MIAMI, United States (CMC) — The Caribbean Hotel and Tourism Association (CHTA) Wednesday said the tourism industry remains overwhelmingly positive, with 98 per cent of respondents confident in the sector’s trajectory in 2025.

In its annual Caribbean Tourism Industry Performance & 2025 Outlook Report, the CHTA said 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 Caribbean tourism industry continues to show incredible resilience and adaptability,” said CHTA Chief Executive Officer, Vanessa Ledesma.

“Even with rising costs and global uncertainties, the region remains one of the world’s top travel destinations, thanks to strategic investments and a strong commitment to growth. Insights from this report will help guide CHTA’s efforts to better support our members, strengthen the industry, and ensure continued success for hospitality and tourism professionals across the Caribbean,” she added.

The CHTA said the United States remained the top source market for the region with strong growth from the United Kingdom, Canada and intra-Caribbean travel.

It said that while the industry showed strong overall performance, one-third of respondents still reported a net loss, largely due to rising operating costs.

The report said that high taxes and inflation continue to put pressure on businesses with 87 per cent reporting rising operating costs and 52 per cent seeing increases that outpaced inflation.

The CHTA, which has been conducting annual surveys since 2014, provides its members and other stakeholders with insights and benchmarks to help gauge their progress and guide decision-making.

It said despite rising operating costs, labour shortages and profitability challenges, most businesses reported profits, demonstrating resilience and confidence in the industry’s future.

The report, based on a survey of tourism businesses across 20 Caribbean destinations, provides a comprehensive look at the industry’s performance in 2024 and expectations for the year ahead.

It explores key trends such as revenue growth, labour market shifts, rising operational costs, and investment activity, offering insights into how businesses are navigating challenges and capitalising on opportunities.

Among the key findings of the report, CHTA said that 65 per cent of businesses raised room rates to offset increasing expenses, while 57 per cent saw higher food and beverage. The report noted that 47 per cent of businesses expanded their workforce in 2024, and 36 per cent plan to hire more in 2025.

However, 73 per cent reported difficulty recruiting specialised staff such as chefs and engineers.

The report noted that 62 per cent of businesses increased capital expenditures with 59 per cent using tax incentives for renovations and 24 per cent for new developments— investments that more than half of recipients said would not have been possible without these incentives.