Belize is taking steps to address infrastructure challenges that have limited the growth of its tourism sector, a key part of the country’s economy. Tourism accounts for about 12 percent of Belize’s gross domestic product, but bottlenecks in transportation and accommodation have restricted further expansion.
In 2024, Belize saw an 18 percent increase in “stayover” tourists compared to the previous year, with more than half a million visitors staying in hotels. Most arrived through the only international airport in Belize City, which has hotel capacity for just one-fifth of these travelers. While there is enough room capacity nationwide, much of it is not located near popular tourist sites, requiring long drives or boat rides that add to logistical difficulties.
Flights into Belize are also nearing their limits compared to other countries in the region. This raises concerns that future increases in visitor numbers could be constrained by airport terminal capacity and airlines’ ability to add flights quickly.
To address these issues, Belize is investing in new infrastructure projects. The government has eliminated border fees for short-stay Mexican visitors and plans are underway for a new airport on San Pedro island as well as a potential international airport in Placencia. Other initiatives include modernizing the Port of Belize and participating in the Tren Maya project—a rail link connecting Mexico and Guatemala through Belize—which aims to improve regional mobility and boost tourism capacity.
Belizean banks have sufficient liquidity and capital to support economic expansion. However, many businesses still face difficulties accessing financing. In response, authorities have introduced measures to encourage formalization among firms and broaden the types of assets accepted as loan guarantees.
The country also faces challenges related to labor force participation. Since before the pandemic, overall participation has dropped from 65 percent to 57 percent by 2024. The decline is particularly pronounced among women; only about half of working-age women are employed or seeking work compared with three-quarters of men—a gap among the highest in the Caribbean.
According to IMF economists Ziad Amer, Bunyada Laoprapassorn, and Shane Lowe: "Our estimates suggest that fully closing this gap could boost GDP by over 20 percent in the long run. But achieving that will require additional actions from the government, including raising educational levels and reducing salary disparities and higher unemployment among women."
They added: "Improving access to affordable, high-quality childcare would reduce the economic and logistical barriers, enabling more women to join and remain in the workforce."
The government is expanding access to childcare services and training programs while promoting entrepreneurship and job placement initiatives aimed at increasing female participation in employment sectors—measures seen as essential for strengthening Belize’s economic prospects.
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