Monthly Archives: August 2017

Royal Caribbean Cruises Ltd. (NYSE:RCL)

Q2 2017 Earnings Call

August 01, 2017 10:00 am ET

Executives

Jason T. Liberty - Royal Caribbean Cruises Ltd.

Richard D. Fain - Royal Caribbean Cruises Ltd.

Michael Bayley - Royal Caribbean International

Adam M. Goldstein - Royal Caribbean Cruises Ltd.

Analysts

Harry Curtis - Nomura Instinet

David James Beckel - Sanford C. Bernstein & Co. LLC

Felicia Hendrix - Barclays Capital, Inc.

Robin M. Farley - UBS Securities LLC

Steven Wieczynski - Stifel, Nicolaus & Co., Inc.

Timothy A. Conder - Wells Fargo Securities LLC

Jared Shojaian - Wolfe Research LLC

Stuart J. Gordon - Joh. Berenberg, Gossler & Co. KG (United Kingdom)

James Hardiman - Wedbush Securities, Inc.

Stephen Grambling - Goldman Sachs & Co. LLC

Assia Georgieva - Infinity Research Ltd.

Dan J. McKenzie - The Buckingham Research Group, Inc.

Vince Ciepiel - Cleveland Research Co. LLC

Operator

Good morning. My name Dorothy and I will be your conference operator today. At this time, I would like to welcome everyone to the Royal Caribbean Cruises Limited Second Quarter 2017 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

Thank you. I would now like to turn the call over to Jason Liberty, Chief Financial Officer. Sir, you may begin.

Jason T. Liberty - Royal Caribbean Cruises Ltd.

Thank you, Operator. Good morning and thank you for joining us today for our second quarter earnings call. Joining me here in Miami are Richard Fain, our Chairman and Chief Executive Officer; Adam Goldstein, our President and Chief Operating Officer; Michael Bayley, President and CEO of Royal Caribbean International; and Carola Mengolini, our new Vice President of Investor Relations.

During this call, we will be referring to a few slides, which have been posted on our investor website, http://www.RCLinvestor.com. Before we get started, I would like to refer you to our notice about forward-looking statements, which is on our first slide.

During this call, we will be making comments that are forward-looking. These statements do not guarantee future performance and do involve risks and uncertainties. Examples are described in our SEC filing and other disclosures. Please note that we do not undertake to update the information in our filing as circumstances change. Also, we will be discussing certain non-GAAP financial measures, which are adjusted as defined, and a reconciliation of all non-GAAP historical items can be found on our website. Unless we state otherwise, all metrics are on a constant-currency adjusted basis.

Richard will begin by providing a strategic overview of the business. I will follow with a recap of our second quarter results, provide an update on the booking environment and then provide an update on our full-year and third quarter guidance for 2017. We will then open up the call up for your questions.

Richard?

Richard D. Fain - Royal Caribbean Cruises Ltd.

Thank you, Jason, and good morning, everyone. I'm really very pleased to be able to speak with you all this morning and to give you some color on where we are. At the beginning of the year, I commented that we sensed an intangible tone in the market that was as good as or better than any time I could recall. This tone was hard to pinpoint or to define, but it gave us a very tangible sense that 2017 could be a particularly positive year. Since then, the outlook has only gotten better.

Our earnings forecast now exceed even the high end of our original range of expectations. In a normal year, we have a lot of pluses and minuses and they usually balance each other out. But this year, we are experiencing many more positive forces than negative ones. Part of this appears to be industry-wide. People have bought all the stuff that they need, and they're now looking towards gaining more experiences.

Instead of buying TVs and cars, they seem to be buying memories as never before. Since we're in an industry that specializes in providing great memories that trend plays to our sweet spot. Even better, the trend shows no respect for borders and seems to be occurring all around the world. Our sailings in the U.S., Europe, Alaska, Baltic, Asia, all demonstrate this marvelous phenomenon.

Now, looking to next year, we're conscious of the fact that a particularly strong 2017 also provides particularly difficult comparables for 2018. This is definitely a very nice problem to have, but it is nevertheless a very real issue. On top of this marvelous industry-wide growth in demand, we're also seeing powerful drivers coming from the unique positioning of our special brands.

All of our brands are performing at a level we've simply never seen. Our guest satisfaction ratings are at the highest point in our history, and they keep rising. Our onboard revenue figures are doing well, both in terms of sales and satisfaction.

