The Economic Opportunities of Retirement Migration in Central America and the Caribbean

Abstract

This research empirically examines whether tourism industry efforts, as well as that industry’s performance determinants, overlap with the determinants that promote retirees’ flow from more economically developed countries (MEDC) to Caribbean and Central American (CC) destinations. Additionally, this study explores the effects of CC governments’ retirement incentive programs (a supply-side factor) in attracting MEDCretirees. While the Caribbean countries have traditionally taken the lead in the tourism industry, Central American countries now are taking the lead with constructing attractive retirement packages.

The multiple regression results provide strong empirical evidence that government retirement incentive programs (GRIPs) hold significance in predicting MEDC- migrant stock at CC destinations and the attached capital flows (savings and social security retirement wealth). This study also provides evidence that international tourists flow with MEDC-migrant stock of retirees to the CC region.