Premier: Stay-over tourism a massive failure

| 19/06/2020 | 215 Comments
Cayman News Service

(CNS): Despite record-breaking overnight visitor numbers in recent years that fuelled a massive boom in tourism, Premier Alden McLaughlin has described stay-over tourism as a “massive failure” when it comes to creating jobs for local people. McLaughlin said that 70% of tourism workers are expatriates, and while he accepted there “was an ugly side to cruise tourism”, Cayman had not found a way for stay-over tourism to work for its people.

Responding to questions from CNS at Wednesday’s COVID-19 briefing on the recent paper by the National Conservation Council and the Department of Environment about the opportunity to green the post-COVID-19 economy, the premier criticised the paper’s position on tourism.

He said there were some observations and recommendations in the document that government should take a long hard look at. But he also derided the recommendations, saying he couldn’t find anything in it that spoke about how to feed the people, and that it was laudable but idealistic.

McLaughlin said the authors’ “definition of sustainable tourism” was different to his or that held by government. Sustainable tourism must include the ability of local people to earn a living from the tourism product, he added.

“Stay-over tourism has been a massive failure for Cayman in that regard. Seventy percent of the persons who are engaged in sustainable tourism in Cayman are expats,” the premier said.

“While I agree entirely that it puts much less strain on the infrastructure and ecology… than cruise tourism and there is definitely a very ugly side to cruise tourism, I am not sure that stay-over tourism in its current form is really the best thing that Cayman has ever seen,” he said. “We have not found a way for it to really work for the vast majority of people that are employed in that industry.”

McLaughlin spoke about a need for a long critical look at the tourism product. He said a lot of people in Cayman were making a lot of money in stay-over tourism but he did not think many of them were Caymanian.

He also suggested, when asked, that it was not just about government policy or work permits, and that refusing permits would just prevent businesses from being able to operate. He said that for many years, for one reason or another, Caymanians had gradually become a much smaller percentage of those engaged in stay-over tourism.

However, he acknowledged that over the years billions of dollars has been invested in tourism. “We have just got to find a way, I believe, to make it work for our people,” he added.

Referring to hotels and condos, he pointed out that Caymanians were not the owners and that the wages paid to those working in overnight tourism were so low that most Caymanians won’t do those jobs. He said there was a complex set of factors operating that he thought about all the time.

But the premier said that COVID-19 had provided the opportunity to pause and think again about Cayman’s economy, noting that under normal circumstances it would be difficult to make changes that could threaten people’s income.

“Now we have got thousands of people unemployed, hotels are shut down, condominiums are shut down, and we are shuttling hundreds of expat workers back home,” he added.

McLaughlin said he had recently asked a leading operator in the tourism sector how do we get local people to work in the industry, saying that was the big challenge and the big question. But he said it was not a simple case of just giving the jobs to Caymanians as they had to be able to do the work or want to do the work in the first place.

See the full press briefing below, set to start at the CNS question about the NCC/DoE paper on transitioning to a greener economy (which is in the CNS Library here:


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Category: Business, Tourism

Comments (215)

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  1. Anonymous says:

    The government hires more expats than locals for many top positions. Police Commish, Chief Mesical Officer etc. When your country is barely a small town relative to most places, you have to be realistic and embrace globalization or be just another poor banana republic. Itā€™s basic economics

  2. Sunrise says:

    Duh,and you are the premier!! What a shock you are just finding this out when in the 80’s it was almost 100% caymanians!! Should I set my alarm for a wake up call!! LMAO.

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  3. Anonymous says:

    The problem is that the Premier is setting the bar too low and not doing enough. Why is the measure of success the number of Caymanians working in the industry, why not Caymanians owning the industry? And when Caymanians own the industry why do they not help other Caymanians? Because they want people entitled to them and Caymanians are not going to bow down to them like royalty. I’ve seen Alden out at these same hotels and he wants nothing to do with Caymanians, at least not all Caymanians. Dr. Roy this is what you should be writing about.

