Saudi Press

Saudi Arabia and the world
Tuesday, Jan 13, 2026

Caribbean resorts now seeing big drops in RevPAR, occupancy

Caribbean resorts now seeing big drops in RevPAR, occupancy

Although large swaths of the Caribbean's tourism sector remained relatively strong this past summer, a recent steep decline in hotel RevPAR and occupancy throughout the region could signal longer-term trouble going forward.

According to data from STR, hotel occupancies across the Caribbean began dropping in April and continued to steadily slip through the summer.

In August, overall occupancies in the region fell 5.6% from the same period last year, to 62.5%. Likewise, Caribbean RevPAR started trending downward in June and July, eventually falling 5.3%, to $112.54 for August.

"Room supply in the Caribbean continues to grow at around 3% [year-to-date], which is certainly healthy," said Jan Freitag, STR's senior vice president of lodging insights. "But that growth is happening while demand is weakening, and that then translates into occupancy declines. And if there are occupancy declines, we normally see rate growth get hit. Still, this is a market-by-market situation, and not everyone in the Caribbean is being impacted the same way."

Among the destinations hit hardest by slowing demand is the Dominican Republic, which was left reeling this summer after a spate of tourist deaths there led to a steep drop-off in bookings. In June, following widespread media coverage of the incidents - which many consumer media labeled "mysterious," even though most were quickly found to have been due to natural causes - STR reported that hotel occupancies in the Dominican Republic plummeted 12.7%, to 66.6%.

Occupancies dropped further in July and August, down 20% and 16.2%, respectively, while August RevPAR in the D.R. dipped nearly 26%, to $69.82.

Frank Comito, CEO and director general of the Caribbean Hotel and Tourism Association (CHTA), said, "The D.R. has seen a drop in RevPAR and ADR, which hopefully they can get back up. If one of the [market] leaders is having to discount in order to bring back business that they've lost, that's not good for the entire region. But typically, when we see a destination have some unfortunate publicity like this, the impact lasts for several months, and then it actually starts rebounding rigorously."

According to Julie Banning, a travel advisor with New York-based Embark, the Dominican Republic is primed to bounce back, and the bad press appears to be petering out.

"I don't think this is going to affect the D.R. in the long term," Banning said. "Our clients feel confident when they travel to the five-star resorts there, and we have a lot of repeat travelers who want to continue going to the D.R. And nowadays, when you look at the news, where did that story go? Everyone seems to have moved on. I think we'll see the numbers going back up this winter."

A rebound in the D.R. alone, however, might not be enough to solve the Caribbean's hotel occupancy problems. Cuba and Puerto Rico also saw summer business slow, with the former impacted by the Trump administration's travel restrictions and the latter facing lingering challenges following 2017's Hurricane Maria.

"There's still this image out there that Puerto Rico is recovering from the hurricane," Banning said. "Some people still think there's devastation, when that's not true."

For August, Cuba's occupancy slipped 13.1%, to 50%, and RevPAR in the market dropped 31.5%, to $31.77, according to STR. Concurrently, Puerto Rico's occupancy was down 4.3%, to 68.1%, and RevPAR fell 3.3%, to $123.12.

Meanwhile, the fact that traveler misconceptions continue to plague Puerto Rico certainly doesn't bode well for the Bahamas, which just last month was battered by Hurricane Dorian.

But while the vast majority of the Bahamas was spared any significant damage - with destruction largely limited to Grand Bahama and the Abaco Islands -- both Banning and Comito expressed concern about post-storm consumer perceptions.

"Only 20% of the Bahamas has been impacted," Comito said, "but the rest of the country is still dealing with the perception that they've been affected."

Threatening to further exacerbate the region's woes is the demise of tour operator Thomas Cook, which abruptly ceased operations in late September. Although the company's German airline, Condor, has remained in business with the help of a government-backed loan, the group's collapse is expected to hamper European lift to the Caribbean.

Sue Springer, director for corporate and government relations at London-based trade and investment consultancy the Caribbean Council, estimated that Thomas Cook accounted for 62% of all Caribbean flights from Germany and roughly 10% of Caribbean flights from the U.K.

Comito listed Barbados, St. Lucia, Jamaica, Cancun and the D.R. as destinations most likely to be impacted.

"We were expecting 400,000 visitors during the remainder of the fall season and winter season via Thomas Cook, and that includes Condor [business]," he said. "However, the German government bailing Condor out will protect a good portion of that business, around 60% of that 400,000."

Comito said he is optimistic that the gap left by Thomas Cook will soon be filled, with the CHTA working to attract tour operators and "find alternative ways to meet" existing European demand.

