Stay-over Tourism: Who actually benefits?
At first glance, the Cayman Islands' stay-over tourism model may appear to be a glowing success. By any conventional economic measure, the industry brings in foreign investment, boosts government revenue, and keeps the island bustling with international activity. ,,,
In fact, for the casual observer or visiting economist, it may seem that Cayman is reaping great rewards from a model that has brought hotels, restaurants, and high-end retail experiences to our shores.
But this surface-level success masks a deeper and more uncomfortable truth: that there is an ever-growing disconnect between the health of the economy and the well-being of the average Caymanian. In my view, we need to ask whether this model truly serves our people, or whether it serves those who come here to profit from the very land and labor that Caymanians continue to subsidize.
A System Geared Toward Foreign Interests
Let us examine the process.
A foreign investor, most often from the U.S. or Europe, comes to the Cayman Islands and receives duty concessions from the government to build a luxury hotel. That means that before the first stone is laid, the country is already giving up millions in import duties, revenue that could have otherwise been used to fund schools, healthcare, or other needed public services.
Next comes the construction phase. And who builds these hotels? In the overwhelming majority of cases, it is foreign labor, primarily from Jamaica and other regional neighbors. Caymanians are barely present on these work sites. When construction is complete, the pattern continues: the hotel begins operations, and once again, the staff is made up largely of foreign nationals, Nepalese, Filipinos, Canadians, Jamaicans etc...while Caymanians remain in large part on the sidelines.
The revenue generated from these hotels is not staying in the country either. A significant portion flows right back out to the foreign owners and the hotel franchises abroad. Whether it's Hyatt, Marriott, Ritz or another brand, the profits largely bypass Cayman.
Inflated Real Estate, Strained Infrastructure
In parallel, these foreign hotel owners and high-net-worth visitors often purchase luxury condos or second homes. This drives up the cost of real estate island-wide. And who benefits from those sales? Once again, primarily foreign-owned real estate firms, not Caymanian brokers. This contributes to the pricing out of Caymanians from their own housing market.
The rise in stay-over tourism has also altered the visual and cultural fabric of our islands. As many locals and visitors alike continue to state, we look less like a distinct Caribbean nation and more like an extension of South Florida, with concrete, glass, and franchise names replacing traditional Caymanian aesthetics and values.
And with every new hotel or high-density development, there is increased strain on our infrastructure: roads, electricity, water supply, and sewage. Sewage management has become a major concern, as the systems in place must now handle exponentially more waste, putting pressure on environmental and public health safeguards.
Cayman Airways also cannot be left out of this equation. It is often heavily subsidized by the government to accommodate and facilitate increased tourist traffic. That means taxpayers, Caymanians, are again footing the bill to support a model that they don’t substantially benefit from.
Who’s Competing With Caymanians?
Meanwhile, the very workers who construct and operate these hotels also need housing, driving up the demand for apartments and placing further pressure on Caymanian families. The influx of foreign labor, though essential to hotel operations, contributes to the rise in rental prices. Caymanians, especially younger generations trying to become independent, are struggling to afford decent living spaces.
To put the sheer volume of tourism into perspective, let’s consider the math. With roughly 500,000 stay-over visitors annually, and assuming each stays on Island for an average of 5 to 7 nights, we are effectively adding an extra 9,589 people to the Cayman Islands' population. That is a massive population increase, equivalent to more than 14% of our resident population, and it brings with it added stress to every aspect of life on these islands.
And all of this must be maintained.
The government does generate revenue from the 13% tourist accommodation tax, which brings in somewhere between $50 to $60 million annually. But consider the costs: the Department of Tourism itself operates on a yearly budget of about $13 million, and at one point, just recently, spent an additional $26 million on marketing alone. Then there's the cost of road maintenance, utility upgrades, police and fire services, airport improvements, and much more. Add in the subsidies to places like Cayman Airways, and it quickly becomes clear: this model might be profitable for some, but it is extremely costly for the country as a whole.
Where Is the Cultural Benefit?
Even on the cultural front, the benefits to Caymanians are questionable. Visitors who stay in hotels often explore the island independently or remain within hotel facilities. This is not meaningful cultural exchange; it is passive assimilation. Local attractions like the Turtle Centre depend heavily on cruise tourism, about 60% of their revenue, while stay-over visitors are far less likely to engage in culturally curated experiences or visit these sites.
A New Model: Caymanians Must Be Central
It is time to ask serious questions about the long-term sustainability of this model. The financial leakages—Jamaican workers alone reportedly remit $175 million annually, with Filipinos sending over $40 million; those number are staggering. That is money earned here but spent abroad, and Caymanians are left with a growing cost of living and shrinking access to opportunities. When minimum wage is increased...starting January 2026, we can expect the money leaving Cayman to only increase, and the increase for Caymanians will be the cost of their Helpers and higher prices everywhere they do their shopping.
We need a national study, honest, transparent, and led by Caymanians, to determine whether this model truly benefits us. But more than that, we need action.
Every effort must be made to ensure Caymanians are at the center of the tourism industry, not just as workers, but as owners, managers, and stakeholders. That means Caymanians should be:
Running the security firms that protect our hotels.
Operating the rental car fleets.
Managing the hotels, not just cleaning the rooms.
Supplying the food and produce that ends up on the plates.
Owning the tour companies, the gift shops, and the art studios...and the list should go on.
Let us not merely host the tourism industry; let us own it. Because until Caymanians are truly participating in every facet of this economy, we will continue to foot the bill for someone else’s profits.
Many of our leaders, foreigners, and even some of our people will make a million excuses why we can't get Caymanians to participate, but it really just boils down to one reason for keeping them out: 'They're Caymanian.'
