Performance recovery was substantial for most of Latin America’s hotel industry in 2022, with Mexico, Central America and South America easily surpassing their pre-pandemic comparables in revenue per available room (RevPAR). While all three experienced substantial growth in room rates, Central America came closest to 2019 level in occupancy.
If it’s not one thing, it’s another—or two or three. The Latin America and Caribbean region is not alone in the hardship exacted by COVID-19 and now added detriments, including high inflation, rising interest rates and labor costs, but the region’s hotels are showing resilience.
Affluent Leisure Demand Drives Rebound from Downturn
Latin America, including Central America and some Caribbean destinations, is gearing up for a hot and spicy Christmas this year as international travellers seek some respite in the sun during the Northern Hemisphere winter. However, you’d be surprised to learn which global origin markets are behind this subtle reactivation!
Latin America’s popular leisure markets, especially beach destinations, have continued to post hotel occupancy levels above 40%, according to data from STR through 25 July.
Regional markets in Latin America continue to lead recovery as performance in key cities has lagged. In this article, we analyzed that trend for several key markets to assess where occupancy recovery stood at the end of 2020.
Some markets heading in the right direction
For the week ending 22 August, Peru posted the highest occupancy level (43.9%) in Latin America followed closely by Chile (34.6%). Hotels in Colombia and Panama posted the lowest occupancy levels in the region at just 8.1% and 9.3%, respectively.