Caribbean Tourism Industry Achieves Remarkable Success in despite High taxes and inflation – Travel And Tour World

Thursday, March 20, 2025
The Caribbean Hotel & Tourism Association (CHTA) has published its annual Caribbean Tourism Industry Performance & 2025 Outlook Report, showcasing impressive revenue growth, expanding visitor bases, and ongoing investment in the region’s tourism sector. While businesses face increasing operating costs, labor shortages, and profitability hurdles, most reported positive earnings, reflecting resilience and optimism about the industry’s future. This report, based on a survey of tourism businesses from 20 Caribbean destinations, offers an in-depth analysis of 2024’s industry performance and forecasts for the upcoming year. It covers critical trends, including revenue increases, shifts in the labor market, rising operational expenses, and investment developments, providing valuable insights into how businesses are adapting to challenges and seizing growth opportunities.
Key Insights from 2024

Revenue Surge Amidst Rising Expenses – 65% of businesses increased room rates to combat growing costs, with 57% also reporting a boost in food and beverage revenue.
Workforce Growth with Recruitment Obstacles – 47% of businesses expanded their workforce in 2024, and 36% intend to hire more in 2025. However, 73% faced challenges in hiring specialized roles like chefs and engineers.
Investment in Infrastructure – 62% of businesses raised capital spending, with 59% utilizing tax incentives for renovations and 24% for new developments. Over half of those benefiting from these incentives stated that such investments would not have been possible without them.
Expanding Source Markets – The U.S. remained the largest source market, with significant growth also seen from the U.K., Canada, and intra-Caribbean travel.
Profitability Struggles Persist – Despite overall positive performance, one-third of businesses reported net losses, mainly due to rising operational costs.
Ongoing Industry Challenges – High taxes and inflation continue to impact businesses, with 87% reporting higher operating costs and 52% noting increases that exceeded inflation rates.

Looking Ahead to 2025
The outlook for the industry remains overwhelmingly positive, with 98% of respondents expressing confidence in the sector’s future. Businesses expect continued revenue growth, driven by strong demand from visitors, ongoing capital investments to upgrade properties and destinations, and a focus on workforce development and destination marketing.
The annual survey, conducted since 2014, offers valuable insights and benchmarks to CHTA, national hotel and tourism associations, governments, and industry stakeholders, assisting them in tracking progress and informing strategic decisions.

Share On:

Tags: caribbean destinations, caribbean tourism, Tourism Challenges