Impact of Tourist and One-Day Visitor Arrivals on Economic Growth. Case Study of the Cayman Islands

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Abstract

The Cayman Islands are one of the SISODs, located in the Caribbean Sea, with a high number of foreign visitor arrivals and a GDP based to a large extent on tourism. They are also considered to be SITE islands and may even be characteristic of the subtype, PROFIT-SITE islands. The aim of the article is to provide an answer to the question of whether the increase in the number of tourist and one-day visitor arrivals1 had a positive impact on the creation of GDP in the Cayman Islands during the period 1983-2011. The hypothesis was that such a correlation should exist and it should be a strong positive correlation, but only between the increase in number of tourist arrivals and increase in GDP. The second question was: which year is the most economically affected by the increase in tourist and visitor arrivals (the same or the following year)? The hypothesis was that the biggest impact is recorded in the year in which the increase in tourist and visitor arrivals occurs (not in the following year). The third question was: has the global economic crisis affected the tourism sector in the Cayman Islands? The hypothesis was that the Cayman Islands were not as badly affected by the global economic crisis as other SISOD countries. The methods used by the author were literature analysis, data analysis and the Spearman correlation ratio.

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