"Just three days ago, a dozen or so nations in the Caribbean converged on Barbados to submit official bids to host World Cup 2007 matches, which is a major step not only to the event but a quantum leap for our cricket," Lloyd said on Sunday.
As many as eight countries will be allowed to host matches in the eighth World Cup and because the event was designated to be held in the West Indies, the United States, Bermuda and the Bahamas are also in line to host preliminary round matches.
The former left-handed batsman, who played 110 Tests and 87 One-day Internationals and now serves as match referee, was speaking on the "rise and fall of West Indies cricket" at an international seminar in Lahore.
He said that while the short term gain of a successful 2007 cricket World cup would mean a massive financial windfall for the West Indies, they would be far outweighed by the long term benefits for the Caribbean cricket.
Cricket in the West Indies has seen a steady decline in terms of results and talent in the last five years and it is looking to 2007 World Cup to revive its fortunes.
Lloyd said he hoped its dwindling economy would also be given a lift.
"Physically, new avenues of trade and tourism will develop to boost the struggling Caribbean economies besides helping the West Indies Cricket Board to develop the much needed world class cricket infrastructure."