He also remains optimistic about the Caribbean as a whole, pointing to positive trends in Turks and Caicos, Aruba, Anguilla and Barbados as well as an improving outlook for Cancun, where issues surrounding higher-than-usual levels of sargassum appear to be subsiding.

"I wouldn't say there are any yellow flags for the whole region yet at this point," Comito said. "Out of the 16 destinations reporting for August, nine of them were up on occupancy, and seven were down. Assuming we don't see an acceleration of any kind of global economic downturn, growth in demand has kept up with supply, and we're hopeful that will continue.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Trump Designates Saudi Arabia a Major Non-NATO Ally, Elevating US–Riyadh Defense Partnership
Trump Organization Deepens Saudi Property Focus with $10 Billion Luxury Developments
There is no sovereign immunity for poisoning millions with drugs.
Mohammed bin Salman’s Global Standing: Strategic Partner in Transition Amid Debate Over His Role
Saudi Arabia Opens Property Market to Foreign Buyers in Landmark Reform
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
CNN’s Ranking of Israel’s Women’s Rights Sparks Debate After Misleading Global Index Comparison
Saudi Arabia’s Shifting Regional Alignment Raises Strategic Concerns in Jerusalem
OPEC+ Holds Oil Output Steady Amid Member Tensions and Market Oversupply
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
President Trump Says United States Will Administer Venezuela Until a Secure Leadership Transition
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Saudi-UAE Rift Adds Complexity to Middle East Diplomacy as Trump Signals Firm Leadership
OPEC+ to Keep Oil Output Policy Unchanged Despite Saudi-UAE Tensions Over Yemen
Saudi Arabia and UAE at Odds in Yemen Conflict as Southern Offensive Deepens Gulf Rift
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Why Saudi Arabia May Recalibrate Its US Spending Commitments Amid Rising China–America Rivalry
Riyadh Air’s First Boeing 787-9 Dreamliner Completes Initial Test Flight, Advancing Saudi Carrier’s Launch
Saudi Arabia’s 2025: A Pivotal Year of Global Engagement and Domestic Transformation
Saudi Arabia to Introduce Sugar-Content Based Tax on Sweetened Drinks from January 2026
Saudi Hotels Prepare for New Hospitality Roles as Alcohol Curbs Ease
Global Airports Forum Highlights Saudi Arabia’s Emergence as a Leading Aviation Powerhouse
Saudi Arabia Weighs Strategic Choice on Iran Amid Regional Turbulence
Not Only F-35s: Saudi Arabia to Gain Access to the World’s Most Sensitive Technology
Saudi Arabia Condemns Sydney Bondi Beach Shooting and Expresses Solidarity with Australia
Washington Watches Beijing–Riyadh Rapprochement as Strategic Balance Shifts
Saudi Arabia Urges Stronger Partnerships and Efficient Aid Delivery at OCHA Donor Support Meeting in Geneva
Saudi Arabia’s Vision 2030 Drives Measurable Lift in Global Reputation and Influence
Alcohol Policies Vary Widely Across Muslim-Majority Countries, With Many Permitting Consumption Under Specific Rules
Saudi Arabia Clarifies No Formal Ban on Photography at Holy Mosques for Hajj 2026
Libya and Saudi Arabia Sign Strategic MoU to Boost Telecommunications Cooperation
Elon Musk’s xAI Announces Landmark 500-Megawatt AI Data Center in Saudi Arabia
Israel Moves to Safeguard Regional Stability as F-35 Sales Debate Intensifies
Cardi B to Make Historic Saudi Arabia Debut at Soundstorm 2025 Festival
U.S. Democratic Lawmakers Raise National Security and Influence Concerns Over Paramount’s Hostile Bid for Warner Bros. Discovery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
Wall Street Analysts Clash With Riyadh Over Saudi Arabia’s Deficit Outlook
Trump and Saudi Crown Prince Cement $1 Trillion-Plus Deals in High-Profile White House Summit
Saudi Arabia Opens Alcohol Sales to Wealthy Non-Muslim Residents Under New Access Rules
U.S.–Saudi Rethink Deepens — Washington Moves Ahead Without Linking Riyadh to Israel Normalisation
Saudi Arabia and Israel Deprioritise Diplomacy: Normalisation No Longer a Middle-East Priority
Saudi Arabia Positions Itself as the Backbone of the Global AI Era
As Trump Deepens Ties with Saudi Arabia, Push for Israel Normalization Takes a Back Seat
Thai Food Village Debuts at Saudi Feast Food Festival 2025 Under Thai Commerce Minister Suphajee’s Lead
Saudi Arabia Sharpens Its Strategic Vision as Economic Transformation Enters New Phase
Saudi Arabia Projects $44 Billion Budget Shortfall in 2026 as Economy Rebalances
×