How Carnival Contributes to Trinidad & Tobago's Economy

The Republic of Trinidad and Tobago’s Carnival is both a vibrant, cultural spectacle and a

formidable economic engine which drives growth across multiple sectors. Annually, this festival catalyses tourism, stimulates creative industries, and creates employment opportunities. This makes it a cornerstone of the country’s non-energy economy.

Tourism and Foreign Exchange Earnings

Carnival provides an increase in tourist arrivals and visitor spending as one of its major economic

benefits. For the 2024 Carnival period, the Ministry of Tourism, Culture and the Arts reported that

non-national air arrivals numbered about 29,651, and total visitor spending was estimated at US $94.2 million (TT $640 million) for the period.

This influx of non-residents leads to an increase in hotels, guesthouses, and short-stay accommodations reservations, as well as support industries such as food & beverage, ground transportation, tours and retail all benefit. Beyond direct spending, foreign currency earned enhances the country’s external balance and supports its broader tourism brand.

Multiplier Effects and Creative Industries

Carnival also triggers wider ripple effects throughout the economy. According to reports, the TT

$640 million injection into the economy for Carnival 2024, “expectedly created a ripple effect that

stimulated economic activity in many other sectors.” The creative economy is also boosted: costume designers, masquerade bands, musicians, sound and lighting technicians, artisans, and small-business vendors all find opportunities during Carnival.

A detailed study noted that the entertainment share of visitor expenditures can account for about

one-third of total Carnival visitor spend. This means that local talent and MSMEs (micro, small and

medium enterprises) engaging in Carnival-related production gain business and visibility.

Employment and Business Stimulation

Though employment may be seasonal, it is still significant as there is a range from construction of

band camps, manufacturing of costumes, event production, security, hospitality and transport services. Between large masquerade bands and ancillary businesses, many individuals engage in short-term contracts while some businesses scale up for the season.

Local vendors such as street-food providers, craft sellers and taxi operators also benefit from

elevated demand. In Tobago, for example, the October Carnival was credited with generating “tens of millions of dollars in visitor spend, bringing real returns to our hotels, guesthouses, restaurants, taxi drivers, artisans, designers,, and the many small businesses that fuel Tobago’s economy.”

Branding and Long-term Tourism Growth

Carnival’s global cultural appeal functions as a marketing platform for the country, attracting

diaspora travellers, repeat visitors and cultural tourists. The festival draws coverage, word-of-mouth, and social media exposure that positions T&T as a must-visit destination for experience-driven talent.

This helps to diversify the tourism market and soften reliance on traditional beach offerings,

supporting the positioning of T&T in the international events and cultural tourism space.

Challenges and Caveats

Despite the major upsides, the economic case has nuance. Some studies highlight that while

revenue inflows are large, much of the benefit may accrue to larger operators rather than marginalised creators. Moreover, because so many imports go into costumes, feathers, fabrics, electronics and sound systems, retention of value locally may be less than gross figures suggest. Ensuring that more of the value-chain remains local is a policy challenge.

T&T Carnival is far more than a cultural festival; it is an economic powerhouse. By driving

inbound tourism, triggering creative industry growth, generating employment and enhancing the country’s brand, it supports diversified economic growth. To maximise its impact, policymakers must work to broaden access to opportunities across the full value-chain and sustain investment in the creative and tourism-services sector. When it is done considerately, Carnival can continue to underpin Trinidad and Tobago’s economic resilience well beyond the seasonal celebration.