Want to Keep Tourists Away? Keep Flying Solo : A Lesson from Small Caribbean Ctates

The island states of the eastern Caribbean are wastefully competing with each other for the lucrative, yet stagnant, stay-over tourist trade by ‘flying solo’: separately building long-haul airports and agreeing to expensive bilateral subsidy deals...

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Bibliographic Details
Main Authors: Briceno-Garmendia, Cecilia, Bofinger, Heinrich, Cubas, Diana, Millan-Placci, Maria Florencia
Language:English
en_US
Published: World Bank Group, Washington, DC 2015
Subjects:
HUB
TAX
AIR
Online Access:http://documents.worldbank.org/curated/en/2015/07/24441324/want-keep-tourists-away-keep-flying-solo-lesson-small-caribbean-states
http://hdl.handle.net/10986/22311
Description
Summary:The island states of the eastern Caribbean are wastefully competing with each other for the lucrative, yet stagnant, stay-over tourist trade by ‘flying solo’: separately building long-haul airports and agreeing to expensive bilateral subsidy deals with airlines.1 Instead, they could vastly increase their tourist revenue and lower their costs through collaboration to remove barriers to inter-island travel. The linchpin of such joint efforts will be a hub-and spoke airline system that funnels stay-over tourists to the edge of the region and then allows them to easily fly to their final destination.