In the context of a small developing economy that has at the apex of its long term strategic plans the objective of transforming the Barbados economy into a fully developed state in the near future, Barbados can said to be well on its path to achieving this goal. The work of the Barbados Labour Party (BLP) is often underestimated or not highlighted in this regard. Moreover, the sound economic policies instituted by the BLP administration under the economic prudence of Prime Minister Owen S. Arthur, while being accentuated regionally and internationally, can from time to time be the target of unfounded criticisms by a chaotic official opposition party in Parliament and by those crusaders who refuse to acknowledge the good work that has put Barbados on a certain path to achieve its national strategic goals of buoyed human, social, cultural, and economic development.

The BLP’s boast of “a better life for our people” is by no means a far-fetched ideal. Neither is the human-centred approach of wide public policies as formulated under a BLP regime, to be dismissed as being out of touch with the masses. Indeed, every major industry in Barbados since the traumatic period of the early 1990s have made significant improvements even as a number of stressful macroeconomic and non-economic situations place considerable pressure on the capacity of the economy to survive. Governor of the Central Bank, Marion Williams at a recent seminar disclosed that “the Barbados economy recorded encouraging real growth of over 3.5 % over the last three years – an important achievement – and significant growth is also projected for 2007.” This is significant considering that between 1997 and 2000 the Barbados economy recorded eight (8) consecutive years of growth averaging 3.0 %.

This article is presented against the background of the architecture of Barbados’ political economy. It specifically concentrates on the tourism sector broadly speaking. A large portion of Barbados’ economic success is attributed to the manner in which the BLP administration approached tourism, travel, and related services as being strong determinants in the upkeep of the economy, a vibrant foreign exchange earner, and a major employer with even greater potential. According to the Central Bank Governor, “Barbados is already an economy where the service sector generates more than 2/3 of GDP.” This article therefore has three main goals and these are namely:

1. To reflect upon the role that the BLP administration has provided in recapturing investor confidence in this service industry 2. To highlight the status quo of tourism inclusive of statistical information and some observations made by stakeholders 3. To express support for the BLP’s administration in the continual effort to bring about empowerment for its people, and to transform the Barbados economy into a choice destination with more than mere trappings of a developed country.

To begin with, it is a well known fact that the tourism industry became the main engine of economic growth with the failings of ‘king sugar’. Tourism has become very significant to the Barbadian economy and this is more exacerbated in the post-1994 period with the presence of the World Trade Organisation (WTO) and the ending of preferential markets to the region. Importantly though, the period of governance between 1987 and 1994 in Barbados left much to be desired. Barbados was careened into a situation where there was significant economic decline and stagnation, rising unemployment, and a general sense of economic malaise gripping the country to the extent that there was rapid decline both in investor confidence in the tourist industry, and in the possible capacity for the then Democratic Labour Party (DLP) to steer a successful course in the management of economic affairs in Barbados.

Although the Prime Minister (Erskine Sandiford now Sir Lloyd) during that turbid period recognised that “foreign investment is a vital and important component of economic development,” the policies of that day lacked vivid imagination. Political will and the forthrightness needed to attract investors and to effectively manage Barbados’ transition into a more complex global economy was weak in the period between 1991 and 1994. This is at a time when Barbados was beset with the rapid onset of globalisation and other market forces bearing down upon this small-island economy.

This scenario has changed significantly over the last decade. In Prime Minister Arthur’s words, policies, and implemented programmes there is substantial attention to the building of the tourism infrastructure (e.g. the rebuilding of the Hilton Hotel, the Gems project, the diversification of the tourism product in sports and heritage tourism, the renovation and expansion of our sea and airports, and the massive enhancement projects that have brought renewed energy and aesthetic appeal to the city of Bridgetown among others), and all of these projects are characterised by a ‘human face to development’.

Indeed, since 9/11 the BLP administration’s role in ensuring the expansion of the tourism sector both in physical capacity and in ensuring that arrivals (short, long stay, and cruise) maintain increased levels of output is creative and worthy of commendation. Hoteliers and other stakeholders who would have experienced dislocation as a result of the terrorist acts of 9/11 or the rapid rises in oil prices which had a considerable impact on air travel, were able to survive when other countries within the region suffered significantly more. Not only was emergency funding set aside, but the BLP administration systematically sought to reduce corporate taxation, provide funding for the rehabilitation of the physical plants, and provided other targeted incentives for growth and expansion in the industry.

The record levels of various aspects in the industry subsequent of 2002 speak to the emphatic presence of mind by the Prime Minister and the BLP administration to position the economy of Barbados on its upward trend of consistent economic growth which has consistently been measured above 3.0 %, while maximising the benefits of local, regional, and international investments. It must be reiterated that the internal turbulence and unimaginative efforts of the DLP administration in the tourism sector during the early 1990s directly affected much of the stagnation in the tourism sector at that time.

Statistics show that total visitor arrivals between 1987 and 1993 reached a high of only 824, 590 persons. In 1994 when the BLP administration took over the reins of government, Barbados recorded 885, 134 arrivals and by 1998 Barbados capped the 1 million mark registering 1, 019, 007 arrivals. Barbados has been able to sustain relatively high numbers and there are even greater expectations as the Golf World Cup and the Cricket World Cup have both put Barbados on a firm footing to take advantage of legacy benefits well into the future. Prime Minister Arthur refuses to rest on the laurels of success and has vowed to pilot Barbados’ direction ever conscious that “Barbados must continue to go for the gold.” Hence, in sober reflection upon where Barbados stood prior to the BLP’s rise to government in 1994 and where the island stands now reveals other extraordinary accomplishments. In a document titled Barbados Renewed (2003), under the section ‘Tourism Education’ it was stressed the impact of having skills training and initiatives such as the Tourism Education and Me (TEAM) programme. Training and human development though the ‘National Initiative for Service Excellence’ (NISE) is viewed as easily redounding to the benefit of all Barbadians and thus enhances the capacity of its human resources in all service areas. Increased training both locally and abroad exposed a significant number of ‘ordinary Barbadians’ to the challenges and opportunities found within the broad scope of the service industry. To date, this positive trend continues as tourism contributes to national development with a scope that includes the masses at all levels of interaction. It is here that the BLP administration ably demonstrates its most potent intention which is to improve and build human capital, broaden the country’s skill bank, and ensure that tourism in Barbados is competitive and attains to the highest standards for any global destination.

