Caribbean profits from Iran war

Caribbean tourism is growing at a rapid rate recoding a 2.5% increase for international stay over arrivals last year and 2026’s figures are looking even better.

Data from the region reached an estimated 35 million visits, according to the Caribbean Tourism Organisation representing around 900,000 more visitors than in 2024, and surpassing 2019 levels. 

These figures will be boosted by the fact that for years the Middle East and Gulf drew Europeans in search of winter sun. But the Iran war has severely disrupted flights and prompted travel warnings, pushing tourists toward other parts of Europe and the Caribbean.

Travellers unwilling to give up a classic sunshine vacation of beaches, turquoise water and resorts are redirecting their budgets to longer flights to the Caribbean. Jamaica and the Dominican Republic are among the destinations benefiting most from the shift.

The Caribbean’s vacation industry expanded despite economic uncertainty in major source markets, geopolitical tensions, and weather related disruptions, including Hurricane Melissa.

Guyana, Dominica, St Vincent and the Grenadines, and Curaçao have recorded strong increases. A small number of destinations reported some declines tied to economic pressures, capacity limits, or localised disruptions. Most destinations, however, have now surpassed their pre pandemic benchmarks.

While some markets showed growth, in particular the United States remains the region’s largest market, increasing 0.5% to about 17 million visitors, Canada declined 5.3% to 3.1 million, and Europe fell 3.3% to 5.1 million.

South America was last year’s strongest performing market, rising 23.7% to 2.4 million visits, supported by improved airlift and targeted marketing. Intra regional travel increased 5.1% but continued to face challenges related to connectivity and travel costs.

The hotel and cruise industries have generally seen increased revenues too.

“Caribbean tourism continues to demonstrate its resilience in the face of evolving global conditions, but this is no time for complacency,” said Dona Regis-Prosper of the Caribbean Tourism Organisation. “We must remain vigilant and proactive, working together as a united region to navigate uncertainty and sustain our momentum.”