The study, which was published by the United Nations Conference on Trade & Development on July 1, found that the interconnectedness of tourism to other sectors such as health, financial, construction, trade, air transport and communication will result in a multiplier effect throughout the economy.
“Intersectoral linkages worsen the impact of a decline in tourism. A fall in tourist arrivals has a negative impact on the suppliers to hotels, food and recreational activities. The more connected the sector is, the stronger the impact of a negative shock in the tourism industry,” the report said.
“Findings show that the losses in GDP are approximately two to three times higher. As a result, a $1 million loss in international tourist revenue can lead to a fall in national income of $2-3 million. It is these intersectoral linkages and corresponding losses which lead to the large indirect losses when the tourism sector contracts.”
To put that into perspective, the latest known reported figures on local tourism shows that visitors spent an estimated $484 million in the territory in 2016. This is equivalent to 52 percent of the BVI’s GDP.
One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors.