Why is tourism doing poorly in Overseas France?

Overseas France, with its flattering economic indicators (per capita GDP, HDI, etc.), is undergoing uncompetitive growth, supported by transfer and tax exemption policies. In this context, tourism has fallen victim to Dutch disease, which is hindering its development. The diversity of statuses and varied degrees of autonomy only play a small role in distinguishing France’s overseas territories according to the degree to which tourism has developed there. Rather, it is distance from Metropolitan (mainland) France and, correlatively, the share of tourists from Metropolitan France in overall tourist flows that make up the most distinguishing factor. Only three islands (Bora Bora, Saint Martin and Saint Barthelemy) follow the SITE model, whereas many archipelagos are good examples of the MIRAB model.

► This paper deals with the specificity of tourism in French Overseas territories. ► We establish that it has fallen victim to Dutch disease hindering its development. ► We notice more differences than similarities with other Overseas entities. ► Scale change allows a better understanding of the MIRAB and SITEs models.