CARIBBEAN COMEBACK: Canadians play part in region’s recovery, and what’s in store for ‘24

Canadian arrivals numbers to the Caribbean reached 88.1 percent of pre-pandemic levels in 2023. And with an estimated three million tourist visits by the end of the year, the performance of Canada represented a whopping 46.1 percent increase over 2022, according to the Caribbean Tourism Organization.

The CTO attributed the return of service from major Canadian cities to Caribbean destinations as playing a pivotal role in driving up visitor numbers.

Overall, and continuing its positive recovery trend, Caribbean tourism grew in 2023 with an estimated 14.3% increase in international stay-over arrivals to the region over the previous year – and 0.8% over 2019 – according to the just-released “Caribbean Tourism Performance Review 2023.”

Leading the way, the US was the only market to fully recover, and indeed grow, in 2023, surpassing 2019 levels by 4.2% and setting an all-time record of 16.3 million stay-over arrivals to the region.

Europe also continued to improve, reaching 88.2% of pre-pandemic levels.

Dona Regis-Prosper, Secretary-General of the CTO, shared that last year’s growth was in line with CTO’s forecast for the year.

“Based on preliminary data… tourist visits were approximately 32.2 million – about four million more than in 2022,” she stated, noting that the data showed that each month’s arrivals exceeded those of 2022, thus establishing a continuous growth trend over the past 33 months as tourism steadily rebounded toward pre-pandemic levels.

Arrival levels among Caribbean destinations either significantly recovered or moderately exceeded the benchmark numbers of 2019, with 11 destinations – Anguilla, Aruba, Curaçao, Dominican Republic, Grenada, Guyana, Jamaica, Puerto Rico, St. Maarten, Turks & Caicos Islands, and US Virgin Islands – performing better than in 2019. The majority of those recovered greater than 50% of their 2019 arrivals. In addition, multiple destinations registered new record levels for tourist arrivals in a single year.

Caribbean hotel performance

The Caribbean hotel sector experienced a remarkable turnaround in 2023, including a surge in the establishment of new hotels and resorts. According to STR, throughout the Caribbean, average room occupancy grew to 65.6% in 2023 from 61% in 2022. The average daily rate (ADR) experienced a considerable increase of 11.8% with the region’s ADR reaching US$329.37 while the revenue per available room (RevPAR) jumped 20.2% to US$215.97.

Cruise tourism performance

Preliminary data for 2023 showed that Caribbean destinations received an estimated 31.1 million cruise visits, reflecting an increase of 11.3 million visits or 56.8% compared to 2019. This level established a new record for the regional cruise sector, surpassing the previous record of 2019 by 2.4%. Pent-up demand and the resumption of operations drove strong bookings for Caribbean cruises, along with improvements in cruise infrastructure such as larger ships, enhanced facilities, itineraries, and shore excursions.

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. This anticipated expansion falls within the range of 10% and 15%.

2024

CTO Chairman Kenneth Bryan (Cayman Islands) said prospects for 2024 were “highly promising,” with growth forecast to range between 5 and 10%, potentially welcoming between 33.8 million and 35.4 million stay-over tourists, which would fully surpass pre-pandemic levels.

However, he emphasized that the industry and the region will continue to face an array of challenges, including the high cost of travel, ongoing conflicts, heightened geopolitical tensions, and their anticipated impacts, in 2024.

But, he added, “Caribbean destinations remain adaptable and responsive, and the region is still highly desired by travelers for its safety and diversity of tourism products, including its culture and heritage, such as carnivals and festivals.

He noted that the ICC (International Cricket Council) Men’s T20 World Cup 2024 is being hosted in several destinations bringing not only teams but also their loyal followers to the region and further raising awareness and promoting the diverse offerings of Caribbean destinations to global audiences.