Introduction to the Caribbean Tourism Report

The appeal of the Caribbean never goes away. Photo by Jono Hirst on UnSplash.

The Caribbean Hotel & Tourism Association (CHTA) has published its latest report on how tourism in the Caribbean performed in 2024 and what to expect in 2025.

The report shows that the industry did well, with more money coming in, new investments, and growing visitor numbers. Even though there were problems like rising costs and not enough skilled workers, most tourism businesses still made a profit.

The report is based on a survey of businesses in 20 Caribbean countries. It looks at how the industry managed its challenges and used new opportunities.

Key Findings from the Report

Key Results from 2024

More Revenue, Higher Costs – 65% of hotels raised their room prices to deal with rising costs. 57% also earned more from food and drinks.
More Hiring but Hard to Find Staff – 47% of businesses hired more people in 2024. Another 36% want to hire in 2025. But 73% said it’s hard to find skilled workers like chefs and engineers.
Bigger Investments in Buildings – 62% spent more money on renovations and new buildings. Tax breaks helped 59% of them with upgrades and 24% with new projects. More than half said they couldn’t have done it without the tax help.
More Visitors from the U.S. and Beyond – The U.S. stayed the top source of tourists, but more visitors are also coming from the U.K., Canada, and nearby Caribbean countries.
Some Still Losing Money – While many did well, about one-third of businesses still lost money due to high costs.
Main Problems – 87% of businesses said operating costs went up, and 52% said the increase was worse than inflation. Taxes and inflation are still big issues.

What’s Expected in 2025

Most businesses feel good about the future. 98% said they are confident things will keep improving. They expect more visitors, better earnings, and continued investment in upgrades and staff training.

CHTA CEO Vanessa Ledesma said the Caribbean is still a top travel choice because of smart investments and strong efforts to keep growing. She said the report will help guide future plans to support the tourism industry and its workers.

This survey has been done every year since 2014. It helps hotel groups, governments, and others understand what’s happening and make better choices.

Impact of External Factors on Caribbean Tourism

Those who responded to the survey seem to have brushed off consideration of whether tariff and trade wars in the US will have any effect on Caribbean tourism. The majority of Caribbean visitors come from the United States.

Economists think that Trump’s trade and tariff wars could hurt Caribbean tourism mainly by slowing the U.S. economy, raising travel costs, and causing global instability—all of which could reduce visitor numbers and spending. But at the present time, no one really knows what the effects might be in the rest of 2025.

Recently several US airlines and Air Canada have announced cutbacks on north American routes, but so far, there is no news of cutbacks to the Caribbean. In fact, American airlines has announced additional flights for some Caribbean routes.

About the Report and CHTA

To read the full report, go to www.caribbeanhotelandtourism.com/chtas-annual-caribbean-tourism-industry-performanceamp-outlook-report.

About CHTA:
The Caribbean Hotel and Tourism Association has been supporting the Caribbean’s hospitality industry for over 60 years. It works with about 1,000 hotel and business members, plus 32 national hotel groups. CHTA helps members with marketing, sustainability, new technologies, climate change, and more. Visit www.caribbeanhotelandtourism.com for details.

Conclusion

The Caribbean tourism industry has shown resilience and growth in 2024, despite challenges such as rising costs and staffing shortages. As the industry looks to 2025, there is optimism about continued growth and investment. However, external factors such as trade wars and global economic trends may impact the industry, and it is essential for stakeholders to stay informed and adapt to changing circumstances.

Frequently Asked Questions (FAQs)

Q: What is the current state of the Caribbean tourism industry? A: The industry is growing, with increasing revenue and visitor numbers, but faces challenges such as rising costs and staffing shortages.
Q: What are the main problems facing the industry? A: The main problems include rising operating costs, staffing shortages, and the impact of external factors such as trade wars and global economic trends.
Q: What is the outlook for 2025? A: Most businesses are confident about the future, expecting continued growth and investment, but there are uncertainties surrounding external factors that may impact the industry.