Caribbean tourism faces ‘moderate’ growth this year amid geopolitical uncertainty

The Caribbean tourism sector outperformed pre-Covid levels for the second consecutive year in 2024, continuing “robust recovery and expansion”.

International tourist arrivals rose 6.1% over 2023 to reach an estimated 34.2 million, according to a new report from the Caribbean Tourism Organisation (CTO). 

This represented a 6.9% rise above pre-pandemic levels, marking the second consecutive year that the region has outperformed the 2019 benchmark. 

However, growth is projected to be “more moderate” in 2025 due to economic and geopolitical uncertainties.

The Caribbean tourism performance review showed that the US remained the top source market last year, with approximately 16.8 million arrivals, a 3.5% increase from 2023 and 7.9% above pre-pandemic levels. 

Canadian arrivals reached 3.3 million, a 4% increase compared to 2023, though still slightly below 2019 levels. 

But European arrivals showed slower growth, up just 1.4% to 5.3 million, representing 89.4% of 2019 levels. 

South America saw the highest growth in 2024, with arrivals reaching two million by the end of the year, marking a 17.8% increase. This growth led to a 19.7% rise compared to 2019’s arrivals

The Caribbean cruise industry experienced a “significant rebound”, with 33.7 million cruise visits in 2024, a 10.3% increase over 2023, and  10.9% up on pre-pandemic levels.

Meanwhile, the hotel sector also performed strongly, with occupancy rates reaching 66.6%, a 0.8% increase from the previous year, and the Average Daily Rate (ADR) increasing by 4.2% to $437.02, according to the data.

CTO research director Aliyyah Shakeer said: “Tourism in the Caribbean is expected to continue growing in 2025. However, due to prevailing economic uncertainties and slowdowns in major source markets during the first quarter of the year, the pace of growth is projected to be more moderate than earlier forecasts suggested.” 

The CTO now anticipates that overnight visitor arrivals will increase by 2%-5%, reaching approximately 35 million. The outlook for the cruise sector remains positive, with cruise arrivals expected to grow by 5% to 7%, approaching 36 million visitors. 

CTO secretary-general Dona Regis-Prosper added: “The Caribbean’s continued growth is a testament to the strength of our regional collaboration and the enduring appeal of our destinations.

“Despite geopolitical uncertainty and global economic challenges, our sector has shown remarkable resilience. 

“To maintain this momentum, we must double down on strategic investments, innovative partnerships, and sustainable practices that protect our people, our culture and our environment. The future of Caribbean tourism is not only bright – it is ours to shape.”