Belize's Tourism Treasure Trove

Tourism is a major contributor to Belize's economy, attracting the most foreign direct investment. In 2011, tourist arrivals totalled 888,191, mostly from the US, and tourist receipts amounted to $260 million. The travel and tourism industry in 2011 directly contributed 350.6 million Belize dollars (176 million US dollars) to Belize's GDP (12.0% of GDP). In 2017, tourism contributed 15.0% of Belize's total GDP, generating USD $766.8 million, or 41.3% of GDP. In 2019, the internal consumption of travel and tourism in Belize totalled 604.4 million US dollars.

Belize's tourism revenue in 2019

Belize's economy is a small, developing free-market economy that is largely based on agriculture, tourism, and services. In 2019, the internal consumption of travel and tourism in Belize totalled 604.4 million U.S. dollars, continuing the growing trend that had been observed throughout most of the previous decade.

Tourism is the largest source of foreign income for Belize and the single largest service sub-sector, with a direct contribution of 15% of the country's total GDP in 2017. This number was expected to increase to 54% of GDP by 2028. In 2011, tourist arrivals totalled 888,191, with tourist receipts amounting to $260 million. The travel and tourism industry in 2011 directly contributed 176 million USD to Belize's GDP, reflecting the economic activity generated by industries that directly serve tourists, such as hotels, restaurants, airlines, and transportation services.

The country's tourism industry is supported by a combination of factors, including its climate, the Belize Barrier Reef, abundant jungle flora and fauna, excellent fishing spots, and numerous Mayan ruins. The government of Belize has recognised the importance of this sector, designating tourism as its second development priority after agriculture.

In terms of tourism arrivals, Belize receives three types of visitors: stopover arrivals (overnight visitors), same-day visitors from neighbouring countries, and cruise ship passengers. The United States is the largest source of tourists for Belize, accounting for approximately 62% of stopover arrivals in 2006. While cruise ship arrivals saw a decrease of 3.1% from 2018 to 2019, the overall number of tourists visiting the country has been on an upward trend, leading to a corresponding increase in the number of available hotel rooms and hotels.

The impact of COVID-19 on Belize's tourism

Tourism is a vital part of Belize's economy, attracting the most foreign direct investment. In 2019, the internal consumption of travel and tourism in Belize totalled 604.4 million US dollars, continuing a growth trend from the previous decade. The country's tourism industry directly contributed 15.0% of its total GDP in 2017, with a total contribution of 41.3% of GDP when including indirect effects.

However, the COVID-19 pandemic significantly impacted Belize's tourism sector. While specific data on the pandemic's effects are unavailable, the industry was expected to be hit hard in 2020. The country's tourism industry is heavily reliant on foreign visitors, with the US as its primary market. Travel restrictions and safety concerns during the pandemic likely led to a significant decrease in international arrivals, affecting revenue for hotels, restaurants, travel agencies, and transportation services.

The Belize Tourism Board (BTB) reported a decrease in arrivals at the Phillip Goldson International Airport, the country's main port of entry, in 2019. Several months showed negative growth, including a 7.8% decrease in September. While these reductions were offset by increases in other months, resulting in a net increase in arrivals for the year, the pandemic likely exacerbated these negative trends.

The pandemic also disrupted cruise ship tourism, a significant component of Belize's tourism industry. Cruise ship arrivals had already been declining before the pandemic, with a 3.1% decrease in visitors from 2018 to 2019. COVID-19 further reduced cruise ship tourism, as health concerns and travel restrictions limited the number of ships and passengers visiting Belize.

The impact of the pandemic extended beyond the immediate loss of revenue for tourism businesses. The decline in tourism also affected related sectors such as agriculture, which supplies the hospitality industry, and transportation services. Additionally, the reduction in tourist numbers likely led to job losses and economic hardship for many Belizeans employed in the industry.

Belize has recognised the importance of tourism to its economy and has designated it as its second development priority after agriculture. The country has implemented initiatives to support the industry's recovery, including the creation of a COVID-19 Tourism Dashboard to monitor key indicators and provide insights for recovery.

The US as Belize's top tourism market

The US is the top tourism market for Belize, with Americans comprising an estimated 70% of all tourists to the country. In 2011, tourist arrivals to Belize totalled 888,191, most of whom were from the US. Belize's travel and tourism industry is the country's top foreign exchange earner, contributing approximately 38.1% ($244.85 million) of its GDP.

Belize's appeal to US tourists is due to a combination of factors, including its English-speaking status, proximity to the US, and its cultural and natural attractions. The country's tourism industry largely caters to a boutique-style experience, focusing on adventure and recreational or "eco-tourism" activities. The country's natural attractions include the Belize Barrier Reef (the longest in the Western Hemisphere), 127 offshore islands, abundant jungle flora and fauna, and numerous Mayan ruins.

