PLAYA Hotels and Resorts is reporting that the Jamaican market performed admirably during the second quarter of its financial year, rebounding from losses suffered in previous years.

Playa’s second quarter report released on August 4, 2022, showed net income reached US$30.5 million. This is a sharp increase from the US$7.8 million net loss that was reported in the same quarter in 2021. Playa Hotels and Resorts attributes last year’s losses to the ongoing novel coronavirus pandemic, which restricted travel.

“I am very excited and encouraged by the progress in Jamaica reporting the highest occupancy rate of any segment during the second quarter as flight capacity and international passenger arrivals into Montego Bay accelerated meaningfully,” Bruce D Wardinski, chief executive officer of Playa Hotels and Resorts in Jamaica, said in a release from the company.

He added: “Jamaica was our best-performing segment prior to the pandemic and we continue to believe there is room for improvement in the average daily rate earned in the country as it recovers and catches up with Mexico and the Dominican Republic.” The average daily rate is the average revenue that a hotel receives for each occupied guest room per day. An improvement would mean that the company is earning more from each room per day.

Playa Hotels and Resorts is a multinational entity, operating hotels in Mexico, the Dominican Republic, and Jamaica. The company’s holdings in Jamaica include the two Jewel Resorts as well as the Hyatt Ziva and Hyatt Zilara, both located in Rose Hall, St James, and the Hilton Rose Hall Resort and Spa also in Rose Hall, St James.

President of the Jamaica Hotels and Tourist Association (JHTA) Clifton Reader said he is not surprised by the rebound of tourism in Jamaica which he credits to the shrewd and practical measures taken by the Ministry of Tourism and independent hotel and resort owners at the height of the novel coronavirus pandemic, and in reopening afterwards.

“Minister Bartlett and I have been saying that we are about surpassing the profits that were made prior to the pandemic. On that front we are doing very well, and at the current trajectory we are likely to and intend to surpass the gains made in 2019,” Reader told the Jamaica Observer. “We have a new market, and have seen a major shift in demographics. Many Jamaicans or those of Jamaican background are returning. I do not believe this is seasonal, but rather that it will continue throughout the year into winter,” he continued.

However, Reader urges caution, saying the tourism industry is not yet out of the woods.

“While we are doing very well, we must remain vigilant. We lost a lot of money during the COVID-19 crisis, which lasted for roughly two years [at its peak]. It is going to take at least two years more for individuals to make back the money they lost, even with our current gains. Remember, many of us were forced to shut down or operate at a reduced capacity. Any workers in the field especially suffered losses and are in debt. The new profits we are beginning to receive are starting of trickle down to them now, but a lot can still happen. Something as simple as a hurricane can destroy us all,” he concluded.