Some of this is driven by our wonderful new ships, such as Harmony of the Seas, Mein Schiff 6, Symphony of the Seas or Celebrity Edge, but much of it also comes from greater engagement by our officers and our crew.

This is very much of a people business, and it is all about the people. In addition, there are a few specific programs at Royal Caribbean that have proven very attractive in driving change. The first, of course, is our DOUBLE-DOUBLE. This program has been extremely successful in galvanizing our entire workforce to a common set of goals. You all heard me say before that if we give our people focus and a clear vision, nothing stops them from achieving extraordinary results.

The success of the DOUBLE-DOUBLE provides very tangible proof of that fact. For that, I extend to all of them my sincerest thanks. Remember, however, that the DOUBLE-DOUBLE was never just about 2017. It's always been about positioning Royal Caribbean to the future.

I believe that's the real success of the DOUBLE-DOUBLE, not just the 2017 results. As we approach the end of DOUBLE-DOUBLE, we are putting thought into providing direction again for a multi-year period.

As you know, our mantra is continuous improvement, so I wouldn't expect our next announcement to be simply a clone of the DOUBLE-DOUBLE. First of all, that would be boring. But also we need to focus on the drivers of success. So I would expect that that's the kind of picture that we would be painting.

I know that the some of you have suggestions for the structure of this program, and you are absolutely free to share them with us. Be aware that any good idea you come up with will be shamelessly stolen without any credit to the author.

Now, as part of the DOUBLE-DOUBLE, we've adopted a number of specific initiatives that support our overall objectives. One of these is our price integrity program, which some of you have asked about.

Fortunately, we've only good news on that front. As we had predicted, the early stages of the program cost us revenue in both 2015 and 2016. That hurt, but once we established our consistency and credibility with the travel agents, with the public and with our own revenue managers, the benefits started flowing in.

Today, it's clear that the program is accomplishing our goal of rewarding those who book early, while disincentivizing those who push for last-minute discounts. The key to this success has been consistency.

We don't do it only when it's painless or convenient. We maintain the program even when it hurts, and sometimes we have to let cabins sail empty. That goes against every one of our instincts, but the focus and the discipline have proven their value.

Ironically, the program has been so successful that we're now expecting to achieve a record load factor this year. That, in turn, causes slightly higher operating costs per lower berth, but obviously the bottom line impact is very positive.

Now, since we last spoke, there have been several other developments, which I'd like to touch on today. First, we announced the deployment of the first Quantum Ultra sailing in China in 2019. With the Quantum class of ships, we're giving the most technologically-advanced hardware to a market that is very digitally focused. This move is a continuation of our strategy to have premium hardware in China. And that strategy is what has enabled us to gain and to hold a leadership position in the eyes of the Chinese consumers, such that today, Quantum is essentially synonymous with cruising in China.

It's hard to believe, but we've now been operating there for almost 10 years. There's been a tremendous growth during this period of time, and we're finding that China is starting to behave more like a typical market. Most markets have ups and downs, and we've seen both in China.

Most recently, the restrictions on travel to Korea have been painful. Nevertheless, throughout these variations, our outlook for the future in China has not changed. Our team on the ground is motivated, focused and making strides in driving the evolution of cruise distribution and destinations.

Speaking of evolution, one of the most important and most quickly changing is the use of digital tools for marketing, for product development and for delivering and enhancing the consumer experience. We are proud to have focused on this for several years, and that gives us a leg-up on expanding our capabilities. We're currently working on what some might call version 2.0 of our capabilities, but, as I previously reported, we've dubbed it Project Excalibur. One advantage with Excalibur is that we already have years of experience in the area that allows us to build on.

In addition, because we spent so much effort during these developmental years, we have an infrastructure in place today that allows us to scale our innovations quickly. For example, we expect to have Excalibur functioning on 15% of our fleet within five months of today, and over half of our fleet by the end of next year.

I said before that our efforts in this arena are not nice to have. They are vital to keeping cruises relevant as a great vacation experience. We are also aware that several of our competitors have announced plans to expand their digital capabilities as well. We welcome those plans, too, because it will make cruising even more powerful as a relevant vacation option.

Another aspect of the business that's sometimes underappreciated is the work to ensure the ocean and the communities surrounding it are healthy and protected. We're very proud that the World Wildlife Fund is our long-term partner in this journey, and they are the gold standard in environmental stewardship. With their help, we have established specific and measurable targets related to greenhouse gas emissions, sustainable food supply and destination stewardship. We remain committed to this effort. And we look forward to following a path to achieve our long-term targets in this endeavor as well as on the financial front.

