Sunday 5 April, 2020

Visitor arrivals are up, but competition deepens for Caribbean hotels

Caribbean hotels have been continuing discounting as a means of keeping occupancy rates up, according to news site Caribbean Journal.

Arrivals were significantly up for the region at mid-year for 2019 and the Caribbean Tourism Organisation’s (CTO)’s research arm is predicting between an eight and nine per cent increase in tourist arrivals for the complete year.

Hospitality.net estimates that for the next three to five years, over 100 projects comprising approximately 27,300 rooms are in the pipeline.

This supply growth, it said, together with rapidly increasing arrival numbers and strong performance of existing hotels during Q4 2018 and Q1 to Q2 2019, suggest a premium year 2019.

However, Caribbean Journal indicates that hotel occupancy and average daily rates continued their 2019 slide in November, according to the latest data report from analytics firm STR. 

Hotel occupancy in the region stood at 63.4 per cent in November, a 2.1 per cent compared to the same month in 2018. Daily average rates for the period was $177.84, a 1.9 per cent decline compared to November 2018. 

November, in fact, was the eighth consecutive month of year-over-year monthly occupancy declines in the Caribbean. For the year, Caribbean hotel occupancy is at 63.7 per cent, a 2.9 per cent decline compared to the first 11 months of 2018. 

Year to date, however, average daily rates are up, however, with a 6.1 per cent increase for the year to $213.65. Revenue per available room is at $132.12 for the year, a 3 per cent jump compared to last year. 

STR’s report surveyed 1,973 hotels comprising 258,151 rooms in the wider Caribbean region.

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