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Caribbean Tourism Performance Scores High Marks Despite The Pandemic

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Adaptability, flexibility and collaboration essential for Caribbean success, reports CHTA exec

September 9, 2021 – Despite daunting challenges presented over the past 18 months by the COVID-19 pandemic, the Caribbean tourism and hospitality industry recorded many significant successes, and data points to an encouraging outlook ahead.

Speaking during the opening plenary session at the Caribbean Hotel & Resort Investment Summit (CHRIS) held last week, Acting CEO & Director General of the Caribbean Hotel & Tourism Association (CHTA) Vanessa Ledesma presented insights on the performance and outlook of the Caribbean tourism industry.

The pandemic’s impact on the travel and tourism industry globally has been severe, resulting in the loss of millions of jobs worldwide.

The World Travel & Tourism Council’s annual Economic Impact Report indicates that the pandemic delivered a blow of $33.9 billion in lost revenue to the Caribbean’s travel and tourism sector, lowering the sector’s contribution to GDP by 58 percent, higher than the global average. Some 680,000 tourism-related jobs were lost, representing nearly one-fourth of all jobs in the sector.

According to CHTA’s Data Partner ForwardKeys, the Caribbean outperformed its global counterparts in terms of international arrivals in July 2021 relative to July 2019, experiencing an overall decline of 13.2 percent compared to other regions, which suffered losses ranging from 21 percent (Central America) to 85.5 percent (Asia Pacific). The U.S. Virgin Islands and Puerto Rico were the top performing Caribbean destinations, with arrivals up by 106.3 percent and 39.7 percent, respectively.

Recognizing the impact which the COVID-19 delta variant (first detected in India) is now having on global travel and the fact that global competition has increased as more destinations have opened up to travel since March, weekly ticket sales for future travel to the Caribbean from the United States have slowed in recent weeks.

Although confirmed tickets for travel to the Caribbean during the coming months are down slightly, some destinations, including Puerto Rico, Jamaica, the Dominican Republic, Aruba and The Bahamas, are experiencing levels ahead of those recorded prior to the pandemic. Ledesma confirmed that these findings are not surprising given expanded airline routes from major U.S. markets and strong load factors from North America.

In response to the public health crisis, Caribbean tourism leaders are seizing the opportunity to stimulate policy discussions on how best to support the return of airlift to the region. With an initial focus on intra-regional travel, stakeholders are examining the feasibility of reducing aviation taxes and airport charges, fostering better market access and increasing regulatory harmonization across the region.

“We are particularly pleased to see the initiatives being taken by Prime Minister Gaston Browne from Antigua and Barbuda, Prime Minister Mia Mottley from Barbados, and Prime Minister Ralph Gonsalves from St. Vincent and the Grenadines who are looking to stimulate travel within the region with policy initiatives which can reduce the cost of travel,” noted Ledesma.

Ledesma also shared several industry-specific key performance indicators that confirm strong demand for travel to the Caribbean but also suggest the road to full recovery will be a long one. For example, although year-to-date Average Daily Rates for hotel stays in North America recorded in July 2021 are highest in the Caribbean, Occupancy Rates were higher in the United States and Mexico. Among Caribbean destinations with the highest Revenue Per Available Room (RevPAR) for July 2021 year-to-date, the U.S. Virgin Islands and Puerto Rico are the only two destinations showing an increase for 2021 compared to the same period in 2019; not surprisingly, RevPAR for the Caribbean overall fell significantly from 2019 to 2021.

Barring any potentially negative travel trends resulting from new coronavirus spikes or outbreaks, the CHTA leader pointed to several encouraging indicators that suggest the region’s bread-and-butter industry is well poised for a strong rebound. Comparing June 2020 to June 2021, Occupancy Rates in the Caribbean increased from 13.5 percent to 48.2 percent, reflecting the pent-up demand for travel to the region; comparing July 2020 to July 2021, rates rose from 19.5 percent to 53.6 percent.

According to CHTA’s Strategic Partner STR, as of July 2021, destinations with the highest Occupancy Rates in the region were: Aruba (82.6 percent), Puerto Rico (81.2 percent), Turks & Caicos (79.6 percent), Cancun (74.4 percent) and Curaçao (71.7 percent).

