Prime Minister Gaston Browne says strong advance bookings and additional airline seats are pointing to another robust tourism season for Antigua and Barbuda, but he warned that rising inflation could reduce the economic benefits of the expected increase in business.

Speaking Saturday on the Browne and Browne Show, Browne said reports from the tourism industry suggest both the stay-over and cruise sectors are heading into a strong winter season.

“The pre-bookings are extremely strong,” Browne said.

He also said an airline had added 3,000 additional seats, although the name of the carrier is unclear in the programme transcript.

Browne said feedback from hoteliers has also been encouraging.

“I’ve been advised by the various hoteliers that so far the upcoming season is going to be a really excellent one, both the overnight and cruise tourism sectors,” he said.

“So we’re looking for yet another strong year.”

Despite the positive tourism outlook, Browne cautioned that inflation could limit the amount of real economic growth generated by the additional activity.

“Unfortunately, inflation is increasing, so that itself will be a drag on growth,” he said.

Browne stressed that the concern was not a lack of additional tourism business, but how rising prices could affect overall growth.

“So not that we’re not getting an increase in business, but in terms of the net growth level, inflation, if it protracts, that could undermine the level of growth,” he said.

The prime minister linked some of the inflationary pressure to higher petroleum prices and international developments.

He said the government hoped international conditions would eventually stabilize “so that there can be some normalization of prices, especially petroleum prices.”

Browne said those higher energy costs were “obviously driving up inflation” in Antigua and Barbuda and internationally.

The assessment comes as Antigua and Barbuda prepares for the start of its main winter tourism season, with Browne expressing confidence about both air arrivals and cruise business.

His comments indicate that the government expects increased visitor traffic and additional airlift to support economic activity, but is watching the effect of higher prices on the country’s overall performance.

Browne said the fundamentals of the economy remained strong, describing the country’s most recent IMF assessment as positive.

“Our last IMF report was a very strong one,” he said. “The country continues to perform creditably. The fiscal fundamentals are sound.”

For the immediate tourism outlook, however, Browne’s message was one of strong demand tempered by concerns about inflation.

“We’re looking for yet another strong year,” he said. “Unfortunately, inflation is increasing, so that itself will be a drag on growth.”

This article was originally published by Antigua News Room. Read the original article here: Strong Tourism Bookings Point to Another Good Season but Inflation Could Hurt Growth – PM.