Page 42 - IAADFS Summit of the Americas 2024 Special Edition

INSIDER

Caribbean tourism celebrates strong growth in 2023, continued recovery
forecast into 2024

Caribbean tourism continued recovery rates of arrivals from Europe an estimated 31.1 million cruise visits,
its positive recovery trend in 2023, and Canada reached 88.2% and 88.1%, reflecting an increase of 11.3 million
growing by an estimated 14.3% increase respectively. An estimated 16.3 million visits or 56.8% compared to 2019. This
in international stay-over arrivals, the stay-over arrivals to the region came from level established a new record for the
Caribbean Tourism Organization (CTO) the United States, representing an annual regional cruise sector, surpassing the
reported during its “Caribbean Tourism growth rate of 12.7%. U.S. performance previous record of 2019 by 2.4%. Pent-up
Performance Review 2023” in mid-March established a new record level of arrivals demand and the resumption of operations
Delivering the report in Bridgetown and surpassed the pre-pandemic arrivals drove strong bookings for Caribbean
on March 15, Dona Regis-Prosper, by 4.2%. The performance of the Canadian cruises, along with improvements in
Secretary-General of the CTO, shared market resulted in an estimated three cruise infrastructure such as larger ships,
that 2023 growth was in line with CTO’s million Canadian tourists visited by the end enhanced facilities, itineraries, and shore
forecast for the year, and attributed the of the year, an increase of 46.1% compared excursions.
outcome to sustained demand for outbound to 2022. Increased air service from major Projections indicate that the cruise
travel from the United States – the Canadian cities to Caribbean destinations sector will continue its upward track, with
Caribbean’s main source market; enhanced played a pivotal role in driving up visitor an estimated 34.2 million to 35.8 million
tourism-related infrastructure within the numbers. cruise visits expected in the Caribbean
destinations; the fulfillment of strategic in 2024. This anticipated expansion falls
marketing initiatives; and augmented airlift Europe, Caribbean and South America within the range of 10% and 15%.
capacity between the region and its source Markets
markets, albeit unevenly distributed among Regis-Prosper noted that arrivals Remarkable Resilience
the destinations. from Europe to the Caribbean region were Chairman of the Caribbean Tourism
The recovery of global tourism has stagnant in 2023. A total of approximately Organization’s Council of Ministers and
been resilient, despite variability in the 5.2 million trips originated from the Commissioners of Tourism, Kenneth
regional performances, according to Regis- market. In 2023, travel among Caribbean Bryan, who also serves as the Cayman
Prosper, with the Caribbean surpassing residents to destinations within the region Islands’ Minister of Tourism and Ports,
pre-pandemic arrivals by a modest 0.8%, increased by approximately 3.6%, a total noted the remarkable resilience of the
outperforming most of the main global of 1.6 million trips, which was 0.3 million tourism industry and its ongoing recovery
regions in terms of recovery. more compared to 2022. This also indicated and growth in 2023. However, he
“Based on preliminary data provided a recovery of 62.5% from pre-pandemic emphasized that the industry and the region
so far by the destinations in the Caribbean, levels. will continue to face an array of challenges,
tourist visits were approximately 32.2 “Despite this positive outcome, intra- including the high cost of travel, ongoing
million – about four million more than in regional travel remained expensive due conflicts, heightened geopolitical tensions,
2022,” stated Regis-Prosper, who noted to fragmented air service and reduced air and their anticipated impacts, in 2024.
that the data showed that each month’s capacity,” said Regis-Prosper. By the end “Caribbean destinations remain
arrivals exceeded those of 2022 thus of the year, trips from South America to adaptable and responsive, and the region
establishing a continuous growth trend the region surged by an estimated 14%, is still highly desired by travelers for its
over the past 33 months as tourism steadily totaling 1.7 million trips. safety and diversity of tourism products,”
rebounded toward pre-pandemic levels. stated Chairman Bryan, adding that the
Arrival levels amongst Caribbean Caribbean Hotel Performance region will also be positively impacted
destinations either significantly recovered The Caribbean hotel sector by key developments in 2024, including
or moderately exceeded the benchmark experienced a remarkable turnaround increased air capacity throughout the year,
numbers of 2019, with 11 destinations, in 2023, including a surge in the which will facilitate greater access between
Anguilla, Aruba, Curaçao, Dominican establishment of new hotels and resorts. the destinations and some of their legacy
Republic, Grenada, Guyana, Jamaica, According to STR, throughout the and emerging markets.
Puerto Rico, St. Maarten, Turks & Caicos Caribbean, average room occupancy grew “The Caribbean’s prospects appear
Islands, and U.S. Virgin Islands performing to 65.6% in 2023 from 61% in 2022. The highly promising, with more regional
better than in 2019. The majority of those average daily rate (ADR) experienced a destinations poised to either match or
recovered greater than 50% of their 2019 considerable increase of 11.8% with the surpass the arrival figures recorded in 2019.
arrivals. In addition, multiple destinations region’s ADR reaching US$329.37 while Anticipated growth is forecast to range
registered new record levels for tourist the revenue per available room (RevPAR) between five percent and 10%, potentially
arrivals in a single year. jumped 20.2% to US$215.97. welcoming between 33.8 million and 35.4
million stay-over tourists,” concluded
United States and Canada Markets Cruise Tourism Performance Chairman Bryan.
For the Caribbean, only the U.S. Preliminary data for 2023 showed
market has fully recovered, while the that Caribbean destinations received

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