Caribbean tourism experienced strong growth in 2023 that will continue in 2024

Presenting the “Caribbean Tourism Performance Review 2023” today in Bridgetown, Dona Regis-Prosper, CTO Secretary General, shared that last year’s growth was in line with the CTO’s forecast for the year and attributed the result to the sustained demand for outbound travel. of the United States (the main source market in the Caribbean), better tourism-related infrastructure within destinations, compliance with strategic marketing initiatives and greater air transport capacity between the region and its source markets, although distributed in different ways. unevenly between destinations.

The global tourism recovery has been resilient, despite variability in regional results, according to Regis-Prosper: the Caribbean surpassed pre-pandemic arrivals by a modest 0.8%, outperforming most major regions in the world. world in terms of recovery.

“According to preliminary data provided so far by Caribbean destinations, tourist visits were approximately 32.2 million, about four million more than in 2022,” said Regis-Prosper, noting that the data showed that arrivals each month They exceeded those of 2022, thus establishing a trend of continuous growth over the last 33 months as tourism steadily recovered towards pre-pandemic levels. 

Arrival levels among Caribbean destinations significantly recovered or moderately exceeded 2019 baseline figures, with 11 destinations: Anguilla, Aruba, Curacao, Dominican Republic, Grenada, Guyana, Jamaica, Puerto Rico, St. Maarten, Turks Islands and Caicos and the United States. The Virgin Islands performed better than in 2019. Most of them recovered more than 50% of their arrivals in 2019. Additionally, multiple destinations recorded new record levels of tourist arrivals in a single year.

United States and Canadian markets

For the Caribbean, only the US market has fully recovered, while recovery rates for arrivals from Europe and Canada reached 88.2% and 88.1%, respectively. An estimated 16.3 million arrivals to the region came from the United States, representing an annual growth rate of 12.7%. The performance here set a new record level of arrivals for this market and exceeded pre-pandemic arrivals by 4.2%. The performance of the Canadian market resulted in approximately three million Canadian tourist visits by the end of the year, an increase of 46.1% compared to 2022. Increased air service from major Canadian cities to Caribbean destinations played a critical role in increasing the number of visitors. 

Markets in Europe, the Caribbean and South America

Regis-Prosper noted that arrivals from Europe to the Caribbean region stagnated in 2023. A total of approximately 5.2 million trips originated in this market. In 2023, travel among Caribbean residents to destinations within the region increased by approximately 3.6%, a total of 1.6 million trips, up 0.3 million compared to 2022. This also indicated a recovery of 62%. .5% compared to pre-pandemic levels. "Despite this positive outcome, intra-regional travel remained costly due to fragmentation of air service and reduced air capacity," Regis-Prosper said. At the end of the year, trips from South America to the region increased approximately 14%, totaling 1.7 million trips. 

Caribbean hotel performance

The Caribbean hospitality sector saw notable change in 2023, including an increase in the establishment of new hotels and resorts. According to STR, across the Caribbean, average room occupancy grew to 65.6% in 2023 from 61% in 2022. The average daily rate (ADR) saw a significant increase of 11.8%, reaching the region's ADR US$329.37 while revenue per available room (RevPAR) rose 20.2% to US$215.97.

Cruise tourism performance

Preliminary data for 2023 showed that Caribbean destinations received approximately 31.1 million cruise visits, reflecting an increase of 11.3 million visits or 56.8% compared to 2019. This level set a new record for the regional cruise sector, surpassing the previous record from 2019 by 2.4%. Pent-up demand and the resumption of operations drove strong Caribbean cruise bookings, along with improvements in cruise infrastructure such as larger ships, improved facilities, itineraries and shore excursions.

Projections indicate that the cruise sector will continue its upward trajectory, with an estimated 34.2 million to 35.8 million cruise visits expected in the Caribbean in 2024. This anticipated expansion is within the range of 10% and the fifteen%.

Remarkable resilience

Caribbean Tourism Organization Council of Tourism Ministers and Commissioners Chairman Kenneth Bryan, who also serves as Minister of Tourism and Ports of the Cayman Islands, highlighted the remarkable resilience of the tourism industry and its recovery and growth ongoing in 2023. However, he emphasized that the industry and the region will continue to face a number of challenges, including the high cost of travel, ongoing conflicts, rising geopolitical tensions and their projected impacts, in 2024.

"Caribbean destinations remain adaptable and responsive, and the region remains highly desired by travelers for its safety and diversity of tourism products," said President Bryan, adding that the region will also be positively affected by key developments in 2024, including increased air capacity. throughout the year, which will facilitate greater access between destinations and some of their traditional and emerging markets.

President Bryan also noted the “intensive strategic marketing initiatives” being implemented to attract visitors to the region to enjoy its culture and heritage, including its carnivals and festivals.

He noted that the CTO is pleased that the ICC (International Cricket Council) Men's T20 World Cup 2024 will be held in various destinations, bringing not only teams but also their loyal fans to the region and creating even more awareness and promoting the various offers from Caribbean destinations. to global audiences.

“The prospects for the Caribbean therefore look very promising, with more regional destinations set to match or surpass the arrival figures recorded in 2019. Growth is forecast to range between five and 10 per cent, potentially welcoming between 33.8 million and 35.4 million. tourists staying overnight,” President Bryan concluded.