As you can see, we've got lots of reasons to feel optimistic about the future. Demand is good. We're attracting new guests. We're developing young markets. Our employees are happy. All of this positions us beautifully for long-term success.

With that, it's a pleasure to hand the call back over to Jason. Jason?

Jason T. Liberty - Royal Caribbean Cruises Ltd.

Thank you, Richard. I will begin by talking about our results for the second quarter. Second quarter results are summarized on slide 2. For the quarter, we generated adjusted earnings of $1.71, which is 57% higher than same time last year.

These results are better than guidance due to strong close-in demand, better fuel trends and a better-than-expected performance from our equity investments. Net revenue yields are up 11.5%, which is better than previous guidance.

Strong demand for North American products allowed for better close-in pricing trends and record high load factors. Strong trend in beverage, shore excursion and high-speed WiFi all contributed to an 8.3% year-over-year increase in onboard revenue.

Net cruise costs excluding fuel were down 0.9% for the quarter. Costs in the second quarter came in slightly higher than our guidance, driven by higher load factors, timing and additional investments in revenue-generating activities.

Moving on to the booking environment, over the past three months, new bookings have been up double digits compared to last year and at higher prices. Booking volumes have been up more for sailings that are further out, due to the ongoing extension of the booking window.

As a result, both load factor and APD are higher than same time last year for 2017 and in each of the next four quarters. We are enjoying the benefits from our global sourcing model, revenue management strategies and the price integrity program.

When we first announced the price integrity program in 2015, we knew that it would have a negative impact on our load factors in the short-term, but that it would contribute to long-term yield growth.

Now, two years after its inception, we are experiencing the benefits of the program through an extended booking window, strong close-in pricing, higher overall APDs and record load factors.

North America remains our largest sourcing market and the strength in demand we have seen from U.S. and Canadian guests have been unwavering for sailings on both sides of the Atlantic.

Now, I'll provide an update on each of our key product groups, starting with Europe. While most itineraries have benefited from strength from the North American consumer, we have seen particularly strong trends on European sailings, both in the Mediterranean and in the Baltics.

Fewer geopolitical events and stable air pricing have contributed to a surge in demand from our higher-paying North American guests. As a result, North American guests will account for a larger percentage of Europe itinerary sourcing than in any other recent year.

This sourcing shift, which is made possible due to our significant global footprint and yield management capabilities, has contributed to higher ticket prices and higher onboard spend.

Our booked APDs for Europe sailings are significantly higher than same time last year and load factor is up nicely. North American itineraries account for about 58% of our 2017 capacity and have been trending well.

The Caribbean, our largest product group at close to half of our capacity, has continued to please and remains up year-over-year in both rate and load factor.

On our last earnings call, we noted that Alaska was outperforming last year's record season. That trend continued throughout the last three months, and we continue to expect record yields for the product.

In the Asia-Pacific arena, we increased capacity by 5% year-over-year, with a combination of China, Australia and Southeast Asia itineraries now accounting for 21% of our 2017 capacity. We achieved record load factors in the second quarter for our China itineraries and expect to meet or exceed prior year occupancies in both Q3 and Q4.

Unfortunately, the South Korea travel restrictions created a challenge for this year's China season, resulting in less-than-ideal itineraries and lower pricing. Our strong relationship with key travel partners, combined with expanding direct business, contributed to a relatively quick stabilization in demand after the travel restrictions were announced.

Lastly, the upcoming Australia season, which accounts for more than 10% of winter capacity, is in a strong book position, despite industry capacity growth. While it's too early in the booking window to provide a lot of color on our overall 2018 expected performance, what I am willing to say is that we are currently booked ahead of same time last year in both APD and load factor for 2018.

Now, we can turn to our updated guidance for full year 2017, which is on slide 3. We are now 95% booked for the year, and we now expect our net revenue yields to increase in the range of 5.5% to 6%. This is an increase versus prior guidance, driven mainly by the out-performance in the second quarter and further strength in demand from our North American sourced passengers.

Net cruise costs excluding fuel are expected to be up approximately 1%. The increase in the cost guidance is driven by higher-than-anticipated load factors, timing and investment in revenue-generating activities. We anticipate fuel expense of $706 million, which is down slightly relative to prior guidance.

We are 64% hedged for the remainder of the year at a price of $487 per metric ton. Based on current fuel prices, interest rates and currency exchange rates, our adjusted earnings per share guidance is in the range of $7.35 to $7.45 for the year.

