Beautiful Virgin Islands

Tuesday, Nov 25, 2025

Caribbean resorts now seeing big drops in RevPAR, occupancy

Caribbean resorts now seeing big drops in RevPAR, occupancy

Although large swaths of the Caribbean's tourism sector remained relatively strong this past summer, a recent steep decline in hotel RevPAR and occupancy throughout the region could signal longer-term trouble going forward.

According to data from STR, hotel occupancies across the Caribbean began dropping in April and continued to steadily slip through the summer.

In August, overall occupancies in the region fell 5.6% from the same period last year, to 62.5%. Likewise, Caribbean RevPAR started trending downward in June and July, eventually falling 5.3%, to $112.54 for August.

"Room supply in the Caribbean continues to grow at around 3% [year-to-date], which is certainly healthy," said Jan Freitag, STR's senior vice president of lodging insights. "But that growth is happening while demand is weakening, and that then translates into occupancy declines. And if there are occupancy declines, we normally see rate growth get hit. Still, this is a market-by-market situation, and not everyone in the Caribbean is being impacted the same way."

Among the destinations hit hardest by slowing demand is the Dominican Republic, which was left reeling this summer after a spate of tourist deaths there led to a steep drop-off in bookings. In June, following widespread media coverage of the incidents - which many consumer media labeled "mysterious," even though most were quickly found to have been due to natural causes - STR reported that hotel occupancies in the Dominican Republic plummeted 12.7%, to 66.6%.

Occupancies dropped further in July and August, down 20% and 16.2%, respectively, while August RevPAR in the D.R. dipped nearly 26%, to $69.82.

Frank Comito, CEO and director general of the Caribbean Hotel and Tourism Association (CHTA), said, "The D.R. has seen a drop in RevPAR and ADR, which hopefully they can get back up. If one of the [market] leaders is having to discount in order to bring back business that they've lost, that's not good for the entire region. But typically, when we see a destination have some unfortunate publicity like this, the impact lasts for several months, and then it actually starts rebounding rigorously."

According to Julie Banning, a travel advisor with New York-based Embark, the Dominican Republic is primed to bounce back, and the bad press appears to be petering out.

"I don't think this is going to affect the D.R. in the long term," Banning said. "Our clients feel confident when they travel to the five-star resorts there, and we have a lot of repeat travelers who want to continue going to the D.R. And nowadays, when you look at the news, where did that story go? Everyone seems to have moved on. I think we'll see the numbers going back up this winter."

A rebound in the D.R. alone, however, might not be enough to solve the Caribbean's hotel occupancy problems. Cuba and Puerto Rico also saw summer business slow, with the former impacted by the Trump administration's travel restrictions and the latter facing lingering challenges following 2017's Hurricane Maria.

"There's still this image out there that Puerto Rico is recovering from the hurricane," Banning said. "Some people still think there's devastation, when that's not true."

For August, Cuba's occupancy slipped 13.1%, to 50%, and RevPAR in the market dropped 31.5%, to $31.77, according to STR. Concurrently, Puerto Rico's occupancy was down 4.3%, to 68.1%, and RevPAR fell 3.3%, to $123.12.

Meanwhile, the fact that traveler misconceptions continue to plague Puerto Rico certainly doesn't bode well for the Bahamas, which just last month was battered by Hurricane Dorian.

But while the vast majority of the Bahamas was spared any significant damage - with destruction largely limited to Grand Bahama and the Abaco Islands -- both Banning and Comito expressed concern about post-storm consumer perceptions.

"Only 20% of the Bahamas has been impacted," Comito said, "but the rest of the country is still dealing with the perception that they've been affected."

Threatening to further exacerbate the region's woes is the demise of tour operator Thomas Cook, which abruptly ceased operations in late September. Although the company's German airline, Condor, has remained in business with the help of a government-backed loan, the group's collapse is expected to hamper European lift to the Caribbean.

Sue Springer, director for corporate and government relations at London-based trade and investment consultancy the Caribbean Council, estimated that Thomas Cook accounted for 62% of all Caribbean flights from Germany and roughly 10% of Caribbean flights from the U.K.

Comito listed Barbados, St. Lucia, Jamaica, Cancun and the D.R. as destinations most likely to be impacted.

"We were expecting 400,000 visitors during the remainder of the fall season and winter season via Thomas Cook, and that includes Condor [business]," he said. "However, the German government bailing Condor out will protect a good portion of that business, around 60% of that 400,000."

Comito said he is optimistic that the gap left by Thomas Cook will soon be filled, with the CHTA working to attract tour operators and "find alternative ways to meet" existing European demand.

He also remains optimistic about the Caribbean as a whole, pointing to positive trends in Turks and Caicos, Aruba, Anguilla and Barbados as well as an improving outlook for Cancun, where issues surrounding higher-than-usual levels of sargassum appear to be subsiding.

"I wouldn't say there are any yellow flags for the whole region yet at this point," Comito said. "Out of the 16 destinations reporting for August, nine of them were up on occupancy, and seven were down. Assuming we don't see an acceleration of any kind of global economic downturn, growth in demand has kept up with supply, and we're hopeful that will continue.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
UK Records Coldest Night of Autumn as Sub-Zero Conditions Sweep the Country
UK at Risk of Losing International Doctors as Workforce Exodus Grows, Regulator Warns
ASU Launches ASU London, Extending Its Innovation Brand to the UK Education Market
UK Prime Minister Keir Starmer to Visit China in January as Diplomatic Reset Accelerates
Google Launches Voluntary Buyouts for UK Staff Amid AI-Driven Company Realignment
UK braces for freezing snap as snow and ice warnings escalate
Majority of UK Novelists Fear AI Could Displace Their Work, Cambridge Study Finds
UK's Carrier Strike Group Achieves Full Operational Capability During NATO Drill in Mediterranean
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
UK Inflation Eases to 3.6 % in October, Opening Door for Rate Cut
UK Accelerates Munitions Factory Build-Out to Reinforce Warfighting Readiness
UK Consumer Optimism Plunges Ahead of November Budget
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
×