Caribbean Examinations Council (CXC) Caribbean History Practice Exam 2025 – Complete All-in-One Guide for Exam Success!

Question: 1 / 400

In what way did tourism impact Caribbean economies in the 20th century?

It led to decreased foreign investment

It became vital for employment and foreign exchange

Tourism became vital for employment and foreign exchange in Caribbean economies during the 20th century. As the region's natural beauty, cultural heritage, and warm climate attracted millions of visitors, tourism emerged as a key driver of economic growth. The hospitality sector expanded to meet the needs of tourists, creating a wide range of jobs in areas such as hotels, restaurants, transportation, and entertainment. This surge in employment opportunities helped to reduce unemployment rates and improve the livelihoods of many families across the islands.

Additionally, tourism contributed significantly to foreign exchange earnings, which are crucial for importing goods and services in countries with limited natural resources. The inflow of foreign currency from tourists helped stabilize local economies and fund development projects, such as infrastructure improvements and community services. The economic impact of tourism therefore extended beyond direct employment, fostering broader economic development and investment in the Caribbean region. This multifaceted influence of tourism illustrates its central role in shaping the economic landscape of the Caribbean during the 20th century.

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It reduced local agricultural production

It resulted in the closure of many traditional industries

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