Caribbean tourism continues to grow with more gains expected in 2026

by W. Andrew Powell
Six Senses La Sagesse Grenada

Caribbean tourism continues to grow, even in the face of challenges, with a 2.5% increasefor international stay‑over arrivals in 2025. Data from the region reached an estimated 35 million visits, according to the Caribbean Tourism Organization (CTO), representing around 900,000 more visitors than in 2024, and surpassing 2019 levels.

“Caribbean tourism in 2025 demonstrated continued resilience and adaptability even as the global landscape presented a number of challenges,” said Aliyyah Shakeer, CTO’s Director of Research. “Strategic investments in tourism infrastructure, sustained marketing efforts, and incremental gains in airlift connectivity helped support growth and maintain the region’s competitiveness.”

CTO officials said the sector expanded despite economic uncertainty in major source markets, geopolitical tensions, and weather‑related disruptions, including Hurricane Melissa.

Growth was uneven across destinations, with Guyana, Dominica, St. Vincent and the Grenadines, and Curaçao recording strong increases. A small number of destinations reported some declines tied to economic pressures, capacity limits, or localized disruptions. Most destinations, however, have now surpassed their pre‑pandemic benchmarks.

While some markets showed growth, in particular the United States remained the region’s largest market, increasing 0.5% to about 17 million visitors, Canada declined 5.3% to 3.1 million, and Europe fell 3.3% to 5.1 million.

South America was the strongest‑performing market, rising 23.7% to 2.4 million visits, supported by improved airlift and targeted marketing. Intra‑regional travel increased 5.1% but continued to face challenges related to connectivity and travel costs.

Hotel and cruise sector trends

The hotel sector posted mixed results. CoStar reported average occupancy at 63.7%, down from 65% in 2024. The Average Daily Rate rose 2.1% to US$350.37, and Revenue Per Available Room increased 0.8% to $223.12.

Cruise tourism continued to expand, with visits rising 5.2% to an estimated 35.5 million, a 16.7% increase above 2019 levels. The Bahamas led the region with a record 10.7 million cruise visits.

“The continued expansion of cruise itineraries, fleet capacity and port infrastructure has supported sustained growth in this segment, reinforcing its importance to the region’s overall tourism performance,” the CTO noted in the release.

Outlook for 2026

The CTO expects stay‑over arrivals to grow between 3% and 4% in 2026, supported by demand from North America and emerging markets. Cruise tourism is projected to increase 5% to 7%.

“Caribbean tourism continues to demonstrate its resilience in the face of evolving global conditions, but this is no time for complacency. We must remain vigilant and proactive, working together as a united region to navigate uncertainty and sustain our momentum,” said Dona Regis-Prosper, CTO Secretary-General & CEO. “By strengthening collaboration, enhancing air connectivity and advancing responsible tourism practices, we can ensure long-term growth that benefits our people and economies.”

“[T]he Caribbean remains well-positioned as a highly desirable destination, supported by its diverse tourism offerings, strong brand appeal and continued commitment to sustainable and regenerative tourism development,” the CTO stated in the release.

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