How Tourism Could Alleviate Poverty in Saint Pierre and Miquelon

Off the coast of Newfoundland in North America lie the islands of Saint Pierre and Miquelon, a French territory with a rich history and a poor economy. The island is home to around 5,000 people, of which 78% are of working age.

Poverty in Saint Pierre and Miquelon

Poverty in Saint Pierre and Miquelon has increased due to the islands’ reliance on a fishing industry affected by overfishing and changing global climatic conditions. The fishing economy downturn, which has caused the present state of poverty in Saint Pierre and Miquelon, threatens to prevent the expansion of clean water infrastructure and, by extension, sanitation.

Once bustling epicenters notorious for their pivotal role in illegal alcohol importation into the United States (U.S.) during prohibition, these islands are now faced with a severe lack of economic stimulus, causing a certain level of stagnation in the territory.

Poverty in Saint Pierre and Miquelon can largely be attributed to its suffering fishing industry, which is under pressure from competing for Canadian commercial fishing, changing climatic conditions and general overfishing. Fishing, on both the commercial and local scale, provides the livelihoods of 41% of the territory’s population. This means that any fluctuation in fishing profits directly influences the standard of living for almost half the territory’s population.

Economic Struggles

Although the islands of Saint Pierre and Miquelon are a territory of France, a country with one of the highest nominal gross domestic products (GDPs) in Europe, the islands are far away from entertaining the standard of living enjoyed by the landlocked French. France is responsible for much of the existing infrastructure and development on Saint Pierre and Miquelon. However, France lacks the fiscal budget or political interest to fully incorporate the islands, forcing it to find new ways to expand its economy to accommodate its growing population and standard of living.

The Impact of Tourism

Tourism is one sector Saint Pierre and Miquelon could potentially utilize as a respite from the fishing industry’s contracting revenues. With the territory’s intriguing smuggling history and its arguable position as the last true French outpost in North America, the potential for a thriving tourism economy is present.

Tourism can alleviate poverty in Saint Pierre and Miquelon by creating new jobs and opportunities for its working population, resulting in the country’s overall economic growth. Tourism can also lead to the development and establishment of new infrastructures, including health care centers and schools, which could ultimately benefit the nation’s population.

Final Remark

According to the World Bank, the tourism industry can assist developing nations like Saint Pierre and Miquelon in diversifying their economies and markets, creating new opportunities for their citizens. Therefore, by developing its tourism sector, the government of Saint Pierre and Miquelon can create new opportunities for its population, ultimately lifting them out of poverty.

Spencer Linford

Photo: Flickr
Updated: June 01, 2024