The Caribbean is a very popular travel destination, known for its warm weather, great beaches, countless activities and superb nature. But this doesn’t mean the area is not struggling during the economic crisis.
This article from Hospitality.net presents the travel industry index based on the Smith Travel Research database which comprises more than 2,250 hotels with some 238,000 rooms in the Caribbean.
Compared to October 2008, this year occupancy declined 5.1%. The average daily rate fell by 15.6% which pushed down the revenue per available room (RevPAR) by almost 20%. New hotels didn’t open this year so the fall in occupancy was triggered only by decreased demand.
According to the Caribbean Tourism Organization, the majority of tourists visiting the area are from the United States, Europe and Canada. The peak occupancy months are February to April, coinciding with the peak travel season in the Caribbean and the bad winter weather in the above mentioned areas.
As the markets in the United States, Europe and Canada started to see minor improvements in September and October, so did the demand for hotel rooms in the Caribbean. Compared to September 2008, this year the demand increased by 5.7% while in October it only rose by 1% (compared to October 2008). RevPAR also saw an increase in September 2009 and October 2009 (0.5% and 6.8% respectively).
Compared to last year, in October 2009, the RevPAR declined the most in the Bahamas (-17.7%) and Puerto Rico (-17.1%) while Aruba saw a decrease of 13%. The Bahamas also experienced the biggest occupancy decline (-11.2%).
What does the future hold?
The Caribbean area should see a rise in tourism as the economies in the United States, Europe and Canada gain momentum. When the economies are starting to get out of the crisis, travelers are most likely to book vacations.
However, in Europe, the hotel prices continued to fall in December (by 8%). Compared to November 2009, the prices have decreased by 4%. Many European cities decided to attract travelers to celebrate Christmas by decreased the hotel rates. Milan, Venice and Barcelona are very good examples. On the other hand, the cities where traditional Christmas Markets were held saw an increase in room rates.
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