by Dr. Edmond A. Mansoor
Antigua and Barbuda has embarked on a remarkable journey of economic
revitalization and development. Under the astute leadership of Prime Minister
Gaston Browne, the nation has witnessed significant growth across various sectors,
positioning it as a burgeoning hub for tourism and investment. This opinion piece
delves into the multifaceted progress achieved, the challenges encountered, and the
strategic initiatives propelling Antigua and Barbuda towards a prosperous 2025.
Economic Growth and Sectoral Expansion
In 2024, Antigua and Barbuda’s economy experienced a robust real GDP growth
of 6%, elevating the national economy to $6.0 billion. This impressive expansion is
attributed to a diversified approach encompassing tourism, construction, and
agriculture. The tourism sector, a cornerstone of the nation’s economy, reached
unprecedented heights by welcoming 1.1 million visitors via sea and air, marking a
15% increase compared to the previous year. This surge underscores the nation’s
appeal as a premier Caribbean destination.
The construction industry has mirrored this upward trajectory, with a notable
increase in new home developments and the commencement of construction on
several hotel projects slated for the coming months. This construction boom has
not only enhanced infrastructure but also generated employment opportunities,
contributing to the very low recorded unemployment rates. However, the rapid
development has led to a scarcity of skilled labor, particularly among plumbers,
carpenters, and masons, indicating a need for targeted vocational training to meet
industry demands.
Agriculture, though traditionally overshadowed by tourism, has experienced
commendable growth, contributing to the nation’s economic diversification and
food security. The government’s commitment to revitalizing this sector is evident
through initiatives aimed at increasing local production and reducing import
dependency.
Fiscal Performance and Infrastructure Development
The fiscal landscape of Antigua and Barbuda has strengthened considerably, with
the Customs and Excise Division collecting an unprecedented $502.6 million in
taxes in 2024—a 25% increase over the previous year. This surge in revenue
reflects robust economic activity and effective tax administration, providing the
government with the financial leverage to invest in critical infrastructure projects.
Significant investments have been channeled into educational infrastructure,
notably the completion of the Harrison Centre, a vocational school enrolling over
800 students. This institution plays a pivotal role in equipping the workforce with
essential skills, addressing the labor shortages in the construction sector, and
fostering a culture of technical proficiency.
The University of the West Indies Five Islands Campus stands as a beacon of
higher education, with over 1,100 students currently enrolled. The planned $200
million expansion of this campus is poised to create further opportunities for
advanced learning, nurturing a knowledge-based society that is critical for the
nation’s growth, development, and competitiveness on a global scale.
Tourism: The Jewel in the Crown
Antigua and Barbuda’s tourism sector has solidified its status as a global hub for
luxury travel. The inauguration of a new international airport in Barbuda facilitates
direct flights from international destinations, enhancing accessibility and
positioning the island as a prime destination for high-net-worth individuals. The
Peace, Love, and Happiness (PLH) project, alongside substantial investments from
figures like Robert De Niro, have infused millions of US dollars into the local
economy, fostering job creation and infrastructural development.
The nation’s appeal to affluent travelers is further evidenced by the unprecedented
number of yachts participating in the annual Antigua Charter Yacht Show in 2024.
Local entrepreneurship within the tourism sector is thriving, with Antiguans and
Barbudans owning over 450 tourism-related enterprises. Notably, 85% of Airbnb
properties are locally owned, and the government’s provision of additional plots
for Airbnb development at locations such as Pensioners, Morris Bay, and Shell
Beach underscores a commitment to inclusive economic participation.
Strategic Investments in Aviation and Climate Leadership
Looking ahead to 2025, a $165 million investment is earmarked for upgrading the
V.C. Bird International Airport, with additional funding allocated for extending the
Barbuda runway and constructing a new terminal building. These enhancements
are vital for maintaining the islands’ prominence in global tourism, ensuring that
earnings and opportunities continue to multiply for Antiguans and Barbudans.
Prime Minister Gaston Browne has demonstrated international leadership on issues
of climate change and climate justice, positioning Antigua and Barbuda as a
proactive advocate for sustainable development. This stance not only elevates the
nation’s global standing but also attracts environmentally conscious investors and
tourists, aligning economic growth with ecological responsibility.