The US market is the largest consumer of Belize's travel industry, accounting for approximately 62% of stopover arrivals in 2006. The number of cruise passengers from the US to Belize has also increased significantly, with 705,219 passengers in 2009, up from 14,183 in 1998. The growth in cruise tourism can be attributed to the opening of new cruise ports, such as the Norwegian Cruise Line port in Southern Belize in 2016.

The US is also a significant source of foreign investment in Belize, particularly in the tourism sector. Well-known US hotel brands, including Hilton, Wyndham, Marriott, and Four Seasons, have announced expansion projects into the country. US private investments in citrus and shrimp farms have also been made under the Caribbean Basin Initiative (CBI), a US government program that provides duty-free access to the US market for most Caribbean products.

The rise of Belize's tourism industry

Belize's tourism industry has experienced significant growth over the years, becoming a crucial sector in the country's economy. Here is an overview of the rise of Belize's tourism industry:

Natural Attractions and Ecotourism

Belize boasts a unique combination of natural attractions that have drawn tourists from around the world. The country's diverse landscape includes the Belize Barrier Reef, the longest in the Western Hemisphere, abundant jungle flora and fauna, excellent fishing spots, and numerous offshore Cayes (islands). The country also offers safe waters for boating, scuba diving, and snorkelling, making it a popular destination for water sports enthusiasts. The rich ecological diversity has contributed to the growth of ecotourism in Belize.

Archaeological and Cultural Attractions

In addition to its natural attractions, Belize is home to numerous archaeological and cultural sites that attract tourists interested in history and culture. The country has several Mayan ruins, including some of the largest Mayan cities and temples in Central America, such as Caracol, Xunantunich, El Pilar, and Cahal Pech. The rich cultural heritage of the Mayan and Garifuna people adds to the appeal of Belize as a tourist destination.

Infrastructure Development

The Government of Belize has recognised the importance of the tourism industry and has made it a development priority. They have implemented various policies and investments to support the industry's growth. This includes the expansion of the Philip Goldson International Airport, which has facilitated an increase in flights from the United States and other countries. The growth in arrivals has led to a corresponding increase in the number of hotels and available rooms in the country.

Marketing and Promotion

Belize has actively promoted itself as a tourist destination through various marketing and promotional strategies. The country's English-speaking status and proximity to the United States have made it a popular choice for American tourists and retirees. The Belize Tourism Board plays a crucial role in marketing the country's attractions and providing key information to stakeholders, aiding in decision-making and strategy formulation for the industry.

Economic Impact

Tourism is the leading economic sector in Belize and the largest source of foreign exchange earnings. In 2017, the direct contribution of the travel and tourism industry to Belize's GDP was USD $277.7 million, or 15.0% of the total GDP. The total contribution, including indirect and induced impacts, was USD $766.8 million, or 41.3% of GDP. The industry also contributes significantly to employment, with 21,000 jobs directly supported by the industry in 2017.

In summary, the rise of Belize's tourism industry can be attributed to its diverse natural and cultural attractions, proactive government support, effective marketing, and its positive economic impact. The industry has become a vital pillar of Belize's economy and continues to attract foreign investment and contribute to the country's development.

Belize's tourism investment opportunities

Belize's tourism industry is the country's number one foreign exchange earner and has been identified as a priority sector for investment by the Belize Trade and Investment Development Service (BELTRAIDE). In 2017, the travel and tourism industry contributed 15.0% of Belize's total GDP, accounting for USD $766.8 million. This figure was forecasted to rise by 4.6% in 2028, reaching USD $1,250.7 million, or 54.0% of GDP.

The Belizean government offers a range of incentives to attract inward investment in the tourism sector, including tax holidays, duty exemptions, and 100% foreign ownership of land and company assets. Additionally, the country's proximity to the United States, convenient shipping routes, and English-speaking population make it an attractive destination for American tourists and investors.

• Eco-tourism and adventure tourism: The country's natural attractions, including its biodiversity, abundant jungle flora and fauna, and archaeological sites, provide opportunities for nature-based tourism. Areas of expected growth include wildlife viewing, caving expeditions, hiking, zip-lining, and beach resorts.
• Cruise ship tourism: While cruise ship arrivals have seen a recent decline, Belize remains an attractive destination for cruise passengers. Investment opportunities exist in developing tourism facilities such as shopping centres, spas, restaurants, cafes, and bars at cruise ship ports.
• Hospitality and tourism industries: The majority of Belize's tourism sector offers a boutique experience, with a focus on adventure and ecotourism activities. Investment opportunities exist in accommodations and lodging, restaurant and hotel equipment, tourist attractions, travel marketing agencies, and "green" food packaging.
• Medical tourism: Medical tourism is a growing area of investment, with opportunities in developing specialised medical facilities and services catering to international patients.
• Infrastructure development: The Belizean government is investing significant resources in road infrastructure development, which can provide opportunities for investors in construction, logistics, and related industries.
• Real estate: Belize is increasingly recognised for its second-home buyers' market, particularly among foreign retirees attracted by the country's tax and visa policies.

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