This article analyses the main determinants of competitiveness in the Caribbean tourism stay-over industry using panel data for the period 1995-2006, based on an augmented version of an empirical model by Craigwell (2007). The ex post measure of competitiveness used is the share of world outbound tourists from Canada, the United Kingdom of Great Britain and Northern Ireland and the United States of America arriving in a Caribbean destination. The study finds evidence that Caribbean tourism competitiveness can be enhanced through policy measures that favour, among others, increases in investment, private sector development, better infrastructure, lower government consumption, a more flexible labour market, reduced vulnerability to natural disasters, higher human development and slow rises in oil prices. This article is an attempt to fill the gap on econometric research relating to tourism competitiveness for the Caribbean region.