Opposition leader Joey Hew has proposed that the Cayman Islands establish a tourism climate resilience fund supported by visitors to preserve natural tourism assets like Seven Mile Beach.
From an economic perspective, Hew said Cayman must protect its standing in an increasingly competitive tourism market, and that means preserving its natural appeal.
“The Cayman Islands has built its reputation on exceptional natural assets. If those assets deteriorate, our competitive advantage is weakened,” Hew told Cayman Independent.
“Whether we’re discussing beach erosion, reef degradation, sargassum events, storm impacts or other environmental pressures, the reality is that these issues can affect visitor experience, destination reputation and long-term tourism demand.”
Cayman’s tourism sector contributes an estimated 12 to 20% of the islands’ GDP, according to a 2024 assessment by Marla Dukharan and GNM Group.
It adds that Seven Mile Beach alone provides an estimated US$1 billion in total gross impact on Cayman’s economy each year.
Protecting these assets and addressing ongoing problems like beach erosion will mean responsible planning, Hew said.
In one of 10 private member’s motions submitted by MPs for parliament’s next sitting beginning on 19 June, Hew urges government to start that planning now.
The motion, seconded by deputy speaker Pearlina McGaw-Lumsden, argues that “proactive and sustainable investment in climate resilience” is “essential to safeguarding the Cayman Islands’ tourism industry, environment and future economic prosperity”.
Hew said a number of tourism-dependent jurisdictions have already implemented conservation or resilience funding mechanisms that Cayman can look to as an example.
He pointed to the British Virgin Islands, Belize, the Bahamas, the Galápagos Islands, several Pacific island nations and various European destinations as examples of locations that have implemented some form of visitor-supported environmental funding.
“Some use visitor fees, some dedicate a portion of existing tourism revenues and others combine public and private funding sources,” he said.
“That is precisely why the motion calls for a policy and feasibility assessment. We should examine what has worked elsewhere and determine what, if anything, is appropriate for the Cayman Islands.”
Visitor-based contributions could look something like Cayman’s Tourism Accommodation Tax, which generated more than CI$42 million in 2024. His motion has left the specifics up for debate, however.
“My view is that before any decisions are made, government should engage stakeholders, including the tourism sector, and carefully assess the potential economic impact, administrative costs and public acceptance of any proposal,” he said.
“The objective is not to create a burden. The objective is to determine whether there is a sustainable way to invest in protecting the assets that support our tourism industry.”
He hopes any such initiative will receive the support of the tourism sector and its stakeholders.
“The tourism industry has a direct interest in ensuring that our beaches, reefs and natural environment remain healthy and competitive for decades to come,” he said.
In the future, a resilience fund, he said, could support beach restoration and renourishment projects – like the proposal for southern Seven Mile Beach – reef monitoring and restoration, mangrove protection, shoreline stabilisation and climate adaptation initiatives.
“The key principle is that protecting these assets should not be viewed solely as an environmental issue. These are economic assets,” he said.
“Seven Mile Beach, our reefs, our marine environment and the unique natural attractions of Cayman Brac and Little Cayman are all part of the product we market to the world.
“The question is whether we are making sufficient long-term investments to protect them.”