Drawing on research from CHTA Strategic Partner Mastercard, Ledesma shared findings which revealed that consumers are increasing their spend in destination, as well as their length of stay.

She credited the trade association’s unique health-and-tourism partnership with the Caribbean Public Health Agency (CARPHA) and the Caribbean Tourism Organization (CTO) with being instrumental in promoting effective health safety prevention and mitigation efforts.

Moving forward, the Caribbean’s recovery strategies and actions will continue to include: advancing health safety initiatives, building trade and traveler confidence, advancing better tour operator policies, advancing regional collaboration to support tourism’s recovery, making the case for travel with key international markets, and advocating for jurisdictional and regional policies supporting recovery.

For the region’s tourism and hospitality industry to experience a robust recovery, the CHTA executive believes that increased governmental support to address rising operational expenses is needed, together with effective communications and public relations, a strong focus on health and safety, a commitment to investing in the region’s human resources, partnership and collaboration, and improved efficiencies.

 

Photo Caption: From left: Federico Moreno-Nickerson of Apple Leisure Group, Vanessa Ledesma and Alexis Capellades of CHTA, and Bill Clegg of Best Western Hotel Group at the CHRIS meeting in Miami last week.

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Royal Caribbean Group and Sandals Resorts Announce Landmark Partnership to Accelerate Their Leading Vacation Experiences

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Royal Caribbean Group Investment to Advance Sandals and Beaches’ Growth and Broaden the Group’s Vacation Portfolio

Montego Bay, Jamaica and Miami, September 24, 2026 – Royal Caribbean Group (NYSE: RCL) and Sandals Resorts today announced the signing of an agreement to form a partnership in the all-inclusive resort space with a 50% investment from Royal Caribbean Group.  Building on Sandals and Beaches Resorts’ more than four decades of leadership in Caribbean hospitality, the joint venture will create new opportunities for continued resort growth while broadening the experiences across Royal Caribbean Group’s vacation platform.

The partnership brings together two of the travel industry’s most celebrated vacation companies, pairing Sandals and Beaches’ all-inclusive resort expertise with Royal Caribbean Group’s vacation platform, including industry-leading brands – Royal Caribbean, Celebrity Cruises and Silversea – a portfolio of private destinations, new river cruising offering, and an industry-first loyalty program. United in a shared history in the Caribbean and connected by a love for their communities, the companies will offer travelers an unparalleled collection of cruise, private destination and resort experiences, serving guests across more vacation occasions and establishing their undisputed leadership in Caribbean vacations.

The joint venture expands Royal Caribbean Group into an adjacent vacation category, growing its participation in the approximately $2 trillion global vacation market, and meets the growing global demand for Sandals and Beaches Resorts by accelerating their expansion. The partnership will include Sandals and Beaches’ collection of premier all-inclusive properties across the Caribbean, and the companies will explore opportunities to broaden distribution, deepen guest engagement, and make it easier for travelers to discover vacation experiences offered across both portfolios.

“For nearly 60 years, we’ve reimagined what a vacation can be, constantly expanding the ways we inspire our guests to explore, connect and create lifelong memories,” said Jason Liberty, Chairman and CEO, Royal Caribbean Group. “We have been building a vacation platform that brings joy to millions of people around the world and creates meaningful relationships that last with our guests. Our partnership with Sandals and Beaches Resorts is an important next step on that journey – bringing together two iconic leading vacation companies to further strengthen and grow one of the most admired resort portfolios in the world. The Stewart family has created powerful and beloved brands, and we are honored to build on that legacy. Together, we see tremendous opportunity to expand the reach of Sandals and Beaches Resorts and continue turning the vacation of a lifetime into a lifetime of vacations.”

“My father, Gordon ‘Butch’ Stewart, founded Sandals Resorts with the belief that a company built in the Caribbean could stand on the world stage alongside the most respected names in hospitality. Today is proof of how far that vision can go,” said Adam Stewart, Executive Chairman of Sandals Resorts and Beaches Resorts. “This partnership is the natural next step in building on that conviction. It gives us the ability to grow faster with a partner that shares our values of exceptional hospitality, long-term investment, and the power of enduring brands. Together, we will introduce more guests to Sandals and Beaches Resorts while creating even more extraordinary experiences for those who have made our resorts part of their lives for decades.” Stewart added, “As we continue to grow, we will remain true to what has always defined us: delivering authentic vacations that exceed expectations while creating opportunities for our team members, travel advisor partners and the communities we call home. The future has never been brighter, and I know this moment would make my father incredibly proud.”

