Caribbean Tourism Industry Records Positive Recovery Trend in 2023
The Caribbean Tourism Organization (CTO) has reported a positive recovery trend in the regional tourism sector for 2023. According to the CTO’s "Caribbean Tourism Performance Review 2023," the region recorded increased visitor arrivals last year, with an estimated 14.3 percent of international visitors coming to the Caribbean.
The CTO attributed the outcome to sustained demand for outbound travel from the United States, the Caribbean’s primary source market, and enhanced tourism-related infrastructure within the destinations. The organization also noted that the fulfillment of strategic marketing initiatives and augmented airlift capacity between the region and its source markets contributed to the improvement.
The Caribbean surpassed pre-pandemic arrivals by a modest 0.8 percent, outperforming most of the leading international regions in terms of recovery. The data showed that each month’s arrivals exceeded those of 2022, establishing a continuous growth trend over the past 33 months as tourism steadily rebounded toward pre-pandemic levels.
Eleven destinations, including Anguilla, Aruba, Curaçao, Dominican Republic, Grenada, Guyana, Jamaica, Puerto Rico, St. Maarten, Turks & Caicos Islands, and U.S. Virgin Islands, performed better than in 2019, with most of them recovering over 50 percent of their 2019 arrivals. Multiple destinations registered new record levels for tourist arrivals in a year.
The CTO also reported that only the U.S. market has fully recovered for the Caribbean, while the recovery rates of arrivals from Europe and Canada reached 88.2 and 88.1 percent, respectively. The organization noted that arrivals from Europe to the Caribbean region stagnated in 2023, with approximately 5.2 million trips originating from the market.
Intra-regional travel remained expensive due to fragmented air service and reduced air capacity, but trips from South America to the region surged by an estimated 14 percent, totaling 1.7 million trips. The Caribbean hotel sector experienced a remarkable turnaround in 2023, with average room occupancy growing to 65.6 percent and the average daily rate (ADR) increasing by 11.8%.
The cruise sector also saw a significant increase, with an estimated 31.1 million cruise visits in 2023, an increase of 11.3 million visits or 56.8 percent compared to 2019. Projections indicate that the cruise sector will continue its upward track, with an estimated 34.2 million to 35.8 million cruise visits expected in the Caribbean in 2024.
CTO chairman Kenneth Bryan noted the tourism industry’s remarkable resilience and ongoing recovery and growth in 2023, but emphasized that the industry and the region will continue to face challenges in 2024, including the high cost of travel, ongoing conflicts, and heightened geopolitical tensions.
Conclusion
The Caribbean tourism industry has made significant progress in 2023, with many destinations recovering from the impacts of the pandemic. The region’s resilience and adaptability have been key factors in its success, and it is expected to continue its positive trend in 2024. However, the industry will need to navigate ongoing challenges to ensure its continued growth and development.
FAQs
Q: What was the estimated growth rate of stay-over arrivals to the Caribbean in 2023?
A: The estimated growth rate was 12.7 percent.
Q: Which destinations performed better than in 2019?
A: Eleven destinations, including Anguilla, Aruba, Curaçao, Dominican Republic, Grenada, Guyana, Jamaica, Puerto Rico, St. Maarten, Turks & Caicos Islands, and U.S. Virgin Islands.
Q: What was the estimated growth rate of cruise visits in the Caribbean in 2023?
A: The estimated growth rate was 56.8 percent compared to 2019.
Q: What are the challenges facing the Caribbean tourism industry in 2024?
A: The high cost of travel, ongoing conflicts, and heightened geopolitical tensions are some of the challenges the industry is expected to face.