In summary, a strong second quarter, coupled with the benefits of a weaker dollar, better fuel prices, better demand trends, some additional investment in revenue-generating activities and better-than-expected performance from our joint ventures, are driving the improvement in our guidance for the year.

Before getting into the third quarter guidance, I wanted to reiterate a point that we have emphasized on the past couple of earnings calls. Our yield improvement in the first half of the year was greater than the yield improvement we expect in the back half of the year, as we have already lapped the new entry benefits of Harmony of the Seas and Ovation of the Seas, as well as the impact from the 51% sale of Pullmantur. Additionally, Q3 yields are benefiting from very strong demand trends for Europe. Since Europe makes up about a third of our capacity in Q3 and approximately 10% in Q4, we expect Q4 yield growth to be lower than Q3.

Now, we can turn to our guidance for the third quarter, which is on slide 4. We anticipate a net yield increase of 4% to 4.5%. The year-over-year improvement is mainly being driven by strong North American demand trends for our core products on both sides of the Atlantic.

Net cruise costs excluding fuel are expected to be up approximately 4% on a constant-currency basis. The year-over-year increase in our cost metric is mostly due to a year-over-year capacity reduction for the quarter. Taking all of this into account, we expect adjusted earnings per share to be approximately $3.45.

Before we open up the call for a question-and-answer session, I wanted to note that our next earnings call is tentatively scheduled for November 7.

And with that, I would like to ask our operator to open up the call for a question-and-answer session.

Question-and-Answer Session

Operator

[Operating Instructions] Your first question comes from the line of Harry Curtis with Nomura Instinet.

Harry Curtis - Nomura Instinet

Hey, good morning, everyone. Two quick questions, we've gotten several questions on the sources of the $0.30 increase for the year. And when you back out roughly $0.08 for the beat, that leaves $0.22. Of that, is it fair to say that half of that is currency, but the balance of that is just stronger operating performance?

Jason T. Liberty - Royal Caribbean Cruises Ltd.

Yeah. That's exactly right, Harry. About half of the beat is driven by the weakening of the dollar and the balance of that is driven by improvement in business trends.

Harry Curtis - Nomura Instinet

Okay. And then my second question is given the strength of these trends and this is the year that you should be generating a significant amount of cash, any explanation as to your hesitancy to buy back stock in the quarter?

Jason T. Liberty - Royal Caribbean Cruises Ltd.

Well, I wouldn't necessarily say it's hesitancy. I would point out that, one, we've said from the start of the program that we were going to be doing it opportunistically. And we also said we were going to be doing it in line with free cash flow. And most of the free cash flow gets generated really on the back half of the year.

Harry Curtis - Nomura Instinet

Okay. So the message is stay tuned.

Jason T. Liberty - Royal Caribbean Cruises Ltd.

Stay tuned.

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Royal Caribbean Cruises (RCL) Q2 2017 Results - Earnings Call Transcript - Seeking Alpha

30 July 2017: Over the month of July, the Caribbean Development Bank (CDB) approved a number of grants that will support climate and disaster risk resilience in Caribbean countries. The Adaptation Fund, which is celebrating its 10-year operational anniversary in 2017, approved US$20 million in new project funding. Countries in Africa and Latin America will receive support for projects that build on the synergies of sustainable agriculture and climate action.

CDB and EU Support Resilience in the Caribbean

In July, the CDB approved a series of grants that support climate and disaster risk resilience in Caribbean Forum countries and are funded through the African Caribbean Pacific-EU-CDB Natural Disaster Risk Management (ACP-EU-CDB NDRM) programme.

In Jamaica, a 219,000 grant will enable the upgrading of a damaged flood early warning system at a major river. The country will also receive a 332,000 grant for strengthening disaster risk management capacities at a vulnerable municipality through enhanced planning, policy integration, geographical information systems (GIS) and community resilience. [CDB Press Release on Jamaica Flood System] [CDB Press Release on Jamaica DRM Capacity]

Two regional-level capacity-building projects were also approved. The Caribbean Institute for Meteorology and Hydrology will receive 773,000 for strengthening national and regional institutional capacity for weather and climate forecasting and for developing climate early warning systems for the health sector, aimed at predicting mosquito-borne disease outbreaks. Another grant (amount undisclosed) will assist the Caribbean Disaster Emergency Management Agency in its work on strengthening emergency response procedures in participating States through planning, development of guidelines and a workshop. [CDB Press Release on Climate Forecasting] [CDB Press Release on Emergency Response Procedures]

