Caribbean Tourism Sector Surpasses Pre-Pandemic Benchmarks

The Caribbean tourism sector has once again surpassed pre-pandemic benchmarks, with 2024 marking the second consecutive year of record-breaking international arrivals and a “robust recovery and expansion,” according to the latest report by the Caribbean Tourism Organisation (CTO).

An estimated 34.2 million international tourists visited the Caribbean in 2024, a 6.1% increase over 2023 and 6.9% higher than pre-COVID 2019 levels, the report shows. However, the pace of growth is expected to moderate in 2025 due to economic and geopolitical uncertainties affecting global travel trends.

Source Markets and Regional Growth

The U.S. remained the top source market, accounting for roughly 16.8 million arrivals, a 3.5% increase from 2023 and nearly 8% above 2019 figures. Canada also showed steady gains, with 3.3 million visitors, up 4% year-on-year, although still trailing slightly below pre-pandemic levels.

European arrivals, however, grew at a slower pace, increasing just 1.4% to 5.3 million, which is about 89.4% of 2019 levels. In contrast, South America led regional growth, contributing 2 million arrivals—a 17.8% jump from 2023 and a nearly 20% increase over 2019 numbers.

Cruise Sector and Hotel Performance

The Caribbean cruise sector also surged, with 33.7 million cruise visits in 2024, reflecting a 10.3% rise over 2023 and 10.9% above pre-pandemic volumes.

On land, the hotel sector remained strong, with occupancy rates averaging 66.6%—a slight uptick of 0.8% from 2023. The Average Daily Rate (ADR) for accommodations increased by 4.2% to $437.02, underscoring sustained demand and consumer confidence.

Outlook for 2025

Despite the upward trend, CTO research director Aliyyah Shakeer cautioned that growth in 2025 may soften: “Tourism in the Caribbean is expected to continue growing in 2025. However, due to prevailing economic uncertainties and slowdowns in major source markets during the first quarter of the year, the pace of growth is projected to be more moderate than earlier forecasts suggested.”

The CTO now expects overnight visitor arrivals to grow by 2% to 5%, potentially reaching 35 million travelers. The cruise sector is also projected to grow by 5% to 7%, approaching 36 million cruise visitors in 2025.

Regional Collaboration and Resilience

CTO secretary-general Dona Regis-Prosper credited the region’s continued success to collaboration and resilience: “The Caribbean’s continued growth is a testament to the strength of our regional collaboration and the enduring appeal of our destinations.
Despite geopolitical uncertainty and global economic challenges, our sector has shown remarkable resilience.

To maintain this momentum, we must double down on strategic investments, innovative partnerships, and sustainable practices that protect our people, our culture and our environment. The future of Caribbean tourism is not only bright – it is ours to shape.”

Conclusion

With a strong foundation and cautious optimism for the year ahead, the Caribbean tourism industry is positioning itself for sustainable, steady expansion through 2025 and beyond.