Willemstad:--- The Board of Financial Supervision of Curaçao and Sint Maarten (Cft) stresses that while tourism growth brings economic opportunities to Curaçao, it also creates new challenges. The CFT recommends that the Government pursue an integrated vision and clear direction for tourism development. This is the only way tourism can contribute to long-term prosperity and financial sustainability.
Tourism development is an important driver of Curacao’s economic growth. However, its continued success also increases pressure on the island’s financial capacity. Public facilities and natural resources are increasingly reaching their limits. Examples thereof include airport capacity, increasing traffic congestion, the pressure on the housing market, and the health of the coral reefs.
The Cft points out the fact that unchecked growth may eventually undermine Curacao’s appeal as a tourist destination. Therefore, further growth requires Government guidance, cooperation with social partners, and targeted investments, among others, in infrastructure, waste management, energy, and nature conservation.
Economic structure
The rise of tourism also alters the island's economic structure. According to the International Monetary Fund, employment increasingly shifts toward low-wage positions in tourism and informal activities, while formal employment declines. This affects tax revenue and social security funding.
Curaçao has opportunities to increase the economic added value of tourism. The CFT emphasizes qualitative rather than quantitative tourism growth. The focus must be on more formal employment, increased labor productivity, more local economic added value, and a broader tax base. Targeted financial and fiscal incentives can support the desired tourism development. In this way, tourism development can contribute to a sustainable, future-proof economy.
Budget for 2027 and subsequent years
Due in part to favorable economic circumstances, Curacao estimates substantial budget surpluses for the 2027-2030 period. However, the economy remains vulnerable to shocks and financial risks. Furthermore, Curacao faces several financial challenges. For example, the solution to the Curaçao Medical Center's financial situation has yet to be finalized. More broadly, the structural financial sustainability of the healthcare and social security funds remains a significant challenge. Given Curaçao's already high collective tax burden, it is important to implement healthcare and social security reforms to safeguard financial sustainability.
