Aruba, a small country in the South Caribbean Sea, has been regarded as a popular vacation spot where tourism continues to thrive. Accounting for 30 percent of the island’s income, the tourism industry has been on the rise since 1985. This has brought an increase in business to the hotel industry as well as construction and the food industry. Tourism has helped create a flourishing economy and contributed to the low poverty rate in Aruba.
These increases of industry have paved the way for an increase in jobs. This contributes to the low unemployment rate, 6.9 percent as of 2005. Aruba’s Gross Domestic Product (GDP) has been estimated at about $23,500 per capita in 2011, which is among the highest in Central and South America as well as the Caribbean.
The unemployment rate continues to be low due to an abundance of jobs and stable economy, yet jobs still go unfulfilled. With a focus on tourism, the majority of jobs are concentrated in the tourism industry, whether it be in the hotel industry or otherwise.
Although public debt was recorded as 67 percent of the GDP in 2013, the inflation rate in 2016 was negative at about minus 0.8 percent. Like any island nation, Aruba exports only a fraction of what it imports. Partially due to tourism, the island maintains a steady economy, where 1.79 Aruban Florin has consistently been equivalent to $1 U.S. since 2012. With more than one million visitors to the island per year, the majority of businesses in tourist areas operate on the U.S. dollar.
Aruba’s tourism industry has continued to thrive in recent years. Increases in the tourism industry have created low unemployment and have contributed to the low poverty rate in Aruba. The tourism industry is expected to continue to prosper in Aruba due to the stable economy and exchange rate. Continued low rates of poverty can also be expected for the near future of Aruba.
– Stefanie Podosek