Research by Kevin L. Michel

Domestic Value Added from Visitor Expenditure in Saint Lucia

How much of the tourism dollar actually stays in Saint Lucia?

The right question is not how many times a tourist dollar circulates. The better question is how much domestic value added and resident income Saint Lucia retains from EC$1 of visitor expenditure after commissions, imports, foreign factor-income leakage, and the local ripple effect that remains.

Core result: the central stayover tourism-dollar estimate leaves about EC$0.55 in net domestic value inside Saint Lucia. Independent stayover spending retains more (EC$0.64) than all-inclusive (EC$0.44) or cruise (EC$0.47) in the central model.
Saint LuciaTourismEconomic leakageDomestic value addedSmall island development

Headline model estimates

Net domestic value retained per EC$1 of visitor expenditure.

Independent EC$0.64 Range EC$0.53-EC$0.75 Confidence: Medium-low
Yacht EC$0.59 Range EC$0.49-EC$0.70 Confidence: Low
Stayover avg EC$0.55 Range EC$0.44-EC$0.66 Confidence: Medium-low
Cruise EC$0.47 Range EC$0.40-EC$0.56 Confidence: Medium
All-inclusive EC$0.44 Range EC$0.35-EC$0.54 Confidence: Low

Public preview

What the model says directionally.

These are model estimates, not official published Saint Lucia ratios. They are built from official spending totals and benchmark structure, then completed with explicit assumptions where the evidence base is incomplete.

The highest-confidence directional pattern is that independent stayover and yacht expenditure retain more domestic value than all-inclusive stayover or cruise expenditure; imported retail shopping retains the least; tours, local transport, local crafts, and independently purchased food and beverage retain comparatively more.

  • The meaningful measure is domestic value added, not gross turnover.
  • Independent stayover and yacht visitor spending appear to retain more domestic value than all-inclusive or cruise spending.
  • Import-heavy shopping retains the least value; local tours, transport, crafts, and independent food and beverage retain more.
  • The IMF/CARTAC 14% stayover-spend overstatement sensitivity materially changes the aggregate headline.

Place-based intuition

Where tourism value is likely to concentrate.

This interpretive map turns the economics into geography: cruise activity around Castries, stayover clusters in the north and south, marina value around Marigot, and tour-rich linkages around Soufriere.

Saint Lucia tourism value map Map using a Saint Lucia coastline outline with visitor value clusters around Rodney Bay, Castries, Marigot Bay, Soufriere, and Vieux Fort. Rodney Bay Castries Marigot Bay Soufriere Vieux Fort Coastline overlay Cruise gateway around Castries Stayover clusters north and south High-linkage tour zone near Soufriere
Castries Cruise gateway

Cruise arrivals, urban spillover, port services, duty-free, tours, and taxi movement.

Rodney Bay Stayover cluster

Hotels, restaurants, entertainment, excursions, and visitor-facing services.

Soufriere Tours hotspot

High-linkage tours, recreation, guides, restaurants, heritage, and nature-based visits.

Marigot Bay Yacht and marina

Marine visitors, provisioning, local services, charter movement, and dining.

Vieux Fort Airport gateway

Air arrivals, stayover distribution, south-island accommodation, and transport.

Segment comparison

Independent stayover and yacht visits retain more value.

Domestic value added by visitor segment Horizontal range bars comparing central net domestic value retained per EC$1 across five Saint Lucia visitor segments. How much of each EC$1 stays in Saint Lucia? Ordered high to low by central estimate. Gold band = plausible range. Dot = central estimate. HOW TO READ IT EC$0.64 means 64 cents stay locally. 0.0 0.2 0.4 0.6 0.8 net DVA retained per EC$1 Independent EC$0.46 direct + EC$0.19 ripple effect - EC$0.02 cost EC$0.64 range EC$0.53-EC$0.75 Yacht EC$0.42 direct + EC$0.19 ripple effect - EC$0.02 cost EC$0.59 range EC$0.49-EC$0.70 Stayover avg EC$0.43 direct + EC$0.14 ripple effect - EC$0.02 cost EC$0.55 range EC$0.44-EC$0.66 Cruise EC$0.43 direct + EC$0.08 ripple effect - EC$0.03 cost EC$0.47 range EC$0.40-EC$0.56 All-inclusive EC$0.38 direct + EC$0.08 ripple effect - EC$0.03 cost EC$0.44 range EC$0.35-EC$0.54 Read this as ranking and magnitude. Ripple effect = multiplier-style supplier, wage, and household value after direct spending.

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