The role of tourism in the economic development of small islands: a case study of Bermuda

Abstract

Bermuda consists of a group of small islands with an area of some 21 square miles, a population of over 50,000, and a highly developed economy based on the tourist industry. This study is concerned with the nature and development of the tourist industry in Bermuda and the extent to which certain generalisations can be made as to the role of tourism in small island economies. The Introduction examines some of the special features that are characteristic of small islands, the historic development of the-tourist industry, its regional distribution, and its potential for promoting economic development. The main body of the study is concerned with a case-study of Bermuda. In Chapter IV the development of the tourist industry this century is described, through the boom period of the 1960s to the present day. This is followed by a consideration of the role of the tourist industry in the Bermudian economy, the revenue that it generates, and the extent to which that revenue is retained within the economy. Economic alternatives to tourism are examined, especially the potential for International Businesses, which at present offer Bermuda an important ‘second-string’ to its economy. Traditional parameters such as number of visitors, seasonal distribution, and length of stay are used to describe the nature of tourist industry in Bermuda, and this section is concluded with a look at the tourist industry in 1974, a successful year for Bermuda when the industry in much of the world was experiencing a recession. The final section provides an analysis of present-day problems and potentials with a consideration of the concept of 'saturation' as it relates to Bermuda. This leads on to a look at the way ahead for Bermuda in the next decade so that its economy can be developed in the best interests of the Bermudian population.