The Caribbean tourism industry experienced a strong performance in 2024, with revenue growth, expanding visitor markets, and increased investments driving positive results across the region. According to the Caribbean Hotel & Tourism Association (CHTA), businesses in the hospitality and tourism sector navigated challenges such as rising operational costs, labor shortages, and inflation, yet most still reported profitability. The industry’s resilience, strategic investments, and growing traveler demand have positioned the Caribbean for further success in 2025, with stakeholders expressing confidence in continued expansion and development.
A key highlight of 2024 was the region’s ability to maintain revenue growth despite economic pressures. Many businesses adjusted pricing strategies by raising room rates and increasing food and beverage offerings to offset rising expenses. This approach proved effective, with 65% of businesses reporting increased revenue. Additionally, tourism establishments benefited from a surge in visitor arrivals, driven primarily by travelers from the United States, the United Kingdom, Canada, and intra-Caribbean tourism. While high taxes and inflation continued to pose challenges, businesses remained adaptive, leveraging tax incentives and other financial mechanisms to sustain operations and invest in infrastructure improvements.
Workforce expansion played a crucial role in the industry’s progress. Nearly half of the surveyed businesses reported hiring more staff in 2024, and over one-third plan to expand their workforce further in 2025. However, recruitment challenges persisted, particularly for specialized positions such as chefs and engineers. The labor market struggles prompted businesses to explore training initiatives and workforce development programs aimed at bridging skill gaps and ensuring long-term employment stability in the tourism sector.
Investment in infrastructure remained a priority for many tourism operators, with 62% of businesses reporting increased capital expenditures. Renovation and development projects were largely supported by tax incentives, with 59% of businesses utilizing these benefits to upgrade properties, while 24% allocated funds for new developments. These investments were critical in enhancing visitor experiences and sustaining the Caribbean’s reputation as a premier travel destination. Many industry leaders emphasized that such projects would not have been feasible without government-backed incentives, reinforcing the importance of policy support in fostering tourism growth.
Despite the overall positive trajectory, profitability challenges continued to affect a segment of the industry. Approximately one-third of tourism businesses reported net losses in 2024, primarily due to escalating operating costs. High energy prices, supply chain disruptions, and inflationary pressures contributed to the financial strain. However, most stakeholders remain optimistic about 2025, with expectations of increased revenue, stronger workforce development, and further investments in destination marketing and infrastructure.
Industry sentiment remains overwhelmingly positive, with 98% of surveyed businesses expressing confidence in the sector’s future. Caribbean tourism leaders recognize the importance of adaptability, innovation, and collaboration in ensuring sustained growth. CHTA CEO Vanessa Ledesma emphasized the industry’s resilience, stating that despite economic uncertainties, strategic investments and a commitment to service excellence continue to make the Caribbean one of the world’s most sought-after travel destinations. As the region looks ahead to 2025, stakeholders are prepared to build on the successes of the past year while addressing ongoing challenges to secure a prosperous future for the tourism industry.
