This paper constructs a three-level CES model and estimates the effect of real exchange rates on competition for tourism earnings. Elasticities of substitution are estimated, first intra-Caribbean, then among regional aggregates. A worldwide and a U.S. market are both estimated. U.S. tourists substitute relatively more interregionally, but less intra-Caribbean. Significant effects of political violence are also captured. Development policy options are examined, including the role of parallel tourism exchange rates and Caribbean collusion.