KPMG's 2017 Caribbean Hospitality Financing Survey highlights financing trends in the region's hospitality and tourism industry and the outlook for the future of the industry.
As we have mentioned previously the expansion of our survey beyond just banks to also include non-bank capital providers such as equity and mezzanine investors has been a welcome addition to our survey. Typically non-banks have provided a significantly more confident outlook about the prospects for Caribbean tourism than banks, but this year we have noticed a much closer alignment of positions. Confidence levels of banks have increased for a very impressive eighth year in a row but confidence levels of non-banks have declined slightly for the second year in succession. Overall, non-banks remain slightly more confident than banks registering 7.00 out of 10, in terms of their level of confidence versus 6.83 out of 10 for banks, but this marginal difference of 1.67 back in 2015 when non-banks registered a confidence level of 8.17 versus 6.50 for banks.
The steady increase in confidence of the banks appears to reflect their relative success at working their way out of an extremely difficult period for them following the 2007 recession. Initially, they embarked on a very cautious path financing renovations and expansions primarily for existing, established clients. Now they appear to be taking a slightly less cautious path with acquisitions now being given favorable consideration and even some new builds.
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