The U.S. financial meltdown is starting to affect Caribbean nations, but the effects so far appear to be manageable, government and business officials attending a regional conference in Miami said Tuesday.

Still, much of the discussion at the Miami Conference on the Caribbean and Central America centered on ways to confront the global financial crisis that has started to ripple through the region.

Caribbean nations that rely heavily on tourism are already seeing sharp declines in bookings, while exporters in Central America are facing less demand for their products, said Anton Edmunds, executive director and chief executive of Caribbean-Central American Action, a private sector group that organized the annual conference, which is now in its 32nd year and attracted more than 370 participants.

Both the Bahamas and neighboring Turks and Caicos are seeing their financial outlook steadily deteriorate as condo and property sales to foreigners soften and new development projects grind to a halt due to lack of access to credit by financially strapped foreign developers.

''The impact of this crisis on the smaller economies is critical. Regional countries have to unite to realistically respond to common problems,'' Edmunds said in an interview.

Though Jamaica is heavily dependent on remittances and tourism, so far officials say they haven't seen any significant downturn. But experts say the longer the U.S. crisis continues, the more likely declines will occur.

Even Trinidad and Tobago, with enormous reserves of natural gas, is suffering from lower export prices for its liquefied natural gas, oil, steel and petrochemicals.

One reason small-island economies may not be yet in a panic is due to the strength of local banks and efforts by the region's Central Banks to provide assistance, said Robert Norstrom of the Bank of St. Lucia.

TOUGH YEAR AHEAD?

Norstrom credited strengthened regulatory policies for providing some financial cushion from the U.S. meltdown.

''The region will be going though a very difficult 2009,'' predicted Pasquale Minicucci, Scotiabank's senior vice president of international banking for the Caribbean region.

Countries with floating currencies -- Jamaica, Trinidad and Tobago, Guyana -- appear to be weathering the financial storm a bit better.

However, Marlene Street-Forrest of the Jamaica Stock Exchange said the island nation, which has the largest stock exchange in the region, has suffered some fallout from ''lack of investor confidence'' in the U.S. market.

The securities sector began to feel the ripple effects after the Lehman Brothers collapse, she said. ``Lack of investor confidence in the markets externally has really triggered this feeling in our market.''

Speakers urged regional governments to overcome old rivalries and work together, avoid conflicting policies, diversify their economies, allow the private sector to play a stronger role, control crime and become more efficient.

The Caribbean Basin faces a number of challenges, Norstrom said, ``that require political will.''

A lack of coordination in regional immigration polices, for example, means that Trinidad and Tobago has a severe labor shortage while unemployment is high on other islands, said Nicholas Galt, a Trinidadian who is president and CEO of The TSL Group, information and communications technology firm that operates throughout the region.

Rick Morrell, president and chief executive of Tropical Shipping, pointed out that government regulations in Barbados delay much-needed imports for small and mid-sized businesses. Morrell, whose company ships seagoing freight to and from the Caribbean and The Bahamas, also urged regional ports to upgrade into world-class competitors.

THE CRIME FACTOR

One participant focused on crime in the region, a factor that scares off tourists and foreign investment. Robert Gregory, the president of Jamaica Trade and Invest, the country's investment promotion agency, urged nations to ``address the major causes of crime.''

As the administration of President-elect Barack Obama prepares to take office, regional expectations are high, said Ivelaw Griffith, provost and professor of political science at York College in Jamaica, N. Y.

But Griffith said the region should do a reality check to ensure that its interests align with those of the U.S. ''Our region is important, but there are others that are more important to the U.S,'' Griffith said.

A VESTED INTEREST

While the new American president will need to focus on domestic issues, the region nonetheless plays a key role in U.S. interests.

The United States, the Caribbean and Central America share the goal of sustaining and rebuilding democracy in the region, Griffith noted.

Albert Ramdin, assistant secretary general of the Organization of American States, said the economic interests of Caribbean Basin nations shouldn't be overlooked:

``Whatever global and regional arrangement is developed to mitigate the impact of the financial crisis, it needs to include special measures to assist the small and vulnerable economies of the Americas, who do not have the finances, the institutional capacity nor the economic structure to respond effectively to the impact.''

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