Even with all the hurricane activity in 2017, the Caribbean set a new benchmark on tourism spending. Over 37 billion dollars were spent last year by over 30 million (stay over) visitors to the region. This was the first year to eclipse the 30 million mark as well. A banner year in what will always be much better known for it’s storms than its economic numbers. Let’s take a look at how the numbers broker down and what they may mean to you.
So where did all the tourists come from in 2017? As always, the US was the main driver with nearly half of the 30 million visitors. This was up only 0.5% from the previous year, however the first half of the year was very strong and was only slowed down by the active hurricane season.
Canada had a big bump last year, up 4.3% from 2016 which was a down year for the country. As always, the economy, and the value of the Canadian dollar play a big part in where Canadians spend their tourism money.
The big surprise came out of Europe, who were up 6.2% last year. Hopefully this is a trend, rather than a blip. With only 6 million visitors from Europe, there is a lot of untapped potential for the hospitality industry to tap into. Europeans have a lot of options, so countries and hoteliers have their work cut out for them.
On top of the 30 million stay over visitors, the Caribbean also saw 27 million cruise vacationers. This was also up on the previous year by 2.4%; impressive number again when you consider the active storm season which would have taken a bite out of the third and fourth quarters.
One interesting tidbit from this CTO (Caribbean Tourism Organization) report, was the fact hotel occupancy was actually down in 2017, by 1.2%. More tourists but lower occupancy can draw one to believe that short term vacation villas took a big jump last year. This is a trend we have been seeing and blogging about for some time now. Vacation villas have become much more popular as many buyers are choosing this option versus the traditional condo or hotel units.
For those thinking about adding a Caribbean investment property to their portfolio, this report should be seen as good news. Talk to us today about how we can assist you in making your dream home in the sun a reality!