Tajikistan, in Central Asia, will also receive support for disaster risk preparedness and climate resilience. Between 1992 and 2016, the country is estimated to have suffered US$41.8 billion in economic losses from natural disasters, including floods, earthquakes and landslides. Funded by the World Bank and implemented with the UN Development Programme (UNDP), funding totaling US$50 million will support proactive approaches by crisis management centers and entities responsible for disaster risk identification. [World Bank Press Release]

Adaptation Fund Turns 10, Approves US$20 Million in New Funding

Also in July, the Adaptation Fund Board approved funding, totaling US$20.4 million, for one country-level and two regional projects. A US$14 million capacity-building project on the Colombian-Ecuadorian border, implemented by the World Food Programme (WFP), will aim to improve food security and autonomy among local populations through reviving traditional and local knowledge with various co-benefits, including climate change resilience. In East Africa, a US$5 million capacity-building project will support the integration of climate resilience measures into transboundary water catchment management. Also, a US$1.3 million project in Senegal will support infrastructure resilience through improving the resilience of mangroves in a number of coastal communities. [Adaptation Fund Press Release]

Marking its 10-year operational anniversary, the Adaptation Fund is publishing a series of articles and short stories.

Marking its 10-year operational anniversary, the Adaptation Fund is publishing a series of articles and short stories that highlight its partnerships and project successes, including the Funds work on resilience-building with the UNDP and support to a community lending model in Antigua and Barbuda. The Fund also released two short documentaries that demonstrate how its projects are delivering results in Guatemala by promoting the reintroduction of cocoa production and by supporting community-level adaptive capacities. [Adaptation Fund 10 Years Pages] [Adaptation Fund Video on Cocoa] [Adaptation Fund Video on Resilience Project]

Agriculture and Food Security Efforts in Latin America and Africa Funded

New CDB funding also included a US$295,000 technical assistance grant for Guyana to develop a framework to guide nationwide agricultural adaptation measures. A large share of the countrys population is employed by agriculture, which is threatened by rising sea levels and increasing rainfall and temperatures. The project will identify vulnerable areas and promote the adoption of climate-smart agricultural practices. [CDB Press Release]

In Zambia, funding was announced for two projects that support food security and climate action. The World Bank announced US$17 million to the Zambia Integrated Forest Landscape project, which will promote climate-smart agriculture and sustainable landscape management practices in the countrys Eastern Province. The project will also aim to generate funds of up to US$30 million through the World Banks BioCarbon Fund from resulting emissions reductions. The International Fund for Agricultural Development (IFAD) will provide a US$21.2 million loan and US$1 million grant for the Enhanced Smallholder Agribusiness Promotion Programme (E-SAPP), which is also receiving US$3.4 million in co-financing from the private sector. The project will facilitate a transition from subsistence to business-oriented farming and includes interventions to support the integration of climate risk into relevant policies. [World Bank Press Release] [IFAD Press Release]

The Global Environment Facility (GEF)-financed Integrated Approach Programme on Fostering Sustainability and Resilience for Food Security in sub-Saharan Africa was launched in Addis Ababa, Ethiopia. Running for five years, the US$116 million programme, which is supported by several multilateral development agencies and banks, will promote sustainable natural resources management, smallholder farmers resilience and food security in countries that are facing simultaneous challenges from land degradation, biodiversity loss and climate change. [GEF Press Release]

In Kenya, which has been facing severe drought and famine for several months, the African Development Bank (AfDB) announced US$1 million emergency humanitarian assistance for delivery of food aid and water purification supplies. Non-governmental organizations (NGOs) have previously drawn attention to the role of climate change in exacerbating the drought and humanitarian crises in East African countries, including Kenya. [AfDB Press Release] [Oxfam Briefing on Climate Crisis]

Work on On-the-ground Gender Mainstreaming Advances

A workshop by the CDB-managed, multi-donor Community Disaster Risk Reduction Fund, held in Belize, sought to enable local stakeholders to understand how gender considerations can be integrated into a local adaptive capacity-building project. Interventions highlighted included gender-sensitive infrastructure design, and public awareness and training. [CDB Press Release]

The Nordic Development Fund (NDF) highlighted lessons from a regional project in Asia aimed at harnessing climate change mitigation initiatives to benefit women, which has engaged in policy development, institutional support and gender-inclusive pilot interventions. The regional project has provided lessons for another NDF-funded gender mainstreaming project in Cambodia, which has already resulted in the inclusion of climate change mitigation consideration into two ministries gender mainstreaming policies. [NDF Press Release]

* * *

The SDG Knowledge Hub publishes monthly climate finance updates, which largely focus on multilateral financing and cover, inter alia, mitigation and adaptation project financing news and lessons, institutional events and news, and latest developments in carbon markets and pricing. Past IISD climate finance updates can be found under the tags: Finance Update: Climate Change; and Finance Update: Sustainable Energy.

