The Caribbean Hotel and Tourism Association (CHTA) has released its annual Caribbean Tourism Industry Performance and Outlook Report for 2025. Despite rising operating costs, labor shortages, and profitability challenges, most businesses reported profits, demonstrating resilience and confidence in the industry's future. The report, based on a survey of tourism businesses in 20 Caribbean destinations, provides a comprehensive view of the industry's performance in 2024 and expectations for the coming year. It explores key trends such as revenue growth, labor market changes, rising operating costs, and investment activity, offering insights into how businesses are navigating challenges and seizing opportunities.
Key findings of 2024
Revenue growth amid rising costs: 65% of companies increased room rates to offset rising expenses, while 57% reported higher food and beverage revenue.
Workforce expansion with hiring challenges: 47% of companies expanded their workforce in 2024, and 36% plan to hire more in 2025. However, 73% reported difficulty recruiting specialized staff, such as chefs and engineers.
Infrastructure investment: 62% of companies increased their capital expenditures, and 59% used tax incentives for renovations and 24% for new developments—investments that more than half of recipients said would not have been possible without these incentives.
Growing source markets: The United States remained the largest source market for the region, with strong growth in the United Kingdom, Canada, and travel within the Caribbean.
Profitability challenges persist: While the industry showed strong overall performance, a third of respondents still reported a net loss, largely due to rising operating costs.
Industry Challenges: High taxes and inflation continue to put pressure on businesses, with 87% reporting increased operating costs and 52% seeing increases that outpaced inflation.
Looking ahead to 2025
Perception of the sector remains overwhelmingly positive, with 98% of respondents confident in the sector's trajectory. Companies anticipate continued revenue growth, driven by strong visitor demand, ongoing capital investments to enhance properties and destinations, and continued investments in workforce development and destination marketing.
"The Caribbean tourism industry continues to demonstrate incredible resilience and adaptability," said Vanessa Ledesma, CHTA Executive Director. "Even with rising costs and global uncertainty, the region remains one of the world's leading tourism destinations, thanks to strategic investments and a steadfast commitment to growth. The findings in this report will help guide CHTA's efforts to better support our members, strengthen the industry, and ensure the continued success of hospitality and tourism professionals throughout the Caribbean."
The annual survey has been conducted since 2014 and provides CHTA, national hospitality and tourism associations, governments, and tourism stakeholders with information and benchmarks to help assess their progress and guide decision-making.
Source: CHTA.