Jun 2015 Financial News

Caribbean tourism records 17th straight quarter of growth

Jun 11, 2015

Caribbean Tourism Organisation (CTO) chairman Richard Sealy says the Caribbean has “bolted out of the gates” with a six per cent increase in visitor arrivals in the first quarter of the year, and predictions are that while some countries will do better than others the region will continue to perform well overall and surpass its 2014 performance.

The Caribbean recorded a 17th straight quarter of growth and the fifth consecutive year of increased arrivals during the first quarter, with 7.9 million visitors between January and March.

At a press conference at Caribbean Week New York yesterday, Sealy, who is Barbados’ Minister of Tourism, said the region continues its rapid growth rate from 2014 when arrivals grew by 5.3 per cent to 26.3 million visitors.

“We’ve bolted out of the gates with a six per cent increase in arrivals over the first quarter of 2014, so I think it’s fair to say that we are well into recovery mode,” he said.

The United States market continues to be the most productive, with arrivals increasing by 5.6 per cent. The Canadian market grew an equally impressive 5.4 per cent, with Cuba and Dominican Republic among the destinations recording higher levels of arrivals.

In the accommodation sector, performance indicators were positive.

There was a modest increase of 1.3 per cent in the number room available in the first quarter, the largest increase for this quarter in the last seven years.

Historical first quarters highs were also recorded for room occupancy (77.8 per cent), average daily rate (US$239.84) and revenue per available room (US$188.25).

However, cruise passenger arrivals slowed in the first quarter. The Caribbean registered a 3.4 per cent rise, compared to a 4.3 per cent growth in 2014 over 2013. An estimated 8.6 million cruise passengers visited the region in the first quarter.

The best performing destinations were Martinique (34.2 per cent), Puerto Rico (26.2 per cent), Antigua & Barbuda (18.6 per cent) and Jamaica (15.9 per cent).

Sealy said the outlook for the remainder of the year is positive.

Although growth is expected to be moderate and uneven among Caribbean countries, overall tourist arrivals are now anticipated to rise at least six per cent over 2014.

Sealy noted that the momentum gained in the first quarter could be reduced as cruise ships are repositioned away from the region to the other side of the Atlantic, as they usually are towards the middle of the year.

“But overall, we can see that there is no lack of tonnage being committed by the cruise sector to the region. In fact, what we are seeing is that with the larger vessels there may be fewer calls but more passengers. That is just a trend we are seeing with all of the major cruise lines,” he added.

Sealy said the CTO board of directors had discussed how the Caribbean could build on the gains and sustain them, and was considering several initiatives including trageting new markets, such as Brazil and others in Latin America as well as Asia.

“There is a move on the part of the Caribbean to look beyond our traditional source markets,” he said.

Meantime, addressing questions about the impact the opening of Cuba to American visitors would have on the tourism sector in other parts of the region, Sealy said that island, a member of the CTO, is “not a problem for the CTO or the Caribbean.”

Source:
Caribbean360
www.caribbean360.com
Business Guardian, BG19
Thursday June 11, 2015