Caribbean Hotels See Drop In Occupancy Due To Zika Concerns

Performance at Caribbean hotels took a tumble this year as travelers either avoided or changed travel plans because of the Zika virus.

Occupancy in the region fell 3% from January to April, according to travel research firm STR.

In an April survey conducted by Travel Leaders Group, nearly 4% of respondents change their travel plans because of the Zika virus. 

 “A 3.9% drop in demand would have a fairly noticeable impact on occupancies, and data for the Caribbean hotel industry shows the effects already,” said STR’s VP for consulting & analytics Steve Hennis. “Coming off of a strong 2015, and despite a very modest increase in supply, all of the key performance metrics are down.”

About 47% of hotels reported an average daily rate decrease and 56% of hotels reported a RevPAR decrease.

Still, “the expectation is that Zika fears will subside and the issue will simply become another part of the travel decision-making process,” Hennis added.

Destinations have been taking preventative measures to combat the mosquito-borne virus, like supplying guests with insect repellant and spraying grounds.