Some interesting thoughts on non-tourism services in Barbados from 1970 to 1996

Prior to 1970, earnings from exports of goods were the primary source of foreign receipts in Barbados. Since then, services have earned more foreign exchange than sales of goods which have been domestically produced. Travel has been undoubtedly the major category of these source items, accounting for approximately 65% of service inflows. As the Barbadian tourism product matures to a stage where rapid growth is limited, it will become necessary to maximize our foreign exchange potential from non-tourism services. In this regard, increasing contributions are already being made by the data processing, communications and financial services sectors, to name a few. However, the remaining categories of services can also impact considerably on Barbados’ foreign exchange earning capacity and therefore cannot be overlooked. This paper analyzes the role of non-tourism services in the Barbadian economy over the period 1970-1996. This study provides important insights not only of the origin and nature of non-tourism flows, but also an indication of their long-term growth trend.