Caribbean Destinations ‘Hot’ In Early 2017

PHOTO: Richard Doumeng, owner of St. Thomas’ Bolongo Bay Beach Resort. (Photo by Brian Major)

“Hot” Caribbean vacation destinations are posting strong arrivals, with activity in the islands most popular with travelers approaching historic levels according to Caribbean travel wholesalers, travel agents and hospitality providers interviewed in January.

The region is already poised for significant growth following two straight years of positive results. While the Caribbean Tourism Organization (CTO)’s final 2016 data has yet to be published, Caribbean arrivals increased seven percent to 28.7 million overnight arrivals in 2015, a pace that exceeded global tourism growth of four percent.

Moreover challenges from the Brazil Olympics to uncertainty surrounding the US presidential election in 2016 to Zika virus concerns are mostly absent in 2017. Even as US consumers await the implications of a president drawn from the ranks of reality television, initial economic signs are positive, reflecting positive momentum the US economy had already displayed during in the past two years.

Thus as the first month of what is traditionally the most active period for Caribbean vacations, activity appears strong.

Big Bookings

“[Caribbean] bookings are solid through the first quarter of 2017 and we’re on pace for a very successful second quarter with bookings already ahead compared to this point in 2016,” said Scott Wiseman, president of tour operator Travel Impressions. “Occupancy for our major hotel partners is also meeting or exceeding expectations,” he said, attributing the increased activity to “an improved economic outlook in many U.S. feeder markets.”

Weisman’s comments reflected general agreement that the improved economy has positively impacted leisure travel. “The economy has picked up a bit in the last two to three years so more people are doing extracurricular and Leisure things like traveling,” said Aurelio Giordano, owner of Ace World Travel in Brooklyn, New York. “So hopefully if the economy stays the same we won’t see a drop in that.”

Leading resort operators echoed the positive early results. “We are off to a tremendous start with bookings pacing ahead of this same time period for 2016,” said Tammy Gonzalez, chief executive officer of Unique Vacations Inc., an affiliate Sandals Resorts International. “The result is a strong first two quarters for 2017. In fact, bookings across both the Sandals Resorts and Beaches Resorts brands are ahead year over year,” she said.

The positive results are due to “many factors” said Gonzalez, “but particularly to our strong relationship with the trade who continue to have confidence in the quality experience we deliver their customers and our unwavering commitment to their success.”

To be sure, some stakeholders are taking a more tempered view. Richard Doumeng, owner of St. Thomas’ Bolongo Bay Beach Resort described early 2017 booking activity as “cautiously optimistic” with bookings “pacing slightly ahead in the first quarter of 2017 versus 2016,” while also noting, “We extended some higher discounts for season earlier out than usual.”

“It is still early to really predict bookings,” said Jennifer Donscenz, president of VIP Vacations Inc. “Last January was the best-selling month in our history, only to follow with March being the lowest March in four years—so it is early to truly predict.”

Donscenz is one of several stakeholders who cited Zika virus concerns with stalling what began as a strong 2016 winter season for Caribbean destinations. “Last year with Zika we actually saw a bit of a downturn in February, March and April,” she said. “I’m hopeful Zika doesn’t make headlines this year.” She added, “No Olympics this summer in Brazil should really help.”

Hot Islands

As is often the case the Caribbean’s most popular destinations are among the biggest winners early in 2017. Donscenz named “St. Lucia, Jamaica, and Punta Cana, Dominican Republic as “still our big sellers.”

While Jamaica (2.1 million overnight visitors in 2015) and the Dominican Republic (the number one Caribbean destination with 5.6 million visitors in 2015) are annually among the most popular islands, Saint Lucia is one of several other Caribbean destinations that have established strong land-based visitor segments.

“Our wide selection in all-inclusive options in destinations beyond Dominican Republic and Jamaica, such as Aruba, Saint Lucia, Bahamas, Curacao, and St. Martin/Maarten have helped persuade many other travelers that this area is too good to miss,” noted Weisman of Travel Impressions.

With resorts in seven Caribbean countries, Gonzalez said “occupancies are running high” at SRI’s Sandals and Beaches properties. “During peak periods, such as Spring Break, we are nearing or at capacity,” she added. “Certain categories – like our recently debuted over-the-water villas at Sandals Royal Caribbean in Montego Bay are sold out throughout 2017 and into early 2018.

Promotional push

Even Caribbean destinations on the low end of the growth spectrum in 2016 are anticipating stronger 2017 activity based on early results.

“Last year, our visitor arrivals in the first quarter were slightly down,” said Beverly Nicholson-Doty, the US Virgin Islands’ commissioner of tourism. “Zika and an unseasonably warm winter season in the Northeast were contributing factors. However, we were able to maintain our core visitor arrivals with robust airlift in the summer.”

Nicholson-Doty said the Virgin Island’s upcoming celebration of the 100-year anniversary of the transfer of the Danish West Indies to the United States is expected to boost the destination’s visitor arrivals.

“The significance of the Centennial commemoration, increased airlift for the winter travel season [and] ease of access from major cities and with no passport required for U.S. citizens” will contribute to a “promising” first quarter, she said.

Weisman of Travel Impressions also cited promotional programs as key to the improved Caribbean resort booking picture. “Some of the strongest success stories can be attributed to our social media campaigns with Ritz-Carlton, Nickelodeon Resorts and Atlantis, Paradise Island,” he said “These have provided travel agents with strong marketing tools, while an end-of-year promo with American Airlines bolstered bookings for the Caribbean overall.”

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Caribbean Destinations ‘Hot’ In Early 2017

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