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Climate Adaptation Finance Update: Caribbean Resilience Receives Boost - IISD Reporting Services

Fears of a dictatorship forming in Venezuela seemed borne out early Tuesday when the government hauled opposition leaders to jail. But this is shaping up to be a bad week for democracy and free enterprise across the Caribbean.

Venezuelas socialist president, Nicols Maduro, had promised to jail many of his opponents once a new constituent assembly was elected on Sunday. That body will now rewrite Venezuelas constitution to give Maduro sweeping new executive powers that critics call a dictatorship.

True to his word, Maduro had police round up Venezuelan opposition leaders Leopoldo Lpez and Antonio Ledezma. Both were reportedly sent to prison in Caracas.

It was a chilling reminder of what most of the international community expects to come in Venezuela: a one-party, Cuba-style regime. And as if to remind the world what that means, Cuban leader Ral Castro weighed in hours later with an authoritarian crackdown in his own country.

Cubas communist government announced its suspending new licenses for many businesses in the islands fledgling private sector. Analysts say thats largely because the regime fears free enterprise has gotten too big and independent in Cuba and therefore a political threat.

Castro officials had already begun closing down some businesses in recent weeks for supposedly violating government regulations - or, as many Cuba watchers suggested, for being too successful.

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Caribbean Crackdowns: A Really Bad Week For Democracy, Free Enterprise - WLRN

NEW YORK Stocks that moved substantially or traded heavily Tuesday:

Royal Caribbean Cruises Ltd., up $3.80 to $116.87

The cruise line operator raised its estimates for the year after a strong second quarter.

Scana Corp., up $3.19 to $67.56

The utility company said it plans to end construction of two costly nuclear reactors in South Carolina.

Under Armour Inc., down $1.72 to $18.30

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The athletic apparel maker lowered its revenue forecast and will cut spending as its North American business struggles.

Xerox Inc., up $1.79 to $32.46

The business services company surpassed analyst expectations in the second quarter.

Cummins Inc., down $10.42 to $157.48

The engine maker reported a weaker-than-expected profit due to higher warranty costs even though sales were strong.

Goldman Sachs Group Inc., up $1.67 to $227

Banks and financial companies did better than the rest of the market on Tuesday.

Pitney Bowes Inc., down $2.43 to $13.31

The mailing equipment and software company posted weak earnings and expects a smaller annual profit.

Sprint Corp., up 89 cents to $8.87

The wireless carrier reported its first quarterly profit in three years as it cut costs and added more subscribers.

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Royal Caribbean and Scana rise as Under Armour stumbles - Fox Business

Though the Caribbean is typically visited for its white-sand beaches and crystal clear waters, its increasingly becoming a destination for food lovers.

Looking to plan a food-fueled Caribbean vacation but dont know where to start? These seven Caribbean islands tend to offer the best of the best for gourmands who want to try delicious local fare without missing a second of the breathtaking scenery.

While traveling to 25 countries (and counting), Lindsay writes about her passion for food, travel and culture. You can follow her adventures on Instagram at @lindsaypaigestein and @nomnomblog.

Discover the Islands

For mouthwatering jerk chicken, bammy (cassava) pancakes and callaloo stew, head to Jamaica, where a flavorful, richly spiced cuisine offers tinges of African, Indian, British, French, Spanish and Chinese influences. Scotchies, a must-try joint in Montego Bay, serves up the best jerk chicken and pork on the island. First-time visitors should also get their hands on Tastee Patties, miniature flaky patties (filled with ground beef, vegetables, chicken or cheese) sold at stores throughout Jamaica.

Photo: lucky-photographer/Getty Images

In the Cayman Islands, travelers should try heavy cakes made from coconut, cassava, sugar and spices; local Caybrew beer; conch stew; and the coconut snapper at Heritage Kitchen, a must-try. The new Kimpton Seafire Resort + Spa offers culinary experiences like food-and-wine pairings with a private chef and cooking classes for kids.