At this very moment, several persons coming from the hospitality and tourism industry in Barbados are able through the policies of a determined BLP administration to work and earn incomes in major cities and countries such as New York, Miami, the Carolinas, and Toronto in one aspect or another (i.e. through the H2B programme). The BLP has intensified and/or where absent, put in place many facilitator mechanisms to ensure that Barbadians are not denied various benefits that flow from the tourism and services economy. There has been a careful deployment of officers to the above destinations who liaise with stakeholders in an effort to bring about win-win situations for Barbadians and the external entities. This seasonal work brings foreign exchange to the country, exposes participants to cultural diversity, and eases the employment situation in Barbados while simultaneously marketing Barbados as a leader in the provision of hospitality services. It is clear that a key part of the reduction in unemployment from almost 25 % at the start of the 1990s under the DLP administration, now owes its quick decline (e.g. 7.5 % in 2007) to the innovativeness and creativeness which the BLP applied to the tourism industry and the national economy in general.

Contemporary political economy in Barbados is disquieted by some elements of Barbadian society attempting to undermine the work and progress of the BLP. While there is nothing new to this, it is the national interest that suffers at the expense of those who would rather lurk in the shadows. Advocates of a better Barbados recognise the importance of Foreign Direct Investment (FDI) to the national economy especially in the areas of building services capacity. Projected figures by the World Travel and Tourism Council, estimates that by 2016 this sector would be contributing as much as 19% to GDP and employing (directly and indirectly) 57 % of the total workforce up from the 47 % of current levels. This is remarkable considering the competitive nature of travel and tourism and it further illustrates Kofi Annan’s point that Barbados “punches above its weight.” These projected figures are well above the global average increases.

Certainly there has to be the additional consideration that under a BLP regime, investor confidence thrives and the well-being of Barbadians is being adequately addressed. The economic costs of foregoing future developments such as the proposed development of the South-East of Barbados into more infrastructures (car racing track, horse racing track, hotels, nature trails, etc.) that facilitate the general tourism plant is to be understood from the position that these bring real added value to the Barbadian economy. For instance the refurbishment of a new look ‘Kensington Oval’ is clearly a grand project that captures the imagination of people from across the globe and Barbadians at home. Projects such as these will continue to maximise the foreign currency earning capacity of the tourism industry and that of Barbados.

While land and housing ‘scarcity’ are realistic issues, the BLP administration under Prime Minister Arthur has assured Barbadians of all walks of life that no one person or group will be disadvantaged. Despite some persons raising alarm bells at the pace and magnanimity of the current and future tourism projects (inclusive of retirement villages and convalescence facilities), the Prime Minister proceeds to receive support from many local and foreign takeholders who are willing to combine with and supplement government initiatives. To this end, Prime Minister Arthur warns us that:

Barbados cannot afford this hostility to new investment [vehement opposition on racial claims and that Barbados is ‘wildly’ dispensing with its limited resources of land]. We must accept the need to allow some of our resources to be used in novel ways [a far cry from the DLP administration in 1991]. We must be creative and as nimble as others in our region and elsewhere in attracting capital into new ventures to earn and pay our way in the world.

The future of Barbados is positioned through the visionary foresight of a political party that still sees the human factor as the all important cog in the wheels of national development. Tourism is dependant not just on the success of Prime Minister Arthur’s policies but on the cooperation and understanding of all right thinking Barbadians who in one way or another, directly or indirectly, benefit from the tourism industry. There is now even a more diversified tourism industry that is making the name of Barbados a global standard bearer. It is imperative that we understand the impact of BLP initiated policy on Barbados and its peoples. The BLP is committed to ensuring that this diversification of our tourism product brings socio-economic guaranteed benefits to the populace. Equally so, it is important that as Barbadians we are reminded that there is an appreciation of the very tangible benefits that impact on day-to-day living (e.g. the increase in an array of services and entrepreneurial projects, and the fact that the value of tourism services to the economy are deep and substantial ). It is therefore not enough for the BLP to be criticised and held in the spotlight unless persons are also willing to also review the BLP’s contributions to national and sustainable development. Below is a list of some achievements in the tourism industry:

• Direct employment in tourism (2005) – 12,900 compared with 11, 001 in 1994. • Contribution to Real GDP (2005) – 14.9 % compared with 15.6 % in 1994 which clearly shows a declining dependence upon a single sector and favours the contention of diversification in the economy. • Cruise ship arrivals increased considerably for the period 1994 – 2004 as compared between1987 – 1994. Growth in the cruise ship segment of the market was largely a result of new vessels calling at the Bridgetown Port, an improved marketing thrust by the Barbados Tourism Authority (BTA). Long stay arrival increased as a result of efforts to increase airlift capacity especially out of the UK and US. All of these under a BLP administration.

• In Barbados, the tourism industry contributes 15.0 per cent to GDP; just over 50 per cent of foreign exchange earnings since 1993 and has employed as much as 10.0 per cent (i.e. currently in excess of 13, 000 persons) of the labour force. (N.B. This is a statement made by Standard & Poors in 2000 and the earlier point suggests that Barbados is addressing its preponderant reliance upon tourism and providing jobs).

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