The tourism sector in the EasternCaribbean continues to face major challenges in the newmillennium. These include 1) continued dependence on thehealth of the developed economies as the primary source oftourists (Europe and the USA); 2) the low value added to theislands' economies from cruise ships, a majorsub-sector; and 3) growing competition from other Caribbeandestinations with lower hotel and labor costs. As the regionfaces increased competition, the OECS sub-region will needto develop a more diversified tourism product to staycompetitive. The study objective is to analyze anddemonstrate the importance and implications of soundenvironmental management for the future of the Organizationof East Caribbean States (OECS) tourism industry, which is akey sector in the sub-regional economy. The study willtherefore 1) review recent trends and projections in thetourism sector in the OECS sub-region; 2) review the natureand status of the sub-region's natural resourceendowment (natural assets) and its role in supportingtourism development in the sub-region; and 3) assessinstitutional capacity in the sub-region (at the regionaland national level) to monitor, balance, and addressexisting and future growth of the tourism sector.
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