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    • Anonymous says:

      It took a Pandemic for him to realize this? Dart’s promising of hiring “all Caymanians” that is total BS. Dive operators expats, ones who take people out to stingray city majority expats. You won’t be able to change this over night. If a caymanian wanted the job they would have it. This situation didn’t happen overnight. Hotel’s housekeepers expats, cashiers of grocery stores expats. Did he just wake up

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      • Arthur Rank says:

        Thats interesting information, but more useful would be the reason Caymanians will not take those jobs. At a guess, its the remuneration level, in which case the solution lies with CIG, change the minimum wage, and restrict permits. BUT, this will raise costs for the business owners, and the majority of those are Caymanians, and quite a lot are represented at CIG.
        Actually of course, the reason for this headline isn’t much to do with this issue at all, its the start of a campaign to disprove the logic behind the anti Cruise terminal argument, which has shown fairly clearly that apart from all the other reasons, stay over tourism is worth far more to the economy than cruise ships!
        So, if you did trust your LA representatives, start being a bit more circumspect!

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      • Anonymous says:

        When did Dart say they would hire all Caymanians? When Ken arrived in Bermuda with Mark VanDV & several investment advisors & a lawyer from the USA, Dart Management already wasnā€™t all Caymanian!! He did hire a Bush & a Bodden along with a handful of other locals initially, but then he brought in horticulturists & other specialists as purchasing of land & properties expanded in the mid 90ā€™s.

      • Anonymous says:

        At slave wages Caymanians cannot work!

        • Anonymous says:

          The problem is that most Caymanians are not prepared to work and not interested in most jobs. They are not properly raised at home and not properly taught at school. Attitude is everything when it does to succeeding, and it has been my observation that most think the government, or some other entity should provide for them! Why????

  4. Anonymous says:

    Once upon a time, or during our foreparents’ era, indigenous Caymanians made up 100% of the tourism workforce, which by far, represented an indirect/direct invaluable contribution to the main attraction of the tourism industry, package, for the obvious reasons. Remember, only our natives are recognized, by their birth-right as Cayman’s first and last indispensable-concerted ambassadors of “our beloved islands”. Furthermore, Caymanians were the foundation of the tourism industry. At such time, tourism was the livelihood of every Caymanian, by extension.

    Fast forward now to 2020, only 30% Caymanians may directly interact with tourist/tourism. Lamentation 5:1-22, explains the current situation best:

    Remember, O LORD, what is come upon us: consider, and behold our reproach. Our inheritance is turned to strangers, our houses to aliens. We are orphans and fatherless, our mothers are as widows. We have drunken our water for money; our wood is sold unto us. Our necks are under persecution: we labour, and have no rest. We have given the hand to the Egyptians, and to the Assyrians, to be satisfied with bread. Our fathers have sinned, and are not; and we have borne their iniquities. Servants have ruled over us: there is none that doth deliver us out of their hand. We gat our bread with the peril of our lives because of the sword of the wilderness. Our skin was black like an oven because of the terrible famine. They ravished the women in Zion, and the maids in the cities of Judah. Princes are hanged up by their hand: the faces of elders were not honoured. They took the young men to grind, and the children fell under the wood. The elders have ceased from the gate, the young men from their musick. The joy of our heart is ceased; our dance is turned into mourning. The crown is fallen from our head: woe unto us, that we have sinned! For this our heart is faint; for these things our eyes are dim. Because of the mountain of Zion, which is desolate, the foxes walk upon it. Thou, O LORD, remainest for ever; thy throne from generation to generation. Wherefore dost thou forget us for ever, and forsake us so long time? Turn thou us unto thee, O LORD, and we shall be turned; renew our days as of old. But thou hast utterly rejected us; thou art very wroth against us.
    Lamentation 5:1-22

    My question is: Will such actions be allowed to continue, for ever?

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  5. Chris Johnson says:

    I agree with you completely. I am a bit out of touch these days but did we not have trade schools, one in tourism. I have to say I am impressed with the efforts being made to train Caymanians in the mechanical and engineering trade. Hats off to the organizers which my rotary club supports in its entirety.
    If we do more of this we need less work permits.