Photo: rmanera/Getty Images

Trinidad and Tobago's rich and diverse culinary heritage includes distinctive Creole traditions and cuisines, and is known for both its street food and its upscale dining. On this twin-island nation, curried crab and dumplings reign supreme, as do stewed chicken, pelau (seasoned rice and broth), macaroni pie and oxtail.

Photo: kbycphotography/Getty Images

Be sure to try Puerto Rican asopao, a hearty gumbo made with either chicken or shellfish, and don't miss out on aromatic Puerto Rican coffee, which is produced right on the island. Additionally, a vibrant tourism scene has produced quality restaurants like Pikayo, serving fusion fare, and Oceano, a beachfront spot with upscale Caribbean classics.

Photo: dennisvdw/Getty Images

Head to St. Barts for an updated take on traditional French cuisine and seafood like mahi mahi, red tuna and red snapper. The island's annual St. Barth Gourmet Festival, which takes place in the fall, is a gastronomic blowout that brings together chefs from all over the world; guests can sample tasting menus, watch mixologist competitions, sign up for gourmet dinners and more.

Photo: Reed Kaestner/Getty Images

Don't leave Barbados without trying breadfruit, a starchy superfood and staple of the Barbadian diet. Lush breadfruit grow on trees throughout the Caribbean; they can be roasted, fried, baked or boiled, and they're usually served alongside meat dishes.

Photo: master1305/Getty Images

Be sure to try Anguillas crayfish, which can be found at beachside BBQ shacks and restaurants across the tiny island. Other delectable Anguillan dishes include island snapper with peas and rice, West Indian-style curried goat and grilled lobster. The island is also known for its food trucks; two standouts are Hungrys Good Food, doling out eight homemade soups, and Papa Lash's Food Van, whose signature cheese patty is a local favorite.

Photo: Chris Williams/Getty Images

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The Best Caribbean Islands for Foodies - Tasting Table

Biodiversity, Caribbean Climate Wire, Civil Society, Climate Change, Development & Aid, Editors' Choice, Environment, Featured, Food & Agriculture, Headlines, Population, Poverty & SDGs, Projects, TerraViva United Nations

Peasant farmers on a farm in the town of Sbaco, in the northern Nicaraguan department of Matagalpa, part of the Dry Corridor of Central America, where this year rains have been generous, after years of drought. Credit: Wilmer Lpez/IPS

MATAGALPA, Nicaragua, Aug 1 2017 (IPS) - If the impact of drought and poverty in the municipalities of the so-called Dry Corridor in Nicaragua continues pushing the agricultural frontier towards the Caribbean coast, by the year 2050 this area will have lost all its forests and nature reserves, experts predict.

Denis Melndez, facilitator of the National Board for Risk Management, told IPS that annually between 70,000 and 75,000 hectares of forests are lost in Nicaraguas northern region and along the Caribbean coast, according to research carried out by this non-governmental organisation that monitors the governments environmental record.

This phenomenon, he explained, occurs mainly due to the impact of climate change in the Dry Corridor, a vast area that comprises 37 municipalities in central and northern Nicaragua, which begins in the west, at the border with Honduras, and ends in the departments of Matagalpa and Jinotega, bordering the eastern North Caribbean Coast Autonomous Region (RACCN).

They are peasant farmers who are unaware that most of the land in the Caribbean is most suitable for forestry,and they cut the trees, burn the grasslands, plant crops and breed livestock, destroying the ecosystem. -- Denis Melndez

The Dry Corridor in Central America is an arid strip of lowlands that runs along the Pacific coast through Honduras, El Salvador, Nicaragua and Costa Rica.

In this Central American eco-region, which is home to 10.5 million people, according to data from the United Nations Food and Agriculture Organisation (FAO), the cyclical droughts have been aggravated by climate change and the gradual devastation of natural resources by the local populations.

In Nicaragua, it encompasses areas near the RACCN, a territory of over 33,000 square kilometres, with a population mostly belonging to the indigenous Miskito people, and which has the biggest forest reserve in Nicaragua and Central America: Bosawas.

From these generally dry territories, said Melndez, there has been an invasion of farmers to the RACCN many of them mestizos or people of mixed-race heritage, who the native inhabitants pejoratively refer to as colonists fleeing the rigours of climate change, who have settled in indigenous areas in this Caribbean region.

They are peasant farmers who are unaware that most of the land in the Caribbean is most suitable for forestry,and they cut the trees, burn the grasslands, plant crops and breed livestock, destroying the ecosystem, Melndez complained.

