Project Overview
OVERVIEW
The St. Lucia economy is heavily dependent on tourism. Tourism sector and overall economic growth were significantly impacted by the 2007-08 financial crisis and extreme weather events. St. Lucia’s growth has remained subdued, averaging 0.9 percent over the period 2008–2018 compared to 2.4 percent in the previous decade. Unemployment is approaching 21%, and youth unemployment is higher at 38.5%.
For increased resilience, St Lucia needs to develop the export capacity of other sectors and invest in diversification within the tourism sector - including by introducing new products that increase local content in the tourism supply chain. St Lucia’s Medium-Term Development Plan identifies tourism, agriculture and infrastructure as priorities for accelerating inclusive growth and the Government has initiated efforts to develop village tourism. Reforms are, however, needed to improve the business and investment climate; and access to credit remains a major challenge. According to the IMF 2019 Article IV Consultation, total bank credit to the private sector has been shrinking for six consecutive years.
The project is cofinanced by the Government of St Lucia and the CDF and develops St Lucia's community-based tourism product in 7 communities with a population of over 150,000; and increases the participation of, and income earned by, the communities in the delivery of tourism services.
Phase I commences with 3 communities (Anse La Raye, Grost Ilet, and Soufriere). Phase II expands the community tourism programme into 4 additional communities (Dennery, Castries, Micaud, and Vieux Forte) and includes the physical upgrade of key tourism assets in 3 of the 4 additional communities:
• Dennery - construction of an Amphitheatre and vendors stalls at the location of the Fish Fiesta.
• Micoud - minor rehabilitation to storage building and jetty; and construction of a boardwalk and point-of-sale facility.
• Castries, First Martyrs Shrine - establishing the Cathedral Museum and developing the Cathedral Tourism Tour; and construction of the First Martyrs Shrine and related facilities.
• Castries, Morne Layby - construction of the main viewpoint building and related facilities.
