Jamaica’s tourism industry is navigating a mixed landscape in 2025, with global economic uncertainty and a lingering US travel advisory dampening early performance even as regional markets, increased airlift, and targeted promotions helped stabilise the sector.
According to a Jamaica Hotel and Tourist Association Annual Report, the first quarter (Q1) of 2025 was particularly sluggish, impacted by inflationary concerns and trade tensions in the United States, Jamaica’s largest source market. This anxiety reverberated through secondary markets such as Canada and the United Kingdom, which, paradoxically, saw some improvement as travellers sought alternative destinations.
Both Jamaica’s Tourism Minister, Edmund Bartlett and Director of Tourism, Donovan White, confirmed the report during the hotel association’s annual general meeting, held at the Dreams Rose Hall Resort and Spa (formerly Hilton Rose Hall) in Montego Bay last Saturday.
The report states that Jamaica welcomed 1,403,249 passengers between January and May 2025, a 1.5 per cent decline compared to the same period in 2024.
Despite the soft start, Q2 brought renewed momentum from the Caribbean and Latin America, driven by increased airlift, event-driven travel, and more aggressive marketing in those regions. “We are seeing greater resilience in the regional markets,” said the report, “and the events space has proven especially powerful in driving international arrivals.”
Occupancy across member properties remained inconsistent though some hotels managed to hold average daily rates (ADRs) while others offered discounts to drive bookings. Rate compression, a pricing strategy where rates are tightened across categories, was evident as properties vied to maintain competitive occupancy levels.
Airlift remained a central focus, with new and expanded routes from North America, Europe, and Latin America helping to close the gap in visitor numbers.
BahamasAir launched service from Nassau to Montego Bay in November 2024 while LIAT began direct flights from Antigua to Kingston in December, and Edelweiss Air added a second weekly Zurich-Montego Bay flight in winter 2025.
World2Fly has started direct service from Lisbon, Portugal; Air Canada is introducing new non-stop routes from Ottawa and Halifax this winter and LATAM Airlines and Ecuador-based charters will boost South American arrivals.
Other carriers such as American Airlines expanded service into Ian Fleming International Airport in St Mary and Avelo Airlines is adding flights from Raleigh-Durham and Connecticut.
Despite these gains, the JHTA noted that the overall summer airlift slightly declined compared to 2023, reinforcing the need for further expansion to meet the national occupancy target of 70 per cent.
One of the year’s most significant turning points was the May 29 downgrade of the US State Department’s travel advisory from Level 3 to Level 2, following sustained lobbying by the Jamaican Government and the visit of US Secretary of State Marco Rubio in March.
This shift is expected to positively influence travel bookings, especially in the MICE (Meetings, Incentives, Conferences, and Exhibitions) and corporate segments, which were previously constrained by the Level 3 designation.
OUTLOOK REMAINS OPTIMISTIC
White, who gave an extensive presentation during the meeting, spoke about several initiatives to cauterise or increase the arrival numbers. He said the Jamaica Tourist Board (JTB) had ramped up its international campaign with the launch of “70 Days of Jamaica Love” in June, coinciding with its 70th anniversary. This is just one of several initiatives intended to jumpstart summer bookings and counter lingering hesitancy from earlier in the year.
The JTB has continued to facilitate dozens of travel agent familiarisation tours and participate in trade events such as ITB, World Travel Market, and Caribbean Travel Marketplace.
In collaboration with the Tourism Enhancement Fund (TEF), the JTB has also hosted event forums in major resort areas to train and empower promoters. High-profile concerts and the continued rise of Jamaica Carnival have reinforced the value of cultural experiences in attracting international guests, said the JHTA annual report.
While Q2 arrivals declined to 700,275, down from 749,735 in 2023, the figures still surpassed 2019’s benchmark of 642,173, indicating that long-term recovery is still under way.
“The outlook for 2025 remains highly optimistic,” stated Bartlett, noting that this positive forecast was bolstered significantly by the sustained reduction in crime rates and the US Government’s decision to adjust its travel advisory for Jamaica from Level 3 to Level 2.
“There seems to be a halt to the slight dip in the general numbers, with the first few weeks of June showing a 1.5 per cent increase over the same period in 2024, with 210,011 stopovers.”
The tourism minister said work was being done to strengthen the industry by enhancing visitor experiences, creating a supportive environment for tourism partners, promoting sustainable growth, and expanding the country’s global footprint.