The Impact of Oil and Gas on Guyana's Tourism Industry: Boom or Bust?

Before we even get into this piece, you probably wonder, “Who is writing this, and why?” Allow me to introduce myself. I'm Nicola. My academic background is in Economics and Marketing, and my career has been built around brand management, marketing, stakeholder engagement and alignment, capacity building, and local content development. The industries I have worked with most extensively are Tourism and Oil & Gas, and what a time it is to be experiencing these sectors in Guyana!

In recent years, Guyana has emerged into the global spotlight, thanks not to its lush rainforests or powerful waterfalls, but to a massive discovery of offshore oil. Since ExxonMobil struck “black gold” in 2015, this country has been on a rapid economic growth trajectory many have never seen. As Guyana became oil-producing, visitor arrival numbers grew. Not just the second generation Guyanese coming to see where their parents grew up, or the true traveler we know it as for a Guyanese authentic tourism experience,  but business travel increased, and so did every Guyanese emigrant returning home to claim a piece of the O&G pie.

However, many have wondered, “What does this oil-producing status mean for Guyana’s tourism industry?” Celebrated for its untouched beauty and eco-conscious appeal, could the oil boom boost tourism, or will it overshadow and undercut it? The answer isn’t simple, but it’s interesting.

Tourism Before the Oil Boom

Before oil, Guyana was one of South America’s best-kept secrets – off the radar for most international travelers but a hidden gem for those who love nature, wildlife, and adventure. The country’s tourism brand was built on ecotourism: pristine rainforests, majestic waterfalls like Kaieteur, rich biodiversity, Indigenous community-based experiences in the Rupununi savannahs, birdwatching, and even research or education-based tourism. This small but growing sector made waves globally, winning awards for sustainable tourism and earning features in eco-travel publications.

Tourism numbers were modest. Though the country saw some international and business travelers, most visitor arrivals were Guyanese from the diaspora. But to someone visiting the country for the first time, that was part of the charm. It kept the “off-the-beaten path” product in tack, but did that also translate well for the tourism product? Especially those in the capital that rely on a high turnover? Hotels? Restaurants? Hospitality Providers?

The Oil Boom: A Game Changer

Everything changed in 2015 when ExxonMobil discovered one of the largest offshore oil reserves in the world off Guyana’s coast. By 2020, oil production was in full swing, having struck first oil in December 2019. Today, Guyana is one of the fastest-growing economies on the planet, with GDP growth rates hitting double digits.

However, this rapid development was not without its challenges. The COVID-19 pandemic began shortly after oil production ramped up, temporarily slowed global travel, and disrupted supply chains. Ongoing activities and contracts from offshore oil and gas – a sector that never stopped during the pandemic – kept hotels, restaurants, airlines, and more afloat. The pandemic underscored the importance of economic diversification and highlighted tourism’s value alongside oil and gas.

The impact of oil and gas was becoming extremely clear after the pandemic. Roads were being built with monies from the Natural Resource Fund, more hotels were popping up, and international airlines were adding new routes to Georgetown. The oil industry has brought a surge of business travelers, expatriates, and investors. This is creating a new class of short-term visitors who are tourists.

But the effects go beyond visitor arrival numbers. With new money pouring in, the entire landscape—economic, physical, and cultural—is shifting. This raises an important question: “Are there opportunities for tourism alongside oil and gas?”

Opportunities for Tourism

The oil boom brings undeniable benefits to the sector, combating two of the ongoing issues in Guyana since its tourism industry began: access and visibility.

Access means getting to and around Guyana. Where roads were once unpaved and remote lodges were hard to access, direct contributions from Guyana’s offshore oil and gas via the Natural Resource Fund have made this possible.

In recent years, new airports and upgraded facilities have emerged, coupled with increased business travelers, drawing in more and larger airlines like British Airways and United Airlines. 

Visibility also soared. Thanks to Guyana’s growing role in the global energy market, there was and is a rising tide of business tourism—conferences, expos, and corporate events/meetings. These travelers sometimes add on leisure days or return later with days for exploration, specifically outlined.

Meanwhile, the economic boom creates a local middle class with more disposable income. And the good thing about Guyanese people is that we choose to support our own. Short trips outside of Georgetown grew. More and more tours to the Essequibo Islands, Linden, and the surrounding creeks have been booked. But all of this good news does not come without its challenges and threats to warn against.

Threats and Challenges

Let’s get the main thing off your chest and out of your mind – oil production vs. conservation. Guyana is fortunate that, as a country, it does not have a high net carbon count. With over 85% of Guyana covered by dense, intact tropical rainforest (a good chunk protected) and low deforestation rates, the amount of carbon emitted from oil and gas operations does not move the needle. Guyana is also very lucky to have discovered oil when it did. ExxonMobil is currently one of the largest investors in renewable sources of energy and the most environmentally friendly techniques for its extractive industry work. Years of refining the best practices, learning better ways to get the job done, and a more environmentally conscious world have made this the best time to discover oil and protect the environment.

There is also the threat of overdevelopment. As infrastructure directly tied to and benefiting Indigenous communities improves, Guyana runs the risk of diminishing the “off-the-beaten-path” appeal that brings travelers to these destinations in the first place. As the ongoing debate continues, balancing economic growth and infrastructure development with the need to remain true to the destination and keep the communities in mind will be an interesting one.

And finally, the labor pull. It is no secret that there is a labor shortage, more accurately a mismatch, of labor in Guyana. With a limited pool of qualified individuals in the workforce, many from the tourism sector have made the career change to oil and gas or its supporting sectors. This shift has left gaps in hospitality and service roles, challenging the tourism sector’s ability to scale up just as visitor numbers begin to rise. If not addressed through strategic workforce development and training, this imbalance could hinder the country’s ability to capitalize on tourism as a complementary growth sector.

The Way Forward

Can Guyana enjoy both oil wealth and a thriving tourism sector? It is possible and currently happening. However, a prosperous future depends on careful planning, supporting regulations, and coordinated collaboration.

Guyana stands at a crossroads. We are simultaneously flying the plane while trying to build it. The oil boom is a once-in-a-generation opportunity to transform the nation. With an economy developing as rapidly as this one, the ideal course of action is to balance priorities with the long-term goal of sustaining both sectors.