Exogenous Shock to Aruban Economy The COVID-19 pandemic delivered a dramatic exogenous economic shock to Aruba. The initial GoA public health policy response to halt the contagion was timely and effective, closing the borders on March 17, 2020 and imposing a strict regimen of protective and quick-response measures to contain the spread. However, the sudden shock of borders closed to the arrival of tourists brought home the economic and food security vulnerability of the island because of its current degree of economic dependency on tourism.1 Indicative of the significance of the exogenous shock, results for Aruba obtained from the Caribbean COVID-19 Food Security & Livelihoods Impact survey conducted by the World Food Programme in July 2020 indicate that 80% of Aruban households experienced job loss or reduced salaries while 76% of respondents perceive that food prices have increased (Figure 1).
1 World Tourism and Travel Council’s 2020 report rated Aruba amongst the most dependent tourist island state economies, estimating its composite economic dependence on tourism at 73.6% of GDP and generating 84.3% of total employment. Executive Summary | 15
Draft 4: Prepared September 30, 2020
ANALYSIS AND STRATEGIC GUIDELINES
