This issue of the Bulletin reviews the main trends of trade in goods and services for the countries of the Association of Caribbean States (ACS) in 2004. The strong recovery of trade in goods and the robust expansion of trade in services are highlighted, emphasizing the increase in services as a proportion of total exports for the smaller Caribbean economies, which may even exceed 80%.A detailed analysis of the performance of the tourism component, especially travel, showed that in 2004 there was a boom in cruise ship arrivals, a situation which poses a real challenge for some islands in terms of ensuring a permanent flow of tourists and making use of the main comparative advantages -sun, sea and beaches- and possible linkages with the rest of the economy such as the hotel industry, restaurants, business and entertainment centres, guided excursions, transport, yachting, and others. In some islands, the ratio of cruise passengers to inhabitants is particularly high, and can reach a significant factor of about 11 tourists for every inhabitant in the Bahamas, 8 in Aruba, 7 in Antigua and Barbuda and 5 in Dominica, and around 4 for a sample of eleven countries.One of the main challenges for a number of Caribbean islands is how to capitalize on such linkages by developing sustainable tourism that minimizes the possible adverse impacts on the environment and the everyday life of the citizens.