The Impact Of Covid-19 On Belize: A Small Country's Struggle

The COVID-19 pandemic has had a significant impact on Belize, with the country experiencing a sharp decline in economic activity. The tourism industry, in particular, has been badly affected, with a drop in international and local demand for seafood, resulting in lower prices for fishers and a decline in the country's fisheries export revenues. The pandemic has also led to job losses and salary cuts, forcing consumers to opt for cheaper alternatives to fresh fish. Fishermen in Belize have had to scale back their operations and reduce prices to sell their catch locally. The pandemic has also disrupted supply chains and restricted access to local markets, further impacting the livelihoods of fisherfolk. The situation remains fluid, and it is uncertain when the sector will recover.

How has COVID-19 affected the fishing industry in Belize?

The COVID-19 pandemic has had a significant impact on Belize's fishing industry, causing a sharp decline in economic activity. The demand for seafood has decreased in local and international markets, resulting in less money for fishermen and a dent in the country's revenues from fisheries exports.

Belize's lobster season opened on 15 June 2020, but prices for lobster tails and whole lobsters were significantly lower than in 2019. Fishermen were offered an initial payment of $12, with a second payment to follow at a later date, due to the unstable international market. This price drop has made it difficult for fishermen to make a living, with some diversifying into seaweed farming to supplement their income.

The drop in demand for seafood has also resulted in a sharp decline in prices for fishers. Lobster tails, for example, are now sold for $10-12 to cooperatives for the export market, which is two and a half times less than last year's price.

The pandemic has also made it difficult for fishermen to sell their products locally due to the closure of hotels and restaurants. Many consumers are also choosing cheaper, pre-packaged frozen chicken over fresh fish due to job losses and salary cuts.

Containment restrictions and limited access to local markets have further impacted fisherfolk. Fisherman Jason Young, for example, described how his livelihood has suffered as a result of the pandemic: "It has been rough. Really, really rough. No source of income. Everything just locked down. No movements. [I was] stuck on the island for a month. It is really rough. We deh from hand to mouth. We are taking it one day at a time – all we can do."

The pandemic has also had an impact on the management of marine protected areas, with most losing their biggest revenue stream – tourism – and being forced to cut costs. There are concerns that this could lead to a scale-down in monitoring and enforcement, allowing illegal fishers to capitalise on the situation.

Overall, the COVID-19 pandemic has had a significant negative impact on Belize's fishing industry, with reduced demand, lower prices, and limited access to markets all contributing to the challenges faced by fisherfolk.

How has COVID-19 impacted Belize's tourism industry?

The tourism and hospitality sectors in Belize were among the hardest hit by the COVID-19 outbreak, which impacted both travel supply and demand. Given its heavy dependence on tourism, Belize's economy was one of the world's most affected by the pandemic.

In the last quarter of 2022, the contribution of hotels and restaurants to the country's GDP was negative for the first time since the second quarter of 2021. This was due to the COVID-19 impact on the tourism sector. However, in 2022, Belize experienced a significant surge in international overnight visitor arrivals, reaching around 371,000, a roughly 70% increase compared to the previous year. The largest share of these arrivals was for leisure purposes, constituting the primary motive for most international visitors to Belize in 2022. Specifically, the country welcomed about 356,000 overnight leisure arrivals during that year. In contrast, business tourism contributed to an additional 10,400 inbound tourist arrivals over the same 12-month period.

The immediate impact of COVID-19 on the tourism industry in Belize resulted in an unprecedented shock to employment and had fiscal implications. The government's initial response to the crisis was to help these sectors sustain jobs and support viable companies at risk. However, the country should also be prepared for the revival of the tourism industry with plans, programs, and regulations that promote growth while enhancing tax revenues.

How has COVID-19 affected the economy of Belize?

Belize's economy is heavily reliant on tourism, with the industry contributing to 40% of its overall GDP. The onset of the COVID-19 pandemic and the resulting shutdown of international travel had a devastating impact on the country's economy, causing a 72% decrease in total tourist arrivals. This led to a significant decline in the hospitality sector's contribution to the country's gross domestic product (GDP).

The pandemic also disrupted supply chains and international trade, affecting both imports and exports. Belize's exports rely heavily on a small group of products, including sugar, bananas, and citrus juice. In 2021, food products accounted for 93% of total merchandise exports, while imports were dominated by manufactured products (64%) and food (21%). The disruption in international trade further exacerbated the economic challenges posed by the decline in tourism.