Challenges and Mitigation Strategies
Despite these successes, challenges persist that have the potential to start to erode
the significant progress achieved. The number one challenge that has the highest
potential for eroding the economic prosperity is the episodic increase both in petty
crime and serious crime. Whilst Antigua and Barbuda remains a relatively safe
piece of paradise that citizens, residents and visitors thoroughly enjoy, the
Caribbean-wide trend of an increase in gun-related crimes hasn’t spared this twin-
island paradise, and the recent decisions by the Government to enhance crime-
fighting measures with a slew of new announcements are expected to keep the
crime numbers down.
If Antigua and Barbuda is getting ready to attract the next quarter million visitors
to our beautiful shores, it is an imperative for digital technology and artificial
intelligence to be deployed to both deter crime and to detect it quickly when it
occurs. This author is certain that the visionary leadership of the ABLP
Government under Prime Minister Gaston Browne will ensure the deployment of
the appropriate human resource and the technologies to guarantee the peace and
tranquility.
Infrastructure deficits, particularly concerning road conditions and water shortages,
pose substantial obstacles. The government has responded with a $21 million
deployment of equipment to repair community roads in Antigua, a budgetary
allocation of $50 M to begin the much-needed repair of roads in Barbuda, and a
$110 million investment in water infrastructure. This investment in the water
production and distribution operations of APUA’s Water Business Unit aims to
increase water production by 5 million gallons per day, with a target of meeting the
national demand of 13 million gallons daily by September, 2025.
If it is not already doing so, the Ministry of Public Works should utilize the
geospatial data that exists at the Ministry of Lands to develop a clear plan for its
road repair program. The road resurfacing program has accelerated significantly in
the last few weeks, but it isn’t sufficient for the Director of Public Works to state
that the “roads will be fixed”. By using the geospatial data and by applying a
scoring system that Public Works can develop with APUA, a highly-organized,
systematic plan can be developed that ensures that the road resurfacing program
meets the expectations of both the political directorate and the citizenry. If the
scoring system is accurate, the worst roads should be fixed first.
Indiscriminate littering and unauthorized vending present ongoing environmental
and regulatory challenges. The government’s announcement to demolish derelict
properties is a step toward urban renewal and maintaining the aesthetic appeal
crucial for tourism. However, sustained public education and enforcement are
essential to cultivate a culture of environmental stewardship.
The Prime Minister and the Cabinet should consider the establishment of a
Commission on Rural and Environmental Development (C-RED) to blue-print the
transformation and modernization in phases of rural Antigua and Barbuda and to
advance preparations for welcoming up to 1.5 million visitors in the next few
years. I will expand on this concept in future opinion pieces.
Political Leadership and Investor Confidence
Political leadership (people-centric Prime Minister), tourism leadership (5 th
cruise berthing facility, impending upgrades at the V. C. Bird International Airport,
new airport in Barbuda, new hotels and Airbnb properties, etc.) coupled with
climate leadership (climate justice, multidimensional vulnerability index [MVI],
SIDS Centre of Excellence, Global Data Hub), global leadership (heightened
admiration and respect for Antigua and Barbuda at the United Nations and in other
international fora) and educational leadership (Harrison Centre, $200 M
expansion of UWI Five Islands Campus) are the constituent elements to further
solidify Antigua and Barbuda as a powerhouse twin-island nation that consistently
punches above its weight.
The correlation between strong political leadership and economic prosperity is
exemplified in Antigua and Barbuda’s recent trajectory. Prime Minister Gaston
Browne’s administration has fostered a high-performance culture driven by
entrepreneurial acumen, instilling confidence among investors and the citizenry.
The transition of Canadian-owned banks to local ownership has resulted in bigger
and stronger indigenous financial institutions, reflecting a commitment to
economic sovereignty and resilience.
The hosting of the United Nations Small Island Developing States (SIDS)
conference in 2024, along with several regional and hemispheric conferences, has
cemented Antigua and Barbuda’s status as an emerging regional diplomatic center.
Such events not only boost the local economy but also enhance the nation’s
international profile, attracting further investment and tourism.
2025 is poised to be a marquee year in Antigua. Every single Antiguan and
Barbudan, every citizen and resident, has a role to play in this country’s economic
renaissance.
