The Caribbean Hotel & Tourism Association (CHTA) has released its annual "Caribbean Tourism Industry Performance & 2025 Outlook Report," highlighting strong revenue growth, expanding visitor markets and continued investment in the region’s tourism sector. Despite rising operating costs, labor shortages and profitability challenges, most businesses reported profits, demonstrating resilience and confidence in the industry's future.
The report, based on a survey of tourism businesses across 20 Caribbean destinations, provides a comprehensive look at the industry’s performance in 2024 and expectations for the year ahead. It explores key trends such as revenue growth, labor market shifts, rising operational costs and investment activity, offering insights into how businesses are navigating challenges and capitalizing on opportunities.
Key Findings from 2024
- Revenue Growth Amid Rising Costs: 65 percent of businesses raised room rates to offset increasing expenses, while 57 percent saw higher food and beverage revenue.
- Workforce Expansion with Hiring Challenges: 47 percent of businesses expanded their workforce in 2024 and 36 percent plan to hire more in 2025. However, 73 percent reported difficulty recruiting specialized staff such as chefs and engineers.
- Investment in Infrastructure: 62 percent of businesses increased capital expenditures with 59 percent using tax incentives for renovations and 24 percent for new developments—investments that more than half of recipients said would not have been possible without these incentives.
- Growing Source Markets: The U.S. remained the top source market for the region with strong growth from the U.K., Canada and intra-Caribbean travel.
- Profitability Challenges Persist: While the industry showed strong overall performance, one-third of respondents still reported a net loss, largely due to rising operating costs.
- Industry Challenges: High taxes and inflation continue to put pressure on businesses with 87 percent reporting rising operating costs and 52 percent seeing increases that outpaced inflation.
Looking Ahead to 2025
Industry sentiment remains overwhelmingly positive, with 98 percent of respondents confident in the sector’s trajectory. Businesses anticipate continued revenue growth, driven by strong visitor demand, continued capital expenditures to upgrade properties and destinations and ongoing investments in workforce development and destination marketing.
The annual survey has been conducted since 2014, providing CHTA, national hotel and tourism associations, governments, and tourism stakeholders with insights and benchmarks to help gauge their progress and guide decision-making.
Source: CHTA
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