After the euphoria that dominated most of the post-pandemic period for the Caribbean hotel industry, 2025 has been a turbulent year.
According to recent reports, tourist arrivals have increased by about 2.5%. Caribbean Tourism Board data.
For example, data from STR shows hotel occupancy rates have declined nearly all of last year. In fact, hotel occupancy rates have decreased for nine consecutive months since March 2025.
And even many local observers seemed to suggest that it might not be quite as hot this year.
Then something happened under the radar in December.
In particular, I remember that Barbados’ Grantley Adams International Airport had an unusually busy day even in mid-December before the festival season began.
Then we discovered that hotel occupancy rates in the Caribbean bucked the trend in December and increased by 0.9%. In other words, it was a positive area.
And then things started to heat up.
what we are seeing
hotel occupancy It was 71.4% in January, an increase of 1.5% compared to January 2025. What about next month? 76.5%, up 2.6%. And last month, March 2026, hotel occupancy was 79%, up 6.5% from the same period last year and higher than any month in 2025. And it was higher than any month in 2024. It was higher than 2023 and 2022.
That is, in March really, really It’s a good month for Caribbean hotels and the roughly 2,000 hotels included in STR’s data survey.
And this is borne out in some of the numbers from the Caribbean region, which reported first quarter data.
that cayman islandsFor example, we saw great results this year, with visits increasing by more than 10% in February alone. Jamaica welcomed more than 1 million visitors in the first quarter (although unfortunately the island rarely shares the distinction between cruises and staycations).
Barbados also has very high numbers.
What this means is that something has changed noticeably in Caribbean travel, and overall the data points to a very good start to the year.
What is changing?
So what has actually changed? I think it’s a few factors. Clearly, traveler demand began to increase in December. This reflects the Caribbean romance we saw in the early days of the post-COVID-19 boom.
cuban effect
Another big change? Canadian market and cuba. Canada has been the number one source market for Cuban tourism for many years. If you’ve been following the situation in South Florida, you’ll know that Canadian airlines suspended flights to Cuba in early February. That’s because Cuba had little or no jet fuel to return home.
But demand for Canadian travel certainly hasn’t gone away, and Canadians have shifted their travel to other destinations across the Caribbean. Returning to the Cayman example, the Cayman Islands have seen double-digit increases in Canadian travel over the past four months, a trend evident in other Caribbean destinations as well.
Same with Mexico
What happened? Puerto Vallarta February certainly scared off many travelers who were considering visiting Mexico, and the reluctance to visit Mexico has continued since then, with travelers still intimidated by perceptions of crime. For years, the Mexican Caribbean has remained an international favorite of American travelers (just look at all the new flights they keep adding to Cancun), and now travelers looking for an alternative that’s equally tropical and equally easy to get to.
What else is happening?
The war in Iran has forced travel closer to home for security and price reasons. Flights are more expensive overall, with short-haul flights obviously cheaper than long-haul flights. in other words
All this makes for a lucrative cocktail for the Caribbean. This should instill confidence in the region as the second quarter continues. Hotels and destinations that aren’t seeing that kind of growth are simply go out there and go out — It’s not because travel has stopped. It’s a matter of hard work, storytelling, and good old-fashioned marketing.
Travelers are looking for their next vacation, and now is the time for Caribbean people to take advantage.