He said that if the loss of forests continues at the current pace, by 2050 the Dry Corridor will reach all the way to the Caribbean coast.

IPS visited several rural towns in the northern department of Matagalpa, where four of the 37 municipalities of the Corridor are located: San Isidro, Terrabona, Ciudad Daro and Sbaco.

In Sbaco, the rains have been generous since the rainy season started in May, which made the farmers forget the hardships of the past years.

There is green everywhere, and enthusiasm in the agricultural areas, which between 2013 and early 2016 suffered loss after loss in their crops due to the drought.

The weather has been nice this year, it had been a long time since we enjoyed this rainwater which is a blessing from God, 67-year-old Arstides Silva told IPS.

Silva and other farmers in Sbaco and neighbouring localities do not like to talk about the displacement towards other communities near the Caribbean coast, to avoid conflicts.

A good winter or rainy season this year in the tropical areas in northern Nicaragua curbed migration towards the neighbouring Northern Caribbean Region by farmers who use the slash-and-burn method, devastating to the forests. Credit: Wilmer Lpez/IPS

I know two or three families who have gone to the coast to work, but because the landowners want them because we know how to make the land produce. We dont go there to invade other peoples land, said Agenor Snchez, who grows vegetables in Sbaco, on land leased from a relative.

But like Melndez, human rights, social and environmental organisations emphasise the magnitude of the displacement of people from the Dry Corridor to Caribbean coastal areas since 2005.

Ecologist Jaime Incer Barquero, a former environment minister, told IPS that this is not a new problem. For 40 years I have been warning about the ecological disaster of the Dry Corridor and the Caribbean, but the authorities havent paid attention to me, he complained.

The scientist pointed out that the shifting of the agricultural frontier from the Dry Corridor to the Caribbean forest and its coastal ecosystems threatens the sources of water that supply over 300,000 indigenous people in the area, because when the trees in the forest are cut, water is not absorbed by the soil, leading to runoff and landslides.

There are thousands of colonists devastating the biosphere reserve in Bosawas, which is the last big lung in Central America, and it is endangered,

Abdel Garca, climate change officer at the non-governmental Humboldt Centre, told IPS that during the nearly four years of drought that affected the country, the risk of environmental devastation extended beyond the Dry Corridor towards the Caribbean.

He believes the expansion of the Dry Corridor farming practices towards the Caribbean region is a serious problem, since the soil along the coast is less productive and cannot withstand the traditional crops grown in the Corridor.

While the soils of the Corridor stay fertile for up to 20 years, in the Caribbean the soil, which is more suited to forestry, is sometimes fertile for just two or three years.

That drives farmers to encroach on the forest in order to keep planting, using their traditional slash-and-burn method.

According to Garca, the expansion of the Corridor would impact on the Caribbean coastal ecosystems and put pressure on protected areas, such as Bosawas.

The environmentalist said the Caribbean region is already facing environmental problems similar to those in the Corridor, such as changes in rainfall regimes, an increase in winds, and the penetration of sea water in coastal areas that used to be covered by dense pine forests or mangroves that have been cut down over the last 10 years.

The climate monitoring carried out by the Humboldt Centre, one of the most reputable institutions and the most proactive in overseeing and defending the environment in the country, found that the average rainfall in the Corridor fell from 1,000 to 1,400 millimetres per square metre to half that in 2015.

The migration of farmers from the Corridor, where about 500,000 people live, towards the Caribbean is also having on impact on human rights, since the Caribbean regions are by law state-protected territories, and the encroachment by outsiders has led to abuse and violence between indigenous people and colonists.

Mara Luisa Acosta, head of the Legal Aid Centre for Indigenous Peoples, has denounced this violence before the Inter-American Commission on Human Rights (IACHR).

In her view, the growing number of outsiders moving into the Caribbean region is part of a business involving major interests, promoted and supported by government agencies to exploit the natural resources in the indigenous lands along the Caribbean with impunity.

For its part, the government officially denies that there is conflict generated by the influx of outsiders in the RACCN, but is taking measures to reinforce food security in the Dry Corridor, in an attempt to curb migration towards the Caribbean.

Of Nicaraguas population of 6.2 million people, 29.6 per cent live in poverty and 8.3 per cent in extreme poverty, according to the World Banks latest update, from April.

Link:

Climate Change Brings Migration from the Dry Corridor to Nicaragua's Caribbean Coast - Inter Press Service