Despite mixed performance across destinations and in the hotel sector, local weather-related disruptions and a global environment of heightened geopolitical tension, Caribbean tourism continued to grow overall in 2025, according to recent data from the Caribbean Tourism Organization (CTO).
The region’s tourism development agency reported that travel demand remained steady throughout most of the year, with a slight contraction of 0.3% in the first quarter. Compared to 2024, 900,000 more tourists visited the Caribbean on an international stayover basis — once again surpassing 2019 levels. Arrivals peaked during the traditional high-demand periods of March, July and December.
Across locales, arrival numbers were uneven. Some destinations experienced contractions due to capacity, local disruptions or external economic pressures, but strong growth was recorded in Guyana, Dominica, Curacao and St. Vincent and the Grenadines. The CTO attributes this to ongoing product development and market diversification efforts.
“Caribbean tourism in 2025 demonstrated continued resilience and adaptability even as the global landscape presented a number of challenges,” said Aliyyah Shakeer, the agency’s director of research. Shakeer pointed to investments in tourism infrastructure, sustained marketing initiatives and improvements in air connectivity as key reasons for the region’s continued growth.
Source Markets: U.S. and South America Remain Strong
With a 0.5% increase to approximately 17 million visitors, the United States remained the Caribbean’s largest source market. Despite relatively stable demand across the region, uneven month-to-month performance indicated more cautious consumer behavior. Comparatively, Canadian arrivals declined 5.3%, reflecting higher travel costs and increased competition from alternative destinations. Annual arrivals from Europe also declined by 3.3%
The strongest-performing source market was South America, which saw a 23.7% increase in arrivals to 2.4 million visits. The CTO attributes this sizable market growth to improved air connectivity, targeted marketing and rising outbound demand. Within the Caribbean, intra-regional arrivals increased by 5.1%.
Uneven Performance in the Hotel Sector
Despite the region’s overall growth in international stayover arrivals, the region’s hotel sector experienced a slight 1.3% decline in room occupancy, but average daily rate and revenue per available room experienced modest increases, according to CoStar. Generally, performance varied across the region, reflecting uneven demand.
Cruising Continues to Shine
In 2025, the Caribbean’s cruise sector experienced a 5.2% increase in total cruise visits, resulting in an estimated 35.5 million unique visitors. Compared to 2019, this is a 16.7% increase, confirming that the sector has fully recovered from the pandemic and continues to expand.
Though cruise activity grew throughout the year, fourth quarter performance was particularly strong, with the Bahamas remaining the leading destination in the region, totaling a record 10.7 million visits. The CTO attributes this growth to expanded itineraries, fleet capacity and improved port infrastructure.
Regional Outlook: “Cautiously Optimistic"
As global travel patterns normalize, the CTO is “cautiously optimistic” about the Caribbean’s overall tourism outlook. The agency predicts that the region will transition into a phase of more moderate, stable growth, with stayover arrivals increasing by 3%-4% in 2026 — growth supported by steady demand from North America and continued expansion into other source markets. Cruise tourism is projected to grow anywhere from 5%-7%, though ongoing uncertainties in the realm of economic conditions and geopolitical stability may influence travel demand.
“This is no time for complacency,” said Dona Regis-Prosper, CTO secretary-general & CEO. “By strengthening collaboration, enhancing air connectivity and advancing responsible tourism practices, we can ensure long-term growth that benefits our people and economies.”