The combination of these factors resulted in a 14% reduction in Belize's GDP in 2020. The country also faced rising unemployment, with rates reaching almost 30%. The pandemic's impact on the tourism and agricultural sectors led to job losses and contributed to the high unemployment rate.

To mitigate the economic fallout, the Belizean government implemented several measures. They established the Unemployment Relief Programme to support citizens who lost their jobs due to the pandemic and business closures. Additionally, a small business support program was announced with an allocation of $28.5 million. The government also released an Economic Recovery Strategy, focusing on reviving the tourism and agricultural sectors.

Despite the challenges, Belize's economy has shown signs of recovery. In the last quarter of 2022, the country's GDP stood at $2.98 billion, with a projected growth to $3.9 billion by 2028. International overnight visitor arrivals also surged by around 70% in 2022 compared to the previous year, indicating a rebound in the tourism industry.

Belize has also received recognition for its efforts to promote nature conservation, particularly in the marine environment. The country's sustainable development plan aims to protect its natural resources while providing livelihood opportunities for the local community. This approach is expected to attract domestic tourists and create a more resilient economy, reducing dependence on international tourism.

In summary, the COVID-19 pandemic severely impacted Belize's economy, particularly the tourism and agricultural sectors. However, through government interventions, economic recovery efforts, and the rebound in tourism, the country is on a path to long-term economic growth.

How has COVID-19 impacted the health of Belize's citizens?

The COVID-19 pandemic has had a significant impact on the health of Belize's citizens. The country's fragile economy and limited social protection mechanisms have exacerbated the health sector's capacity to protect its most vulnerable citizens. The pandemic has also disrupted essential services, such as education and protection, for children, who make up over 40% of the population.

One of the main ways the pandemic has affected the health of Belize's citizens is by overburdening the health system. The increase in COVID-19 cases has put a strain on healthcare resources, and school closures have cut off children from the food they need to thrive, with one in four surveyed households reporting skipping meals or reducing food intake. This is especially detrimental to the 15% of children under five who suffer from stunting and pregnant women who lack access to nutritious food.

The pandemic has also led to a rise in violence against children, with data showing an increase in violence, exploitation, and abuse since its beginning. Additionally, proper handwashing, a critical measure to stop the spread of COVID-19, remains out of reach for many, as one in three schools have no or limited hygiene services.

The socioeconomic impacts of the pandemic have also affected the health of Belize's citizens. With an estimated 40% of the population living in poverty, the pandemic has pushed many into further hardship. Preliminary data shows that up to half of the surveyed households have lost their jobs or livelihood, and 60% have suffered a reduction in income. This has made it difficult for families to meet their basic needs, including accessing nutritious food and adequate healthcare.

The pandemic has also disrupted the country's efforts to improve health capacity. While there have been collaborations with organisations like the Pan American Health Organization and the World Health Organization to boost the number of nurses trained in critical care, the country's already weak healthcare system has struggled to balance preserving public health and relieving the strain on its resources.

How has the Belizean government responded to COVID-19?

The Belizean government has taken several measures to respond to the COVID-19 pandemic. On March 20, 2020, the government announced the closure of schools for 14 days, which was later extended, encouraging social distancing and good hygiene practices. Social gatherings were limited to 100 people, and border restrictions were imposed, with only the Santa Elena Border and Philip Goldson International Airport remaining open for passengers. The government also provided economic relief, including an additional BZ$25 million loan for employees affected by the crisis and negotiations for US$20 million in emergency relief funding.

In addition, the Ministry of Health implemented public health measures such as strict shutdowns, early diagnosis, isolation, and contact tracing. Non-pharmaceutical interventions like hand hygiene, physical distancing, respiratory etiquette, and mask-wearing were promoted, and statutory instruments defining these practices were enacted. The government also advised the public to follow preventative measures, such as regular handwashing, covering coughs and sneezes, and avoiding close contact with individuals exhibiting flu-like symptoms.

The Belizean government initially prohibited entry for travellers from high-risk countries, including China, Hong Kong, Iran, Japan, South Korea, and Europe. These restrictions were continuously monitored and updated as needed. The government also took steps to address the economic impact on the tourism industry, including passing the Appropriations Bill and allocating funds for relief.

To facilitate data collection and decision-making, Belize postponed its census to 2021 and reallocated resources to gather information related to COVID-19. The government emphasised its commitment to protecting the health and well-being of Belizeans and acknowledged the rapidly evolving nature of the pandemic.

The Belizean government's response to COVID-19 involved a combination of public health measures, border restrictions, economic relief, and public communication to safeguard its citizens and mitigate the impact of the pandemic.

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