Dependence on coastal and marine tourism leaves them vulnerable to economic shocks. Diversification into emerging ocean sectors is key to building resilience.
The ocean covers 70% of SIDS' biosphere and serves as their economic lifeline. In 2023, their per capita ocean exports exceeded $2,600 – nearly ten times the global average, according to new UN Trade and Development (UNCTAD) data. But with limited diversification, SIDS remain highly vulnerable to external shocks.
Despite being surrounded by marine resources, these nations have yet to fully capitalize on the fast-growing ocean economy and its emerging opportunities.
SIDS rely overwhelmingly on tourism, which accounts for 87% of their ocean exports. This dependence proved costly during the COVID-19 pandemic when marine and coastal tourism exports collapsed by 70%. While the sector has since rebounded, the crisis exposed a critical weakness: without diversification, SIDS will remain vulnerable to future disruptions.
Diversification key to resilience and unlocking new ocean opportunities
Expanding beyond tourism and broadening export markets can help SIDS build resilience and seize emerging opportunities in the fast-growing ocean economy.
Global ocean trade reached $2.2 trillion in 2023, with services making up the largest share at $1.3 trillion. While tourism (33%) and maritime transport (22%) still dominate, high-tech and manufacturing industries are expanding rapidly, now accounting for 16% of ocean trade. These include pharmaceuticals, marine sports, clean energy, and electrical equipment – sectors with significant growth potential.
New industries are also emerging, such as the $10.8 billion market for marine-based plastic substitutes, offering both economic gains and environmental benefits. Meanwhile, the ocean remains largely unexplored – up to two-thirds of marine species are still unidentified – creating vast opportunities for innovation. Marine biotechnology, valued at $4.2 billion in 2023 and projected to reach $6.4 billion by 2025, is driving advances in low-carbon marine foods, new antibiotics and bio-based materials.
By tapping into these high-growth sectors, SIDS can reduce their reliance on tourism and build a more stable, resilient ocean economy.
Harnessing trade's untapped potential in ocean-related climate action
Despite the economic importance of ocean-based exports, trade remains an overlooked tool in SIDS' climate action strategies.
UNCTAD’s analysis of 606 ocean-related measures in SIDS' national climate action plans (Nationally Determined Commitments) found that only 37% referenced trade. Most focused on economic development (328 measures) or marine and coastal conservation (278 measures), but few integrated trade-driven solutions to balance both priorities.
By incorporating trade more effectively into climate action, SIDS can strengthen resilience, drive sustainable growth and secure long-term economic stability.
The recently concluded 5th UN Ocean Forum announced a new project led by UNCTAD and the UN Department of Economic and Social Affairs, with support from various other UN entities. The initiative aims to bolster evidence-based climate action by leveraging artificial intelligence and data innovation, developing tools to estimate carbon emissions from the shipping and fisheries sectors of four Caribbean SIDS: Barbados, Belize, the Dominican Republic, and Trinidad and Tobago.
Building a resilient ocean economy for SIDS
With ocean exports forming a crucial part of their economies, SIDS must diversify to ensure long-term resilience and growth.
UNCTAD is supporting these efforts through initiatives like Blue Biotrade in the Caribbean and Ocean Economy and Trade Strategies in Barbados, Belize and Costa Rica, helping SIDS expand beyond tourism and strengthen their ocean economies.
A sustainable ocean economy won’t happen without action. It demands greater investment in trade-led strategies, technology transfer and international support to unlock new opportunities and build lasting resilience.