CAft urges Aruba to set tourism direction while fiscal room remains

The Board of Financial Supervision Aruba (CAft) has advised Aruba’s government to make a fundamental choice about the future of tourism and include it in the budget, multiannual investment agenda and tax regulations. CAft said tourism drives economic growth but also poses the greatest risk to sustainable public finances, and that the choice would affect all ministers.

CAft said Aruba’s economy is doing well, though growth is levelling off after years of tourism recovery. The public-sector debt ratio fell to 64% in 2025, according to CAft, while the operating result and the country’s result remained positive. It cited global economic uncertainty and an ageing population as risks to public finances.

Tourism activity has nearly doubled over 20 years, CAft said. It said further visitor growth is reaching limits, citing a structural labour shortage, utility capacity constraints, traffic congestion and pressure on housing. CAft said implementation, rather than a lack of plans, is the main obstacle.

CAft said Aruba could focus on visitor value and economic diversification rather than attracting more visitors. It cited Tourism 3.0 as a starting point for public debate, and said new tourism-policy institutions or funds financed through earmarked taxes could hinder policy or fragment government spending. Aruba has begun regulating short-stay lodging and is exploring, with the International Monetary Fund, replacing BBO with a value-added tax system.