The annual Caribbean Hotel Investment Conference & Operations Summit (CHICOS) recently took place in Barbados at the Wyndham Grand Sam Lord’s Castle resort from November 13-15.
Our Managing Director, Gary Brough, attended the conference where he moderated a panel on Caribbean Hotel Investments: Industry Perspectives.
The panelists for Gary’s session were:
- Rogerio Basso, Head of Tourism at IDB Invest
- Pablo Maturana, Vice-President of Development in the Latin America and Caribbean region at Hilton Hotels
- Alex Mai, Regional Vice-President in the Latin America and Caribbean region at IHG
"Straight lining", "stabilization" and "consolidation"
"The overwhelming sentiment from last years’ CHICOS conference in St Thomas, USVI was “the Caribbean is on fire” – in a positive sense! There was a very bullish feel amongst all participants. This year, I would best describe the feeling as one of cautious optimism", Gary recounts.
"Whilst continued growth is anticipated, there were a lot of references to “straight lining”, “stabilization” and “consolidation”."
"This more conservative approach can be attributed to a number of concerns in the marketplace that somewhat dilute the significant positive news that continues to prevail."
Gary's other key takeaways from this years' CHICOS are as follows:
Luxury sector is performing strongly
The luxury sector was certainly viewed as the strongest performing sector, which is great news for TCI. Whenever TCI statistics were included in presentations, it was very clear that we are one of the strongest performing destinations in terms of Key Performance Indicators (“KPI’s”).
Growth of Generation Z travelers
As far as growth, Generation Z (those born between 1997 and 2012) are leading the way delaying marriage, children and the purchase of homes in order to travel more and enjoy experiences.
Environmental, Social and Governance (“ESG”)
ESG issues received increasing attention, particularly as they relate to climate change and resilience.
Growth of all-inclusive model
The all-inclusive business model continues to grow with the big brands now very much active players in this market.
Insurance coverage challenges
In 2023, insurance coverage for catastrophic events was very expensive, if you could even get coverage. Ironically, that was primarily due to the impact of Hurricane Ian on the Florida Peninsula and not any major Caribbean hurricane.
This hurricane season, we experienced similar, possibly worse circumstances, with a remarkably early July 1 hurricane (Beryl) hitting Grenada and three hurricanes (Debby, Helene and Milton) hitting the Florida Peninsula. Consequently, numerous concerns were expressed about the likely high cost and limited availability of insurance for the forthcoming year.
Geopolitical tensions
Geopolitical tensions are always around along with economic concerns which they tend to aggravate. This year, such tensions were considered more serious and seen to be one of the major reasons for an element of caution in the industry.
In summary, the CHICOS conference in Barbados reflected cautious optimism in the Caribbean tourism sector, as continued growth is balanced somewhat by concerns over economic stability, rising insurance costs and global tensions. The Caribbean’s strong performance however underscores its ongoing appeal and opportunities for future development with TCI a clear standout performer in the region.
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