KPMG Partner and Regional Director of Corporate Finance Simon Townend shared the results of the firm’s annual banking survey at the 11th annual Caribbean Hotel & Tourism Investment Conference in Curacao in May.
Citing the strength of European currencies, the stability of US interest rates and improved airlift, banks remain optimistic about the continued growth in the region.
“The results of the annual KPMG banking survey once again support the positive outlook for tourism growth in the region,” says Mr. Townend. “With the financial commitment of more than US$2.6 billion in the Caribbean, lenders are sending a clear message to developers that, with the right fundamentals, they are willing to continue to finance multi-million dollar projects in the region.”
There is a new influx of capital from private equity and mezzanine lenders, particularly to larger projects, attracted by the now proven resilience of the regional tourism product and the prospects of strong yields relative to home markets.