Taxi drivers in Grand Cayman say weaker demand, growing competition and restrictions on how they operate are making it increasingly difficult to earn a living, raising questions about whether the rules governing the industry have kept pace with changes in the tourism economy.

For drivers such as Joely Manderson, the squeeze is felt one fare at a time. Manderson, 64, was among drivers waiting for passengers at the taxi rank outside the Westin Hotel on West Bay Road. She has held a taxi permit since 1999 and said business has yet to return to pre-pandemic levels, even during the high season.

“I used to drive part-time, because I was a housekeeper, but I've been driving full-time for the past three years,” she said. “But since COVID now, even in the high season, I don't think we're not back to where we were before COVID.”

September and October have traditionally been slow months, Manderson said. But she said the downturn has become harder to manage and that any government assistance aimed at tourism workers during the off-season should extend beyond taxi drivers to housekeepers, servers and watersports operators.

“We're all in this together, and we're all suffering,” she said.

For Manderson, the financial pressure is immediate. She said she often uses the proceeds from individual fares to cover household bills, with trips ranging from airport transfers to restaurants and tourist attractions.

“If I make the sale, $50 today, I have to go try to put that on my light,” she said. “If I make a little $25, tomorrow, I have to go put that on my water.”

She said drivers once had stronger periods during which they could save for the slower months. That cushion has largely disappeared.

“The older people would say, ‘Save it for a rainy day,’ but we can't save for no rainy day, because we got rainy day every day,” Manderson said.

She also believes the number of licensed taxis has grown without a corresponding increase in demand.

“Every couple of months there is a lot more new taxi drivers,” she said. “So, I guess it's more taxis now than fares available.”

Tourism figures offer a mixed picture. The Economic and Statistics Office recorded 437,842 stay-over visitors in 2024, up 2% from the previous year but still only 87% of the number recorded in 2019.

As tourism recovers, government has taken steps to expand taxi availability. Cabinet approved additional nighttime taxi permits on 24 February 2026, although the published decision did not disclose how many.

The Caymanian Journal was unable to independently verify Manderson's claim about the growth in taxi numbers because the government does not publish a current total for licensed operators. The Public Transport Board is required by law to consider the number of taxis already authorised and the public's transport needs when issuing permits.

Government controls permits and fares

The economics of Cayman's taxi industry are shaped in part by government regulation, which controls both entry into the sector and the fares drivers can charge.

Under the Public Transport Act, 2024, a person cannot operate or drive a public passenger vehicle without a valid permit issued by the Public Transport Board. When considering applications, the board must take into account the number of public buses and taxis already authorised to operate, along with factors including public transportation needs, road conditions and the safety and convenience of the community.

Cabinet also has a role in determining the size of the industry. After consulting the Public Transport Board and the Director of the Public Transport Unit, Cabinet may direct the total number of public buses and taxis that may be registered. The director must also provide information that allows the board to limit or suspend permit applications.

The framework therefore gives government a direct role in determining the potential size of the licensed taxi fleet - a key issue for drivers who say the number of operators is growing faster than demand.

Government also regulates what those drivers can charge. Taxis are required to use the National Taxi Fare Schedule and cannot charge more than the prescribed fare.

The current fare structure dates to August 2019, when government introduced the National Taxi Fare Schedule and increased some fares. At the time, for example, the government said the fare from the Marriott resort to Owen Roberts International Airport would rise from US $22.50 to US $25.

The government said the changes were intended to strike a balance between keeping transportation affordable for passengers and allowing taxi operators to earn a reasonable living.

Then-Tourism Minister Moses Kirkconnell acknowledged the financial pressures facing drivers at the time.

“As the cost of living has increased, operators have unfortunately been left behind,” he said.

Kirkconnell said the new schedule was intended to allow operators to make “a reasonable living wage” while ensuring passengers had access to transportation at a fair price.

The government's role in managing the supply of taxis also predates the current legislation. In 2014, when the Public Transport Board approved 30 new taxi permits and six new tour-bus permits amid expectations of increased tourism demand, Kirkconnell described taxi drivers as “frontline tourism ambassadors” whose work contributed to visitors' first and last impressions of the Cayman Islands.

Drivers raise concerns about competition

A driver with over 20 years in the industry, who spoke on condition of anonymity, said competition from unlicensed operators and regulatory requirements were among his concerns.

The driver also complained about competition from people he believed were carrying passengers for payment without the required permits, although he said he had not personally verified the practice.

“We are so regulated, and these guys can do anything they like,” he said.

He said the industry's seasonality has always been pronounced but that competition for available fares had become a more serious concern.

“Over the 20 years I've been driving,” he said, “it's always been six months of good business, six months of no business.”

Asked whether he believed there were too many drivers, he said:

“More than enough. The pie is so small, you know? Fewer customers, more drivers.”

The government has also moved to clarify the rules governing who can carry passengers for payment. Under amendments to the Public Transport Act passed in 2026, a person who uses or offers a vehicle to carry passengers for hire without the required permit and public-passenger-vehicle status can face a fine of up to $5,000, six months in prison, or both.

The changes were part of a broader effort to tighten and clarify the permit system. When introducing the legislation in Parliament, the Minister for Planning, Lands, Agriculture, Housing, and Infrastructure, Jay Ebanks MP said the changes were intended to provide “clarity and legal certainty” for public-transport operators.

Drivers seek more flexibility

For other operators, the concern is not simply how many passengers are available but how much flexibility they have to keep earning when problems arise.

Renley Ebanks, who has driven a taxi for over two decades, said a vehicle breakdown can leave a driver without income while the taxi is being repaired.

“If my vehicle breaks down, right? Then I'm out of work that day, or that week, however long it may be before I get it back,” Ebanks said.

He said he would like licensed drivers to be able to use an approved backup vehicle while their regular taxi is unavailable.

“That would keep me continuously making income,” he said. “If this one vehicle breaks down, I'm out of work.”

Ebanks also said he sought to expand his business by applying for a tour-bus permit but was told he would have to surrender his taxi permit.

The Public Transport Act, 2024 gives the Public Transport Board authority over permits and allows conditions to be attached to them, but does not appear to prohibit an operator from holding permits in more than one category.

“I think if you're gonna call someone a Tourism Ambassador after 20 years, you should give them some kind of incentive,” he said.

For Ebanks, the designation matters because taxi drivers are often among the first people visitors encounter after arriving in Cayman.

“First impression counts,” he said. “We're out here on the front line, bringing those people in, encouraging those people to come back.”

Ebanks also raised concerns about transportation provided by private operators and attractions. He cited services associated with destinations such as the Cayman Turtle Centre and Crystal Caves as competition for licensed taxis.

He acknowledged that the Turtle Centre offers a 50% discount to visitors arriving by taxi, but said the programme could be promoted more aggressively to encourage tourists to use licensed operators.

The drivers' concerns expose a tension in Cayman's taxi policy: government controls entry into the industry, regulates maximum fares and sets operating requirements while relying on drivers to provide a dependable part of the visitor experience.

For Manderson, the consequences are more immediate.

“We can't save for no rainy day, because we got rainy days every day,” she said.