprises require tailored support: a small, family-run operator that earns only enough to cover basic operational costs needs vastly different assistance than a growing business seeking to scale up its offerings and customer base. The ILO notes that incremental, practical policy adjustments can make the process of formalization far more accessible for small operators, while also delivering tangible improvements to working conditions across the sector.
The study puts forward a series of actionable recommendations for regional governments and stakeholders. Key proposals include expanding access to affordable financing and targeted skills training for micro, small and medium-sized tourism enterprises, extending social protection coverage to informal tourism workers, strengthening enforcement of labor regulations, and deepening tripartite cooperation between national governments, employer associations, and worker organizations.
“The challenge is not simply to reduce informality, but to transform tourism into a genuine platform for decent work, productive development and social inclusion,” said Ana Virginia Moreira Gomes, ILO Regional Director for Latin America and the Caribbean, in outlining the study’s core mission.
Notably, the research does not launch a new dedicated program for Dominica. Moving forward, the ILO has committed to collaborating with national governments, employer groups, and worker organizations to translate the study’s evidence-based recommendations into concrete policy and practice across the region.