The joint venture will be governed by a board under the shared leadership of Stewart and Liberty. Stewart will maintain a leadership role in guiding the company’s long-term strategic growth as Executive Chairman of Sandals and Beaches Resorts. Existing reservations, loyalty programs, resort operations and cruise operations will continue as usual, with the partnership bringing additional resources to support future opportunities.

Under the terms of the agreement, Royal Caribbean Group will acquire a 50% equity interest in Sandals and Beaches Resorts for approximately $3 billion, representing a forward EBITDA multiple of approximately 10x.  Royal Caribbean Group has secured committed debt financing from Morgan Stanley to fund the investment.  The transaction is expected to close in early 2027, subject to customary approvals and closing conditions, and is expected to be accretive to earnings next year.

BofA Securities and PJT Partners acted as financial advisors, and Latham & Watkins and Jones Day acted as legal advisors to the Sandals Group. Perella Weinberg Partners and Morgan Stanley acted as financial advisors and Kirkland & Ellis LLP acted as legal advisor to Royal Caribbean Group.

PHOTO CAPTION: Jason Liberty, Chairman and CEO of Royal Caribbean Group, and Adam Stewart, Executive Chairman of Sandals Resorts, mark the signing of an agreement to form a landmark partnership that expands Royal Caribbean Group into the all-inclusive resort space and supports the future growth of Sandals and Beaches Resorts. The signing took place at Royal Caribbean Group’s new headquarters in Miami, with the city’s skyline in the background.

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Royal Caribbean Signs US$3-Billion Deal for Half of Sandals and Beaches

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The Caribbean tourism deal first reported as a possibility on Tuesday is now a signed agreement. Royal Caribbean Group plans to pay approximately US$3 billion for a 50% stake in Sandals and Beaches Resorts, putting the value of the business at about US$6 billion. The purchase is expected to close in early 2027, subject to approvals.

Founded in Jamaica by the late Gordon “Butch” Stewart in 1981, the resort business has a presence across nine Caribbean destinations, including Jamaica, The Bahamas and Turks and Caicos. Sandals has described its workforce as nearly 20,000 people, most of them Caribbean nationals.

“My father, Gordon ‘Butch’ Stewart, founded Sandals Resorts with the belief that a company built in the Caribbean could stand on the world stage alongside the most respected names in hospitality,” said Adam Stewart in the announcement carried by PR Newswire. He will remain executive chairman, while the Stewart family retains a stake. The companies say existing reservations and resort operations will continue as usual.

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Pres Ali declares three days of national mourning following MV Barima tragedy July 21, 2026

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His Excellency Dr Mohamed Irfaan Ali has declared three days of national mourning following the tragic loss of lives in the M.V. Barima incident, as the nation continues to grieve alongside the families and communities affected.

The period of national mourning will be observed from Wednesday, July 22, through Friday, July 24, 2026, in honour of the victims of the tragedy. During this time, the National Flag will be flown at half-mast on all Government buildings and other appropriate locations across the country.

As part of the observances, Wednesday, July 22, has been designated a National Day of Prayer. A National Day of Prayer and Remembrance will be held at the Kingston Seawall in Georgetown, bringing together citizens in solidarity to honour the lives lost and offer support to grieving families.

The programme of remembrance will continue with a Night of Reflection and Prayer in Port Kaituma on Thursday, July 23, followed by another observance in Mabaruma on Friday, July 24.

The government is also encouraging religious organisations, civic groups and citizens throughout Guyana to organise candlelight vigils and moments of prayer during the three days as the nation collectively reflects on the tragedy and pays tribute to the victims. The declaration of national mourning underscores the government’s commitment to standing with the bereaved families and affected communities as Guyana mourns one of the country’s most heartbreaking maritime tragedies.

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