•Emerging Opportunities in the Caribbean
•Caribbean Hotel and Tourism Association
What we will cover…
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Tourism Performance Indicators
Areas of High Level Airport/Hotel Investment
Caribbean Tourism Performance: Looking Ahead
Opportunities
The Complete Investment
Choosing Friends Wisely
Tourism Performance Indicators…
Trendline: Caribbean Hotel Performance
Year
2011
2012
2013
2014
Occupancy %
61.9
66.3
66.9
68
Source: Smith Travel Research
ADR
$170
$176
$183
$195
RevPar
$105
$116
$122
$132
Hot Destinations Measured by RevPar Growth
2013 to 2014
• Dominican Republic
• St. Lucia
• Jamaica
• Aruba
• Turks and Caicos
• Barbados
Source: Smith Travel Research
Stopover Visitor Arrivals to the Region
26 of 28 destinations increased arrivals in 2014
5 destinations had double digit growth
Hot Destinations Re Stopover Visitor Arrival Growth:
• Cayman Islands
• Turks and Caicos Islands
• Grenada
• Haiti
• Montseratt
• Dominican Republic
• Aruba
Source: Caribbean Tourism Organization
Tourism Performance:
Where Are They Coming From?
25000.00
2010
20000.00
2011
15000.00
10000.00
2012
5000.00
2013
0.00
United States
Canada
Europe
Caribbean
South
American
Other
Total
2014
Tourism Performance Indicators: Airlift
Regional Seat Capacity Grew by 4.6% in 2014
Fastest Growing Airlines in Caribbean Market since 2010:
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United
Seaborne
COPA Airlines
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JetBlue
West Jet
New-comers Showing Strong Potential:
• Southwest
• Sunwing
• Air Transat
Source: OAG International
Caribbean Infrastructure
Over $1.7 Billion in Airport Expansions and Improvements
Recently Completed or Underway:
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Puerto Rico (San Juan)
Bahamas (Nassau)
Jamaica (Kingston)
Dominican Republic (Punta Cana)
St. Vincent
Curacao
Cayman Islands
Antigua
Hotel Construction and Investor Interest:
Heating Up Throughout the Region
2014 Hotspots According to the Caribbean Development Bank:
• Bahamas
• Dominican Republic
• St. Kitts
• Turks & Caicos
• Cayman Islands
Destinations Seeing High Level of Investor Interest
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Bahamas
Barbados
Antigua
St. Lucia
Dominican Republic
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Grenada
Jamaica
Turks and Caicos
Cancun
Trending and Forecasting
Caribbean Tourism’s Contribution to GDP
Total contribution to
GDP
1990 1995 2000 2006 2010 2015 2016 2017 2020 2025
US$ in BN (real)
28.42
32.15
37.72
46.62
43.43
53.40
55.65
57.83
64.16
73.65
Percentage Growth
9.84
-1.08
-1.95
2.29
-3.63
2.89
4.21
3.92
3.39
2.74
Source: World Travel and Tourism Council
Trending and Forecasting
Caribbean Leisure Tourism Spending
Leisure Tourism
Spending
1990
1995
2000
2005
2010
2015
2016
2017
2020
2025
US$ in bn (Real prices)
23.15 25.01 29.33 31.74 31.89 36.67 38.18 39.71 44.28 50.73
Percentage growth
2.17
Source: WTTC
-2.38
3.94
-1.35
1.37
2.78
4.11
4.02
3.54
2.76
Trending and Forecasting
Caribbean Business Tourism Spending
Business Tourism
Spending
1990
1995
2000
2005
2010
2015
2016
2017
2020
2025
US$ in bn (Real prices)
2.17
3.51
4.25
4.14
3.29
3.85
4.01
4.15
4.56
5.30
Percentage growth
-2.11
4.12
5.12
-10.51
1.04
3.31
3.16
2.74
2.59
2.36
Source: WTTC
Trending and Forecasting
Tourism’s Contribution to Employment
Total contribution to
1990
Employment
Thousands of jobs
Source: WTTC
1995
2000
2005
2010
2015
2016
2017
2020
2025
1,273 1,598 1,806 2,013 1,852 2,280 2,345 2,407 2,585 2,788
Opportunities
• Spotlight Shining on the Region
• Enhanced Marketing Power Behind Increased
Investments
• Added Airlift…Fueled by Supply
• Investment Incentives Counter Costs
• Diversity of Offerings Appeal to Multiple Markets
• The Cuba Magnet
• Traditional and Niche Appeal
• Capitalizing on Proximity
Investment Philosophy
• Must recognize region’s incredible strengths and
challenges
• Build to Sustain:
o Energy efficient
o Local linkages
o Engage people and culture
• Human Capital Investment Essential to Equation
Choosing Friends Wisely
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Government Policy Players Change…
Technocrats Don’t (as frequently)
Private Sector Players Change Less Frequently
Private Sector-Led Hotel and Tourism
Associations are an Underutilized Resource
Thank You