Tourism's Share Of Belize's Economy

Belize's economy is heavily dependent on tourism, with the industry contributing significantly to the country's gross domestic product (GDP). In 2019, travel and tourism contributed approximately 44.7% of Belize's GDP, a notable increase from 22.5% in 2000. This growth highlights the growing importance of tourism to Belize's economy over the years. Before the COVID-19 pandemic, sales in the tourism sector reached $527 billion, contributing 22.08% of the gross national product. The country's reliance on tourism is further emphasised by the fact that it ranks among the top 10 nations most reliant on tourism for their GDP and employment.

Belize's GDP in 2019

While the exact breakdown of Belize's GDP by sector in 2019 is not readily available, estimates from neighbouring years provide some insight. In 2017, the services sector—which includes tourism alongside government activities, communications, transportation, and finance—comprised 68% of the GDP. The industry sector, including mining, manufacturing, energy production, and construction, contributed 21.6%, while agriculture, encompassing farming, fishing, and forestry, made up 10.3%.

By 2021, the services sector's contribution had shifted to 76% of the overall GDP, with manufacturing at 5%, other industrial activity at 8%, and agriculture at 7.69%. These figures indicate a growing reliance on the services sector, which likely reflects the increasing role of tourism in Belize's economy.

The impact of tourism on Belize's GDP is further emphasised when considering tourism revenue. In 2021, Belize generated approximately $374 million in the tourism sector, representing 13.21% of its GDP. Before the COVID-19 pandemic, tourism sales reached up to $527 million, constituting 22.08% of the gross national product. This highlights the significant role tourism plays in Belize's economy and its contribution to the country's overall GDP.

The growth of Belize's tourism sector

Belize's tourism sector has grown considerably in recent years, and it is now the second largest industry in the nation. In 2019, the contribution of travel and tourism to Belize's GDP was 44.7%, up from 22.5% in 2000. and it is the country's number one foreign exchange earner. Belize recorded a total of 219,000 tourists in 2021, ranking 40th in the world when adjusted for population. In Central America, it ranked 1st.

Belize's tourism industry is driven by a range of natural and cultural attractions, including the Belize Barrier Reef, hundreds of offshore islands, excellent fishing, safe waters for swimming and water sports, numerous rivers, and various jungle and wildlife reserves. The country also boasts well-preserved natural beauty, with 26% of its land and sea preserved within a network of 95 protected areas.

The country has seen steady growth in its travel and tourism sector, with strong demand from American tourists and retirees, who comprise an estimated 70% of all tourists. The US market is the largest consumer of the Belizean travel industry, and additional flights from the US have contributed to the growth in arrivals. The Belize Tourism Board has reported a net increase in overnight tourism from 2018 to 2019, with the total number of rooms available in the country increasing from 8,435 to 8,853 during this period.

Belize is also increasingly recognised for its second-home buyers' market, and the government has introduced tax and visa policies to encourage foreign retirees to reside in the country. The country's diverse tourism offerings, including eco-tourism, adventure tourism, and cultural attractions, continue to make it a popular destination for visitors from around the world.

The impact of COVID-19 on tourism in Belize

In 2021, Belize recorded a total of 219,000 tourists, ranking 92nd in the world in absolute terms. When adjusted for population, this number placed Belize 40th in the world and 1st in Central America, with 0.54 tourists per resident. The country generated around $374 million in the tourism sector that year, accounting for 13.21% of its gross domestic product.

The impact of the pandemic on the hospitality sector was also notable. In the last quarter of 2022, the contribution of hotels and restaurants to Belize's GDP was negative for the first time since the second quarter of 2021, which was attributed to the COVID-19 impact on tourism. Despite this setback, Belize's GDP is projected to reach over $3.9 billion by 2028.

Belize has taken steps to recover from the effects of the pandemic on its tourism industry. In 2022, the country experienced a 70% increase in international overnight visitor arrivals compared to the previous year, with March being the peak month. Leisure travel constituted the primary motive for most international visitors, with approximately 356,000 overnight leisure arrivals during that year.

While tourism in Belize has shown signs of recovery, the country continues to face challenges in ensuring the safety and security of tourists due to high levels of violent crime, gang activity, and territorial disputes with neighboring countries. Despite these concerns, Belize remains a popular destination for travellers seeking outdoor and adventure activities, as well as its natural attractions such as the Belize Barrier Reef and Mayan ruins.

Belize's ranking among tourism-reliant nations

Belize is heavily reliant on tourism, which generates a significant portion of its GDP and provides a considerable number of jobs. In 2022, revenue from foreign visitors accounted for 20.3% of Belize's GDP, placing it among the top 10 nations most reliant on tourism. This percentage is considerably higher than the global average of 10%.

A study by Bounce, a luggage storage app company, ranked Belize as the tenth most tourism-dependent country out of fifty. The study, based on data from the World Travel & Tourism Council, considered the contribution of tourism to both GDP and employment. It found that tourism contributes 14.95% of Belize's GDP and accounts for 12.92% of its workforce.

The ranking highlights the importance of tourism to Belize's economy, and it is worth noting that this sector experienced a significant decline during the COVID-19 pandemic. In 2020, tourist receipts in Belize decreased by 53% compared to the previous year.

While Belize's ranking among tourism-reliant nations is notable, it is not uncommon for small island nations to have a high dependency on tourism due to their small economies, climate, and attractive beaches. Six out of the top 10 countries reliant on tourism are island nations.

Additionally, it is worth mentioning that the contribution of travel and tourism to Belize's GDP has been increasing over time. In 2019, it was reported to be 44.7%, up from 22.5% in 2000, indicating a growing reliance on this sector.

Tourism employment in Belize

Tourism is the primary source of foreign exchange earnings for Belize, and it is the largest service sub-sector in the country. In 2017, the tourism industry directly contributed to 13.4% of total employment, accounting for 21,000 jobs. When including jobs that are indirectly supported by the industry, tourism accounted for 37.3% of total employment, or 59,000 jobs. These numbers were expected to increase by 3.9% by 2028.

The importance of tourism to the economy of Belize has grown significantly over the years. In 1995, tourism revenues made up 12.57% of the gross national product. By 2017, the direct contribution of tourism to GDP was 15.0%, and the total contribution, including the money spent by those indirectly supported by the industry, was 41.3%. In 2019, the contribution of travel and tourism to GDP was 44.7%, and this number was forecasted to increase to 54% by 2028.

Belize has one type of work visa, which individuals can apply for through two different routes: self-employment and standard employment. The application process is the same for both, but the required documents are slightly different. The visa is valid for one year and must be renewed. For self-employed work visas, applicants must present their registration and trade license. For standard employment, applicants must submit a job offer and a letter of employment.

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