When travelers started booking summer trips in early 2025, one destination stood out—not because of its beaches alone, but because of a superstar. Puerto Rico saw a jaw-dropping 44% year-over-year surge in traveler interest, fueled by Bad Bunny’s historic three-month residency at the Coliseo de Puerto Rico, running from July to September. It’s not just music driving demand. The Caribbean Hotel & Tourism Association (CHTA) and Forward Keys just released the Caribbean Travel Trends 2025 Report Antigua and Barbuda, and the numbers tell a story of a region on fire. The Dominican Republic still leads the pack with 31.9% of all flight searches for Caribbean summer travel, up 7% from last year. But it’s the outliers—Puerto Rico, Chile, Colombia—that are rewriting the playbook.
Why Puerto Rico Is the New Hotspot
Bad Bunny’s residency isn’t just a concert series. It’s a cultural reset. For the first time, a Latin music icon is turning an island into a destination for months—not days. Hotels in San Juan reported 92% occupancy during the first weekend of the residency, and Airbnb bookings in the surrounding towns jumped 68%. The island’s 16.6% share of all Caribbean flight searches isn’t just luck—it’s strategy. Local officials partnered with music promoters, airlines, and luxury resorts to bundle flights, hotel stays, and VIP concert access. It worked. And now, other islands are watching closely.
The Dominican Republic’s Quiet Dominance
While Puerto Rico made headlines, the Dominican Republic kept building. With over 120,000 hotel rooms—more than any other Caribbean nation—it’s the region’s workhorse. Its growth isn’t flashy, but it’s steady. Resorts in Punta Cana and Cabarete now offer everything from yoga retreats to crypto-friendly checkouts. The country’s tourism sector contributed nearly $10 billion in 2024, and that’s expected to rise 11% this year. What’s more, it’s drawing visitors from Canada, where travel intent surged 22% for Q3 2025. “It’s not just all-inclusive resorts anymore,” says a Toronto-based travel agent who’s booked 147 trips there this quarter. “People want culture, food, adventure. The DR delivers.”
Latin America’s Unexpected Surge
Here’s the twist: the biggest growth isn’t even in the Caribbean. According to the UN Tourism and Amadeus report, Chile saw a 29% spike in arrivals, Colombia 27%, and Peru 24%. Why? Cheaper flights, improved safety, and Instagrammable ruins. Cusco’s Inca Trail bookings are up 41% since 2023. Bogotá’s food scene is now ranked among the world’s top 10 by Condé Nast. Even Mexico, with 19% growth, is outpacing Florida in some markets. And China? Search interest for the entire region jumped 427%. That’s not a typo. Chinese travelers, once focused on Europe and Japan, are now eyeing Latin America’s beaches, jungles, and colonial cities.
The WTTC’s New Game Plan
On May 29, 2025, in Santo Domingo, Christopher Imbsen, Vice President of Policy at the World Travel & Tourism Council (WTTC), announced something bigger than any single destination’s growth: the launch of the Tourism Task Force Santo Domingo. Partnering with the Inter-American Development Bank (IDB), the task force will bring together CEOs, ministers, and investors to design policy recommendations by December 2025—when they’ll present them at the CEO Summit of the Americas Punta Cana.
“This isn’t about marketing campaigns,” Imbsen told reporters. “It’s about infrastructure, visas, sustainability, and jobs. We’re talking about creating 6 million new jobs by 2035.”
The $944 Billion Dream
By 2035, the Travel & Tourism sector could pump $944.8 billion into the Latin America and Caribbean economy—up from $738.8 billion in 2025. That’s $206 billion in new value. And it’s not just hotels. The Peace, Love and Happiness (PLH) project on Barbuda, with over $500 million already invested since 2020, will add 700 luxury villas when complete. Meanwhile, the World Cup Cricket in Barbados Barbados is drawing fans from across the Commonwealth, filling hotels that were empty just five years ago.
But here’s the shadow behind the sunshine. Rising sea levels are eating away at coastal resorts. Hurricanes are becoming more unpredictable. In 2024, the OECD warned that without resilient infrastructure, tourism could lose $20 billion annually by 2030. That’s why the new task force’s first priority is climate adaptation funding.
What’s Next?
The next six months will be critical. The WTTC-IDB task force will tour seven countries, holding roundtables with local hoteliers, indigenous communities, and airline CEOs. Meanwhile, airlines are adding direct flights from Beijing to Bogotá and Toronto to Punta Cana. And if Bad Bunny’s residency is any indicator, the next big boom might come from unexpected places—think reggaeton festivals in Cartagena, jazz in Havana, or food tours in Oaxaca.
One thing’s clear: the Caribbean and Latin America aren’t just rebounding. They’re redefining themselves. No longer just sun-and-sand getaways, they’re cultural powerhouses—and the world is finally catching on.
Frequently Asked Questions
Why is Puerto Rico growing faster than other Caribbean islands?
Puerto Rico’s 44% surge in travel interest is driven primarily by Bad Bunny’s unprecedented July–September 2025 residency at the Coliseo, which has triggered a wave of bundled travel packages. The island’s government and private sector collaborated to offer flight-hotel-concert bundles, attracting younger, higher-spending travelers. This cultural moment, combined with strong digital marketing and improved air connectivity, has lifted Puerto Rico from a niche destination to a top-tier draw.
How is the WTTC’s new Tourism Task Force different from past initiatives?
Unlike past advisory panels, the WTTC-IDB Tourism Task Force has direct access to $12 billion in development funding and mandates concrete policy deliverables by December 2025. It includes private-sector CEOs alongside government ministers and focuses on infrastructure, visa reform, and climate resilience—not just promotion. Its conclusions will be presented at the CEO Summit of the Americas, giving it unprecedented political weight.
Which countries are seeing the fastest growth outside the Caribbean?
Chile led with 29% growth in international arrivals (Sept–Dec 2024), followed by Colombia (27%) and Peru (24%). These gains stem from improved safety, affordable luxury accommodations, and global marketing of cultural assets like Machu Picchu, Bogotá’s street art, and Chilean wine regions. Chinese traveler interest surged 427%, signaling a major shift in long-haul tourism patterns.
What role does climate change play in this growth?
While tourism is booming, climate threats are escalating. Rising sea levels have already damaged 14 coastal resorts in Jamaica and the Bahamas. The OECD warns that without $3 billion in adaptive infrastructure by 2030, the region could lose up to $20 billion annually in tourism revenue. The new WTTC-IDB task force is prioritizing climate-resilient construction and insurance programs for small hotel owners.
How much of the Caribbean’s economy depends on tourism?
Tourism accounted for 25.4% of Caribbean GDP between 2015 and 2019, according to the OECD. In some nations like the Bahamas and Barbados, it exceeds 40%. By 2035, the sector could contribute $944.8 billion to the region’s economy—nearly triple its 2025 value—and support over 35 million jobs. This makes tourism the single largest economic engine in the region, even outpacing agriculture and manufacturing.
What’s the significance of the PLH project on Barbuda?
The Peace, Love and Happiness (PLH) project, with over $500 million invested since 2020, represents a new model: luxury residential tourism. Unlike traditional resorts, PLH offers long-term stays, co-living spaces, and digital nomad amenities. It’s designed to attract high-net-worth travelers who want to live, not just vacation. When complete, it will house 700 villas and could become a blueprint for post-hurricane redevelopment across the region.
