That's largely because Curaçao is crowded with Venezuelans, many fleeing their country's spiralling inflation and currency controls for a Dutch Caribbean island best known for its diving opportunities and historic city centre, a United Nations World Heritage site.

Surplus visitors

While other destinations are slashing prices and laying off resort workers, officials in Curaçao have been trying to find private apartments for surplus visitors.

"We're doing very, very well," Billy Jonckheer, vice-president of the Curaçao Hospitality and Tourism Association, said Tuesday. "Right now, you won't find a room on the island."

Curaçao officials project 2008 visitor growth of 30 per cent to about 390,000 people. The latest statistics from the Caribbean Tourism Organisation show that rate would be the highest in the region at a time when the global economic crisis and airline flight cutbacks are eroding the key industry.

Magnet for Venezuelans

The Netherlands is the largest source of tourists for Curaçao. But Venezuela is second and rising fast, expected to double from last year and reach 100,000, Jonckheer said. The United States is third.

Curaçao is a magnet for Venezuelans because it's close - only about 40 miles - and its shops are filled with duty-free merchandise that is much more expensive at home. Flights are plentiful to Caracas and other cities, but they are almost all packed these days.

- AP