News
Tides Turning: How U.S. Travelers Are Testing Turks & Caicos’ Resilience
As summer bookings waver, Experience Turks and Caicos leads a strategic push to keep the destination top of mind — betting on brand strength, regional growth, and a winter resurgence.
By Deandrea Hamilton | Editor
Turks and Caicos is facing a cooling off in visitor demand this summer—a pattern emerging across the Caribbean. Paul Pennicook, the interim CEO Consultant of Experience Turks and Caicos, (ETC) says the shift is prompting swift action to preserve the destination’s visibility and luxury positioning.
“From May onwards we’ve been seeing some softening in the market that is continuing into the summer,” said Pennicook. “Of course, most of it is from the U.S., which is our largest market. Ironically, our Canadian market is up, but our U.S. and U.K. markets are down.”
US and UK Markets Decline
While the island enjoyed a strong first quarter, second-quarter trends have turned downward. Pennicook attributes this to economic concerns in the U.S., airfare trends, and changing booking habits.
“The U.K. is down because we lost a couple of flights from Virgin Atlantic. Even though there’s increased passenger load on British Airways, it hasn’t fully replaced what we were getting,” he said. “The U.S. market is another story. The uncertainty in the U.S. economy and consumer behavior is impacting our numbers.”
Travel analysts have also flagged this shift. There’s been a noticeable reduction in long-haul international travel from U.S. tourists, with many now favoring short-haul destinations or domestic trips. Americans are choosing closer, more flexible vacations as financial caution and shifting work-leisure routines influence how they plan.
Changing Booking Behavior
“People are booking much closer in,” Pennicook noted. “When you look six months out, there’s a decline compared to last year. But when you search a month out, it looks much better. That pattern tells us they’re holding off, waiting to make final decisions.”
This mirrors trends in the airline industry. Load factors are down, and airlines are offering last-minute deals to fill planes—something that’s encouraging consumers to wait and book later.
Room Rates Adjust, Brand Image Remains
Recent reporting shows resorts offering discounts of up to 30 percent, raising questions about whether this undermines Turks and Caicos’
reputation as a high-end destination.
Pennicook disagrees. “Our hoteliers have served the luxury market for years. What they’re doing now isn’t about going after a lower-end market—it’s about offering their loyal guests a break during a time when everyone is watching their wallets,” he said.
“Cutting rates in this climate isn’t a downgrade in brand. It’s a strategic adjustment to retain a strong customer base.”
Coordinated Marketing Response
Experience Turks and Caicos is taking a proactive approach. The organization recently launched a summer-long ad campaign in New York and is ramping up collaboration with wholesalers and retail travel advisors.
“We’re staying in front of the consumer and the travel trade. That means investing in co-op advertising with partners, leveraging travel agents, and sharing authentic guest stories,” Pennicook explained.
Efforts are also underway to promote group travel and special packages. Resorts are experimenting with shorter stay formats, more inclusive offerings, and aggressive last-minute pricing. Meanwhile, the national marketing body is doubling down on exposure to meet growing inventory levels.
“We have an increase in hotel rooms coming down the pipeline. That’s why we need to amplify visibility now,” he said.
Winter Season Looks Promising
Despite current turbulence, the CEO remains optimistic.
“If we look nine months out—into our November to April season—we are actually tracking ahead of last year,” he revealed. “So we are not panicking. We believe this is a temporary situation, and we’re taking the necessary steps to be ready when the market turns.”
Cruise Sector Stays Strong
One bright spot is cruise tourism, which Pennicook says remains exceptionally strong.
“Cruise continues to book like there’s no tomorrow,” he said. “That’s one area where we haven’t seen any slowdown.”
Looking Ahead
The island welcomed a record 1.96 million arrivals in 2024, and hotel occupancy peaked at 72 percent, with average daily rates topping $1,500—some of the highest in the Caribbean. But with significant new capacity in 2025, the destination is adjusting to a more competitive and cautious marketplace.
In the face of softened demand and evolving traveler behavior, ETC is focusing on maintaining top-of-mind presence while sustaining quality across the tourism experience.
“This is a valley,” Pennicook said. “But we know the business tends to come back. By staying present and collaborative, we’ll be ready for the return.”
Providenciales, Turks and Caicos Islands— Thursday, 24 September 2026: The Department of Disaster Management and
Emergencies (DDME) was invited by Digicel to deliver a hurricane preparedness presentation to members of their staff.
The engaging 90-minute presentation formed part of DDME’s ongoing public education and awareness efforts aimed at strengthening preparedness across the Turks and Caicos Islands. During the session, Digicel employees were provided with important information on the potential impacts of hurricanes and other emergencies, as well as the actions that individuals and organisations can take to reduce risks and protect lives, property and essential operations.
The presentation emphasised that preparedness is a shared responsibility and should begin well before a storm or other emergency threatens the country. Staff were encouraged to understand the risks associated with hurricanes, remain informed through official sources and develop personal and workplace preparedness plans.
DDME recognises the important role that businesses play in national disaster preparedness and resilience. Corporate organisations are
encouraged to establish and regularly review emergency plans that clearly outline responsibilities, communication procedures, evacuation arrangements, business continuity measures and recovery actions.
“Preparedness is most effective when it is planned and practised before an emergency occurs,” Jason Hills, DDME Director. “Organisations that invest in preparedness today are better positioned to protect their people, maintain essential services and support the wider community during times of crisis.”
Corporate organisations, schools and government departments interested in DDME’s assistance with hurricane preparedness training, emergency drills support or assistance with developing a business contingency plan are encouraged to contact the Department of Disaster Management and Emergencies via email at ddme.tci@gmail.com.
Caribbean News
Royal Caribbean Group and Sandals Resorts Announce Landmark Partnership to Accelerate Their Leading Vacation Experiences
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.
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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