By: Staff Writer
April 11, 2025
The Caribbean Hotel and Tourism Association (CHTA) in their Caribbean Tourism Industry Performance & Outlook Report warns that high operating costs are hampering profitability.
The CHTA cited a their members reported that some increases surpassed the inflation rate. “Higher Operating Costs Hamper Profitability, as 87 percent Cite Increases; 52 percent Report Increases Far Exceeding the Inflation Rate.”
The CHTA is the Caribbean’s leading association representing the interests of national hotel and tourism associations. For more than 60 years, CHTA has been the backbone of the Caribbean hospitality industry. Working with some 1,000 hotel and allied members, and 32 National Hotel Associations, CHTA is shaping the Caribbean’s future and helping members to grow their businesses.
The report added: “Two-Thirds (66 percent) Report Experiencing Net Profit in 2024 with 42 percent Indicating Higher Profits Than 2022.
Percentage Reporting Net Losses in 2024 Drops to Lowest Level in Nine Years, Except for Pandemic-Related Losses in 2020 and 2021.”
The report was conducted in January, 2025 and have key takeaways and results from a cross-section of 78 respondents from 20 Caribbean jurisdictions representing the accommodations and other tourism-related sectors.
The report also said: “65 percent Raised Room Rates to Counter Higher Costs While 22 percent Hold the Line on Rate Increases. Food and Beverage Income Increases Surpass Recent Years, with 57 percent Seeing Growth.”
There was significant changes in the tourism workforce in 2024. Nearly Half (47%) of Employers added to their Workforce in 2024 and 13 percent reduced employment levels in 2024 While 40 percent maintained 2023 levels along with some 36 percent expecting to continue to increase new hires in 2025.
Industry sentiment remains overwhelmingly positive, with 98 percent of respondents confident in the sector’s trajectory. Businesses anticipate continued revenue growth, driven by strong visitor demand, continued capital expenditures to upgrade properties and destinations and ongoing investments in workforce development and destination marketing.
The annual survey has been conducted since 2014, providing CHTA, national hotel and tourism associations, governments, and tourism stakeholders with insights and benchmarks to help gauge their progress and guide decision-making.