WILLEMSTAD – The tourism sector in Curaçao is at risk of a decline in visitor numbers as higher inflation in the United States and Europe threatens to reduce consumers’ purchasing power. This warning comes from an analysis by the Central Bank of Curaçao and Sint Maarten (CBCS) on the macroeconomic impact of new U.S. import tariffs. At the same time, currency fluctuations, particularly the recent weakening of the U.S. dollar against the euro, are causing shifts in international travel patterns.
According to the CBCS report, declining purchasing power in the U.S. – a result of rising import prices – could lead Americans to choose international vacations less frequently. The United States is a key and growing market for tourism in Curaçao, and any reduction in U.S. visitors could directly impact tourism revenue and worsen the country’s balance of payments.
The Central Bank also highlights the risks of a potential global trade war, following a 90-day pause by President Trump. In this scenario, inflation would rise not only in the U.S. but also in Europe. Since Curaçao traditionally receives a significant portion of its tourists from the Netherlands, the impact of rising prices and economic uncertainty in Europe could lead to a decline in European tourists, further harming the local tourism industry.
Currency Exchange Impact
In addition to inflation, exchange rates are also influencing travel behavior. Over recent months, the value of the U.S. dollar – and thus the Antillean guilder, which is pegged to the dollar – has weakened against the euro. For European tourists, this is advantageous as their euros stretch further upon arrival on the island.
This makes hotel stays, restaurant visits, and local services in Curaçao relatively cheaper when expressed in euros. The increased purchasing power of European tourists could boost their travel motivation, despite broader economic uncertainty.
The CBCS recommends diversifying tourist markets, particularly toward Latin America and the Caribbean itself. The bank also emphasizes the importance of continued investment in local production and services to reduce the economy’s dependence on tourism and imports.