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  6. J.A.Roy Bodden says:

    Bravo to the premier for finally realising that tourism is not an ideal pillar on which build the Caymanian economy…

    CNS: The rest of this comment is posted here.

  7. John says:

    Like the pandemic the Government wants to laud praises upon itself for “their” wonderful job of handling the crisis yet they wont take responsibility of themselves and the previous Governments failures to address the stayover problem. We all know the locals don’t want to work in the hospitality sector as it is beneath them so the Expats fill their places and Alden bemoans these facts. So typical. As in the Jon Jon scenario with Lady Tiff, there is no accountability…shameful.

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  8. Anonymous says:

    Is it the fault of the Expats that take the jobs or the locals who donā€™t want the jobs ???!!! This has been the case for years

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  9. Chris Johnson says:

    The world has certainly moved on but for the poorer. Thank you for your advice though. I do recall running water, from my well. I recall CUC . I recall all the ‘houses’ on the beach where people like Dr Grimmer and Mitch Miller lived. I think there were about 15/20 houses on the beach. I recall mosquitos and the sprayers. By the way the mosquitos have been bad recently, have you not noticed.
    Do you recall the lack of traffic or the fact that when you had a puncture half the island stopped to assist you? Do you recall a lack of money and moonlighting? Do you recall walking empty beaches and snorkeling pristine waters with 2/3 cruise ships a year. Perhaps you recall there was not much to do so we started numerous sporting and charitable organizations. Do you recall about 12 police and a lack of crime? Perhaps you remember our forthright and active politicians none of whom were involved in criminal or antisocial activities.
    Now compare that with today where the almighty dollar rules and corruption is rampant. Read the court lists to get an idea.
    Do not get me wrong I still love Cayman and have no summer retreat like so many do. I get out and see the huge hotels and condos catering for tourists where our own Beach Club and Galleon stood. This is progress and has benefited the island and its residents. But what price progress.
    I rest my case as they say.

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    • ETH says:

      Well put Chris. With progress like this, who needs it? If one could have a do-over, I bet things would be very different. The greed, the corruption, the criminality, and all the associated ugliness that came with that is not worth the so-called “progress” made, the cementing of the island, the warped moral compass, etc. Let’s hope that the Caymanians in some other parallel dimension made better choices. The simplicity of life has left us for good. Beautiful as they may still be, these islands seem to be going to the dogs.

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    • Anonymous says:

      Enjoyed reading your comment, Chris. I wish we could turn back the clock. What Cayman needs now is a better education system and stop bringing in more and more people on work permits. More permits mean less work for Caymanians. Our leadership cannot see that. All they can see is dollar $ignS.

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    • Anonymous says:

      I have always said and stand by that the day the Holiday Inn and the Galleon Beach hotels went down, Cayman starter to go with it. We went from affordable hotels to being priced out of the market because the Governments then ans since wanted to cater to the rich. Well it worked, thank you for that you greedy bastardos and now it’s for the rich, by the rich, with the rich to benefit and guess what. Not many Caymanians in that equation except for the likes of the … I mean certain elite families and damn the rest as long as these groups get their cut.

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  10. Anonymous says:

    The only massive failure here is the government.

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    • Anonymous says:

      The Premier is less than a year to the end of his eight years. In that time what has he and his government done to improve stay- over tourism so that it would benefit Caymanians. I do not recall any emphasis on the subject by him. However if Caymanians are interested in stay- over tourism they also need to show more enthusiasm and excitement. First thing the Premier can do is raise the minimum wage.

  11. Anonymous says:

    Very wrong Mr. Premier. The country should be looking to promote stayover guests and implement strict limits on number of cruise ships per day. All I see is most cruise shippers walking to 7 mile beach. How many actually spend money on island. How man Caymanians work with tour companies and sea excursions?

