Caribbean employers and ILO explore pathways to more productive, formal tourism

PORT OF SPAIN, Trinidad and Tobago (ILO News) — Tourism is one of the Eastern Caribbean’s most important sources of economic activity and jobs, yet its growth does not necessarily translate into formal employment and improved working conditions.

Acknowledging this concern, the regional dialogue between the office of the International Labour Organization (ILO) and members of the Caribbean Employers’ Confederation (CEC) on 27 July 2026, focused on how stronger productivity, better jobs and greater formalization can reinforce one another. The virtual discussion brought together representatives of employer organizations and chambers from across the Caribbean, including Barbados Employers’ Confederation, Grenada Employers’ Federation, Anguilla Chamber of Commerce, Belize Chamber of Commerce, among other members of the CEC.

The exchange drew on emerging findings from a forthcoming ILO study of informality in the tourism sector in Antigua and Barbuda, Barbados, Dominica, Grenada and Saint Lucia. The research indicates that formal employment recovery in the sector has lagged behind wider economic expansion since the COVID-19 pandemic and identifies persistent challenges affecting enterprises and workers, including seasonality, limited access to finance, skills gaps, low digital adoption, regulatory complexity and coverage gaps in social protection.

“Informality is a major issue for us. It's not a marginal issue for our region. It shapes the environment for every one of our members. It affects the cost of compliance of businesses. It distorts competition and narrows tax bases that fund our services and our economies. And it can leave a very large share of our workers outside of the protections that formality can afford them….so we are very interested in the insights coming out of this study and pathways for collaboration where they may lie with employer organisations.” Sheena Mayers-Granville, President Caribbean Employers Confederation (CEC).

Participants also examined the relationship between productivity and informality. The discussion highlighted that improving productivity is essential to promoting and sustaining formalization but cannot achieve the transition on its own. The ILO Specialists delved into the ILO’s Strategy for the promotion of formalization in Latin America and the Caribbean 2024-2030- FORLAC 2.0 which promotes an integrated approach combining productive development, employment and skills, social protection, and labour rights.

“Promoting the transition from the informal to the formal economy in the tourism sector requires a comprehensive policy framework, as guided by ILO Recommendation 204” said Fabián Vallejo, Programme Technical Officer at the ILO LAC Regional Office. “Enterprises need productive development policies that boost their productivity, facilitating their access to finance and enterprise development services, while workers need effective access to employment and skills development policies, social protection coverage, and respect for their labour rights. That is why an integrated approach is so important.”

The study also points to opportunities for more inclusive tourism development through stronger local value chains, community-based tourism, digitalization and workforce upgrading. Across the five countries, women, young people, self-employed workers and micro and small enterprises are among those facing particular barriers to formalization.

“Tourism is an important source of employment and livelihoods, but it is also characterized by high levels of informality, seasonality and decent work deficits, said Lucie Servoz, ILO Specialist for Tourism, Hotels, and Food & Beverage Services. “Ensuring a sustainable and resilient future for the sector requires addressing these challenges through the transition to formality, improved working conditions, investment in skills and effective social dialogue. A human-centred approach, with decent work at its core, is essential to ensure that the benefits of tourism are shared more widely.”

CEC members welcomed the discussion and indicated interest in further engagement with tourism-sector stakeholders. The ILO is finalizing the regional study and accompanying country briefs, which are expected to support continued dialogue on practical pathways towards more productive, inclusive and formal tourism economies.