KPMG released its 14th annual Caribbean Hospitality Financing Survey highlighting financing trends in the region’s hospitality and tourism industry and the outlook for the future of the industry.
KPMG is pleased to release its 14th annual Caribbean Hospitality Financing Survey highlighting financing trends in the region’s hospitality and tourism industry and the outlook for the future of the industry.
The survey has been designed to provide banks, non-banks and financiers with a better understanding of the profile and recovery performance within the Caribbean region.
The major event since our last survey was the catastrophic 2017 hurricane season which had a devastating impact on many countries in the region. It was therefore, with some trepidation that we approached financiers of tourism projects in the region. We were pleasantly surprised, and relieved, to find remarkably high levels of confidence in Caribbean tourism amongst financiers. Confidence levels for banks increased for an astonishing ninth year in a row and the confidence levels of non-banks (private equity, family offices etc.) were even higher. However, lessons have been learned. Financiers will be scrutinizing insurance coverage and quality of construction more intensely than they did prior to Irma and Maria.
Some of the key findings of the survey include:
Simon Townend, Head of Advisory for KPMG in The Bahamas and KPMG Islands Group stated, “It’s a positive sign to see financiers are willing to lend funds to assist the Caribbean with recovery. Although cautious due to concerns surrounding adequate insurance coverage and the need for construction reform, it’s encouraging to see their confidence levels are high.”
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