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    • Anonymous says:

      how many caymanians own hotels condos etc. stayover tourist benefit the wealthy hotels and resturant owners who either are foreiners our local expats (not beating up on expats but) the born caymanians with little souvenir shops taxis tor buses are better served from cruise tourism.

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    • Anonymous says:

      Let’s do it your way, cause you know so much? I will take my bus and park in the parking lot of your choice of hotel? Oh wait a minute there is no business for a tour bus. There aren’t that many tour companies that hire Jamaicans, Webster’s, Majestic, the rest are owned by Caymanians as taxis and tour busses. There were two other companies but they lost business or just do on cruise line. So most of the owned independent transport made 50-60,000. So how you going to offer anyone CI$6 per hour. But hotels offer CI$4.50 per hour, did you know that? Stop guessing ask people in the industry.

  12. Anonymous says:

    We should forget about cruise tourism and this was cheapening the Cayman brand. Remove the jewelry stores In George Town and replace them with boutique hotels to attract stay over guest. I personally think Covid-19 prevented a major catastrophe to the islands with regards to the port. The premier seems to have a vested interest in the building of the port hence the negativity towards the stay over visitors even though records were being set.

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  13. Rick says:

    The question is how to lead a review of tourism to achieve the goals to include Caymanians in significant and sustainable way? I smell a political move when I hear the country’s leader sounding off without taking responsibility for the direction we are headed in stay-over tourism.

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  14. Yolande Hill says:

    The $4.50 ā€œplus gratuitiesā€ is a farce. The ā€œgratuities are split amongst the server and kitchen staff and table cleaners room cleaners ( if they lucky). 6 month probation which gets extended because you need serious skills to pour water or make a bed so staff remain on the below minimum living wage.
    If there are no customers the individual earns just $4.50 Per hour which if they lucky to get 10hour shifts is maybe $50 a day.

    $4.50 is not livable wage.
    The basic needs to increase and the grats ratio needs to change so workers can actually survive. Maybe this change will help attract And retain locals.

    Cayman can do so much better in this regard. Sadly Servitude and slavery remains the pandemic of Cayman.

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    • GT Voter says:

      The minimum wage needs to be increased and an apprenticeship program for hospitality, plumbing, electrical, hvac, and engineering is required to provide Caymanians with the tools to compete.

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    • Anonymous says:

      We need to abolish auto grats. Just stop with tipping.

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    • Anonymous says:

      A good school system would make a great difference! Our children are NOT getting preparation for real life!

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    • Autonomous says:

      If you are referring to hotel workers, I can tell you that you are simply wrong. XXX Inaccurate information about what hotel workers make only discourages locals. In addition to the base wage, non-tipped hourly hotel workers receive their share of the service charge that hotel guests pay on their rooms. Many non-tipped hourly workers are making $6 base and up to $10-$12/hr as part of the service charge pool. So $16-$18/hr is more the reality, of at least it had been prior to shutdown.

      CNS: Few people here are brave enough to use their real name. If they do and you choose to remain anonymous, please remain respectful.

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  15. Anonymous says:

    It is the government that approves all those work permits. The failure is not with the product, but the Government.

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  16. Anonymous says:

    Many decades of failed political leadership have left the country and its citizens in a precarious position.

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    • Anonymous says:

      So true! There are not enough laws in place to protect the people and the land. Rich expats and Caymanians sell off to highest bidder without a thought of how this will affect future generations.

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      • John says:

        You mean the rich expats who move here and pay $100,000 for permanent, non employment residency and have to buy a home for $1 million plus, another $100,000 in stamp duty, plus $20,000 in import duty in on a modest car?
        The ones who can’t work here but spend money every day on food, restaurants, electricity, water etc.

        How do you think the free schools for Caymanians only are paid for?
        One rich expat moving here every year pays for the schooling of 10 children.

        And because they can’t work they don’t take one single job away from anyone. They provide employment. To people who cut their grass, clean their pools, sell them groceries etc.

        If only we could get 100 rich expats to move here every year.

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