After record breaking visitation in 2019, the Caribbean was well positioned for another stellar year. However, despite a very low infection rate in the region, the COVID-19 pandemic has presented a wide range of new challenges for stakeholders in the region.
Along the lines of the Bob Marley song, the Caribbean is “alright” despite lingering issues such as post-Hurricane rebuilding, new supply, and Sargassum. Resiliency continues as hoteliers have focused on crisis management and innovative product types to drive tourism and investment in the region.
CTO projects 6-7 per cent growth in 2019 following better-than-predicted performance last year
In 2018, hotels in the Caribbean reported occupancy dropped 1.1% to 65.2%, but a 1.7% ADR increase to $207.61 kept RevPAR up 0.6% to $135.46.
For the Caribbean it was a year of severe hurricanes and huge damage, including to hotels, harbours and airports. And yet 2017 was also a year of records. For the first time 30.1 million visitors came and stayed on the islands spanning the Caribbean from Florida to Venezuela, 517,000 more than in 2016. This was reported by the Caribbean Tourism Organization (CTO) at ITB Berlin.
In what appears to be a dynamic and active hurricane period, one of the busiest and most destructive season in decades, some of the islands of the Caribbean have witnessed destruction and evacuations like they’ve never seen before.
Compared with 2015, the Caribbean’s occupancy decreased 2.3% to 66.7%, and average daily rate (ADR) was down 0.3% to US$201.50. As a result, revenue per available room (RevPAR) fell 2.6% to US$134.48. The absolute occupancy level was the lowest in the Caribbean since 2013 (66.7%).
The Caribbean hotel industry experienced noticeable performance decreases in the first four months of 2016 that can in part be linked to the spread of the Zika virus, according to STR’s consulting & analytics division.
The Caribbean hospitality industry has experienced growth with the re-emergence of all-inclusive hotels and vacation clubs. As operating performances continue to strengthen, more hotel financing opportunities are vailable for the future.
In year-over-year comparisons, Caribbean hotels during 2014 experienced a 1.5-percent increase in occupancy to 68.0 percent; average daily rate was up 6.4 percent to US$194.66; and revenue per available room rose 8.0 percent to US$132.28.