RUTTY: STRONG PERFORMANCE AND PROMISING OUTLOOK FOR TOURISM

BY Staff Writer

“I do have a clear vision for success and the determination to leave our industry better than I found it. One thing is certain: under my leadership, it will not be business as usual.”

With that Hon. Min. for Tourism, Gary Rutty, set the tone for his outlook for Cayman’s tourism industry during the Finance Committee meeting reviewing the budget.

Seven months into the role, Mr Rutty is already reporting significant upticks in the industry while acknowledging that the groundwork was already laid for some aspects.

“Change is happening for 2026,” he declared while detailing his ministry’s allocated budget of CI/KYD$30.7 million, an increase of $3.4 million, or 13% for 2026 and $0.3 million for 2027.

Reporting on earnings from the sector, he stated: “Tourism Accommodation Tax (TAT) revenue collected between January and September 2025 was $36.2 million, up $1.8 million or 8.13 per cent for the same period in 2024. TAT collection for the full year of 2025 is projected to be $46 million. For 2026, the Ministry of Tourism is forecasting the TAT revenue to be at $48.8 million, rising to $49.1 million in 2027.”

Accommodation increasing

Reviewing the industry’s performance and looking ahead, he reported that between January and September this year, air arrivals recorded a 2.4 per cent increase to 338,385 from 2024 - “and is the third highest total for this period in our recorded history”. For 2026 and 2027, air arrivals are forecast to increase by approximately two per cent, year over year.

According to Tourism Minister Rutty, Cayman’s tourism room inventory totals 8,426, an increase of 316 compared to September 2024. With more coming on stream as new developments open, two properties opening next year will take the number to 8,908 rooms.

Airlift climbing

“From December and into 2026, we look forward to the strongest growth in airlift capacity our islands have seen in recent years,” he stated, “which is extremely positive for Winter and Spring arrivals, and very exciting news for the industry.” 55,000 more seats will be added between January and April 2026, raising seat capacity to 358,512 - an increase of 18% compared to the same period of 2025. He also stated that as well as an increase in seats, the number of flights will ‘climb’ by 23% to 2,196, which is 411 more flights than January to April of 2025. This includes new and additional services by existing carriers.

Mr Rutty also said the government is bolstering its investment in the national carrier, Cayman Airways, which is launching several new promotional and growth initiatives.

“This island is going to be very busy with more airlines, more flights, and more seats coming into Cayman, creating more opportunities for Caymanians,” he declared.

Cruise under control

Noting concerns about the cruise sector, especially following the recent ‘No’ vote against a cruise pier, Mr Rutty assured that “our cruise sector is not disappearing” and gave an update on developments coming out of a recent meeting of the Florida Caribbean Cruise Association.

“12 meetings were held over two days with various cruise executives, and they each reaffirmed Cayman’s position as a high-demand port of call,” Mr Rutty reported. He however said that frank discussions pointed to several issues that need to be addressed, which he committed to pursuing as priorities.

These include cruise ship tender services, “which remains the most significant operational challenge, particularly for larger vessels and during peak arrivals.” Also mentioned were the visitor experience at Public Beach needing attention, as well as concerns about jet ski safety, limited swim zones and insufficient amenities for passengers.

According to the tourism minister, the government is also pushing ahead with a project to reverse the erosion at Seven Mile Beach, along with enhancements and upgrades to other key tourism sites and facilities.

He stated that the overall outlook was still very encouraging, with cruise passenger arrivals forecast to be 1.1 million from 363 cruise ship calls this year, rising to 1.3 million passengers from 449 ship calls in 2026. For 2027, early projections estimate 1.7 million passengers and over 500 ship calls. Mr Rutty said he is also “exploring the possibility of having more ship calls going to Cayman Brac to bring a regular economic boost to that island.”

Cayman ranks 9th of 33 destinations, with cruise passengers estimated to contribute over $129.2 million in 2025 and $159.6 million to the economy in 2026.

Training…and other developments

Stating that “tourism must work for Caymanians and Caymanians must work in tourism”, Tourism Minister Rutty also outlined extensive investment in funding for scholarships and other training opportunities for Caymanians in the sector. He said this was to correct what he termed the under-funding of previous years.

Developing Cayman’s potential in the film industry and launching a new National Tourism Plan are also on the agenda in the coming year, he disclosed. He spoke about continuing the tourism product diversification programme started by his immediate predecessor, Kenneth Bryan (now Deputy Opposition leader with the Progressives party), aimed at providing visitors with an authentic Caymanian experience.

“The industry’s brightest years are still ahead,” Mr Rutty asserted.