Zika Virus Affecting Business in the Carribean

Kat Armstrong

Dr. James D. Hornbuckle

Competing in a Global Environment

February 1, 2016

Current Issue – Will the Zika Virus Hurt Tourism in the Caribbean?

Summary

The mosquito-born Zika virus, first discovered in Brazil in May, has been making international headlines for months. According to the Centers for Disease Control and Prevention (CDC), the virus affects one in five people who contract it and is characterized by flu-like symptoms including fever, joint pain, muscle pain, headache, and conjunctivitis. Although the illness is considered mild, it is thought to be linked to microcephaly, a potentially fatal condition in which babies are born with abnormally small heads and underdeveloped brains. Brazil in particular has seen a sharp increase in the cases of microcephaly in conjunction with the increase in cases of the Zika virus.

The first case of the Zika virus in the Caribbean was reported in December. Since then, five Caribbean nations have been placed under a level two travel advisory by the CDC, which encourages travelers to take enhanced precautions. This begs the question: will the Zika virus in fact hurt tourism in the Caribbean? According to the International Business Times, cash flow from tourism is critical for the well-being of the Caribbean’s economy. In 2015, tourism made up approximately 36% of Barbados’ gross domestic product, nearly 11% for Martinique, about 17% for Haiti and 15% for Guadeloupe. Additionally, nearly 85% of St. Martin’s workforce is employed in the tourism sector. The Caribbean’s economic dependence on tourism is likely to result in a significant challenge for the region with the continuing spread of the Zika virus.

Relation to Text

Along with a country’s political and economic systems, factors including geography significantly impact economic development. Harvard University economist Jeffrey Sachs states, “Temperate climes have generally supported higher densities of population and thus a more extensive division of...