Tourism posts strong growth in 2025, driven by higher occupancy, revenue

A surge in visitor numbers, rising hotel rates and expanded industry initiatives delivered a strong performance for the tourism industry in 2025, according to the Barbados Hotel and Tourism Association (BHTA), which also pointed to growing international demand and new investment across the industry.

In his annual general meeting report, BHTA chief executive officer Senator Ryan Forde praised the industry’s resilience. Despite continuous global economic shifts, tourism continues to drive national progress, heavily contributing to more than 19 consecutive quarters of economic growth, he said.

Reviewing the industry’s performance metrics, Senator Forde revealed that Barbados saw notable year-on-year growth across key indicators.

Hotel occupancy rose from 63.8 per cent in 2024 to 65.2 per cent in 2025. The average daily rate (ADR) also surged from $631.81 to $718.19, driving revenue per available room (RevPAR) up from $420.79 in 2024 to $487.17.

Efforts to bolster the traditional summer shoulder period also yielded strong results. Occupancy from May to October averaged 55.2 per cent, a 2.9 per cent increase over the previous year, with only September falling below the 50 per cent mark.

“Tourism is about the experience and not one specific item,” Senator Forde said. “We will continue to lead the country especially as we balance the most new developments, most refurbishment and most experiences advancements, while juggling the geopolitical tensions.”

The BHTA secretariat also executed several landmark initiatives during the year. Key among them was the creation of the Bajan Harvest Hub, funded via a competitive regional grant won through Compete Caribbean.

Led by the BHTA’s Greg Alleyne, the hub operates as a coordinated, demand-driven and climate-resilient supply system that links farmers and packhouses directly to industry buyers through structured planning and digital tools to revolutionise agro-tourism linkages.

The association also concluded a major rebranding and expansion of the BHTA Tourism Fund. Originally established in the early 2000s, the fund was overhauled under project leader Sade Deane to expand its reach across all tourism membership categories, addressing previous issues regarding brand cohesion and under-subscription.

Community efforts saw the launch of the Adopt-A-School Futsal Tournament, spearheaded by Tessalee Moore and Rianna Taylor. The sporting initiative brought the industry together during the post-Crop Over shoulder period and raised over $30 000 for essential school equipment, including water tanks, projectors, fans and football nets.

The association’s influence was reflected in its growing ranks, closing 2025 with 39 new members. Senator Forde anticipated further expansion throughout 2026, driven by the opening of major new accommodation properties including Hotel Indigo, Royalton Vessence Barbados and the Blue Monkey Hotel and Beach Club.

He attributed the high membership retention and recruitment directly to the BHTA’s rigorous advocacy efforts, which bore partial fruit in the government budget. It was announced that the car rental industry’s oversight would shift to the Ministry of Tourism and International Transport to receive specialised benefits, while stand-alone restaurants secured enhanced concessionary support to bolster competitiveness.

“The reason I say partial is because we are still working through the operationalisation part of the announcement with the Ministry of Finance,” Forde said. “We are hopeful that the Minister and his team can conclude those guidelines and the implementation process as soon as possible this quarter.”

The BHTA aggressively pursued international destination marketing over the past year, participating in nine major global trade shows across Britain, US, Canada, Europe, Latin America and the Caribbean.

A high-level delegation — including Senator Forde and representatives from the Barbados Tourism Marketing Inc. (BTMI) and private operators — attended the TEAMS Sports Tourism Conference in Ohio. The team secured leads for destination-based sporting events spanning volleyball, wrestling, futsal and cheerleading.

Forde confirmed that Barbados has already won the bid to host the World Bridge tournament in September 2027, which is expected to attract between 2 500 and 4 000 international attendees.

At the World Travel Market in London, UK travel operators reaffirmed that Barbados as the top destination in its market segment, expressing high praise for the millions of dollars currently being pumped into property refurbishments and new hotel product rollouts.

In a major regional victory, a joint bid by the BHTA, BTMI and the Ministry of Tourism successfully secured the hosting rights for the prestigious Caribbean Hospitality Industry Exchange Forum (CHIEF), CSHAE and Taste of the Caribbean in November 2026, as well as Marketplace 45 in May 2027.

The BHTA’s public relations and digital visibility experienced significant growth. Total social media impressions reached 3 749 067 — a 210.1 per cent increase year on year — while overall audience numbers grew by 30 per cent to over 14 000 followers across Facebook, Instagram and a newly established LinkedIn professional platform.

Looking ahead to the rest of 2026 and beyond, Senator Forde said that while rising oil prices, airline impacts and geopolitical tensions inject an element of caution into consumer and business spending, the future remains bright through collective effort.

“The external pressures continue to mount year-on-year however, the resilience of the Barbados economy will be by the strength of our people,” Senator Forde declared.

“It is not about an ‘I’ or ‘Me’ mindset as that does not survive tough times or with such a dynamic industry like Tourism. Rather it’s about a ‘We’ and ‘Us’ mindset as we collectively face challenges and opportunities together… The Decade of Change continues.”

(RR)