Caribbean tourism continued its steady recovery in 2025, with international stay-over arrivals rising 2.5% to an estimated 35 million visits, according to the Caribbean Tourism Organization.
The increase — approximately 900,000 more visitors than in 2024 — pushed arrivals beyond pre-pandemic 2019 levels, underscoring the region’s ongoing recovery despite global economic uncertainty, geopolitical tensions and weather-related disruptions, including the passage of Hurricane Melissa.
“Caribbean tourism in 2025 demonstrated continued resilience and adaptability even as the global landscape presented a number of challenges,” said Aliyyah Shakeer. “Strategic investments in tourism infrastructure, sustained marketing efforts, and incremental gains in airlift connectivity helped support growth and maintain the region’s competitiveness.”
Uneven but Positive Growth
Tourism performance varied throughout the year. The first quarter recorded a slight contraction of 0.3%, reflecting early-year uncertainty. However, arrivals rebounded in the second and third quarters, with growth of 5% and 5.6%, respectively.
The fourth quarter remained stable, posting marginal growth of 0.2% as momentum softened toward year-end.
Monthly arrivals ranged between 2.1 million and 3.5 million visitors, with peak travel periods occurring in March, July and December. Notably, every month in 2025 exceeded corresponding 2019 levels, highlighting the strength of the region’s post-pandemic recovery.
Destination performance was mixed. Strong growth was recorded in Guyana, Dominica, St. Vincent and the Grenadines and Curaçao, supported by product development and diversification efforts.
Some destinations, however, experienced declines due to economic pressures, airlift constraints and localized disruptions. Despite this, most Caribbean destinations have now surpassed pre-pandemic benchmarks.
Source Markets Show Mixed Results
The United States remained the Caribbean’s largest source market, with arrivals increasing 0.5% to approximately 17 million visitors. Demand remained relatively stable but uneven across the year.
Arrivals from Canada declined 5.3% to an estimated 3.1 million visitors, remaining below pre-pandemic levels as higher travel costs and competition from other destinations influenced travel patterns.
Similarly, arrivals from Europe decreased 3.3% to about 5.1 million visitors, with recovery continuing at a slower pace.
In contrast, South America recorded the strongest growth, with arrivals increasing 23.7% to 2.4 million visits, supported by improved air connectivity and targeted marketing initiatives.
Intra-regional travel also improved modestly, increasing 5.1%, though limited air connectivity and high travel costs continued to constrain stronger growth.
Hotel Sector Posts Mixed Performance
The Caribbean hotel sector recorded mixed results in 2025, according to CoStar.
Average room occupancy declined slightly to 63.7%, down from 65% in 2024. However, the Average Daily Rate increased 2.1% to $350.37, while Revenue Per Available Room rose 0.8% to $223.12.
Performance varied across destinations, reflecting uneven demand patterns and local market conditions.
Cruise Tourism Continues Strong Growth
Cruise tourism maintained strong momentum, with total cruise visits increasing 5.2% to an estimated 35.5 million visits — a 16.7% increase compared with 2019 levels.
The Bahamas remained the region’s leading cruise destination, recording a record 10.7 million visits.
Growth in cruise tourism was supported by expanded itineraries, increased fleet capacity and improvements to port infrastructure across the region.
2026 Outlook Remains Cautiously Optimistic
Looking ahead, the Caribbean tourism sector is expected to shift toward more moderate but stable growth.
Shakeer said strengthening air connectivity, particularly intra-regional travel, improving tourism offerings and diversifying source markets will be critical to sustaining long-term growth.
The CTO projects stay-over arrivals will increase between 3% and 4% in 2026, while cruise tourism is expected to grow between 5% and 7%.
“Caribbean tourism continues to demonstrate its resilience in the face of evolving global conditions, but this is no time for complacency,” said Dona Regis-Prosper. “By strengthening collaboration, enhancing air connectivity and advancing responsible tourism practices, we can ensure long-term growth that benefits our people and economies.”
Regis-Prosper added that the Caribbean remains well-positioned as a highly desirable destination, supported by diverse tourism offerings, strong brand appeal and continued commitment to sustainable tourism development.
