Nontourism services in Barbados: 1970–97

Abstract

This paper initially refers to some of the classifications of services used by various authors, followed by the components that comprise nontourism services in Barbados and their linkages to the other sectors of the Barbados economy. Using regression analysis, variables that may influence nontourism services in the long and short run are then identified. In the long run, the variables that impact nontourism services are relative real incomes, tourist arrivals, merchandise imports, commercial bank credit, relative prices, and government policy. The short run is influenced by relative real incomes, tourist arrivals, and merchandise imports. Since tourist arrivals influence nontourism services in the long and short run, Barbados must still focus on tourism activity to maximize its foreign exchange potential from nontourism services.