Air connectivity is a critical element to economic growth and development, especially for the small island nations of the Caribbean. Improved connectivity means additional air services, frequencies and traffic volumes. These have been found to contribute to increased employment opportunities and to benefit the wider economy. The International Air Transport Association’s Connectivity Index shows that air connectivity growth in the Caribbean has been generally and relatively weak, and limited to a few countries. Based on the application of a gravity model, high costs are among the primary factors contributing to weak intra-regional air travel demand and the related constraints on connectivity. Introducing policy remedies could lead to increased long-term employment, adding approximately 288,000 jobs, as well as USD4.4 billion in GDP across the Caribbean.
